State Duma approves tax exemptions on compensations for defrauded homebuyers
MOSCOW, December 13 (RAPSI) – Russia’s State Duma has approved in the third and final reading amendments to the Tax Code exempting compensations paid to defrauded homebuyers from the personal income tax, the lower house of Russia’s Parliament informs on Friday.
Earlier, the recipients of such compensations have had to pay 13% of the funds they received. The amendment is to come in force since the tax period of 2019.
The compensations are paid at the expense of contributions of developers to an indemnification fund and budgetary funds; the personal income tax exemption applied only to the developers’ share in the fund. The new provisions are to address this legal gap, the statement reads.