Corporate Venture Investment Fund (CIF) is the optimal financial instrument for the implementation of investment projects, business financing. It is a legal entity, which is formed in the form of a joint-stock company and conducts only joint venture activities. CIF 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 item 141.6.1. Of the Tax Code of Ukraine “are exempted from taxation of joint venture funds, namely: funds contributed by the founders of the corporate fund, funds and other assets attracted from participants of the joint investment institute, income from operations with assets of the joint investment institute, income accrued on assets of the joint investment institute, and other income from the activities of the joint investment institute (interest on loans, rental (leasing) payments, royalties, etc.).”

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 the personal income tax rate!

According to Article 48 of the Law of Ukraine ” About joint investment institutions”, “a venture fund has the right to lend money. Loans from venture fund may be given only to legal entities, provided that at least 10 percent of the authorized capital of the respective legal entity is owned by such a venture fund.”

According to Article 4 of the Law of Ukraine “About investment activity” “investing and financing the construction of housing objects with the use of non-state funds, attracted from individuals and legal entities, including management, can be carried out exclusively through construction financing funds, funds of operations with real estate, joint investment institutions, as well as through the issue of target bonds of enterprises, the fulfillment of obligations for which is carried out by transferring the object (part of the object) of housing construction. Other ways of financing the construction of such facilities are determined solely by law. ”

That is why investment funds have been successfully used by businesses for many years to finance construction and other projects, optimize taxation and more.