If an apartment is sold to an employee at a price lower than the market price, the difference between the market price and the net book value is included in the individual's taxable income. The Supreme Arbitration Court came to this decision in a local (Rostov city) arbitrage case between the local tax authorities and a bank. The argument of the taxpayer that a flat is not a "good" (the object of taxation according to the Law) but rather an asset was overruled by the Court.
Decree of the Supreme Arbitration Court of the Russian Federation of 18 August 1997 no 1352/97
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Alla Shaulina on tel: +7 503 232 5511 fax: +7 503 232 5522 or e-mail directly: Alla_Shaulina@ru.coopers.com
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