GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW) | ||||||
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09:45 Oct 31, 2016 |
Dutch to English translations [PRO] Bus/Financial - Investment / Securities | |||||||
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| Selected response from: Kitty Brussaard Netherlands Local time: 14:12 | ||||||
Grading comment
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Summary of answers provided | ||||
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3 | closed fund for mutual account; closed FGR |
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besloten fonds voor gemene rekening closed fund for mutual account; closed FGR Explanation: Op 8 september 2014 heeft de Zweedse bevoegde autoriteit verklaard dat het Nederlandse besloten fonds voor gemene rekening ("closed FGR"), voor doeleinden van de 'Swedish Withholding Tax Act', als fiscaal transparant moet worden behandeld. https://www.rijksoverheid.nl/documenten/circulaires/2015/01/... The competent authorities of Canada and the Netherlands have reached the following mutual agreement regarding the application of the Convention between the Government of Canada and the Government of the Kingdom of the Netherlands for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (Canada-Netherlands Convention) to investors in a closed fund for mutual account / besloten fonds voor gemene rekening (hereinafter: “closed FGR”) established in the Netherlands. http://www.cra-arc.gc.ca/tx/nnrsdnts/ntcs/cndnrwy-cmptntgrmt... This client briefing provides a concise overview of the main legal, tax and regulatory features of funds for joint account (fondsen voor gemene rekening, hereinafter abbreviated as "FGR") established under Dutch law at this moment. (...) A"closed FGR" is considered a transparent entity for Dutch corporate income and dividend withholding tax purposes and therefore not subject to Dutch corporate income and dividend withholding tax. An FGR is a closed FGR if: ∎ participations in the FGR are not transferable other than to the FGR itself by way of redemption or ∎ participations are transferable only with the consent of all existing Participants http://tinyurl.com/hupx7ok -------------------------------------------------- Note added at 2 hrs (2016-10-31 11:53:38 GMT) -------------------------------------------------- On 8 June 2012 the Dutch government published a mutual agreement between the competent authorities of the US and the Netherlands (the "MA"). The MA clarifies the application of the Dutch-US income tax treaty ("Treaty") with respect to US source dividends and interest paid to a Dutch closed fund for joint account (besloten fonds voor gemene rekening; "closed FGR"). The MA was signed and entered into force on 21 May 2012. (...) Closed FGR An FGR is a Dutch investment fund vehicle which is formed by a contractual arrangement. Depending on the way it is set up, and more in particular the requirements for the admission and substitution of participations, it may be either qualified as a tax transparent (closed FGR) or as a taxable (open FGR) entity for Dutch tax purposes. An FGR is considered tax transparent when its participations can only be transferred among new or existing participants with the consent of all participants or solely transferred to the fund itself or to relatives of the participants in the direct line. Consequently, a closed FGR itself is not subject to Dutch corporate income tax and its income is directly attributed to its participants (see our Tax Alert of 12 February 2007) in which the conditions for tax transparency are discussed in more detail. The closed FGR is well suited for international investment. It is often used as an investment vehicle by Dutch and non-Dutch pension funds and other investors to pool their capital to invest collectively in a variety of assets. The main reason is to improve their return and to spread their risk. Such asset pooling can result in substantial savings for the investors. http://www.lexology.com/library/detail.aspx?g=f7dca01c-ada2-... -------------------------------------------------- Note added at 2 hrs (2016-10-31 12:00:00 GMT) -------------------------------------------------- Tax transparent fund. A tax transparent fund is not seen as a person for corporate income tax and dividend withholding tax purposes. It is referred to as a closed fund for joint account. The main requirements are: it must be an unincorporated fund and not a limited partnership; participations cannot be transferred to any person other than the fund itself or certain family members; the issue and (re)purchase of participations by the fund itself can be without the consent of the participants; the fund and/or its manager do not have to reside in The Netherlands; a tax transparent fund does not need a licence from the Dutch tax authorities. However, on request it can obtain a ruling confirming its tax transparent status; a tax transparent fund cannot obtain a certificate of residence under a double tax treaty. In practice, tax transparent funds are less used for open-ended retail funds. http://us.practicallaw.com/1-501-3129 -------------------------------------------------- Note added at 10 hrs (2016-10-31 20:38:07 GMT) -------------------------------------------------- As regards closed-end mutual fund (as suggested by JurLex but which IMHO is not correct) compare the following definitions: A"closed FGR" is considered a transparent entity for Dutch corporate income and dividend withholding tax purposes and therefore not subject to Dutch corporate income and dividend withholding tax. An FGR is a closed FGR if: ∎ participations in the FGR are not transferable other than to the FGR itself by way of redemption or ∎ participations are transferable only with the consent of all existing Participants http://tinyurl.com/hupx7ok A closed-end fund (CEF) or closed-ended fund is a collective investment model based on issuing a fixed number of shares which are not redeemable from the fund. (...) Closed-end funds are usually listed on a recognized stock exchange and can be bought and sold on that exchange. https://en.wikipedia.org/wiki/Closed-end_fund https://us.axa.com/investing/mutual-funds/what-is-difference... -------------------------------------------------- Note added at 10 hrs (2016-10-31 20:43:10 GMT) -------------------------------------------------- Beleggingsfondsen zijn er in verschillende soorten: Open beleggingsfondsen en gesloten beleggingsfondsen. Open end en closed end beleggingsfondsen. Open en gesloten beleggingsfondsen Het eerste onderscheid is tussen open beleggingsfondsen en gesloten beleggingsfondsen. De gesloten fondsen kennen geen open overdracht van participaties, en zijn dus niet op de beurs verhandelbaar. Open beleggingsfondsen kennen wel overdracht van participaties en zijn daarom wel verhandelbaar op de beurs. Open end en closed end beleggingsfondsen Het tweede onderscheid is tussen open end en closed end beleggingsfondsen. Bij een open end beleggingsfonds is de uitgevende instelling verplicht onbeperkt participaties te kopen en verkopen. Er is dus altijd een tegenpartij. Gevolg is dat de beurskoers van open end beleggingsfondsen altijd ongeveer gelijk is aan de intrinsieke waarde. Bij een closed end ligt het aantal participaties vast. De uitgevende instelling kan dus niet altijd als verkoper of koper optreden. De beurskoers van een closed end fonds kan dan ook afwijken van de intrinsieke waarde. Een extra risicofactor derhalve. https://www.beurseffecten.nl/soorten-beleggingsfondsen -------------------------------------------------- Note added at 11 hrs (2016-10-31 20:54:29 GMT) -------------------------------------------------- Van een zogenoemd open fonds voor gemene rekening is sprake, wanneer de participaties vrij verhandelbaar zijn. Dat wil zeggen dat voor de vervreemding van de participaties niet de toestemming van alle participanten nodig is. Zo’n open fonds voor gemene rekening is belastingplichtig voor de vennootschapsbelasting. Van een zogenoemd besloten fonds is allereerst sprake indien het een fonds betreft waarbij de vervreemding van de bewijzen van deelgerechtigdheid in beginsel onbeperkt kan plaatsvinden, mits daarvoor de toestemming van alle participanten verkregen is (de zogenoemde toestemmingsvariant). Deze toestemming behoeft echter niet langer actief te worden verleend. Indien voor een toetreding of een vervanging aan alle participanten schriftelijk toestemming is gevraagd en die toestemming niet binnen vier weken wordt geweigerd, mag er van worden uitgegaan dat de toestemming is verleend. De genoemde termijn gaat lopen op de dag na die waarop aan alle participanten schriftelijk toestemming is gevraagd. Het begrip toestemmingsvereiste in dit besluit wordt op deze wijze uitgelegd. Verder geldt een fonds als besloten als de vervreemding van de bewijzen van deelgerechtigdheid uitsluitend kan geschieden aan het fonds zelf of aan bloed- en aanverwanten in de rechte lijn van de participant, ook zonder dat daarvoor de toestemming van alle participanten vereist is (de zogenoemde inkoopvariant). Ook indien de participaties uitsluitend te vervreemden zijn aan het fonds zelf en het fonds deze participaties na koop in portefeuille houdt om vervolgens deze participaties eventueel opnieuw uit te geven, blijft er sprake van een besloten fonds voor gemene rekening. Een zogenoemd besloten fonds voor gemene rekening is niet belastingplichtig voor de vennootschapsbelasting. De participanten worden rechtstreeks in de belastingheffing betrokken. http://wetten.overheid.nl/BWBR0021043/2015-12-25 |
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