Delovoy Peterburg and Novy Prospect quoted Sergey Nikitenko’s explanation of the purpose of creating personal funds

The mechanism of a personal fund as a form of asset management was introduced in Russia by law in 2022. The founder’s property (real estate, securities, shares in organisations, etc.) with a total value of at least RUB 100 m is transferred to the personal fund by right of ownership. At the same time, the data on the founder, assets and beneficiaries of the fund shall be kept secret and shall not be disclosed.

Sergey Nikitenko, Associate of Private Wealth practice at Maxima Legal, explained to Delovoy Peterburg newspaper that personal funds are created to fulfil a number of tasks relevant to any asset owner. Among the most popular objectives are inheritance and tax planning, ensuring continuity of business management and preserving its integrity during divorce and inheritance proceedings.

In addition, interest in personal founds is also growing because of  the tax reform. If 90% of the income from asset management through a personal fund is from passive sources (dividends, bond coupons, rents, etc.), the fund’s profit will be taxed at 15%, whereas from 1 January 2025 legal entities – owners of assets – will pay income tax at 25%.

It should be noted that Sergey’s comment was also quoted in the material of  Novy Prospect publication.

To read the full article (in Russian), please, see Delovoy Peterburg newspaper`s website >>>

To read the full article (in Russian), please, see Novy Prospect website>>>