According to the law, land and other natural objects (such as water resources) are not subject to corporation tax. However, there is a separate property tax and a water resources tax. Tax rates, periods and tax base Local authorities may set an alternative income tax for certain small business activities, such as personal services and retail. The tax is paid instead of income tax, VAT (except when importing goods into the Russian Federation) and property tax. In this case, taxpayers calculate the “common tax” of 15% on the basis of the standard income determined by the local legislator. In some cases, a simplified tax system can be used as an alternative to the common tax. Taxpayers whose income after the end of the ninth month of the tax year (excluding VAT) is RUR 15 million, are entitled to use this tax system in the following year (with the exception of banks, companies with affiliated branches, etc.). These companies do not pay income tax, VAT (except when importing goods into the Russian Federation) and property tax. Only one tax is levied, as in the case of the common tax. The taxpayer can choose the tax base for this tax – either gross income for the 6% tax rate, or income less expenses for the 15% tax rate. The only tax law enacted during this period and still in force in 2008 is the Personal Property Tax (enacted in 1991 with amendments). Individual property tax is expressly authorized by the Code, but it exists as a separate law. [7] All regional and local taxes in Russia are asset-related: property tax, motor vehicle tax, property tax, and gambling company tax.
These taxes are paid in re. The exact rates are set by regional (real estate, vehicles, gambling) or municipal (country) legislators under the Code. Typically, you pay Russian property tax every year as part of your tax filing application. More information about Russian property tax can be found at the Russian Tax Administration. However, there is a small difference when it comes to property tax rates in Russia. Each owner of land and property on it pays the Russian tax rate, which is set by the local authorities. This rate is generally set at 0.3% of the value of the land, whether the land is used for residential or agricultural purposes. For uses other than agricultural, residential or utility infrastructure, a tax rate of 1.5% may apply. The payment process is similar to that of property taxes. Russian regions benefit from a certain levy if they grant corporate tax reductions (Article 372). In principle, anyone who spends less than 182 days a year in Russia is considered a non-resident and must pay personal income taxes of a general lump sum of 30% on income earned within the federation. This Russian-source income includes remuneration for activities and services provided in Russia, regardless of the location of the paying entity, remuneration of directors of Russian companies, interest and income from real estate located in Russia.
Dividend income of Russian companies is taxed at 15%. Some examples of cases where deductible expenses are available include the purchase of real estate in Russia, payment of school fees, medical treatment, or payments to charities. The provisions on corporation tax are contained in Chapter 30 of the Tax Code. It should be noted that the provisions relating to the taxation of the property of natural persons are contained in another law, namely the Law on the Taxation of the Property of Natural Persons (Law No. 2003-1 of 09.12.1991; see next chapter). Certain categories of property are exempt from corporation tax (374.4) and certain types of property held by certain classes of taxpayers are excluded from the scope of the tax (Art. 381), for example: The rate of certain federal and regional corporate taxes (i.e. CPT, VAT, VAT and ordinary property tax), which is mandatory by default for all corporate tax taxpayers and registered sole proprietorships, is called the general tax system.
Three alternative tax systems replace the above taxes with a simplified procedure: corporation tax or fixed asset tax is calculated on the basis of the annual average book value of fixed assets excluding land (subject to property tax). Facilities for the storage of radioactive waste, space satellites, ecclesiastical property and other individual documents are expressly exempt from tax. [46] The maximum rate is 2.2%; Regional authorities may vary depending on the type of taxpayer and wealth. [47] This is a method of identifying disguised individual preferences prohibited by the Code. Property tax is levied on buildings, apartments, buildings and garages. The rates set at the federal level vary from 0.1% to 2.2%, depending on the cadastral value of the property. The applicable rates are determined by the municipality in which the property is located. When buying real estate in Russia, foreign tax residents can claim a one-time tax deduction of up to 2,000,000 rubles, plus the amount of interest up to 3,000,000 rubles. For expats, the starting point for determining your tax situation depends on your residency status. Therefore, this status affects the elements of your taxable income and the amount you pay. Property tax is a regional tax levied in accordance with local law. The maximum rate is 2.2% if the tax base is calculated as the depreciated book value and 1.5% if the tax base is calculated as the cadastral value.
The tax base includes real property and certain movable capital assets held by the taxpayer, excluding land (subject to property tax) and movable property registered as fixed assets from 2013. The tax base is generally calculated on the basis of the depreciated book value of the assets at the balance sheet date. For certain types of administrative, commercial and commercial premises (e.g. real estate owned by foreign companies and not allocated to a permanent establishment in Russia, as well as residential buildings and premises that are not recorded as fixed assets for accounting purposes), the taxable amount is estimated as the cadastral value of the property. Individuals are expected to pay income tax (13%), property tax (0.3% of the country`s cadastral property, which is calculated according to a special formula) and road tax (which is related to the power of the vehicle`s engine). Most small businesses are eligible for simplified taxation and can choose one of the following taxes: income tax (6%) or income tax (15%) or flat farm tax (6%, farmers only) or imputed income tax (calculated according to a special formula, only certain businesses). Corporate tax taxpayers are Russian and foreign legal entities for assets falling within the scope of the law. Income from the sale of shares in the capital of a Russian company, unlisted shares of a Russian company or listed shares of a Russian high-tech company whose shares are acquired after 1 January 2011 and held for more than five years are exempt from tax. Profits from the sale of other types of real estate, with the exception of real estate, by Russian residents are exempt after a holding period of three years.
For property acquired on or after January 1, 2016, a five-year holding period applies (see “Deductions and abatements” below). On the other hand, regional and local taxes in Russia focus on assets. Regional taxes include corporate income tax, motor vehicle tax, and gambling tax, while local taxes include property tax and individual property tax. Property tax – The tax is levied at rates of up to 1.5% of the cadastral value per year. As of 1 January 2013, corporate tax will be significantly modified. Movable property that was recorded as fixed assets (in the company`s balance sheet) is now excluded from the tax base. This means that movable assets acquired previously (before 1 January 2013) remain taxable. Property tax is the only local tax in Russia: its rates are set by municipal authorities (with the exception of the federal cities of Moscow and St. Petersburg, where the rates are set by the city`s legislators). The maximum rate is 0.3% on land for agriculture, housing, and dachas, and 1.5% on other land. Forest reserves and waters are excluded.
Land values are regularly assessed by land registries and kept well below market prices. Unlike corporate tax, property tax is paid by individual taxpayers. Resident companies and foreign companies owning real estate in the territory of the Russian Federation are subject to property tax. This rate is set by the regional authorities but may not exceed 2.2%.