Selling Shares in Authorized Capital: New Taxation Rules

Starting in 2025, significant changes to personal income tax (PIT) rules for income from the sale of shares in the authorized capital of Russian organizations will come into effect. These changes will affect both residents and non-residents. Here is what you need to know and how to prepare.

What Changes for Tax Residents?

1. New PIT Rates:
   • 13% for income up to 2.4 million rubles per year;
   • 15% for income exceeding 2.4 million rubles.
2. Limitation of Exemptions:
   • The PIT exemption for shares held for more than 5 years will now apply only to income up to 50 million rubles.
3. Tax Deductions:
   • Income from the sale of shares will no longer be part of the main tax base, meaning certain deductions will no longer apply.

What Changes for Non-Residents?

1. Elimination of Exemptions:
   • Non-residents will no longer be exempt from PIT on income from the sale of shares, even if they have held them for more than 5 years.
2. Tax Deductions:
   • Tax deductions will not be available, including deductions for acquisition costs.

Why Is This Important?

These changes could significantly increase the tax burden when selling shares. Failure to plan transactions or errors in calculations could lead to additional costs and penalties.

How Can We Help?

Our legal team can help:

• Assess tax risks when selling shares.
• Optimize the structure of transactions in light of the new rules.
• Develop a strategy for holding and exiting a business.

Don’t delay preparing for these changes. Reach out to us today to minimize your tax risks.

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