Movable property will no longer be taxed

LEGAL DIGEST \ 20.01.2019

The Russian Tax Code has been amended to exempt legal entities from taxes on their movable property.

Starting from 1 January 2019, movable property will no longer be taxed. Companies will have to pay taxes only on immovable property. Please note that the following are classified as immovable property under the Russian Civil Code:

• land plots, subsoil plots, buildings, structures, and constructions-in-progress (it is impossible to relocate such facilities without causing a disproportionate detriment to their purpose)
• residential and non-residential premises, including those designed to accommodate transport vehicles
• aircraft, sea and inland vessels that are subject to state registration.

Items that are not classified as immovable property are deemed to be movable property.

Should you have any questions or require any clarifications, Acsour’s specialists are ready to advise you on tax legislation.