LETTER OF THE FEDERAL TAX SERVICE OF THE RUSSIAN FEDERATION

of December 12, 2012 No. ED-4-3/21179 @

About procedure for provision of the property tax deduction on income tax in case of sale of share in the authorized capital of the organization which payment was made by property

The Federal Tax Service in connection with receipt of the letter of the Ministry of Finance of the Russian Federation of 18.09.2012 No. 03-04-08/3-306 about procedure for provision of the property tax deduction on income tax in case of sale of share in the authorized capital of the organization which payment was made by property, reports the following.

According to Item 3 of article 210 of the Tax Code of the Russian Federation (further - the Code) for the income concerning which the tax rate, stipulated in Item 1 article 224 of the Code is provided the tax base is determined as monetary value of such income, the taxable, reduced by the amount tax deductions, in particular the property tax deductions, stipulated in Article 220 Codes.

By paragraph 2 of the subitem 1 of Item 1 of article 220 of the Code it is determined that in case of sale of share (its part) in the authorized capital of the organization the taxpayer has the right to reduce the amount of the chargeable incomes by the amount of the expenses which are actually made by it and documentary confirmed connected with receipt of this income.

Thus, the income amount, received from sale of share in the authorized capital of the organization, can be reduced by the amount of documentary confirmed expenses on property acquisition, transferred to payment of the specified share in the authorized capital. In the absence of the documents confirming the made expenses, the income from sale of share in the authorized capital of the organization is subject to the taxation in full.

Bring the specified letter to subordinate tax authorities.

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