Solsten Investment Funds plc

Transcription

1 Solsten Investment Funds plc (an umbrella fund with segregated liability between sub-funds) A company incorporated with limited liability as an open-ended investment company with variable capital under the laws of Ireland with registered number ADDITIONAL INFORMATION FOR INVESTORS IN DENMARK Information contained herein is selective, containing specific information in relation to Solsten Investment Funds plc (the Company). This document forms part of and should be read in conjunction with the full text of the Prospectus dated 15 June 2012 and the Supplement for the sub-fund Solsten Nordic Equities Fund dated 15 June This document is for distribution in Denmark only. Dated 31 October 2012 # /1 1 (8)

2 Taxation of Danish investors in the Company (an umbrella fund with segregated liability between sub-funds) 1. Disclaimer The description of Danish tax issues is based on Danish tax law in force at 31 October The information applies to investors resident in Denmark for tax purposes. The description does not constitute tax advice, and it does not address all possible tax consequences of an investment. Investors should therefore seek individual tax advice as regards the tax consequences of acquiring, holding or disposing of units in investment companies or so-called investment institutions subject to minimum taxation on the basis of their individual tax position. 2. Investment company According to the Prospectus, the Company is an umbrella investment company with segregated liability between sub-funds. The investors may request redemption of their shares on the first business day and the 15 th calendar day of each month (and if that is not a business day, the next business day). Danish tax law distinguishes between investment institutions subject to minimum taxation, so-called investment companies having a specific definition for tax purposes and accumulating investment funds issuing transferable certificates. Under Danish tax law, an investment company is defined as: 1. an entity being subject to Directive 2009/65/EC of the European Parliament and the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), or 2. a company investing in securities whose units are repurchased or redeemed at the unit holders' request out of the company's assets at net asset value. Although the company is not required to repurchase the units, the company is deemed an investment company if its business is the collective investment in securities, etc. Collective investment means that the company has at least 8 participants. An investment institution subject to minimum taxation is a fund that has notified the Danish tax authorities that it wants to be treated under the rules applicable to investment institutions subject to minimum taxation, and that it intends to meet the specific Danish tax reporting requirements. An investment fund is considered an investment company unless it has elected to be treated as an investment institutions subject to minimum taxation, and it meets the specific Danish reporting requirements. At the outset, the Company has not made election to be treated as an investment institution subject to minimum taxation and should be considered an investment company for Danish tax purposes. An accumulating investment fund is an investment fund where no dividend is distributed. If such an investment fund issue transferable certificates for the members' contributions, gains and losses are taxed according to specific rules. If no transferable certificates are issued, these accumulating investment funds are considered investment companies. Most accumulating investment funds are considered investment companies. # /1 2 (8)

3 3. Taxation of Danish investors 3.1 Ordinary companies Investments in investment companies are taxed at the general corporation tax rate of 25%. Taxation takes place when the general meeting of the dividend-paying company has decided to distribute dividends Investments in investment institutions subject to minimum taxation are taxed at the general corporation tax rate of 25% Accumulating investment funds not considered investment companies 3.2 Pension funds Investments in investment companies are included in the income taxable according to the Danish Pension Investment Return Tax Act (pensionsafkastbeskatningsloven) ("PAL") and taxed at a rate of 15.3%. Gains and are included in the taxable PAL income and taxed at a rate of 15.3%. Taxation takes place when the general meeting of the dividend-paying company has decided to distribute dividends Investments in investment institutions subject to minimum taxation are included in the taxable PAL income and taxed at a rate of 15.3%. Gains and # /1 3 (8)

4 are included in the taxable PAL income and taxed at a rate of 15.3% Accumulating investment funds not considered investment companies are included in the taxable PAL income and taxed at a rate of 15.3%. Gains and 3.3 Life insurance companies Life insurance companies which are labour market related life insurance companies are subject to PAL tax at a rate of 15.3% and not subject to general corporation tax. All other life insurance companies are no longer subject to PAL tax on a general basis but are subject to general corporation tax at a rate of 25%. However, the addition to the undistributed bonus reserves in the company remains subject to PAL tax. The taxation is temporary to the effect that the company is entitled to deduct any transfer of undistributed bonus reserves to the pension saver, while the pension savers are liable to tax on the transferred amount Investments in investment companies Life insurance companies which are labour market related life insurance companies - PAL tax on gains/losses and dividends are included in the taxable PAL income and taxed at a flat rate of 15.3%. Gains and are included in the taxable PAL income and taxed at a flat rate of 15.3%. Taxation takes place when the general meeting of the dividend-paying company has decided to distribute dividends. All other life insurance companies - Corporation tax on gains/losses and dividends are taxed at the general corporation tax rate of 25%. are calculated on the basis of the market value and taxed according to the mark-to-market principle, i.e. on an unrealised basis. are taxed at the general corporation tax rate of 25%. Taxation takes place when the general meeting of the dividend-paying company has decided to distribute dividends Investments in investment institutions subject to minimum taxation Life insurance companies which are labour market related life insurance companies - PAL tax on gains/losses and dividends are included in the taxable PAL income and taxed at a flat rate of 15.3%. Gains and are included in the taxable PAL income and taxed at a rate of 15.3%. Taxation takes place when the general meeting of the dividend-paying company has decided to distribute dividends. # /1 4 (8)

5 All other life insurance companies - Corporation tax on gains/losses and dividends are taxed at the general corporation tax rate of 25%. Taxation takes place when the general meeting of the dividend-paying company has decided to distribute dividends Accumulating investment funds not considered investment companies Life insurance companies which are labour market related life insurance companies - PAL tax on gains/losses are included in the taxable PAL income and taxed at a flat rate of 15.3%. Gains and All other life insurance companies - Corporation tax on gains/losses 3.4 Banks Investments in investment companies Banks investing in investment companies are subject to tax on gains and losses at the general corporation tax rate of 25%. are calculated on the basis of the market value and taxed according to the mark-to-market are taxed at the general corporation tax rate of 25%. Taxation takes place when the general meeting of the dividend-paying company has decided to distribute dividends Investments in investment institutions subject to minimum taxation Banks investing in investment institutions subject to minimum taxation are subject to tax on gains and are entitled to deduct losses at the general corporation tax rate of 25%. are calculated on the basis of the market value and taxed according to the mark-to-market principle, i.e. on an unrealised basis. are taxed in full at the general corporation tax rate of 25%. Taxation takes place when the general meeting of the dividend-paying company has decided to distribute dividends Accumulating investment funds not considered investment companies # /1 5 (8)

6 Banks investing in investment institutions subject to minimum taxation are subject to tax on gains and are entitled to deduct losses at the general corporation tax rate of 25%. are calculated on the basis of the market value and taxed according to the mark-to-market principle, i.e. on an unrealised basis. 3.5 Individuals Transferable units in investment institutions are considered listed units for Danish tax purposes irrespective of whether the investment institution is listed Investments in investment companies Gains are taxable as capital income at a rate of up to 45.5% (2012, the rate for 2013 is 43.5% and the rate for 2014 and later income years is 42%), and losses are deductible. The tax value of losses is approx. 33%, if the loss is below DKK 50,000 (DKK 100,000 for married couples cohabiting at the end of the income year). For losses above DKK 50,000 (DKK 100,000 for married couples cohabiting at the end of the income year) the tax value of losses is approx. 32% (2012, the tax value will decrease by one percentage point annually until 2019 at which point in time the tax value will be approx. 25%). are calculated on the basis of the market value and taxed according to the mark-to-market are taxed as capital income at a rate of up to 45.5% (2012, the rate for 2013 is 43.5% and the rate for 2014 and later income years is 42%). Taxation takes place when the general meeting of the dividend-paying company has decided to distribute dividends Investments in investment institutions subject to minimum taxation Share-based investment institutions subject to minimum taxation Individuals are subject to tax on gains or losses on the sale of units in share-based investment institutions subject to minimum taxation as share income at a rate of 27% for amounts up to DKK 48,300 (2012) and 42% for higher amounts. The amount is double for married couples cohabiting at the end of the income year. The amount is subject to annual adjustment (no adjustment will take place in 2013). are calculated on the basis of the market value and taxed upon realisation. An investment institution subject to minimum taxation is considered share-based if 50 % or more of the gross assets in average during the income year are invested in shares etc. Losses on listed units may be set off against other share income on listed shares and units. An excess loss may be set off against a spouse s dividends and gains on listed shares. Any excess losses are then carried forward indefinitely by the spouse realising the loss and the loss may be set off against dividends and gains on listed shares in subsequent years. Individuals are only able to deduct losses if the Danish tax authorities in the year of acquisition have received specific information about the acquired units. from share-based institutions subject to minimum taxation are taxed as share income at the above rates. Some older bonds which fulfil certain criteria remain tax free. # /1 6 (8)

7 Bond-based investment institutions subject to minimum taxation Individuals are subject to tax on gains or losses on units in bond-based investment institutions subject to minimum taxation as capital income at a rate of up to 45.5% (2012, the rate for 2013 is 43.5% and the rate for 2014 and later income years is 42%). However, this only applies if the total calculated net gain/loss, including the net gains/losses on certain claims and debts, exceeds DKK 2,000. are calculated on the basis of the market value and taxed according to the mark-to-market An investment institution subject to minimum taxation is considered bond-based if less than 50% of the gross assets in average during the income year are invested in shares etc. Losses on listed units may be set off against other share income on listed shares and units. An excess loss may be set off against a spouse s dividends and gains on listed shares. Any excess losses are then carried forward indefinitely by the spouse realising the loss and the loss may be set off against dividends and gains on listed shares in subsequent years. Individuals are only able to deduct losses if the Danish tax authorities in the year of acquisition have received specific information about the acquired units. from bond-based investment institutions subject to minimum taxation are taxed as capital income at the above rates. Some older bonds which fulfil certain criteria remain tax free Accumulating investment funds not considered investment companies Individuals are subject to tax on gains or losses on the sale of transferrable certificates in accumulating investment funds as share income at a rate of 27% for amounts up to DKK 48,300 (2012) and 42% for higher amounts. The amount is double for married couples cohabiting at the end of the income year. The amount is subject to annual adjustment (no adjustment will take place in 2013). are calculated on the basis of the market value and taxed upon realisation. Losses on transferrable certificates in accumulating investment funds may be set off against other share income on listed shares and units. An excess loss may be set off against a spouse s dividends and gains on listed shares. Any excess losses are then carried forward indefinitely by the spouse realising the loss and the loss may be set off against dividends and gains on listed shares in subsequent years. Individuals are only able to deduct losses if the Danish tax authorities in the year of acquisition have received specific information about the acquired transferrable certificates in accumulating investment funds. # /1 7 (8)

8 Information on Cessation of Marketing in Denmark Should the Company cease to be marketed in Denmark, the investors will be notified and all information and documentation relating to the Company available to the investors prior to the cessation of marketing activities will continue to be made available by the Company. Upon any cessation as mentioned, the Company will immediately give notice to the Danish FSA concerning the time of the applicable cessation. Measures the Company intends to implement in Denmark with a view to securing the investors' right to receive dividends and redeem units Investors will in the application form state the bank account of which the investor shall receive any payments (the same bank account as the payment from the investor is made when making a subscription in the fund). The administrator of the fund, Deutsche International Corporate Services (Ireland) Limited (the Administrator ), will make all payments to the investor to the bank account specified in the application form. The Administrator will also carry out proper anti money laundry check of all investors in the fund pursuant to applicable Irish legislation. In order to be able to redeem units, the investor should send a redemption request per facsimile or as a PDF document via to the Administrator. The Administrator will confirm safe receipt of the redemption request by written acknowledgement to the investor, and any redemption requests submitted as stated in the prospectus and supplement, will normally be dealt with on the relevant dealing day. # /1 8 (8)