Current Developments in the Taxation of Private Equity / Venture Capital Funds Financial Yearbook 2026

Our tax and law firm has been dealing with a wide range of tax compliance issues concerning private equity funds and their (German) partners for more than 29 years now. In recent years, we have regularly reviewed income tax issues in the FYB Financial Yearbook. These included, for example, the classification of income received from private equity and venture capital funds and the tax treatment of carried interest, both at the level of the carry holders and at the level of private equity funds. We also addressed the issue of value-added tax on management fees. Another key topic was the (mandatory) tax neutrality of repayments of capital contributions by EU and third-country corporations. We have examined these areas and their varying developments in recent years, and where necessary, also took a critical look at them.

In this year’s article, we take a detour into inheritance tax law and (once again) address inheritance tax aspects of the valuation of private equity funds.