Since January 1, 2020, the tax on the sale of real estate has increased.
In the Tax Code has the concept of capital assets.
In accordance with Art. 39 Tax Code , apartments and residential buildings are related to capital assets.
Capital assets are characterized by an increase or loss of capital during their sale. If an apartment or house is sold at a price higher than it was purchased, that the seller received a capital gain. When selling a property is subject to income tax capital gains.
Until January 1, 2020 h. (7) Art. 40 of the Tax Code stipulated that for tax purposes a capital gain of 20% is recognized. In other words, income tax (at a rate of 12%) is subject to capital gains of 20%
In 2019, a citizen sold an apartment at a price of 500 thousand MDL. Previously, he bought this apartment for 400 thousand MDL . The taxable capital gain is 20,000 MDL ((500,000 MDL - 400,000 MDL ) x 20% = 20,000 MDL ). Accordingly, the amount of income tax on this transaction will amount to 2,400 lei (12% of the 20,000 MDL increase).
From January 1, 2020, part (7) of Art. 40 Tax Code acts in the new edition. The share that the state recognizes as an increase and intends to tax, has grown from 20% to 50%.
The amount of capital gains in the tax period is 50% of the amount in excess of the recognized capital gains over any losses incurred during the tax period.
In our example, taxable capital gains will reach 50,000 MDL.
(500 0000 MDL - 400 000 MDL) x 50% = 50 000 MDL (recognized capital gain).
The amount of income tax on this housing purchase and sale transaction will be 6,000 MDL (against 2,400 MDL earlier).Income tax increased by 3600 MDL
. The tax became 2.5 times higher than before January 1, 2020.
Source of information: TAX EXPERT