The Bundesrat approved the new investment tax law on July 8, 2016. This law will govern German and foreign funds receiving German source income and capital gains as of 1 January 2018. Our beinformed gives you concise information on the relevant issues for foreign funds and investors.

On 8 July 2016, the German Bundesrat (Upper House of Parliament) passed the German Investment Tax Act in the version previously adopted by the German Bundestag (Lower House of Parliament) on 9 June 2016. beinformed analyzes the reform and its ramifications.

The German Federal Tax Court has decided in its judgement dated December 16, 2015, that a factor’s liability for the VAT in a factored debt does not cease with the surrender of the proceeds of the debt collection to the original creditor. The German Federal Tax Court confirmed the factor’s joint and several liability for the lost VAT.