Newsletters

VAT-exempt management of venture capital funds
In our beinformed of 15 December 2020, we already reported on the German Fund Jurisdiction Act, the objective of which was to make Germany more attractive as a fund location through a series of tax measures. One of these measures was the extension of the circumstances for a finding of VAT-exempt management under § 4(8)(h) of the German Value Added Tax Act (Umsatzsteuergesetz) of venture capital funds. This measure came into force on 1 July 2021, but without a definition of venture capital funds. The tax authorities have now made up for this omission almost a year after the amendment came into force with a letter by the German Federal Ministry of Finance (Bundesfinanzministerium). The definition is based on venture capital funds as defined in the EU Venture Capital Funds (EuVECA) Regulation. In addition, further requirements are mentioned in order to benefit from the advantage of VAT-free management.
Note: This newsletter is only available in German language.
Nothing is forever! - The new real estate transfer tax exemptions for a 90 percent change in the shareholder base
Two weeks ago, the supreme tax authorities of the federal states published their decrees on the application of § 1(2)(a) of the Real Estate Transfer Tax Act (Grunderwerbsteuergesetz) for changes in the shareholder partnerstructure of partnerships and § 1(2)(b) of the Real Estate Transfer Tax Act (Grunderwerbsteuergesetz) for changes in the shareholder structure of corporations. There are positive and surprising developments to report. We would like to highlight some aspects of the decrees here, in particular the new developmentsfor corporations.
Note: This newsletter is only available in German language.
German Federal Ministry of Finance on disclosure requirements for foreign investments – clarifications for the fund industry and its investors

With its Decree dated April 26, 2022, the German Federal Ministry of Finance revised its administrative guidelines on the disclosure requirements for foreign investments pursuant to Section 138 (2) of the German Fiscal Code. The Decree replaces the previous decrees dating back to 2018 and 2020, and is effective as of January 1, 2022. The Decree is welcomed as it contains some clarifications requested by the fund industry and its investors.

Note: This newsletter is only available in German language.
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