Strategy trading risk
One risk to which closed-end funds in particular are exposed is the loss of tax advantages given to the financial product. If, as happened a few years ago, the tax office assumes that the fund in question has no intention of making a profit, the tax advantages received are subsequently lost.
Closed-end real estate funds affected
In the case of closed-end real estate funds in eastern Europe, this has proved to be a boomerang for investors. Losses from tax deferral models, which the taxpayer had joined after 10 November 2005 or for which external sales had begun after 10 November 2005, could thereafter neither be offset against income from trade or business nor against income from other types of income.
Leasing funds also in focus
All movable property funds for aircraft, ships and the wide phalanx of municipal leasing funds are affected. The tax authorities have justified this as follows: If a leasing fund in its conception and economic management assumes a longer useful life than the official depreciation tables provide, the useful life stated in the conception is to be applied.
For example, a ship or an aircraft is then no longer to be depreciated over 12 years, but over the period that the fund indicates in the profit and loss accounts. Insofar as they have not yet received the blessing of the tax office in the so-called preliminary examination procedure, the extended depreciation periods also apply to existing funds.
Real estate or media funds not affected for the time being
Further changes to depreciation for real estate are not planned. Neither are media funds for the time being. In the case of these, one can assume a certain political interest in film financing projects. However, since political interests can also change, the tax accounting regulations in the laws could also be changed for these.
Future not rosy
The future does not look rosy for investors in closed-end funds either. If the tax authorities assume that a fund product lacks the intention to make a profit, which can happen at any time, there is the threat of losses of all previous tax benefits from the fund, because now a total profit is no longer achieved.
In addition, there is the threat of sanctions by the tax authorities because the effective interest rate with Exness broker was allegedly not presented properly in a large number of offers. For example, the amounts were not calculated on the basis of a previously stated return.
In the case of open-ended real estate funds, income from domestic rental income is subject to the final withholding tax, but foreign rental income does not have to be taxed in Europe. These are already taxed abroad and are subject to the respective double taxation agreements.
Final withholding tax on closed-end real estate funds
Interest income from closed-end real estate funds is also subject to the final withholding tax at a rate of 25%. In contrast, income from letting and leasing must be taxed at the personal tax rate. As before, the investor has the option of offsetting the full amount of all costs incurred in connection with the investment against the income.
If the properties within the fund are sold before the end of the 10-year holding period or the investor sells his units, this income must be declared for income tax purposes. In the case of closed-end real estate funds where the investors generate income from commercial operations, there is no change due to the final withholding tax.
2 Shanghai brewer’s biscuits
500ml water, boiled then allowed to cool
- Wash and soak the rice over night.
- Next day, steam the rice over a large muslin cloth till cooked and soft.
- Carefully add the 500ml water into the rice, place the whole in a very clean urn and leave to cool further.
- Crush the brewer’s yeast biscuits over the rice and press down on the rice.
- Create a little ‘well’ in the middle of the rice, cover the urn with clingfilm and put the urn’s lid on tightly.
- Allow it to work its magic in 2-3 days in a warm place like an airing cupboard. The fermentation process needs to be allowed to occur uninterrupted, so resist any temptation to open the urn to check on progress. A yoghurt maker or an instant pot with yoghurt making function would be perfect for this mixture at a constant 30°C .
- When the precious wine liquid can be seen gathering in the ‘well’ is when your rice wine is ready.
- Finally, keep the resulting home-made wine in the fridge, for drinking later or for use in cooking.
“Shanghai Brewer’s Biscuits”
CHICKEN, TOFU AND EGGPLANT HOTPOT
450g chicken breast or thigh (skin on)
1 tsp fish sauce
1 box soft tofu
2 garlic cloves, chopped
3 salted duck eggs, boiled
2 tsp cooking oil
1 tbsp dark soy sauce
300ml chicken stock
1 tsp corn starch dissolved in 3 tsp water
1 spring onion, sliced
- Dice the chicken and marinate in a splash of soy sauce, Chinese rice wine, cornstarch and white pepper.
- Remove the duck egg yolk and roughly chop the egg white.
- Dice the aubergines into cubes.
- In a hot wok or frying pan, add 1 tsp cooking oil till smoking hot and fry the aubergine.
- Add the garlic and fry.
- Add a teaspoon or two of water to help cook the aubergine.
- When the aubergine is soft and cooked, remove from wok and set aside.
- In the same wok, add the remaining oil and fry the chicken pieces till light golden brown.
- Add the egg white and yolk and the fish sauce and fry with the chicken till fragrant.
- In a clay pot, add the tofu, aubergine, chicken cubes, chicken stock and all the rest of seasonings.
- Bring to a boil for 5 minutes.
- Add the cornstarch water to thicken the sauce.
- Serve hot, topped with some sliced spring onions and a drizzle of glutinous rice wine.
DAIKON AND GREEN TEA BROTH
3g Miya Senchagreen tea leaves
200ml water (for brewing the tea)
salt to taste
- Add the mooli into a pot and add just barely enough water to cover.
- Bring to a boil and cook till soft.
- Season with salt.
- Separately, brew the green tea.
- Pour the tea on to the mooli to make this interesting and nutritious soup.
FRAGRANT TEA STEAM FOR LUNGS
- Choose a fragrant tea, if you can, like Lishan Oolong , or an mellow aromatic one like Emperor Pu Erh 1998 Vintage .
- Add freshly boiled water to 2 or 3 grams of tea leaves in a small cereal bowl.
- Position your face over the bowl and let yourself breathe in the steam.
- Use your hands on the edge of the bowl to keep too much steam from escaping.
- Enjoy this experience for 10 minutes, then you can sit up and drink the tea!
- Don’t forget, with a good quality tea, you can keep adding more hot water and brew the tea again and again.
- Fill a muslin bag, no bigger then the palm of your hand, with some unrefined rock salt.
- Warm the bag in a microwave.
- Lie down on your front comfortably and place the warm muslin bag on your ‘ Da Zui’ (大椎) acupuncture point. This acupuncture point is the slightly protuberant vertebra just below the back of the neck.
- Do this as often as you can, ideally every day.
- You can also aim the hot water flow at the same acupuncture point when you’re in the shower.
FOOT SOAK BEFORE BEDTIME
- Soak your feet in a barely warm water.
- Then do is very gradually add hotter water.
- When the first drop of perspiration appears on the tip of your nose, drain away the hot water and massage your feet dry.
- Then lie in bed with the soles of your feet facing each other.
- Do this in as relaxed a way as you can, staying in that position for about 10 minutes.
- This will allow your Qi energy to flow more freely via the acupuncture point that affects the kidneys.
- After that, let yourself enjoy a night of blissful rest.
RELIEF FOR DRY COUGH
- The ‘ Tai Yuan’ acupuncture point is located on the underside of the wrist, below the thumb.
- Gently massage it 10 times in a clockwise direction.
- Then massage it 10 times anti-clockwise.
- Do this three times.
- Repeat daily or whenever you can.