Czech Republic: Taxation of listed investment funds | KPMG | BE
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Czech Republic: Changes to taxation of listed investment funds

Czech Republic: Taxation of listed investment funds

The Chamber of Deputies passed legislation that would amend, for income tax purposes, the definition of a “basic investment fund.”

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The amended definition would affect conditions under which funds with shares that have been accepted for trading on an EU regulated market would be subject to income tax at a rate of 5%.

The rules for other basic investment funds—unit funds; investment funds and sub-funds of joint-stock companies with variable capital that invest more than 90% of the value of their assets into statutory investment and financial instruments; and comparable foreign investment funds—would remain unchanged.

Basic investment fund

Investment funds listed for trading on an EU regulated market would qualify as basic investment funds only if:

  • No entity subject to corporate income tax holds a share of 10% or more in the fund’s registered capital (except for certain international financial organizations and central banks), and 
  • The entities do not conduct transactions or trade under the conditions prescribed by the trades licensing law.

 

Read a July 2018 report prepared by the KPMG member firm in the Czech Republic

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