annual report 31 Mar 2006 - SEB Asset Management

of an exemption instruction they will be exempt in an
amount up to the savings allowance including the lumpsum
allowance for income-related expenses (EUR 1,421/
EUR 2,842). Domestic dividends are subject in their full
amount to withholding tax on dividend income of 20%
upon distribution or retention. Private investors are immediately
reimbursed the withholding tax on dividend
income, provided the units are held by the investment
company or another domestic bank and an exemption
instruction for a sufficient amount or a non-assessment
certificate has been submitted. For private investors, only
half of domestic dividends are counted towards the
exemption limit (half-income system). If an exemption
instruction or a non-assessment certificate is not submitted
in good time, investors can offset the retained withholding
tax on dividend income and the solidarity surcharge
against their personal income tax liability by
supplying a tax certificate from their custodian bank.
On the instructions of the fiscal authorities, the withholding
tax on dividend income applicable to individual
investors is calculated as follows: the portion of distribution
income subject to withholding tax on dividend
income is first multiplied by the number of units held
by the investor at the distribution date and 30% savings
tax charged on this amount. The same procedure applies
to withholding tax on dividend income. In this case, the
dividend portion attributable to the individual investor
is multiplied by 20% for the purposes of computing
withholding tax on dividend income. If units are held as
business assets, a waiver or a reimbursement of the savings
tax and a reimbursement of the withholding tax on
dividend income are only possible upon presentation of
a non-assessment certificate. In other cases, investors
receive a corresponding tax certificate.
Solidarity surcharge
The solidarity surcharge on income and corporation tax
amounts to 5.5%. Insofar as distributions from Fund
units are subject to deductions of withholding tax on
dividend income/savings tax, the retained withholding
tax on dividend income is taken as the basis of calculation
for the solidarity surcharge. The solidarity surcharge is
disclosed separately in the tax certificate and counts
towards the final solidarity surcharge to be ascertained
in the course of income or corporation tax assessment.
Excess solidarity surcharge payments are reimbursed.
Private disposals
If investment units in a real estate fund are sold by a
private investor within a year of purchase (taxable period),
any capital gains are taxable in principle as income from
private disposals, and must be disclosed in Annexe SO
of the investor’s income tax return. Capital gains realised
outside the taxable period are tax-free for private investors.
In calculating the capital gains, the acquisition
costs are to be reduced by the interim income at the time
of acquisition, and the disposal price by the interim income
at the time of disposal, so that interim income is
not taxed twice (see below). Capital gains are not subject
to the half-income system.
Taxation of interim income
Since 1 January 2005, interim income has again been subject
to taxation. Interim income consists of income contained
in the sale or redemption price for interest received
or accrued that has not yet been distributed or retained by
the Fund and is therefore not yet taxable for the investor
(comparable to accrued income on fixed-interest securities).
Interest income and interest claims generated by the Fund
are subject to income tax and withholding tax on dividend
income in the case of the redemption or sale of units by
German tax residents. Investment income tax on interim
income amounts to 30% if the units are held by custodian
banks, and 35% in the case of self-custody (plus 5.5% solidarity
surcharge on the withholding tax on dividend income
in each case). The withheld tax is an advance payment
on income tax and must be disclosed in Annexe KAP.
Interim income paid on the purchase of units can be
deducted as negative income for income tax purposes in
the year of payment. It is also recognised as reducing the
tax burden for the purposes of tax deduction. In addition,
no tax is deducted in the case of an exemption instruction
or submission of a non-assessment certificate. Here, too,
non-residents for tax purposes are exempt as a matter of
Annual Report as of 31 March 2006 59