Domestic real estate income and other domestic income without tax deduction

(1) The liability to corporate income tax for the domestic real estate income of a special investment fund lapses where the special investment fund levies capital gains tax under section 50 on distributed or deemed-distributed domestic real estate income, remits it to the competent tax authority, and issues tax certificates to the investors under section 45a(2) of the Income Tax Act. A special investment fund's liability to trade tax under section 29(1) in conjunction with section 15 does not lapse.
(2) The distributed or deemed-distributed domestic real estate income is deemed, for a receiving investment fund or special fund-of-funds, income under section 6(4). This is subject to a tax deduction without taking into account section 7(1), third sentence. The tax deduction as against a special fund-of-funds lapses where the special fund-of-funds declares irrevocably to the target special investment fund that tax certificates under section 45a(2) of the Income Tax Act are to be issued to the investors of the special fund-of-funds (real estate transparency option). Where the real estate transparency option is exercised, income is deemed to have accrued 1. directly, for investors subject to limited tax liability, as income within the meaning of section 49(1) no. 2(f), no. 6 or no. 8 of the Income Tax Act, 2. for investors that are investment funds or special funds-of-funds subject to unlimited tax liability, as income under section 6(4), and 3. for other investors, as special investment income.
Section 31(1) and (2) and section 32 apply accordingly. Special funds-of-funds to which domestic real estate income is attributed under the fourth sentence, nos. 1 or 2, may not, to that extent, exercise the real estate transparency option. As against the special fund-of-funds, in the cases of the fourth sentence, nos. 1 or 2, a tax deduction is to be made without taking into account section 7(1), third sentence.
(3) The distributed or deemed-distributed domestic real estate income is deemed, for investors subject to limited tax liability, directly received income under section 49(1) no. 2(f), no. 6 or no. 8 of the Income Tax Act. The first sentence and subsection (2), fourth sentence, no. 1 also apply to the application of the provisions in double taxation agreements. The deduction of capital gains tax by the special investment fund on the domestic real estate income contained in the distributed or deemed-distributed income does not, for investors subject to limited tax liability, by way of derogation from section 50(2), first sentence of the Income Tax Act, have discharging effect.
(4) Subsections (1) to (3) apply accordingly to other domestic income not subject to a tax deduction on receipt. The first and second sentences do not apply to other domestic income under section 6(5), first sentence, nos. 2 and 3.