Federal Fiscal Court confirms once again: carried interest is part of a tax-recognizable profit distribution agreement

The tax treatment of carried interest has always been a long-running issue in tax audits of private equity funds. In its ruling of 16.04.2024, the Federal Fiscal Court confirmed that carried interest is to be recognized as part of the taxable profit distribution and is not to be reclassified as hidden activity remuneration. Peter Peschke and Raphael Baumgartner explain the positive consequences that investors and initiators can draw from the decision in their article in Steuerboard.