Taxation bases for foreign special investment funds; submission of the declaration for separate and uniform assessment

For foreign special investment funds, you must submit a declaration so that the relevant tax bases for the taxation of your investors can be bindingly determined.

Investment funds are subject to corporate income tax on their

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

Special investment funds are special investment funds for institutional investors that meet statutory investment requirements.

The tax bases of foreign special investment funds and their investors are generally determined by the Federal Central Tax Office (BZSt). After the end of the financial year, special investment funds must prepare a declaration of separate and uniform assessment and submit it to the BZSt.

The declaration for the separate and uniform assessment of foreign special investment funds must be made by

• the domestic or foreign management company or
• the domestic investor

Note: In the case of domestic special investment funds and foreign special investment funds whose income taxable in Germany is exclusively or partially not subject to withholding tax, the declaration must be submitted to the locally competent tax office. The BZSt is only responsible for foreign special investment funds whose income taxable in Germany is fully subject to withholding tax or which do not generate any income taxable in Germany.

• Required document/s

  You must submit the following for the declaration on the assessment procedure:

  • the annual report or the annual financial statements and the management report for the past financial year
  • in the event of a distribution: a binding resolution by the management company on the appropriation of income
  • Sales prospectus, if it has been prepared
  • unit register
  • reconciliation statement showing how the tax bases were determined from the accounting under commercial or investment law
  • Totals and balance lists showing the composition of the income and income-related expenses of the special investment fund
  • Documents on the allocation of income to the individual investors

You are the representative of a domestic or foreign management company or the domestic investor of a foreign special investment fund.

• Appeal
• Action before the tax court

You must submit the declaration for the separate and uniform determination of the tax bases of foreign special investment funds in writing to the Federal Central Tax Office (BZSt).

• Download the form from the online form management system (FMS) of the Federal Tax Administration (BFinV) and complete it.
• Print out the completed application form. The application form must be signed by
  • the legal representative of the investment fund or
  • a person authorized by the legal representative.
• Send the signed form together with the other required documents by post to the BZSt office in Bonn.
• The BZSt will check your declaration. You may have to answer further questions or submit additional documents.
• The submitted declaration is deemed to be a determination of the basis of taxation.
• If there are any discrepancies, the BZSt will issue a notice of amendment and send it to you by post.

There are no costs.