Domestic equity income and other domestic income subject to tax deduction

(1) The liability to corporate income tax for the domestic equity income of a special investment fund lapses where the special investment fund declares irrevocably to the withholding agent that tax certificates under section 45a(2) of the Income Tax Act are to be issued to the investors of the special investment fund (transparency option). In this case the investors are deemed the creditors of the domestic equity income and the debtors of the capital gains tax.
(2) Section 8b of the Corporate Income Tax Act is, subject to subsection (3), applicable to the equity income attributed to the investor, insofar as 1. it concerns profit distributions of a company within the meaning of section 26 no. 6, second sentence, and 2. the holding in the capital of the company mathematically attributable to the investor's special investment units satisfies the conditions for an exemption under section 8b of the Corporate Income Tax Act.
(3) Section 3 no. 40 of the Income Tax Act and section 8b of the Corporate Income Tax Act do not apply to the domestic equity income attributed to the investor where the investor 1. is a life or health insurance undertaking and the special investment unit is attributable to investment assets, or 2. is an institution or undertaking under section 3 no. 40, third sentence of the Income Tax Act or section 8b(7) of the Corporate Income Tax Act, and the special investment fund holds, to a material extent, units that a) would be attributable to the trading book within the meaning of section 340e(3) of the Commercial Code, or b) would be shown as current assets at the time of entry into business assets, had they been acquired directly by the institution or undertaking. The first sentence, no. 1 applies accordingly where the investor is a pension fund.
(4) Where the investor of the special investment fund is a special fund-of-funds, subsections (1) to (3) apply accordingly to the special fund-of-funds and its investors. This does not apply insofar as the special fund-of-funds holds special investment units in another special fund-of-funds.
(5) Subsections (1) to (4) apply accordingly to other domestic income of a special investment fund that is subject to a tax deduction on receipt by the special investment fund. This does not apply to other domestic income under section 6(5), first sentence, nos. 2 and 3.