Media & Resources
New rules of calculation of tax on real estate have been introduced.
DATE: October 17, 2014 | AUTHOR: atlawyers
On January 01, 2015 Federal Law N 284-FZ (the “Law”) will come into force. According to the Law, the property tax will be calculated on the basis of the cadastral value of real estate. The transition period to the new calculation system will constitute five years. The Law provides decreasing coefficients during the first four years of new calculation system application.
During the fifth year the new calculation system will be applied without decreasing coefficients.
The Law provides for tax deductions changes dependent on the real estate objects cadastral value. Tax deductions in relation to a flat shall be equal to cadastral value of 20 sq.m of its area, to a room – 10 sq.m, to houses – 50 sq.m, and to certain other types of real estate – 1 000 000 RUR.
Real estate located within a city (dwelling houses, flats, premises) shall be subject to tax rate up to 0.1%. Real estate objects with cadastral value exceeding 300 mln RUR shall be subject to tax rate up to 2%. Administrative, business and shopping centers and their property shall be subject to tax rate up to 0.5%.
Legislative bodies of Moscow, St. Petersburg and Sevastopol are entitled to increase tax deductions.
Real estate located in Moscow shall be subject to the following tax rates:
(1) up to 0,1 % – in relation to the real estate with its area of 50 sq.m with cadastral value up to 10 mln RUR;
(2) 0,15% – in relation to the real estate with its value exceeding 10 mln RUR and up to 20 mln RUR;
(3) 0,2% – to the real estate with its value exceeding 20 mln RUR and up to 50 mln RUR;
(4) 0,3% – in relation to the real estate with its value exceeding 50 mln RUR and up to 300 mln RUR; and
(5) 2% – in relation to the real estate with its value exceeding 300 mln RUR.