Taxation of the transfer of shares
When the income from the transferred shares is classified as taxable income, only the gain on the sale of the shares is taxable. i. y. the difference between the revenue received and the purchase price.
The purchase price of the shares consists of the shares purchase price, plus the actual acquisition costs of the shares: commission, taxes, state fees, etc.
Taxation of the resident (person)
When the personal income from the transferred shares is classified as taxable income, the share of the profit from the sale of shares not exceeding 120 VDU* (average salary) will be taxed at the rate of 15%, and the share of the profit exceeding 120 VDU at the rate of 20%.
Please note that when calculating whether the income of a resident did not exceed 120 VDU, not only the income from the sale of shares but also other income received by the resident is added together (excluding income from employment, dividends and individual activities), i.e. if you receive income from the sale of shares and other taxable income, it will be aggregated and the rates of 15% and 20% will be applied accordingly.
The part of the profit from the sale of shares not exceeding EUR 500 is not taxable. This relief does not apply when:
1. The shares are transferred to the company which issued them;
2. The shares were acquired by increasing the authorized capital from the company’s funds (there are additional conditions);
3. Income from the sale of shares received from foreign companies registered or otherwise organized in the offshore territories;
4. When the shares are deemed to have been transferred in the liquidation of the company.