Navigating Fund Tax Compliance
Despite the current challenging market conditions, private equity funds and venture capital funds are enjoying great popularity. At the same time, they entail significant tax reporting requirements. In addition to long-standing investors increasing their stake, there are a large number of new investors who are investing in private equity funds and venture capital funds in Germany and abroad for the first time. From a tax compliance perspective, the challenge today lies, in particular, in the scope and increasing complexity of tax reporting and the quantity of data to be processed.
In the following, WD Treuhand provides an insight into how we as your dedicated and trusted German tax advisor can support funds and fund managers in successfully mastering these challenges and thereby differentiating themselves from their competitors by using state-of-the-art tech solutions.
The challenge
For tax departments of private equity and venture capital platforms and their investors, it is crucial to be able to calculate risks quickly and to have an up-to-date overview of the relevant obligations and deadlines.
If investors subject to German tax liability participate in (foreign or domestic) private equity funds or venture capital funds, generally, among other things, a separate and uniform assessment declaration has to be prepared and submitted to the competent tax authority. In addition, there may be further obligations, such as reporting pursuant to section 138 German General Tax Code, reporting in accordance with DAC6 (cross-border tax arrangements) or, as the case may be, the submission of a German CFC declaration. For investors, which in the private equity sector regularly encompass insurance companies and other large capital investors (including corporates, pension funds, sovereign wealth funds, family offices etc.), it is more important than ever that all compliance requirements are met in a correct and timely manner.
The challenges here typically include obtaining the required information (e.g., at the level of a private equity fund's investments) and the complexity of data preparation and calculation in accordance with the respective tax requirements.
The WD Treuhand Advantage
Against the background of the above and based on many years of experience in advising private equity funds and venture capital funds, WD Treuhand as your dedicated and trusted German tax advisor offers risk-oriented, efficient and complexity-reducing solutions in the area of fund tax compliance. We provide a comprehensive, tailor-made tax reporting framework that uses modern technology, increases efficiency and obviously assures full tax compliance.
In addition, we are happy to provide our fund clients with further private equity and venture capital related services, such as MEP structuring and administration, acquisition structuring and SPA tax advice.
Contact us and discover how our expertise and solutions can elevate your fund business through seamless and efficient fund tax compliance.