Apply for a status certificate for a tax reduction on income from foreign investment funds

Foreign investment funds that generate taxable income in Germany can, under certain conditions, apply for a status certificate to reduce their tax burden.

Since January 1, 2018, foreign investment funds have been subject to their

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

corporate 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 its
Reduce capital gains tax to 15 percent.

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

• whose legal representative's management board (usually a capital management company) is located abroad and
• whose corporate income in Germany is subject exclusively to tax deduction

The following entities fulfill the requirements of an investment fund:

• Undertakings for Collective Investment in Transferable Securities (UCITS)
• Alternative Investment Funds (AIF)
• Entities whose number of investors is limited to one, but which otherwise meet the requirements for an investment fund
• Corporations that are prohibited from engaging in operational business activities and that are not subject to income tax or are exempt from it
• Investment funds managed by AIF asset management companies

Investment funds must provide a certificate of status for

• each individual fund or
• each subfund of an umbrella fund

apply for.
No separate status certificate needs to be requested for share classes.

The application for issuing 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 not subject to withholding tax, either in whole or in part, must also apply for the status certificate at the locally competent tax office.
Only foreign investment funds whose income subject to taxation in Germany is fully subject to withholding tax—or that do not generate any income subject to taxation in Germany at all—apply to the BZSt for a certificate of status.

You must submit the application for the status certificate in writing to the Federal Central Tax Office (BZSt).

• Download the application form from the Federal Finance Administration's (BFINV) Online Form Management System (FMS) and fill it out.
• Print out the completed application form. The application form must then be signed by
  • a legal representative of the investment fund or
  • its authorized representative

be signed.

• Please mail the signed application form, along with the other required documents, to the BZSt’s headquarters in Berlin.
• The BZSt will review your application. If necessary, you may be asked to answer additional questions or submit additional documents.
• If your application is approved, the BZSt will mail the status certificate to the address of the legal representative or authorized recipient listed on the application form. Otherwise, you will receive a notice of denial by mail.

Note:
The status certificate may be sent by mail to a foreign country only if this is permitted under international law. For some countries, international law does not permit the BZSt to send status certificates by mail (you can find a current list of these countries on the BZSt website under “Questions and Answers – Formalities”). In these cases, it is mandatory to designate a domestic (German) authorized representative to receive the document.

• Application: The status certificate may be requested retroactively for a maximum period of up to 6 months prior to the date of application (the date the application is received by mail is the determining factor).
• Validity of the status certificate: up to 3 years; after that, a new application must be submitted

Note:
If the status certificate is not available at the time the capital gains are received, the full amount of capital gains tax will be withheld. In this case, it is still possible to submit a refund application subsequently – while observing the 18-month deadline.

none

• Objection
• Administrative court lawsuit