Gains from transfer of property

(1) Income tax is charged on gains (§ 37) from the sale or exchange of any transferable and monetarily appraisable objects, including real or movable property, securities, registered shares, contributions made to a general or limited partnership or an association, units of investment funds, rights of claim, rights of pre-emption, rights of superficies, usufructs, personal rights of use, rights of commercial lessees, redemption obligations, mortgages, commercial pledges, registered securities over movables, or other restricted real rights, or the ranking thereof, or other proprietary rights (hereinafter property).

(2) In the case of a reduction in the share capital of a public limited company, private limited company or association or in the contributions of a general or limited partnership, and in the case of redemption or return of shares or contributions or in other cases, income tax is charged on the portion of the payments received from equity which exceeds the acquisition cost of the holding (shares, contributions), unless the portion of the specified payments or the share of profit which is the basis of the proceeds has been taxed with income tax, taking account of the provisions of the second sentence of subsection 50 (2¹).
[RT I 2008, 51, 286 - entry into force 01.01.2009]

(3) Income tax is charged on the amount in which the liquidation proceeds received by a person upon the liquidation of a legal person exceed the acquisition cost of the holding, unless the portion of the liquidation proceeds or the share of profit which is the basis of the proceeds has been taxed with income tax, taking account of the provisions of the second sentence of subsection 50 (2¹).
[RT I 2008, 51, 286 - entry into force 01.01.2009]

(4) Income tax is not charged on:
1) accepted estate;
2) property returned in the course of ownership reform;
3) expropriation payments and compensation paid upon expropriation, and gains from the transfer of immovable property to the state or a local government without expropriation proceedings for the purposes provided for in subsection 3 (1) of the Immovables Expropriation Act if, prior to the transfer transaction, the requirements provided for in subsection 3 (4) of the Immovables Expropriation Act are complied with;
[RT I 2009, 18, 109 - entry into force 28.03.2009]
4) income from the transfer of movable in personal use;
5) income from the transfer of land returned in the course of ownership reform;
6) income derived by a person holding a public capital bond from the sale of privatisation vouchers issued to him or her on the basis of the public capital bond;
7) income derived by an entitled subject of the agricultural reform from the sale of the employment share issued in his or her name;
8) income derived by a person who is an entitled subject of the ownership reform from the sale of privatisation vouchers issued to him or her on the basis of an unlawfully expropriated property compensation order;
8¹) compensation paid for unlawfully expropriated property, and compensation for privatisation vouchers issued to but not used by an entitled subject of ownership reform;
9) income from the exchange of a holding (shares, contributions) in the course of a merger, division or transformation of companies or non-profit co-operatives;
10) income from the increase or acquisition of a holding (shares, contributions) in a company by way of a non-monetary contribution;
11) income from the switch of units of an investment fund of a Contracting State pursuant to the procedure provided for in §§ 153 and 154 of the Investment Funds Act.
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]

(5) Gains from the transfer of immovable property, contributions to a housing association or membership in a building association are not subject to income tax if:
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]
1) an essential part of the immovable or the object of apartment ownership or a right of superficies is a dwelling which was used by the taxpayer as his or her place of residence until transfer, or
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]
2) an essential part of the immovable or the object of apartment ownership or a right of superficies is a dwelling, and the immovable has been transferred to the taxpayer’s ownership through restitution of unlawfully expropriated property, or
3) an essential part of the immovable or the object of apartment ownership or a right of superficies is a dwelling and such dwelling and the land adjacent thereto has been transferred to the taxpayer’s ownership through privatisation with the right of pre-emption and the size of the registered immovable property does not exceed 2 hectares, or
4) a summer cottage or garden house has been in the taxpayer’s ownership as a movable or an essential part of an immovable for more than two years and the size of the registered immovable does not exceed 0.25 hectares, or
5) a structure or apartment as a movable has been transferred to the taxpayer’s ownership through restitution of unlawfully expropriated property or through privatisation with the right of pre-emption, or
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]
6) [Repealed - RT I, 18.11.2010, 1 - entry into force 01.01.2011]
7) an apartment in a residential building belonging to the housing association or building association was used by the taxpayer as his or her place of residence until transfer.
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]

(6) If the tax exemption specified in subsection (5) is based on the use of the dwelling as the taxpayer’s residence, the tax exemption is not applied to more than one transfer in two years. If an immovable, structure or apartment was used simultaneously with its use as place of residence also for other purposes, the tax exemption is applied according to the proportion of the area of the rooms used as residence and the area of the rooms used for other purposes.
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]

Дата добавления: 2015-11-14