New BZSt information sheet on capital gains tax relief: Relief for personal relief entitlement in accordance with Section 50d (3) of the German Income Tax Act (EStG)

When German companies need capital, it is not uncommon for foreign investors to be approached in order to jointly usher in the next phase of growth. Especially in the current market environment, private capital is needed to make urgently required investments. One fundamental obstacle is the German capital gains tax on profit distributions to foreign investors. Even if double taxation agreements provide for a reduction in the tax, the tax authorities set extremely high requirements for such relief in practice. However, a recently published leaflet on capital gains tax relief could be a first step in the right direction to facilitate investments in Germany. In their article, POELLATH professionals Cindy Slominska and Raphael Baumgartner explain what has changed in the opinion of the tax authorities and who benefits from this.