Is taxation different if ownership of a company (or other entity) owning real estate is transferred?
If a company transfers property, then it is taxable as explained above (12% / 35% regime). Moreover where an asset used for business purposes for a period of at least three years is transferred and replaced within one year by an asset used solely for a similar purpose in the business, any capital gains realised on the transfer shall not be taxed but the cost of acquisition of the new asset shall be reduced by the said gain. When the asset is disposed of without replacement, the overall gain shall take into account the transfer price and the cost of acquisition reduced as aforesaid. If however the ownership of the company is transferred then a different tax regime applies relating to the transfer of shares.
