Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: German fund tax law: The hedge is down

Friday, July 31, 2015

By: WTS

The soft trade barrier of the peculiar German tax compliance is de facto lifted. For the first time, international funds will de facto be granted a comparable competitive playing field with their German counterparts as the tax compliance complexity and its inherent cost for UCITS and AIFs would be reduced to almost zero.

WTS would like to offer a brief executive summary and business evaluation of the interesting content of a recent draft bill on the future reform of German fund tax law.

The German legislator – after years of internal discussion – initiates the legislative process on a new Investment Tax Law providing for a fund taxation concept that implies a radical cultural change. The legislator now favors opaque over transparent taxation as the grand solution for the future.

The draft is dated 21 July 2015 and outlines the main ideas of the German Ministry of Finance for discussion purposes; it is not yet a formal legislative proposal. The Ministry has asked for industry comments by 1 September 2015.

A. Executive Summary

The concept paper differentiates between two substantially distinct tax systems:

  • A traditional tax transparent concept for non-natural investors of so-called Spezialfonds
  • A new opaque tax concept for the investors of all other funds such as UCITS, AIFs, single investor funds, except for partnerships.

For most retail, mutual and hedge funds (UCITS and AIFs), the draft bill proposes abolishi......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1