In July 2018 legislation has been passed which changes the definition and taxation of an elemental investment fund. The amendment to the Act on Income Tax entering into force 1 January 2019 provides a new definition of an elemental investment fund and sets new conditions for investment funds whose shares in the trading process at the European regulated market.

The main reason for the change is that these funds have been taxed at 5% without actually conducting investment activity, and thus the state was loosing substantial amounts of corporate income tax. Newly, these investment funds in which a legal person (not including the state or state firms) owns more than 10% shares will be taxed at 19%. At the same time it must be ensures that the fund does not carry out a business activity under the conditions laid down by the Trades Licensing Act.. Rules concerning other elemental investment funds stayed unchanged.