Russian government approves new commercial property tax | 01 November 2013
The Russian government has approved a new tax based on the cadastral values of commercial properties.
The tax has been tipped to have a significant impact on commercial property values by reducing the net income of businesses in Russia.
Nevertheless, the amendments passed the State Duma late week.
Themoscowtimes.com reports that commercial buildings will be subjected to the tax if 20 per cent or more of their total area is occupied by retail or office space. This includes food shops and restaurants. However, industrial buildings are exempt from the tax.
Tax rates are expected to rise slowly year by year, starting at one per cent in the regions and 1.5 per cent in Moscow in 2014. This could rise to a figure as high as two per cent by 2016. The government has estimated that 35 billion rubles could be raised from the tax in 2014 alone.
According to propertyeu.info, experts from global real estate services firm Jones Lang LaSalle are amongst those to warn that the tax could have a negative impact on property values. There has been suggestions that Russia’s smallest businesses may have to spend up to eight times more on property tax as a result of the new legislation.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
We are delighted to announce that Qube Global Software has been shortlisted in the Property Management System of the Year category at the Property Week Management All-Stars Awards 2016 in the UK.
Qube Horizon client Hermes Investment Management has won Property Manager of the Year at the UK Pension Awards 2016.
We are pleased to confirm that Qube Global Software will once again be sponsoring and exhibiting at MIPIM in Cannes, South of France.