Q&A: frequently asked questions

A corporate fund is a legal entity that is formed in the form of a joint-stock company and conducts exclusively joint investment activities.
Law of Ukraine "On institutions of joint investment", Art. 8

— Legal entity (residents/non-residents) without investment amount restrictions.

— A natural person who purchased securities of a venture fund in an amount that, based on the nominal value of these securities, amounts to at least 1,500 minimum wages per month, established by law dated 01.01. 2014.

— An individual who purchased securities of a joint investment qualification institute in an amount that, based on the nominal value of these securities, amounts to at least 100 minimum wages in the monthly amount established by law dated 01.01. 2014.

Law of Ukraine "On institutions of joint investment", Art. 4

The bodies of the corporate fund are the general meeting and the supervisory board.

Law of Ukraine "On institutions of joint investment", Art. 15

The minimum amount of the authorized capital of a corporate fund is 1,250 minimum wages in the monthly amount established by law on the day of registration of the fund as a legal entity.

Law of Ukraine "On institutions of joint investment", Art. 13

Joint investment funds are exempt from taxation, namely: funds contributed by the founders of the corporate fund, funds and other assets raised from members of the joint investment institute. Income from transactions with the assets of the joint investment institute, income accrued on the assets of the joint investment institute, and others income from the activities of the joint investment institute (interest on loans, rental (leasing) payments, royalties, etc.).

Tax Code of Ukraine: paragraphs 141.6. 1., clause 141.6., article 141.

Value added tax. When conducting transactions involving CIF assets that are subject to (VAT), the tax is paid on general grounds.

Cash, real estate, land plots, securities, corporate rights, property rights (including property rights of intellectual property); loans (provided that at least 10% of the authorized capital of the relevant legal entity belongs to such a venture fund), claim rights (rights of claim can be acquired exclusively as part of the assets of the venture fund and only under credit agreements of banks concluded with legal entities); fixed assets (only to the qualified assets of the CIF of rental assets class, provided that the property is transferred to third parties by entering into annuity, lease agreements (sublease)).

Law of Ukraine "On institutions of joint investment", Art. 48, Decision of the NSSMC dated 10.09.2013, No. 1753

CIF income is the difference between the purchase price of an asset and the price of its disposal. In addition, rent, annuity, interest (discount) income, loan usage fee, dividends in favor of CIF, royalties.

When paying dividends, the AMC withholds dividend tax from the accrued amount:
— for the benefit of natural persons (residents and non-residents) 9% (in addition, a military tax of 1.5% is withheld and paid). Tax Code of Ukraine: paragraphs 167.5.4., paragraph 167.5., article 167
— tax on dividends is not withheld for the benefit of resident legal entities;
— for the benefit of non-resident legal entities, tax on dividends is withheld in accordance with the Convention on Avoidance of Double Taxation between the Government of Ukraine and the Government of the State of the relevant jurisdiction.

An asset management company is a business partnership created in accordance with the law in the form of a joint-stock company or a limited liability company. It engages in professional activities related to the management of assets of institutional investors based on a license issued by the Commission. Law of Ukraine "On institutions of joint investment", Art. 63