Partial exemption

(1) For equity funds, 30 per cent of the income is tax-free (equity partial exemption). For natural persons who hold their investment units as business assets, the equity partial exemption is 60 per cent. For investors subject to the Corporate Income Tax Act, the equity partial exemption is 80 per cent. The second and third sentences do not apply 1. where the investor is a life or health insurance undertaking and the investment unit is attributable to investment assets, or 2. where the investor is an institution or undertaking under section 3 no. 40, third sentence of the Income Tax Act or under section 8b(7) of the Corporate Income Tax Act and the investment unit is to be allocated to the trading book within the meaning of section 340e(3) of the Commercial Code, or is to be shown as current assets at the time of entry into business assets. The fourth sentence, no. 1 applies accordingly where the investor is a pension fund.
(2) For mixed funds, half of the equity partial exemption applicable to equity funds is to be applied.
(3) For real estate funds, 60 per cent of the income is tax-free (real estate partial exemption). For foreign real estate funds, 80 per cent of the income is tax-free (foreign real estate partial exemption). Application of the real estate partial exemption or the foreign real estate partial exemption excludes application of the equity partial exemption.
(3a) Subsections (1) to (3) also apply to investment units held indirectly through partnerships. The first sentence does not apply to partnerships that have opted for corporate taxation under section 1a of the Corporate Income Tax Act.
(4) Where the investor demonstrates that the investment fund actually continuously exceeded the equity fund or mixed fund equity-investment quota, or the real estate fund or foreign real estate fund quota, during the calendar year, the partial exemption is to be applied, on the investor's application, in the assessment. Where the investor, in a subsequent assessment period, realises losses of more than EUR 500 from the disposal of investment units, or claims diminutions in value within the meaning of section 6(1) no. 2, second sentence of the Income Tax Act, of investment units for which it previously provided the proof under the first sentence, it is obliged to obtain, for the entire holding period, the information necessary to examine the conditions for a partial exemption, and the redemption prices at each calendar year-end, and to submit these to the tax office with the tax return. A tax certificate under section 45a(2) of the Income Tax Act, or a loss certificate under section 43a(3), fourth sentence of the Income Tax Act, must be attached to the tax return where losses are realised from the disposal of investment units held or managed by a paying agent under section 44(1), fourth sentence of the Income Tax Act. In the case of the second sentence, an assessment is to be carried out notwithstanding section 46(2) of the Income Tax Act. Insofar as the investor does not satisfy the obligation under the second sentence, the tax office may apply, for the loss attributable to the entire holding period, the highest partial exemption rate demonstrated by the investor.
(4a) The tax office competent for the investor's assessment may, in the case of losses from the disposal of investment units, or diminutions in value within the meaning of section 6(1) no. 2, second sentence of the Income Tax Act, of investment units, itself, within the assessment, provide the proof that the investment fund actually continuously exceeded the equity fund or mixed fund equity-investment quota, or the real estate fund or foreign real estate fund quota, during the calendar year, and determine the amount of the redemption prices.
(5) In determining the trade income under section 7 of the Trade Tax Act, the exemptions under subsections (1) to (3) are to be taken into account only to half.