Since 1.1.2018, foreign investment funds have been subject to tax with their domestic investment income, domestic real estate income and other domestic income to corporate income tax. If a foreign investment fund generates taxable income in Germany, it can apply for a status certificate. With this status certificate, the investment fund can reduce its capital capital gains tax to 15 per cent. The Federal Central Tax Office (BZSt) issues the status certificate for investment funds, for which the management of the legal representative (usually the capital management company) is located abroad and whose income subject to corporation tax in Germany is exclusively subject to withholding tax. The following entities meet the requirements of an investment fund: Undertakings for Collective Investment in Transferable Securities (UCITS) Alternative investment funds (AIF) Entities whose number of investors is limited to one, but which otherwise meet the requirements for an investment fund Corporations that are prohibited from operating as a business and that are not subject to income taxation or are exempt from such taxation. investment funds managed by AIF capital management companies Investment funds must have a status certificate for each individual fund or each sub-fund of an umbrella apply. No separate status certificate is to be applied for unit classes. The application for the issuance of the status certificate must be submitted in writing to the BZSt. Notice: Domestic investment funds apply for the status certificate at the locally competent tax office. Foreign investment funds whose income that is taxable in Germany is not subject to withholding tax in whole or in part also apply for the status certificate at the locally competent tax office. Only foreign investment funds whose income that is taxable in Germany is fully subject to withholding tax or which do not generate any income that is taxable in Germany apply for the status certificate from the BZSt.