Sanctioned citizens to be able to sell shares of Russian cos without payment of personal income tax

MOSCOW. June 3 (Interfax) - The Russian government has submitted a draft bill to the State Duma under which citizens subject to Western sanctions would be able to sell shares (participatory interest in charter capital) in Russian companies without paying personal income tax in 2022.

The document (N136059-8) is available in the Duma's electronic database.

The bill proposes that citizens against whom sanctions have been imposed be exempt from paying personal income tax when selling shares in Russian companies in 2022, provided that they have owned them for more than one year. "Provided that on the date of sale of such shares (participatory interest in charter capital) they were continuously owned by the taxpayer by right of ownership or other property right for more than one year," the bill reads.

In addition, as stated in the explanatory note, the bill reduces the fiscal burden on Russian legal entities who are holders of debt securities issued in accordance with foreign legislation (Eurobonds), due to the blocking by foreign settlement organizations of payments on these securities to Russian legal entities.