Munich Fiscal Court: Capital gains tax withholding obligation of a Jersey-based corporation in the case of domestic de facto management

The question of the place of management plays an important role in international tax law, as it determines the tax liability of internationally active companies and also determines the country in which distributions are subject to capital gains tax. In its ruling dated June 5, 2023, the Munich Fiscal Court clarified the criteria it uses to assess the place of management of so-called “feeder funds”. “A ruling with the highest relevance for German private equity firms,” says Raphael Baumgartner.