The Tax Form and Status of an Investment Fund
The Tax Code determines the foundations of the tax regime of an investment fund. An investment fund is an enterprise founded, in accordance with the Law of Georgia on Investment Funds, in the form of a joint investment fund or an investment company. Under the same law, the activity connected with the management and administration of a fund, and the provision of depository services to it, is treated as a financial service. For funds investing in real estate this means that the choice of the form of the fund and the tax qualification of its services are defined from the outset, and tax planning must be built within this framework. It is also essential that each sub-fund of an umbrella fund is treated for the purposes of this regime as an independent investment fund, which creates additional flexibility in structuring.