In May 2012, an amendment to the income tax provisions and stamp duty provisions relates to a transfer of property by a company to its shareholder or a related individual in the course of winding up or a distribution of assets.
Prior to the implementation of the 2011 national budget measures, an individual shareholder or his spouse must have owned all of the share capital of the company (disregarding the holding of one share having no preferential rights) for the exemption from tax and stamp duty to apply to the transfer of property.
As of 1st January 2012, the exemption applies where the shareholder owns, directly or indirectly, at least 95% of the share capital and voting rights of the said company transferring the property. Further, the requirement that the property consists of one transferable unit has been removed.
