Home News Current legislation does not have time to respond to practice. Experts warn of problems with paying tax for ETF funds

Current legislation does not have time to respond to practice. Experts warn of problems with paying tax for ETF funds

0
Current legislation does not have time to respond to practice.  Experts warn of problems with paying tax for ETF funds

Paying tax is becoming a problem when investing in securities, especially in ETF funds. The current legislation and tax policy of the state have long since failed to copy and respond to practice. This was pointed out by experts from the Highgate Law & Tax office, who call for a comprehensive concept and greater legal certainty.

Experts pointed to the financial report’s argument that the ETF fund is sometimes and sometimes not tax-exempt. “Additionally, in 2021, another restriction was added to the original conditions set by the law for exemption in the sale of securities,” the office said.

image

“She demanded that the taxpayer find out more information about the ETF fund, about its legal personality and its tax regime, whether this fund can be considered a taxpayer of corporate income tax abroad, etc. And then, depending on the classification of the fund, apply either tax regime the sale of securities, or the redemption of a share certificate,” she added.

Lawyer Peter Varga from the office explained that this approach has no basis in law. If the sale of shares in the ETF fund is not to be exempt from income tax, then for other reasons.

image

“If we assume that investing in single stocks is generally more risky than in ETF funds, then applying one of the arguments of legal logic and maiore ad minus (from greater to lesser) there cannot be rules for exempting the sale of shares in ETF funds in the practice of financial administration stricter than with the stock titles themselves,” pointed out Varga.

According to him, it cannot happen that two similar and almost competitive products have different conditions.

Since, according to the lawyer, apparently every investor in Slovakia has some ETF fund in their portfolio, the current legislative situation worries many. Its necessary change in order to establish a certain legal certainty is therefore, according to Vargo, a legitimate demand.

01 – Modified: 2024-03-09 18:00:47 – Feat.: 1 – Title: Two steps of the state hinder cheaper mortgages. Greece also has lower interest rates than us, warns a financial expert for HN

01 – Modified: 2024-03-09 14:30:00 – Feat.: – Title: How to correctly apply expenses and what options do you have? (overview) 02 – Modified: 2024-03-04 14:30:00 – Feat.: – Title: Flat rate versus actual expenses. What is more worthwhile when and to whom? 03 – Modified: 2024-03-02 14:30:00 – Feat.: – Title: Are you interested in being a volunteer? These are your duties 04 – Modified: 2024-03-03 11:58:13 – Feat.: – Title: Bitcoin on the rise again, attacking historical highs 05 – Modified: 2024-03-01 07:06:29 – Feat. : – Title: Record Bitcoin shows where the world is heading. But there is also a warning signal – extreme greed has taken over



source