Abstract
The article is devoted to practical problems of individuals and organisations applying tax benefits to income from the sale of shares (or participatory interests in LLC), which they have owned for more than 5 years. The author identifies two pressing problems: (1) the impact of reorganisation of a legal entity on the calculation of the period of ownership (2) limitations of benefits that apply to personal income tax, but do not apply to corporate income tax. The author considers the reasons for practical problems and proposes solutions based both on the purposes of benefits and on the economic and legal nature of investments in the authorised capital of legal entities. The author concludes that reorganisation of a legal entity should not interrupt the calculation of the period of ownership of shares. However, in the author’s opinion, the shortcomings in the law text will entail practical problems until the law is amended. The author also comes to the conclusion that limitations on personal income tax benefits will inevitably entail audits by Russian tax authorities when applying corporate income tax benefits.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
