Disposal of special investment units, application of partial value

(1) Where the special investment unit is disposed of, or a profit from the special investment unit is realised in another way, 1. section 3 no. 40 of the Income Tax Act, section 8b of the Corporate Income Tax Act and section 44 apply to the investor equity gain, 2. the investor treaty gain is to be exempted from taxation and section 44 applies, and 3. the investor partial-exemption gain is to be exempted from taxation and section 44 applies. The first sentence applies accordingly, on a balance-sheet application of a lower partial value to the special investment units under section 6(1) no. 2, second sentence of the Income Tax Act, and on a partial-value write-up under section 6(1) no. 2, third sentence of the Income Tax Act, to the acquisition cost of the special investment units. Section 30(3) applies accordingly to the application of section 3 no. 40 of the Income Tax Act and section 8b of the Corporate Income Tax Act.
(2) The investor equity gain per special investment unit is, subject to a correction under the fourth or fifth sentence, the difference between the fund equity gain at the time at which the special investment unit is disposed of, or a profit from the special investment unit is realised in another way, or is to be valued, and the fund equity gain on acquisition of the special investment unit. The first sentence applies accordingly to determining the investor treaty gain and the investor partial-exemption gain. On a balance-sheet application of a lower partial value to the special investment units under section 6(1) no. 2, second sentence of the Income Tax Act, the differences determined under the first or second sentence are, subject to a correction under the fourth or fifth sentence, limited to the effect on the balance-sheet carrying amount. The differences determined under the first to third sentences are in each case to be corrected by the investor equity gain, investor treaty gain or investor partial-exemption gain applied at the end of the previous business year. The corrections under the fourth sentence apply accordingly, on a balance-sheet partial-value write-up under section 6(1) no. 2, third sentence of the Income Tax Act, to the acquisition cost of the special investment units. The investor equity gain, investor treaty gain or investor partial-exemption gain determined under the first to fifth sentences may be positive or negative.
(3) Section 20(4) of the Income Tax Act applies accordingly to determining the profit from the disposal of special investment units that do not form part of business assets. The profit from the disposal of special investment units is 1. to be reduced by the deemed-distributed income already taxed during the holding period, and 2. to be increased by the domestic and foreign tax paid on that income, reduced by the domestic and foreign tax refunded for the financial year or earlier financial years. Deemed-distributed income distributed in a later financial year within the holding period is to be added to the disposal proceeds. Furthermore, the profit from the disposal is to be increased by the capital amounts and depreciation amounts accruing during the investor's holding period. Allocation amounts and real estate allocation amounts not distributed to the investor reduce the profit from the disposal.
(4) Section 15b of the Income Tax Act applies accordingly to losses from the disposal of special investment units and to losses through application of the lower partial value to special investment units.
(5) Insofar as a person subject to unlimited tax liability does not hold its special investment units as business assets, the following are equivalent to a disposal of special investment units at fair market value: 1. the ending of the investor's unlimited tax liability as a result of giving up domicile or habitual residence, 2. the gratuitous transfer to a person not subject to unlimited tax liability, and, 3. subject to nos. 1 and 2, the exclusion or restriction of the Federal Republic of Germany's right of taxation as regards the profit from the disposal of the special investment units. The first sentence applies only where the sum of the taxable profits determined under subsections (1) to (3) and section 56 is in total positive. Section 6(1), second and third sentences and (2) to (5) of the Foreign Tax Act and section 17(1), fourth sentence and (2), third to fifth sentences of the Income Tax Act apply accordingly. In applying section 6(3), first sentence, no. 2 and (4), fifth sentence, no. 5 of the Foreign Tax Act accordingly, the distributed and deemed-distributed income takes the place of the distribution of profits, and the capital amounts under section 35(5) take the place of the repayment of contributions. Section 6(3), first sentence of the Foreign Tax Act applies with the proviso that, instead of the lapse of the tax claim on account of a merely temporary absence, the profits determined under sections 49 and 56 are to be taken into account at the time the special investment unit is actually disposed of or is deemed disposed of under section 52(2), first sentence. The special investment unit is, in the cases of the fifth sentence, deemed acquired at fair market value at the beginning of the day following the disposal under the first sentence. In the case of the first sentence, no capital gains tax is to be levied. The investor must inform the special investment fund without delay of the disposal under the first and fifth sentences.