Determination of the income from capital and Tax paymentThe income from capital gainAn income from capital is received the day, when a person gets remuneration (money or other goods), except the cases, when:
taxable person receives the income from capital disposal in a longer time than 3 taxation periods, counting from the year, when the contract of disposal was set - a still non-received remuneration from the buyer for the tax purposes is regarded as an income in the third tax period.
the exchange of shares and parts of capital had been made, without receiving any other kind of remuneration - the day when the shares or the parts of capital, which was obtained by the exchange, are disposed, is regarded as the day of the income.
A capital gain is regarded by the difference of the price between disposal of the assets and the value of purchase. The rules of the value of purchase costs and certain types of expenditure are determined by the law ‘’About the Personal Income Tax’’ 11.9th article.
The declaration of income from capital gain must be submitted:
until the next month’s 15th day after the month of the income gain, if the income of the capital assets disposal is more than 500 LVL.
until the next month’s 15th day after the quarter of the income gain, if the income of the capital assets disposal is 500 LVL or less.
Personal Income Tax has to be paid in the Budget in 15 days, starting from the particular day of the declaration submission, which is determined by the law.
If during the taxation year several assets will be disposed, the capital gain of taxation period will be summed. If sum will be negative, for the purpose of calculating the tax, it will be ignored (incurred losses can’t be covered by the next taxation year capital gain or at the expense of the taxation year other kinds of income).
Also the attachment of the Declaration of income from capital about the actions with capital assets, which are started at the taxation year, but aren’t finished yet, must be submitted at the State Revenue Service until the 1st of April at the year after taxation.
Other income from capitalTax withholding and payment to the budget of the paid out income from capital (excluding capital gain) will be executed by the Payer of Income, who will withhold and pay the tax at the Budget no later than the fifth day of the next month after an income pay out.
Consequently, the profit gainer, submitting an annual declaration of income, will have to pay the tax only in case, if the income is obtained from:
Note. A person, who has gained interest income by the time of 1st of January until 28th of February, from which the tax hasn’t been withheld as a pay out, if the tax is more than 5 LVL, has to submit a declaration of income from capital until the 31st of March 2010 at the State Revenue Service and has to pay the tax at the Budget until the 15th of April.
LLC "INNOVATOR" will give you tax advice at the matters of personal income tax application, and will help you to fill out the annual income declaration and the declaration of income from capital.
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