Share with your friends

Czech Republic: Changes to taxation of listed investment funds

Czech Republic: Taxation of listed investment funds

The Chamber of Deputies passed legislation that would amend, for income tax purposes, the definition of a “basic investment fund.”


Related content

The amended definition would affect conditions under which funds with shares that have been accepted for trading on an EU regulated market would be subject to income tax at a rate of 5%.

The rules for other basic investment funds—unit funds; investment funds and sub-funds of joint-stock companies with variable capital that invest more than 90% of the value of their assets into statutory investment and financial instruments; and comparable foreign investment funds—would remain unchanged.

Basic investment fund

Investment funds listed for trading on an EU regulated market would qualify as basic investment funds only if:

  • No entity subject to corporate income tax holds a share of 10% or more in the fund’s registered capital (except for certain international financial organizations and central banks), and 
  • The entities do not conduct transactions or trade under the conditions prescribed by the trades licensing law.


Read a July 2018 report prepared by the KPMG member firm in the Czech Republic

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal