Pelno mokesčio lengvata turto vertės padidėjimo pajamoms už akcijų paketo perleidimą ir jos fiksavimas finansinėje apskaitoje ; Corporate income tax relief for capital gains from transferring portfolio (block of shares) and its recording in financial accounting

Abstract

The analysis of the corporate income tax relief for capital gains and its recording in financial accounting is based on the systemic review of the Corporate income tax law, Business accounting standards and other tax and financial accounting legislation including also Tax dispute settlement institutions case-law and scientific literature. With reference to this analysis, there is defined what terms are necessary for using this tax relief and the content of these terms. The article diclose that application of these terms must be based on content of legal relations and should not be only formal. An accomplished analysis indicates that corporate income tax system of Republic of Lithuania should allow entities to transfer shares of subsidiary companies and subsequently these funds pay in dividends for shareholders which are natural persons without paying corporate income tax because then mentioned tax relief could succeed to encourage investment and attract foreign capital. What is more, the analysis of recording the corporate income tax relief for capital gains in financial accounting uncovers that there is a permanent difference between result in financial accounting and taxable result. That is way result in financial accounting must be corrected for the purpose of calculating corporate tax.