Bank deposit interest of investment funds is not subject to tax

Bank deposit interest of investment funds is not subject to tax.

Following the filing of a complaint against the cancellation letter number 212/200/p. dated 10 April 1401 of the head of the country’s tax affairs organization, according to which it is stipulated that interest on bank deposits of investment funds is subject to Note 1 of Article 143 of the Direct Taxes Law and Non-implementation of Clause (R) of Note 6 of the Budget Law of 1401 of the country and Clause 2 of Article 145 of the Law on Direct Taxes in the case of legal entities, with the exception of the cases mentioned in the above note, will not result in the inclusion of tax on the interest of bank deposits of investment funds, the General Board of the Court of Justice The administration dealt with this complaint and issued a decision not to revoke the aforementioned regulation.

In this regard, “Mohammed Javanmardi”, director of legal and disciplinary affairs of the Securities and Exchange Organization, referring to the issuance of the decision of the General Board of the Court of Administrative Justice on “non-revocation of the resolution of the Tax Affairs Organization of the country regarding the exemption of investment funds from the payment of interest tax on bank deposits” He stated: Previously, there were complaints before the General Board of the Court of Administrative Justice, regarding the revocation letter No. 212/200/p on April 10 of this year, of the head of the Tax Affairs Organization of the country, regarding the exemption of investment funds from paying bank deposit interest tax to the Organization of Tax Affairs. The country’s tax was brought up.

He continued: According to the aforementioned resolution, considering that one of the main activities of the funds according to their approved statutes is investing in all kinds of securities, deposits, and bank deposit certificates, therefore, considering that the interest on bank deposits of investment funds is part of their income. , the subject is covered by Note 1 of Article 143 of the Direct Taxes Law, and the failure to mention the names of the funds in the exceptions of Clause (r) of Note 6 of the Budget Law of 1401 does not result in tax being collected from them.

Referring to the timely action of the Securities and Exchange Organization in providing relevant explanations and defenses despite the lack of addressing and paying attention to the complaint to this organization, Jawanmardi clarified: Since investment funds are considered one of the important pillars of the capital market and are of great importance for capital investors, with the follow-up conducted by the legal deputy of the stock exchange organization at the court of administrative justice, finally the general board of that court considered the defenses to be significant and with the agreement of the majority of the judges of the court, the appropriate decision was made that the said resolution was legal and not invalidated. issued

According to this official in the organization, the income of the investment fund is exempted from paying income tax and value added tax based on Note 1 of Article 143 of the Direct Taxes Law, and this exemption remained in force even now with the issued decision.

The director of legal and regulatory affairs of the Securities and Exchange Organization said: Bank deposit interest of investment funds is not subject to tax and the resolution of the country’s tax affairs organization regarding “exemption of investment funds from payment of bank deposit interest tax” remains in force.

This post is written by shadmanamini