Tax treatment for capital gains resulting from transfer of preliminary agreement
Through resolution no. 6/E of 19 January 2015, the Revenue Office answers the question of a subject (individual) who, after stipulating a preliminary agreement for the purchase of a house being built and having paid an advance, decides to resell the deed. According to the taxpayer, the transaction surplus does not come under any taxable income category, thus is tax free. The Revenue Office does not agree and considers that it is a taxable amount. The capital gains from selling the preliminary agreement to purchase property comes under sundry revenue resulting from assumption of obligations to do, not do or allow. In fact, the seller takes on the obligations not to sign the final contract.