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When the new Investment Tax Reform Act (Investmentsteuerreformgesetz, InvStRefG) comes into force, on 1.1.2018, it will profoundly change the current rules for the taxation of investment funds. The German government wants to ensure that investors in funds which do not distribute income (accumulating funds) and those that distribute only some income will also have to pay tax on a minimum amount in the form of an advance lump sum. The same partial tax exemptions will apply to these, as is the case in the taxation of distributions. The amount of the tax-exempt portion here will also be based on the type of fund.