Corporate Venture Investment Fund (CIF) is the optimal financial instrument for professional investing. It is a legal entity, which is formed in the form of a joint-stock company and conducts only joint investment activities. CIF’s assets are managed by a professional stock market participant licensed by the National Securities and Stock Market Commission (NSSMC) – an asset management company (AMC).

According to Article 4 of the Law of Ukraine “About joint investment institutions”, an individual may be a participant in a venture CIF provided that the securities of such fund are acquired in an amount that at a nominal value of these securities is not less than 1500 minimum wages per month, established by law on January 1, 2014, wich is, not less than 1 827 000 UAH.

To protect the rights of participants of the corporate investment fund and control its activities, compliance with the terms of the reglament, the investment declaration and the asset management agreement, the Corporate Fund Supervisory Board is created.

The main advantage of a CIF is the exemption of transactions with its assets from income tax (according to item 141.6.1. Of the Tax Code of Ukraine).

Also, according to item 167.5.4. Of the Tax Code of Ukraine, the income of an individual in the form of dividends on shares accrued by joint investment institutions are taxed at half the rate of tax on the income of individuals, so at the rate of 9%, which, taking into account the absence of income tax on transactions with assets of the Fund, is the lowest personal income tax rate!

On February 7, 2019, the Law of Ukraine “About currency and currency transactions” came into force – an event that is difficult to overestimate – for the first time citizens of Ukraine were given the opportunity to invest freely abroad and have legal confirmation of ownership – extract from the custodian, if, for example, the asset is securities of foreign issuers. In this case, an individual has the opportunity to invest no more than 50,000 euros a year without an individual license from the National Bank of Ukraine (NBU), while a legal entity – to invest 2,000,000 euros (according to item 88-89 of the NBU’s Resolution No. 5 of January 2, 2019 “About Approval of the Regulation about measures of protection and determination of the procedure of performing some transactions in foreign currency”).

At the same time, the assets of a venture CIF may be 100% comprised, including, of securities of foreign issuers, as well as of real estate, government bonds, corporate rights, banking metals and other assets. This means that you have the opportunity to own, including, shares of the world’s largest companies producing the best goods in the world, wich regularly pay dividends of an average of 2-6% per year from the market price of the shares.