Subject. The article addresses tax incentive tools for long-term investments of individuals in shares. Tax preferences for individual investment accounts are outside the scope of this study, as they are broader and aim to promote general investment activity in the stock market. Objectives. The purpose is to develop proposals for improving Russian tax policy, based on a critical analysis of approaches to tax incentives for long-term investments of individuals in shares in Russia and abroad. Methods. The study draws on statistical analysis of data from the Federal Tax Service of Russia, methods of scientific abstraction, logical and historical unity, deduction and induction, organic consistency, and other general scientific methods. Results. The investment tax deduction for capital gains on securities circulating in the organized securities market was not widespread in most subjects of Russia. Exemption from capital gains taxation on securities held by an investor for more than 5 years does not so much encourage long-term stock ownership as it exempts business owners from taxes when they sell their business. Tax exemption of capital gains on high-tech (innovative) companies' shares is practically a targeted benefit. Conclusions. It is necessary to abandon ineffective tax preferences and redirect the released resources to tax incentives that support the implementation of the national project Efficient and Competitive Economy. I propose limited tax exemption on capital gains from the sale of shares of small and micro businesses that contribute to technological entrepreneurship development. Furthermore, I propose alternative instruments to encourage long-term investment in shares.
Keywords: tax incentives, long-term investment, capital gains, tax policy, income taxation
References:
Advokatova A.S., Balatskii E.V., Goncharenko L.I. et al. Vliyanie podokhodnogo nalogooblozheniya na sotsial'noe neravenstvo v Rossii [The Impact of Income Taxation on Social Inequality in Russia]. Moscow, KnoRus Publ., 2024, 224 p. EDN: PUCKHI
Polezharova L.V., Volkov D.M. [Foreign Experience of Fiscal Mechanisms of Preferential Economy]. Nalogi. Pravo, 2024, vol. 17, no. 4, pp. 145–154. (In Russ.) DOI: 10.26794/1999-849X-2024-17-4-145-154 EDN: MFPMXZ
Chamley C. Optimal Taxation of Capital Income in General Equilibrium with Infinite Lives. Econometrica, 1986, vol. 54, no. 3, pp. 607–622. DOI: 10.2307/1911310
Judd K.L. Redistributive taxation in a simple perfect foresight model. Journal of Public Economics, 1985, vol. 28, iss. 1, pp. 59–83. DOI: 10.1016/0047-2727(85)90020-9
Blouin J., Raedy J.S., Shackelford D.A. Capital Gains Holding Periods and Equity Trading: Evidence from the 1998 Tax Act. DOI: 10.2139/ssrn.237166
Feldstein M.S. Inflation, Portfolio Choice, and the Price of Land and Corporate Stock. NBER Working Paper, 1980, vol. w0526. URL: Link
Burman L.E., Randolph W.C. Measuring Permanent Responses to Capital-Gains Tax Changes in Panel Data. The American Economic Review, 1994, vol. 84, iss. 4, pp. 794–809. EDN: HEMUDX
Hourani D., Perret S. Taxing capital gains: Country experiences and challenges. OECD Taxation Working Papers, 2025, no. 72. DOI: 10.1787/9e33bd2b-en
Poterba J.M., Weisbenner S.J. Capital Gains Tax Rules, Tax-Loss Trading, and Turn-of-the-Year Returns. The Journal of Finance, 2001, vol. 56, no. 1, pp. 353–368. EDN: DYRPAD
Jacob M. Tax Regimes and Capital Gains Realizations. European Accounting Review, Forthcoming, 2016. DOI: 10.2139/ssrn.1825147
Hegemann A., Kunoth A., Rupp K., Sureth C. Impact of capital gains taxation on the holding period of investments under different tax systems. Discussion Papers in Quantitative Tax Research, 2015, no. 183. URL: Link
Advokatova A.S., Balatskii E.V., Vishnevskii V.P. et al. Issledovanie al'ternativnykh kontseptsii nalogovogo regulirovaniya kak faktora obespecheniya novoi industrial'noi revolyutsii v Rossii [Study of alternative concepts of tax regulation as a factor in ensuring a new industrial revolution in Russia]. Moscow, KnoRus Publ., 2023, 490 p. EDN: ZEXEUE
Goncharenko L.I. [The constructive nature of preferential tax regimes as a determinant of attracting investment in Russia’s innovative development]. Nalogi. Pravo, 2024, vol. 17, no. 3, pp. 156–166. (In Russ.) DOI: 10.26794/1999-849X-2024-17-3-156-166 EDN: QQYEJM
Mandroshchenko O.V., Zvereva T.V., Tatarenko A.M. [On the balance of interests of the State and taxpayers in the context of new priorities in the economy]. Rossiiskii ekonomicheskii zhurnal, 2024, no. 1, pp. 43–62. (In Russ.) DOI: 10.52210/0130-9757 EDN: TRLRKW
Pinskaya M.R., Steshenko Yu.A. [Investment tax incentives in Russia: Legislative regulation]. Ars Administrandi (Iskusstvo upravleniya), 2024, vol. 16, no. 1, pp. 172–197. (In Russ.) DOI: 10.17072/2218-9173-2024-1-172-197 EDN: VJOVES
Goncharenko L.I. [Tax preferences in the spatial development of the country: Terminological aspect of the study]. Finansy: teoriya i praktika, 2024, vol. 28, no. 4, pp. 108–121. (In Russ.) DOI: 10.26794/2587-5671-2024-28-4-108-121 EDN: XUSZRI
Milogolov N.S., Berberov A.B. [The problem of double economic taxation of distributed profits and reform scenarios in Russia]. Finansy: teoriya i praktika, 2022, vol. 26, no. 5, pp. 207–219. (In Russ.) DOI: 10.26794/2587-5671-2022-26-5-207-219 EDN: KYYXQK
Chen J., Farre-Mensa J. Capital Gains Tax Relief and Entrepreneurship: Evidence from the QSBS Exemption. HKU Jockey Club Enterprise Sustainability Global Research Institute. 2025. DOI: 10.2139/ssrn.4482626
