More than 80 management companies proposed to the authorities an additional mechanism to replace the tax on closed-end mutual funds On October 22, 83 management companies (MCs) sent an appeal to Prime Minister Mikhail Mishustin, State Duma Speaker Vyacheslav Volodin and the head of the presidential administration Anton Vaino (available from RBC Investments). He talks about the consequences that will result from the introduction of a 15% tax on the profits of closed-end investment funds (closed-end investment funds). The managers point out that the proposed tax is negotiable because the bill does not provide a mechanism for accounting for the expenses associated with the fund. This may mean that the actual tax burden on the fund's profits will be between 50 and 75%, with a normal project profitability of 20-30%, the letter emphasizes. What is suggested to be done? To impose on a regular basis income tax and personal income tax not on closed mutual funds themselves, but directly on their shareholders (they can be both legal entities and individuals) according to the general rules of the tax code. "One of such mechanisms could be the introduction of a mandatory regular distribution of a portion of the income generated in the closed trust fund to the investment shareholders," the appeal states. In addition, the management companies suggest that when taxing closed mutual funds, one should focus on the net profit index. For those closed-end mutual funds that pay shareholders more than 50% of net income, leave everything as it is now. And those who distribute less than 50% of the net income are liable for income tax at the expense of the fund's property. Read more about what the criminal law proposed to the government, the State Duma and the presidential administration.

More than 80 management companies proposed to the authorities an additional mechanism to replace the tax on closed-end mutual funds On October 22, 83 management companies (MCs) sent an appeal to Prime Minister Mikhail Mishustin, State Duma Speaker Vyacheslav Volodin and the head of the presidential administration Anton Vaino (available from RBC Investments). He talks about the consequences that will result from the introduction of a 15% tax on the profits of closed-end investment funds (closed-end investment funds). The managers point out that the proposed tax is negotiable because the bill does not provide a mechanism for accounting for the expenses associated with the fund. This may mean that the actual tax burden on the fund's profits will be between 50 and 75%, with a normal project profitability of 20-30%, the letter emphasizes. What is suggested to be done? To impose on a regular basis income tax and personal income tax not on closed mutual funds themselves, but directly on their shareholders (they can be both legal entities and individuals) according to the general rules of the tax code. "One of such mechanisms could be the introduction of a mandatory regular distribution of a portion of the income generated in the closed trust fund to the investment shareholders," the appeal states. In addition, the management companies suggest that when taxing closed mutual funds, one should focus on the net profit index. For those closed-end mutual funds that pay shareholders more than 50% of net income, leave everything as it is now. And those who distribute less than 50% of the net income are liable for income tax at the expense of the fund's property. Read more about what the criminal law proposed to the government, the State Duma and the presidential administration.