Finland Supreme Administrative Court Clarifies Income, Withholding Tax Exemption for Real Estate Investment Funds

Daily Tax Report: International

Dec 16, 2022, 5:00 AM

The Finnish Government Legal Database Dec. 12 posted online Decision No. KHO:2022:138, clarifying the income and withholding tax exemptions for real estate investment funds. The taxpayer, a Luxembourg contractual umbrella fund, had one direct fund shareholder and a sub-fund that invested mainly in real estate and real estate securities. The tax agency disallowed the exemptions because the sub-fund invested greater than one-fifth of its assets in real estate construction and development. The Supreme Administrative Court agreed and held that: 1) the exemption applies only to special investment funds engaging in real estate construction and development activities with not more than …

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