The German 2022 Annual Tax Act will again result in changes for companies that are neither domiciled in Germany nor in the EU if they wish to repay capital to their shareholders in a tax-neutral manner. While the German Federal Ministry of Finance (Bundesfinanzministerium, or “BMF”) had just acknowledged the long-standing case law of the German Federal Fiscal Court (Bundesfinanzhof) in its Circular dated April 21, 2022, stating that these so-called third-country (non-EU) capital companies can also repay capital reserves and nominal capital in a tax-neutral manner, and under which conditions this is accepted by the German tax administration, the amendment to the law again gives rise to new questions for the legal practitioner. Particularly for investors in alternative investment funds, the now established statutory application requirement represents a practical hurdle that is difficult to overcome.