What is a Study Fund and what are its advantages?
A Study Fund is a savings instrument designed for salaried workers and the self-employed, enabling them to enjoy special tax benefits together with professional investment management in the capital market. The money in the Fund becomes liquid after 6 years of saving and can be withdrawn for any purpose as a capital amount exempt from capital gains tax (for deposits up to the beneficiary ceiling). After 3 years of saving, the money can be withdrawn for professional training, or when reaching retirement age. There is no obligation to withdraw the money accumulated in the Study Fund after 6 years, so that it is possible to continue saving and benefit from the yield on the saved amount. A saver who deposits up to the beneficiary ceiling amount in a Study Fund enjoys a double tax benefit: at the time of making the deposit, and when withdrawing the money. For the self-employed, a deposit in a Study Fund is deemed a recognized expense, while salaried workers do not pay income tax on the employer’s contribution. At the time of legal withdrawal (for deposits up to the beneficiary ceiling), the money in the Study Fund will be exempt from capital gains tax. The Study Fund money is invested in a range of capital market investment tracks of varying risk levels, and savers can choose the most suitable track for their needs and the period of saving. Savers can switch tracks at no cost and with no tax event, and in fact tailor the savings to changing market situations and their own changing needs over the savings period.
