Since 1.1.2018, foreign investment funds have been subject to the following with their

• domestic investment income,
• domestic real estate income and
• other domestic income

subject to corporation tax. If a foreign investment fund generates taxable income in Germany, it can apply for a status certificate. With this status certificate, the investment fund can
reduce its capital gains tax to 15 percent.

The Federal Central Tax Office (BZSt) issues the status certificate for investment funds,

• for which the management of the legal representative (usually the capital management company) is located abroad and
• whose income subject to corporation tax in Germany is exclusively subject to withholding tax

The following entities fulfill the requirements of an investment fund:

• Undertakings for collective investment in transferable securities (UCITS)
• Alternative investment funds (AIF)
• Organizations whose number of investors is limited to one investor, but which otherwise meet the requirements for an investment fund
• corporations that are prohibited from engaging in entrepreneurial activities and are not subject to income taxation or are exempt from it
• Investment funds managed by AIF capital management companies

Investment funds must submit a status certificate for

• each individual fund or
• each sub-fund of an umbrella fund

apply for a status certificate.
No separate status certificate must be applied for unit classes.

The application for the issue of the status certificate must be submitted in writing to the BZSt.

Note:
Domestic investment funds apply for the status certificate at the locally competent tax office.
Foreign investment funds whose income taxable in Germany is exclusively or partially not subject to withholding tax also apply for the status certificate at the local tax office.
Only foreign investment funds whose income taxable in Germany is fully subject to withholding tax or which do not generate any income taxable in Germany apply to the BZSt for the status certificate.