Will Germany become competitive as a fund location when it comes to value added tax on management fees?

The Fonsstandortgesetz (German Investment Location Act), which came into force on July 1, 2021, is intended to make Germany more attractive as a location for investment funds. In addition to the tax incentives for employee shareholdings, the legislator has extended the value-added tax exemption for management fees, which is another important aspect of making Germany more competitive as a fund location.