The Benelux benefis
The first Merrill Lynch trusts to be sold in Poland will be launched by the investment group's Luxembourg office to take advantage of the Benelux country's more lenient tax regime.
In Luxembourg, dividends are taxed at a zero rate, and the remission of the fund share is treated in the same way as a dividend. By contrast, in Poland 19 percent is charged in both cases. Merrill Lynch's first trust fund in Poland will pay its clients an untaxed dividend.
The clear regulations and low taxes have by now attracted funds whose equity is nearly R1 (zł.3.9) billion.
After Poland's EU accession, foreign financial institutions abounded on the market, chiefly because they do not have to go through the bureaucratic processes of registration in Polish institutions. They are saved by a so-called European passport that allows them to operate within the European Union.
The association that will manage the investment fund companies will not be registered in Poland. Being registered in Luxembourg, it has a great fiscal advantage over the Polish trustees. This year Merrill Lynch wants to open from six to 10 trusts in Poland. A.B.
In Luxembourg, dividends are taxed at a zero rate, and the remission of the fund share is treated in the same way as a dividend. By contrast, in Poland 19 percent is charged in both cases. Merrill Lynch's first trust fund in Poland will pay its clients an untaxed dividend.
The clear regulations and low taxes have by now attracted funds whose equity is nearly R1 (zł.3.9) billion.
After Poland's EU accession, foreign financial institutions abounded on the market, chiefly because they do not have to go through the bureaucratic processes of registration in Polish institutions. They are saved by a so-called European passport that allows them to operate within the European Union.
The association that will manage the investment fund companies will not be registered in Poland. Being registered in Luxembourg, it has a great fiscal advantage over the Polish trustees. This year Merrill Lynch wants to open from six to 10 trusts in Poland. A.B.
