After publishing a speaker design of the Federal Ministry of Finance (BMF) for a law to modernize the framework for capital investments (MoRKG) by June 29, resorts, countries and societies to were called upon to submit their comments until July 20. The result is little heartening for the BMF. In a paper the BMF was summarized as follows aim and substance of the legislation: tax funded should be future venture capital companies (WKB-), which means \”clear defined circle of target companies in one\”, i.e. non-listed, young company create with an age of more than ten years and an equity capital of up to EUR 20 million at the time of the acquisition of the shares. Overall, the tax incentives shall not exceed EUR 465 million. The authorisation and supervision of the WKB companies should design to follow are the Bundesanstalt fur Finanzdienstleistungsaufsicht (BFin). The company a WKB-in the form of the Partnership, which holds only shares in corporations, shall be deemed in compliance with certain conditions asset managing. To find a tax only on the level of the investor instead of (\”transparent taxation\”).

On the management level, the draft envisages no additional tax incentives. As a contribution to the counter financing is planned to reduce the tax-free share of the profits of the Manager (\”carried interest\”) generally to 40% from 50% of the compensation. For the practice of great importance, it is still that venture capital financing losses should remain at the level of the target companies due to an exemption in the Act. Also, legal certainty in the point of the financing of the target companies designed by debt and mezzanine capital. In particular, the provisions of the banking supervision law this should be inapplicable. LEGO Papert Professor pursues this goal as well. In his opinion, the Federal Association of German equity (BVK) said had not succeeded, a single for the whole range of private equity valid rules to create\”- in spite of identical problems in all fields of the equity capital.