COBALT represents the client in a dispute with the State Revenue Service regarding taxation of the transaction with agricultural land
2023 - 01 - 04
COBALT successfully represented the client in a dispute with the State Revenue Service regarding the taxation of the transaction with agricultural land.
In the dispute, the Supreme Court recognized that in the case of the sale of real estate consisting of agricultural land and buildings, the exemption from personal income tax (PIT) applies in proportion to the part of the land area which is agricultural land by type of use. Thus, the Senate concluded that at the time when the client sold the real estate, the special regulation, which determined the procedure for the application of the PIT, unreasonably narrowed the possibility of applying the tax exemption to a transaction involving the sale of agricultural land. The judgment allows the client to qualify for a deduction of the overpaid PIT.