The present paper deals with the subject of the favored taxation of non-removed proceeds according to § 11a Income Tax Act 1988. According to this regulation natural persons who achieve industrial earnings, income of agriculture and forest economy or proceeds of independant personal services, and who determine their gains by accruals basis accounting, can pay tax on their yearly proceeds in the extent of the rise in equity capital and up to 100.000 ? with the favoured rate of taxation according to § 37 (1) Income Tax Act. The proceeds must not be removed, but left in the company and used to strengthen the equity capital. Proceeds respectively losings in terms of the regulation are the continuous ones. Important for the claiming of this benefits is a seven-year observation period during which the proceeds can not be removed without leading to a subsequent taxation.The requirements to claim this beneficiary are presented in details as are the parameters that lead to a rise or a reduction of the equity capital, and their impacts. Of a special importance are also the policy and procedures concerning the dissolution and subsequent taxation, above all at what time and how they should be established.The intention of § 11a was the promotion of equity capital. The previous regulation, the ?old? § 11 had the same aim, but tried to realize it on the way of equity yield rate. With the tax reform 2009 the favoured taxation of non-removed proceeds according to § 11a Income Tax Act has been canceled, but at the same time the tax allowance for invested gains according to § 10 Income Tax Act has been renamed allowance for proceeds and increased from former 10 % to 13 %.