Amendment to the Investment Companies and Investment Funds Act (the “ICIF”)

The amendment introduces certain income tax changes in the area of investment funds. It is proposed that the entire amendment to the ISIF Act shall take effect on 1 July 2024.

It will now also be possible to create sub-funds within a limited partnership on limited partnership certificates as well as for the newly introduced legal form of a public limited company with fixed share capital ("SICAF"). This is also linked to the new definition of a corporate taxpayer, whereby, in general, any sub-fund of an investment fund shall constitute a corporate taxpayer.

There has also been a change to the definition of a "basic investment fund" - that is, a fund that is subject to the lower 5% income tax rate. If the 90% asset value test is met, a sub-fund will also constitute a basic investment fund, regardless of the legal form of the investment fund - provided that it meets, inter alia, the condition for admission of shares to trading on a European regulated market.

Sub-funds will also be able to depreciate the tangible assets of which they are part. This possibility has not yet been explicitly mentioned in the law.