Bellerage Alinga

Corporate property tax changes

Corporate property tax changes

Starting from January 1, 2020 the following real estate will be subject to property tax based on their cadastral value:

· inhabited houses, apartments, rooms;

· garages, parking spots;

· united immovable complex, construction in progress;

· other buildings, constructions, premises.

Currently these objects are taxed based of their balance (annual average) value, which is normally lower than the cadastral value. Thus, these changes may trigger an increase of the tax burden.

It should be mentioned that according to the official clarifications of the Ministry of Finance, Russian Federal States are entitled to independently determine types of real estate subject to corporate property tax based on their cadastral value.