Amended disclosure rules on fund investors under the German tax avoidance control act (StUmgBG)
On September 18, 2020 the German Federal Ministry of Finance published a letter (German only) to the tax authorities of the German states.
In accordance to the letter a German tax resident is under § 138 Paragraph 2 and Section 138b of the German Tax Code (“Abgabenordnung”) required to disclose direct investments into foreign investment funds.
Disclosure requirements do not exists in such a case, where transactions (purchase and sell) into shares of foreign funds are executed indirectly via domestic or foreign investment funds.
Affected investors are encouraged to contact their local tax advisor for further advice.