Pursuant to Article 93 of the Personal Income Tax Act, a share of an umbrella fund is considered capital, so that upon redemption the investor is taxed by the rules on capital gains under ZDoh-2.
Tax aspect of saving in funds
The tax base for determining the amount of tax is defined as the difference between the value of a fund share upon sale and the value of a fund share upon acquisition.
Personal income tax is calculated and paid from the established tax base at the rate of 27.5 %.
Capital gains are taxed on a schedular basis, which means that these incomes are not included in the annual personal income tax return. The personal income tax rate is reduced every completed five years of holding the fund's shares and amounts to as follows:
|
Investment period |
Capital gains tax rate |
|
0–5 years |
27.5 % |
|
5–10 years |
20 % |
|
10–15 years |
15 % |
|
15–20 years |
10 % |
|
More than 20 years |
0 % |
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