faculty of real estate management
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Faculty of Real Estate Management. Real Estate Taxation in Russia Prof. Elena IVANKINA Dean, Faculty of Real Estate Management [email protected] www.frem.ane.ru. Today and tomorrow of property taxes in the RF. In the past - PowerPoint PPT PresentationTRANSCRIPT
Faculty of Real Estate Management
Real Estate Taxation in Russia
Prof. Elena IVANKINA
Dean,Faculty of Real Estate Management
www.frem.ane.ru
Today and tomorrow of property taxes in the RF
In the past• Land tax on the basis of normatively established rate (RR/sq.m)• Corporate property tax on the basis of book cost • Personal property tax on the basis of inventory cost At present• Land tax on the basis of cadastre land value (since 2006)• Corporate property tax on the basis of book cost except intangible assets, stocks etc.
(since 2004) • Personal property tax on the basis of inventory cost
In prospect• Real estate tax to substitute the two existing taxes – land tax and personal property
tax• Real estate tax to be established on the basis of market value
Comparative analysis of property tax share in consolidated tax revenues of the Russian Federation
and the USA Russian Federation
Profit tax;15.1%
Social security taxes and dues:24.7%
VAT (value added tax);14.0%
Other taxes;7,0%
TMM (tax on mining minerals;12,6%
PIT (personal income tax);19,9%
Property taxes;6,7%
USA
Corporate profit tax: 11.0%
Sales tax:7.7%Income tax:38.1%
Social security taxes and dues: 23%
Other taxes: 8,8%
Property taxes:11,0%
2
Comparative analysis of property tax share in tax revenues of municipalities in the Russian Federation and the USA
Russian Federation USA
PIT: 69,3%
Sales tax: 13,1%
Corporate profit tax: 1,2%
TMM: 0,1%
Profit Tax:1,5%
Property tax: 71,4% Property tax: 17,9%
Other taxes;11.2%
Other taxes:9.3%
Income tax: 5,0%
Dependency of tax revenues on price of oil in 2006-2009;l;j – Proceeds of taxes and dues in the budget system of the RF - Average world price of oil - Proceeds of property taxes - Potential proceeds of property taxes
Tax revenues per capita in regions are rather different. For personal property tax the difference makes up 126 times
Average index in Russia123
Ingush Republic
Chuckchi Administrative DistrictMagadan Region
Buryat Republic
Kabardin-Balkar Republic4
Moscow
Tomsk Region
Vologda Region
Yaroslavl Region
St-Petersburg
Personal income tax revenues for 1 tax payer
Average index in Russia 749
Tax revenues per capita in regions are rather different. For land tax the difference makes up 118 times
Ingush Republic
Chechen Republic
Jewish Autonomous District
Buryat Republic
Moscow
Saint-Petersburg
Lipetsk Region
Belgorod Region
Moscow Region
Altay Republic
Land tax revenues for 1 tax payer
INNOVATIONS IN TAX LEGISLATION IN 2014
Introduction of taxation on commercial real estate (buildings) by cadastre value for floor space over 5000 sq.m
in Moscow 1.5% in other regions 1.0%
Examples of land, property and capital gain taxation
Annual property and personal fortune taxes
Capital gain tax in % of value increase
USA Land taxes depend on state legislation
10-28%
France Land and living floor space taxes (depend on local legislation)
Real estate as a main residence is not a subject for a capital gain tax. For foreigners 16-33%. Reduction after 5 years of ownership.
Italy Land tax: 0.4-0.7% depending on cadastre value
No
Germany Euros 150-300 a year 25-45%
Great Britain No 40% (only for permanent residents of Great Britain)