Will income from the capital assets of local firms be exempt?
An updated Action Plan for 2023-2025 presented and approved at the SR Government meeting should focus in the final year of its validity mainly on the implementation of the key areas having the greatest impact.
It introduces 29 key measures, including the modification of the measure on taxation of income from capital assets of local firms.
The modified measure aimed at mobilisation of private capital and development of local innovative firms introduces the possibility of reinstating the exemption from income tax of capital gains from investment in shares or equity interests of local firms, subject to a minimum holding period of 36 months. The time test will not apply to securities acquired by employees or sole traders (self-employed) in the form of non-cash income.
The measure should help eliminate the competitive disadvantage compared to foreign countries (e.g. the Czech Republic) that provide such exemption from income tax on the sale of securities.
