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RULING OF THE SUPREME COURT ON ADMINISTRATIVE MATTERS

Ruling of the Supreme Court on Administrative Matters regarding capital gains and tax information reporting requirements

The High Court referred to the calculation of gross income for purposes of tax information reporting

 

The Supreme Court on Administrative Matters, on its Ruling 20458 of August 13, 2015, upheld that capital gains shall not be considered in the calculation of gross income for determining the obligation of tax information reporting for a given tax period. This, taking into account that capital gains constitute income originated from a source that is different to the ordinary course of business of the taxpayer.

Therefore, in the of event of transfer of fixed assets held for more than two years, the capital gains resulting from the difference between their tax basis and price, shall not be computed for the calculation of the gross income of the taxpayer.