Faculty of Real Estate Management

1. Faculty of Real EstateManagement

2. Real Estate Taxation in Russia Prof. Elena IVANKINA Dean, Faculty of Real Estate Management ivankina@rane.ru www.frem.ane.ru

3. 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

4. Comparative analysis of property tax share in consolidated tax revenues of the Russian Federation and the USA USA Russian Federation VAT (value added tax);
14.0% TMM (tax on mining minerals;
12,6% Income tax:
38.1% Sales tax:
7.7% • Profit tax; • 15.1% Corporate profit tax: 
11.0% Other taxes: 
8,8% Other taxes;
7,0% PIT (personal income tax);
19,9% Property taxes; 6,7% • Social security taxes and dues:
24.7% Property taxes: 11,0% Social security taxes and dues: 23% 2

5. Comparative analysis of property tax share in tax revenues of municipalities in the Russian Federation and the USA Russian FederationUSA PIT: 69,3% Sales tax: 13,1% • Income tax: 5,0% • Corporate profit tax: 1,2% TMM: 
0,1% Other taxes: 9.3% Profit Tax: 1,5% Property tax: 71,4% Property tax: 17,9% Other taxes; 11.2%

6. 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

7. Personal income tax revenues for 1 tax payer Average index in Russia
123 Ingush Republic Chuckchi Administrative District MagadanRegion BuryatRepublic Kabardin-Balkar Republic 4 Tax revenues per capita in regions are rather different. For personal property tax the difference makes up 126 times Moscow Tomsk Region Vologda Region Yaroslavl Region St-Petersburg

8. Land tax revenues for 1 tax payer Ingush Republic Chechen Republic Jewish Autonomous District BuryatRepublic Moscow Average index in Russia 749 Tax revenues per capita in regions are rather different. For land tax the difference makes up 118 times Saint-Petersburg Lipetsk Region Belgorod Region Moscow Region Altay Republic

9. 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%

10. Examples of land, property and capital gain taxation