Five-Year Tax Exemption: Changes from 2026
Significant amendments are planned to the rules governing the five-year personal income tax (PIT) exemption on the sale of securities and shares held for more than five years (paragraph 17.2, Article 217 of the Russian Tax Code). The proposed legislation would considerably narrow the range of cases eligible for this tax exemption.
It is planned that starting from 2026, the exemption will no longer apply to the following types of income:
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Income from the sale of foreign company shares;
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Income received as a result of exiting a company or redemption of shares or interests;
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Income from the sale of an interest in a Russian LLC, if more than 50% of the company’s assets consist of real estate located in Russia. Previously, this restriction applied only to joint-stock companies.
At the same time, the general cap on the amount eligible for the exemption remains unchanged: the tax-free income under paragraph 17.2, Article 217 of the Tax Code is still limited to 50 million rubles.
