The bill H.R. 591 proposes the introduction of Sec. 899 of the U.S. Internal Revenue Code, which would impose additional withholding taxes on U.S. income of foreign investors from countries which, from the U.S. perspective, apply extraterritorial or discriminatory taxes. These tax surcharges of up to 20 percentage points would also override double taxation treaties and could, for example, affect German investors in U.S. fund structures. Although certain existing exemptions—such as those for Qualified Foreign Pension Plans—could theoretically continue, their protection under Sec. 899 has not yet been conclusively clarified.

The bill H.R. 591 proposes the introduction of Sec. 899 of the U.S. Internal Revenue Code, which would impose additional withholding taxes on U.S. income of foreign investors from countries which, from the U.S. perspective, apply extraterritorial or discriminatory taxes. These tax surcharges of up to 20 percentage points would also override double taxation treaties and could, for example, affect German investors in U.S. fund structures. Although certain existing exemptions—such as those for Qualified Foreign Pension Plans—could theoretically continue, their protection under Sec. 899 has not yet been conclusively clarified.

On August 22, 2024, the Federal Ministry of Finance published the draft bill for a Second Act on the Financing of Future-Proof Investments (Zwei­tes Zu­kunfts­fi­nan­zie­rungs­ge­setz – ZuFinG II). The aim is to enable real estate funds to supplement their real estate portfolio with investments in connection with renewable energies and charging stations. We present the envisaged changes to you.