“Tax exemptions originally applied from January 1, 2015 for all chattels (including vehicles) recorded on the books as fixed-capital assets after Jan 1, 2013. There were two exceptions, however: assets acquired as a result of a reorganization or liquidation of other legal entities as well as property transferred between affiliated companies. Now these exceptions no longer apply to vehicles manufactured since the start of 2013,” the Analytical Center expert Marina Labozina explains the Government’s initiative.
Vehicles manufactured since the start of 2013 have been freed from tax restrictions
A bill has been submitted to the State Duma that aims to encourage companies to buy new vehicles manufactured in Russia. Under the new document, companies would be exempted from property tax on vehicles manufactured in Russia after January 1, 2013. In this manner, the government hopes to encourage companies to buy new vehicles and drive up demand for domestically manufactured vehicles.
At the moment, any chattels acquired after January 1 and recorded on the books as property and equipment as a result of a reorganization or liquidation of another company or as a result of transfer of property between affiliated companies (including during 2013-2014), are subject to corporate property tax from January 1, 2015. Thus, if the proposed amendments get passed into law, starting January 1, 2017 vehicles subject to state registration under Russian law and manufactured on or after January 1, 2015 will be exempted from the provision on the property tax on chattels acquired as a result of a reorganization, liquidation or transfer of property between affiliated companies.
Source: Rossiyskaya Gazeta