The business reputation of bank managers as a tool to minimize risks
The publication explores the issues of determining the business reputation of bank managers and its legislative regulation. Criteria of the impeccable business reputation of bank managers are considered. The influence…

Continue reading →

On issues of increasing the limitation period in civil proceedings
Professional lawyers of the Verdict consulting company from the city of Kharkov, based on their own practice, argue that in modern realities of life there is no country in which…

Continue reading →

Organization of teamwork in the legal business
Legal business is a combination of skill and managerial decisions of a managing partner, aimed at achieving the goal of a law firm. This business is characterized, in particular, by…

Continue reading →

Investor funds are taxable only once

Joint investment institutions have taken their place in the CIS market as an effective tool for financing housing, operations with loan portfolios and other investment projects. An important role in the development of joint investment institutions was played by state incentives in the form of tax incentives.

Lawyers specializing in the resolution of arbitration tax disputes indicate that the peculiarities of taxation of joint investment institutions are that, not being a legal entity, joint investment institutions do not pay income tax on income received, which avoids double taxation. That is, investor funds are taxed only once, at the stage of profit distribution among investors, but are not taxed at the level of joint investment institutions.

An important advantage of the institution of joint investment is the exemption from the obligation to pay the advance payment of income tax when paying dividends. Dividends are taxable only for individual investors at a reduced rate of 5%.

In addition, the investor of the joint investment institution may receive investment income from trading / selling operations of the certificates of the joint investment institution. A unit is a security, as a result of operations on which the investor receives income. Thus, the investor taxes the positive difference between the purchase and sale price of the unit at a rate of 5% for individuals (tax rate on personal incomes, applied for investment profit) and 10% for legal entities (corporate income tax rate on transactions with valuable papers). Operations with shares are exempt from excise tax; it is applied to operations on the sale, exchange and other methods of alienation of securities.

Thus, the existing tax incentives for joint investment institutions contribute to their successful use in investment projects. However, there is reason to believe that the tax policy of the state with respect to joint investment institutions may soon change. He is currently developing a package of amendments to bills. which contain the rules that amend the tax legislation accordingly, which are proposed to abolish tax exemptions for joint investment institutions.

If these initiatives are accepted, joint investment institutions will become payers of income tax and excise tax on securities. If the proposed changes are accepted, the mechanism for the functioning of joint investment institutions will lose their attractiveness and lead to investors seeking alternative mechanisms.

Settlement operations registrars (PPOs) - one step closer to the EU
We are so afraid of changes, we are always looking only for the negative and the arguments “against”, if only to remain in our usual “comfort zone”. The simultaneous desire…

...

Extract from the Register of Property Rights to Real Estate
The purpose of obtaining an extract. The legislation of Ukraine provides that an owner who intends to make a transaction with his real estate located on a land plot must…

...

What to look for when concluding supply contracts
The conclusion of a contract for the supply of goods is a crucial moment for business entities. Experts in the legal department of the company Bashtehsnab.Ru, which specializes in fuel…

...

How to open your own business without communicating with an official?
At the end of November 2018, the parliament radically updated the legislative framework for the registration of entrepreneurs and companies. The new legislation combines diverse initiatives: both those that have…

...