Personal income tax on the sale of shares

If income from the sale of shares is subject to personal income tax and the conditions for tax exemption are not met, the Russian organization that purchases the shares will most likely be recognized as a tax agent and will be required to withhold personal income tax when paying income to individuals. The Ministry of Finance of the Russian Federation takes a consistent position that a Russian organization that has made a payment under a share purchase and sale agreement concluded by the said Russian organization with an individual taxpayer is recognized as a tax agent for personal income tax. The article provides an analysis of tax legislation, establishing a lack of legal certainty that requires amendments to the Tax Code of the Russian Federation.