Investment Fund Sales Transactions
These are funds established for the sale of participation shares solely to qualified investors. In our country, hedge funds are entirely under the supervision of the SPK. At these stages, qualified investors include investment funds, pension funds, securities investment partnerships, venture capital investment entities, intermediary institutions, banks, insurance companies, and private financial institutions. Additionally, portfolio management companies, retirement and aid funds, certain foundations, and public benefit associations are qualified investors. On the other hand, it is essential to obtain the necessary information from experts and experienced individuals in the treasury bill tracking systems. These systems generally refer to real and legal persons who hold Turkish or foreign currency and capital market instruments. In these transactions, the tax base will be calculated based on the first-in, first-out principle on the sales proceeds, and income tax withholding will be calculated on all income generated at the time of completing all transactions.
Hedge Funds
The participation certificates of all investment funds, which consist of stocks traded in their portfolios based on live stock market tracking and continuous trading, held for more than one year, are not subject to withholding tax for all investors, including corporations and individuals who are subject to limited and full taxation. In addition, all income derived from the participation certificates of funds with a high concentration of stocks in their portfolios, on a monthly average basis, is subject to withholding tax to a certain extent for all investors. All hedge funds must focus on positive returns regardless of market conditions and follow a dynamic buying and selling strategy. They are funds that can engage in short selling, leverage, and utilize various other derivatives. With all these features, hedge funds offer investors the opportunity to increase their profit potential in positive market conditions and their protection against losses in negative market conditions. However, it should be known at these stages that it is essential to obtain the necessary services from expert and experienced individuals for live stock market tracking systems and all other transactions.
