ISLA received an update from EY representatives following a meeting with Germany’s Ministry of Finance.
Responding to ISLA’s concerns expressed in four principal points, EY advised that:
According to EY these four principal points need to be confirmed by the Federal States’ representatives and most likely will be communicated by Germany’s Finance Ministry in Q1 2018 in the form of a letter to the industry associations.
ISLA are aware a lot of market participants are busy putting in place German Tax Addendum. There is a desire for an industry standard and as such a first draft that will now be updated based on the above. ISLA understand the need to finalise this as soon as possible so that it can be used and will be working with a select group to finalise.
To conclude, ISLA believe this is a very positive outcome and are well aware of the concerns and uncertainty that has been circulating and hope this will allow you all to continue to participate in lending German equities into 2018.