Insight
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Insight
Another positive ruling by the Federal Fiscal Court on the taxation of management participation programs
The German Federal Fiscal Court (BFH) has amended its case law on the distinction between types of income regarding employee and management participations. According to this amendment, it is no longer necessary to weigh up all factors when distinguishing between income from capital assets and income from employment, provided that the participation is effectively established and carried out in accordance with the contract. Income from such participation is generally classified as income from capital assets.
in: Private Equity Magazin, www.pemagazin.com, January 26, 2026
