New guidance to register as “privileged” domestic or foreign investment fund under German investment taxation law

September 12, 2017

Pursuant to the new German investment tax act (GITA) that will take effect of 1 January 2018, domestic and foreign resident investment funds may become subject to German corporate income tax with various German source income (particularly dividend income from German shares and income from German-situs real estate). The German Federal Central Tax Office (Bundeszentralamt für Steuern) recently published the necessary forms, guidance1 and a Q&A catalogue2 on how to register as an investment fund for tax purposes and receive the beneficial fund status certificate leading to a reduction of German withholding tax already on the fund level. Additionally, certain types of funds (depending on their asset allocation) may qualify for a privileged tax treatment on the level of their German taxable investors.

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