Clifford Chance

Investment funds and REITs – new rules

19 January 2017

Pursuant to the Act of 29 November 2016 on the Amendment of the Personal Income Tax Act, Corporate Income Tax Act and Act Amending the Act - Tax Ordinance and Certain Other Acts, which came into force on 1 January 2017 (the "Amendment"), the tax regime applicable to investment funds changed. Closed-end investment funds ("CIFs") and specialised open-end investment funds ("SOIFs") operating in accordance with the rules and investment constraints applicable to CIFs are subject to corporate income tax at the rate of 19% and only certain of their income is exempt from taxation. Open-end investment funds ("OIFs") and SOIFs operating in a standard way, i.e. applying the rules and investment constraints specified for OIFs, are still, as such, exempt from corporate income tax.

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