| Corporate Investment Fund (CIF) - the concept, principles of operation, creating |
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Corporate Investment Fund (CIF) - the concept, principles of operation, creatingOn the corporate investment funds:
The Law of Ukraine "On Joint Investment Institutions (Unit and Corporate Investment Funds)" (hereinafter referred to ISI) causes the two legal forms, within which the ISI can operate:
Corporate Investment Fund (hereinafter - CIF) - is a legal entity established in the form of open joint-stock company (hereinafter - JSC), and emits the shares acquired by the investor. AMC treaty provides asset management KIF. Venture fund can exist in both of the above legal forms. And although the Law on IRS in determining the order of calculation of remuneration AMC venture capital fund is a reference to the cost of outstanding investment certificates (inherent in the mutual fund), based on the standards of the State Commission on Securities and Stock Market (see Regulation number 8) Corporate Venture Fund is entirely acceptable institution. Corporate investment fund is created according to the legislation on joint stock companies. Statutory Fund KIFThe size of the statutory fund (capital) of ICI must meet the statutory fund (capital) of (not less than 1250 times the minimum wage). Registration of share issue in order to form the initial capital of ICI by the general procedure prescribed for the JSC. Participants KIFParticipants in the venture of ICI can only be legal entities. KIF can not be based entities, in charter fund (capital) of which the share of state or local governments more than 25 percent. After the state registration of KIF as a legal person and full payment of the initial authorized capital of a corporate fund to be registered with the State Commission on Securities and Stock Market. The requirement to assets KIFStocks KIF should only be simple name. Registration of share issue venture IRS through private placements conducted in compliance with Regulation № 8. Report on results of placement ISI AMC submits to the organs of the State Commission on Securities and Stock Market in accordance with the Regulation № 3. Securities Commission within 15 days after receiving the report decides decision under IRS requirements regarding the minimum amount of assets. Exceptional views of the CIF is the total investment. Not less than 70 percent of the average annual value of assets owned by ICI on the property must be invested in securities. Requirements for the assets of ICI used in 6 months after its registration with the Securities Commission. AMC shall submit to the table of Securities Commission statements that confirm the compliance of the asset structure of ICI according to the Regulations № 487. KIF has no right to issue and post other securities other than shares, borrow or loan which exceeds 10 percent of its assets, to provide assets on bail in the interests of third persons, etc. Asset Management CIFAsset Management CIF on the basis of the relevant treaty provides AMC. In relations with third parties AMC shall act on behalf of, for and by ICI. Tax on profitsFunds are received from issue of shares are not included in the gross income of corporate ISI (KIF) based on points 4.1.1 and pp 4.2.8 Art. 4 of the profits (the latter of these subparagraphs expressly states that - funds raised from investors, collective investment institutions (ISI) to gross income are not included). Income from operations with assets of ICI and the income accrued on the assets of ICI (interest, dividends) are not included as part of its gross income by p.p.4.2.8 Article 4 of the Law on profits. Paragraph 4.2 of Article 4 of the Law on the profits: 4.2. Not included in gross income: <. . .> 4.2.8. Collective investment funds, namely funds raised from investors, collective investment institutions (ISI), income from operations with assets of ICI and the income accrued on the assets of ICI ... Furthermore, it should be noted that the payment of dividends in favor of the IRS taxpayer expense - the issuer of corporate rights will not pay an advance payment of income tax (ex-dividend tax) in accordance with Article 7 of the Act p.p.7.8.5 profits. Moment of income taxation in IIS is tied to the distribution of income:
It should be noted that current legislation contains no explicit requirements to the size and frequency of dividend payments. This question is answered by the IRS. VATSince the AMC is acting on behalf and in the interests of corporate ISI (KIF), operations with assets of ICI should be taxed according to the rules p.4.7 Article 4 of the Law on VAT. Ie operation with assets of ICI in the end are included in the tax liabilities and tax credit ICI. Nevertheless, most of the operations of ICI is not subject to VAT, namely:
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