Selling a Share of Share Capital: How Is Investment Profit Taxed?

According to the Tax Code of Ukraine, namely: item. 170.2.2 of Art. 170 of the tax code, investment income is defined as the difference between the income received by the taxpayer from the sale of an individual investment asset, taking into account the exchange rate difference (if there is any), and its cost, determined from the amount of documented expenses for the acquisition of such an asset (excluding derivative transactions).

Note that the sale of an investment asset is equated with transactions, in particular, the return to the taxpayer of funds or property (property rights) previously contributed by him to the authorized capital of the issuer of corporate rights, in the event of such taxpayer leaving the founder (participants) of such issuer or liquidating such of the issuer.

Accounting for the overall financial result of transactions with investment assets is maintained by the taxpayer independently, separately from other income and expenses. For the purposes of taxing investment income, the reporting period is the calendar year by which the taxpayer is required to file an annual tax return on the assets and income, in which he must reflect the overall financial result (investment income or investment loss) received during such reporting year.

Moreover, the total annual taxable income of the taxpayer includes the positive value of the overall financial result of transactions with investment assets by the results of such reporting (tax) year (paragraphs 170.2.6 of Art. 170 of the Tax Code).

The investment income tax rate is 18% (Clause 167.5.1 of Art. 167 of the Tax Code).

It should be borne in mind that according to paragraphs. 170.2.8 Art. 170 of the Tax Code shall not be taxable and shall not be included in the total annual taxable income, in particular, the income received by the taxpayer during the reporting tax year from the sale of investment assets, if the amount of such income does not exceed the amount specified in the first subparagraph. of p. 169.4.1 of Art. 169 of the Tax Code, ie in 2020 - it is 2940 UAH.

Read 377 times