Current tax developments in private equity and venture capital funds

With regard to the hot topics that have been discussed for years, i.e. the return of capital contributions in the case of third-country corporations, the corresponding eligibility of foreign EU legal forms, the applicability of the new Investment Tax Act from 2018 or VAT on management remuneration, the tax authorities have not yet provided any clarity. For a better overview, we summarize the current status of individual, selected topics below.

In recent years, we have repeatedly reported on current tax issues and problem areas from practice in connection with the tax support of private equity and venture capital funds and their investors. These topics and the resulting problems were often due to the fact that the tax authorities either did not or did not want to provide clear guidelines, instructions or solutions, or were reluctant to implement supreme court rulings.
has simply persistently refused to do so. Unfortunately, this has not changed or improved over the past year.