Capital gains and other income from capital

Starting from 2010 also income made of capital are being imposed to Personal Income Tax, including:

  • profit from a capital increase, which is determined by a capital asset’s* alienation price and purchase costs difference, also payment, which is received from liquidating quota according to Commerce Law, and the an investment worth difference.

  • income from dividends, interests and the other income that is related to those, also income that is related to interest income, profit from private pension funds, income from life insurance contracts with accumulation of funds.

*Capital assets are:

  • shares, stocks, debentures, investments in a partnership and other financial instruments that are mentioned in the Law of Financial Instruments Market;

  • investment fund certificates and other transferable securities, which confirms the participation of investment funds or common investment companies that are comparable to them;

  • debt instruments (bonds, certificates of deposit, short-term debt instruments issued by commercial companies) and other monetary instruments that are traded in the money markets;

  • real estate (including rights to obtain real estate);

  • enterprise according to the Commercial Law;

  • objects of an intellectual property.

Incomes from capital gains include also an income from business actions, which are focused on the acquisition of capital asset disposals. 15% rate has been applied on income from capital gains and 10% rate for the other types of the income from a capital.

To distinguish between income from a capital and an income from an economical action, which is taxed to 26% rate, the Law provides that the gain from a capital income does not qualify as an economical activity, if the costs associated with earning this income are not recognized as the economical activity expenses.

LLC "INNOVATOR" will give you an advice in matters of application the Personal Income Tax. Under the heading "Declaration of income from capital form" You can fill out the declaration on the income from capital.

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