closed-end funds
September 20, 2011 | 20,00 EUR | answered by Dr. Yanqiong Bolik
Hello! Do I have to pay trade tax when investing in a closed-end fund (renewable energies) or only income tax and solidarity surcharge? Can I use my exemption order here? Thank you!
Dear inquirer,
Thank you for your inquiry, which I will gladly answer taking into account your input and the rules of this platform.
Please note that my explanation is based on the information provided, and that adding, omitting, or changing details may alter the tax result.
In the absence of information, the following explanation relates to a commercial closed-end fund in the legal form of a GmbH & Co. KG. In this setup, the investor (partner) exercises their own entrepreneurial initiative and bears entrepreneurial risk.
The profit of a commercial fund is subject to trade tax at the fund level. The trade tax is paid by the fund company. The trade tax base amount determined for the fund company is divided according to the profit distribution key and allocated to each individual investor. Within the income tax assessment, the investor can deduct the allocated share of trade tax according to § 35 EStG from their income tax.
From the profit shares, the investor generates income from business operations for income tax purposes, which must be taken into account when determining the income tax.
You can use an exemption order for income from capital assets. Unfortunately, you cannot issue an exemption order for profit shares classified as income from business operations.
I hope I was able to assist you.
If there are still uncertainties, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 9332 2657
Email: info@zdbz.de
