Final application decree on the Foreign Tax Act reduces the administrative burden of add-back declarations
At the end of last year, the Federal Ministry of Finance published the application decree on the CFC Act. There is positive news to report: (1) Investors, for whom the attributed income does not trigger a tax liability, do not have to submit a CFC return (for example, pension funds and investment funds), (2) for the calculation of the degree of control, there is no presumption of acting together with the other partners of a partnerships if partnership interest does not exceed 5 percent.
Note: This newsletter is only available in German language.
From growth to promotion law - changes to the interest barrier now in the Secondary Credit Market Promotion Act
In our beinformed dated October 4, 2023, we presented the intended changes to the previous interest rate cap regulations and the introduction of the so-called interest rate cap through the Act to Strengthen Growth Opportunities, Investment and Innovation as well as Tax Simplification and Fairness (Growth Opportunities Act). The Growth Opportunities Act was ultimately not passed, but some of the regulations on the interest rate cap have made it into the Act to Promote Orderly Secondary Credit Markets and to Implement Directive (EU) 2021/2167 on Credit Service Providers and Credit Purchasers and to Amend Other Provisions of Financial Market Law (Secondary Credit Market Promotion Act), which has now been passed. The anti-fragmentation regulation (amendment to the regulation of exemption limits) and the interest rate cap still provided for in the Growth Opportunities Act were not included in the Secondary Credit Market Promotion Act.
Note: This newsletter is only available in German language.
AIFMD Review - New rules for debt funds
In October, the EU Parliament, the Council and the Commission concluded the trilogue negotiations on the AIFMD review. The negotiated text of the draft directive amending the AIFMD and the UCITS Directive is expected to be adopted by the EU Parliament and the Council in the first quarter of 2024. We present the new regulations for loan-originating AIFs ("debt funds").
Note: This newsletter is only available in German language.