Usage of investment fund confers the following advantages to the Investor:
1) Cost saving for income-tax expense
(In accordance with paragraph 141.6.1 of article 141 of the Tax Code of Ukraine funds obtained from collective investment scheme (CIS), income earned from CIS asset operations and income accrued from CIS assets are not included to the gross revenue).
2) Earning of dividend income by Investment Fund Owner:
- tax for natural person is 20% from the earned income.
(Paragraph 167.1 of article 167 of the Tax Code of Ukraine)
- tax for natural person (nonresident of Ukraine) is 20% from the earned income.
(Paragraph 170.10.1 of article 170 of the Tax Code of Ukraine)
- dividends earned by legal entity is nontaxable income.
(Paragraph 140.4.1 of article 140 of the Tax Code of Ukraine)
- for legal entity (nonresident of Ukraine) registered in the country with which the contract of double taxation exemption has been made, dividends in Ukraine are nontaxable (income tax is imposed in the country of person’s residence).
(Paragraph 141.4.2 of article 141 of the Tax Code of Ukraine).
3) Investment Fund is not engaged in entrepreneurial activity, it is engaged exclusively in investment activity (purchase and sale of securities, profit participation rights, real estate and provision of loans). Activity of Investment Fund is open and transparent that minimizes contact with different control authorities.
These advantages will allow Investor – Fund Owner to use Investment Fund for the purpose of holding and keeping of Investor’s assets and planning of tax payments of Investor’s principal activity.