In St. Petersburg, a benefit for corporate property tax will be introduced in relation to movable property which was released no earlier than three years ago

Pepeliaev Group advises that the St. Petersburg Legislative Assembly, on 29 November 2017[1], adopted a law exempting from corporate property tax any movable property which was released no earlier than three years ago.

It was previously reported that[2], further to amendments being made to the Russian Tax Code,[3] the federal property tax benefit would be virtually abolished in relation to movable property starting from 2018. The powers to grant this benefit have been transferred to the constituent entities of the Russian Federation, i.e. this benefit will be applied in the territory of a constituent entity only if the constituent entity in question passes the relevant law.

The Law passed amends St. Petersburg Laws No. 81-11 “On tax benefits” dated 28 June 1995 and No. 684-96 “On corporate property tax” dated 26 November 2003.

According to the amendments, organisations will be exempted from corporate property tax in relation to property stated in article 381(25) of the Russian Tax Code if such property was released no earlier than three years ago.

The law will come into force on 1 January 2018.

Help from your adviser

Pepeliaev Group's lawyers have extensive experience of safeguarding the rights and lawful interests of clients in the area of establishing and applying tax benefits at the federal and regional levels. Our team is ready to provide legal assistance to companies in connection with the planned changes.