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published on 28 January 2025 | reading time approx. 4 minutes
Management participations play an important role − particularly in the context of venture capital and private equity transactions − in order to promote the alignment of interests between investors and management. Managers participate directly in the success of the company and at the same time are tied to the company and encouraged to act entrepreneurially. From a tax perspective, however, there are a number of pitfalls to consider when structuring management participations. Two selected problem areas are presented below against the background of the current case law of the German Federal Fiscal Court (Bundesfinanzhof – BFH) and the legislative changes resulting from the German Annual Tax Act 2024 (Jahress-teuergesetz 2024).
Christoph Götz
Partner
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Susann Sturm
Manager
Transaction advisory | Mergers & Acquisitions