Russia Tax Agency Clarifies Tax Exemption Rules for Income From Sales of Immovable Property

The Russian Federal Tax Service July 31 posted online Letter No. BS-4-11/9597, clarifying individual income tax exemption rules for income earned by individuals from sales of immovable property. The clarification includes that: 1) individuals may be exempt from taxation on such income if they owned the property for a specific minimum period; 2) the minimum possession period for the exemption is five years from the date of acquisition, or three years from the testator’s death if the property was acquired through inheritance; and 3) a taxpayer’s ownership doesn’t terminate if the size of their share in immovable property changes due ...