Advance lump sum

(1) The advance lump sum is the amount by which the distributions of an investment fund within a calendar year fall below the base income for that calendar year. The base income is determined by multiplying the redemption price of the investment unit at the beginning of the calendar year by 70 per cent of the base rate under subsection (4). The base income is limited to the increase arising between the first and the last redemption price fixed in the calendar year, plus the distributions within the calendar year. Where no redemption price is fixed, the exchange or market price takes the place of the redemption price.
(2) In the year of acquisition of the investment units, the advance lump sum is reduced by one-twelfth for each full month preceding the month of acquisition.
(3) The advance lump sum is deemed to accrue on the first working day of the following calendar year.
(4) The base rate is to be derived from the long-term achievable yield of public bonds. The interest rate to be used is that which the Deutsche Bundesbank calculates, on the basis of interest structure data, for the first trading day of the year in each case. The Federal Ministry of Finance publishes the applicable interest rate in the Federal Tax Gazette.