Trade tax on special investment income

(1) In determining the trade income under section 7 of the Trade Tax Act, section 42(4) and section 3 no. 40 of the Income Tax Act and section 8b of the Corporate Income Tax Act do not apply to capital income under section 43(1), first sentence, nos. 1, 1a and 6 and second sentence of the Income Tax Act contained in the distributed or deemed-distributed income, and to domestic equity income attributed to the investor under section 30(1), second sentence. This does not apply where 1. the debtor of the capital income is a company under section 26 no. 6, second sentence, 2. the investor is subject to the Corporate Income Tax Act and is not an institution or undertaking under section 3 no. 40, third or fourth sentence of the Income Tax Act or section 8b(7) or (8) of the Corporate Income Tax Act, and 3. the holding in the capital of the company mathematically attributable to the investor's special investment units satisfies the conditions for a reduction under section 9 nos. 2a and 7 of the Trade Tax Act.
(2) The partial exemptions to be granted under section 43(3) are to be taken into account, in determining the trade income under section 7 of the Trade Tax Act, only to half.
(3) The investor's income tax rate is not reduced by the trade tax paid by the special investment fund under section 29(1) in conjunction with section 15. The trade tax paid by the special investment fund is not deductible, for the investor, as a business expense or income-related expense.