Wednesday, August 23, 2017

Real estate tax system to hit Sverdlovsk region in 2013

On December 18, the Sverdlovsk region's branch of the federal tax service announced that effective January 1, a new patent taxation system will take effect.

The new taxation system was designed to reduce the tax burdens placed upon taxpayers by the Regional Act, which was put in place six years ago. The new taxation policy is aimed primarily at real estate owners who, under current law, are required to obtain a patent to rent properties as legally legitimate landlords. Officials are hopeful that the 2013 patent tax will allow more illegal landlords to operate within the law, Ural Business Consulting reports.

For years, Sverdlovsk regional authorities have been aware of the increasing number of landlords operating without a license to rent property. As more landlords are able to legitimize their operations, officials expect an increase in patent tax revenues that will help strengthen the region's budget.

Participation in the new tax system is optional, per Russian tax code article 26.5. Those choosing to participate must declare their intent to do so 10 days prior to conducting any business rental transactions, according to Ural Business Consulting.