Taxation of company shares and interests sales

The amendments to the Tax Code in terms of taxation of income from the sale of interests and shares in companies came into effect as of January 2025.

For non-residents:

Income from the sale of stakes, shares, investment units, bonds is subject to personal income tax (without exemptions) at the rate of 30%.
 

For residents of the Russian Federation the following income is exempt from personal income tax:

• Income from the sale of LLC shares - if the period of continuous ownership is more than 5 years and the income from the sale does not exceed 50 mln rubles.
• Sale of shares, bonds, investment units, which are securities of the high-tech (innovation) economy sector - the period of continuous possession is more than 1 year and subject to compliance with other conditions specified by law.

An additional innovation is taxable material benefit, i.e. the difference between the purchase price and the market value of the share.

• Tax residents will be required to pay personal income tax (PIT) in accordance with the progressive taxation scale (13-15%);
• Non-residents - PIT at the rate of 30%.

The market value is determined on the basis of the corresponding share of net assets of the LLC as of the last reporting date. Bellerage team is ready to give explanations on all questions, as well as to prepare the necessary documents.

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