The Federation Council approved amendments to the legislation on tax Amnesty

© RIA Novosti / Maxim to Aminopherase in photobacteria of the Federation Council of the Russian Federation. Archival photoThe Federation Council approved amendments to the legislation on tax Amnesty© RIA Novosti / Maxim to Aminopherase the image Bank

The Federation Council on Tuesday approved a law aimed at implementing the initiatives of the President of the Russian Federation about release of civilians from the land tax from areas up to six acres, and about debt relief on property taxes.

Russian President Vladimir Putin on 14 December announced the release of privileged categories of citizens eligible for the deduction to property with a value of 10 thousand rubles, from land tax in respect of a parcel of six acres. He also said that it is necessary to free the citizens from the accumulated previous years uncollectible tax arrears, at the same time Recalling that debt, for example, individual entrepreneurs (IE) is about 15 billion rubles.

Six acres for pensioners

The law reduces the tax base for land tax on the value of the cadastral value of the six acres, in the ownership, permanent (indefinite) use or lifetime inheritable possession of privileged categories of citizens. To them, in particular pensioners, heroes of Soviet Union and Russia, full gentlemen of order of Glory, invalids, veterans, «Chernobyl», «Semipalatinsk», and others.

However, this reduction in the tax base will be possible only in respect of one land at the taxpayer’s choice, as he will have to report to FNS. In case of failure to provide notice of such deduction, it is provided with respect to one land plot with the maximum calculated tax amount. If when applying the deduction, the tax base is negative, then it is assumed to be zero.

Other taxes

The law provides for cancellation of arrears of transport and land tax, tax on property of natural persons, formed as of 1 January 2015, as well as the arrears of assessed fines. Such arrears and debt are recognized to be uncollectible.

At the same time proposed to write off arrears of taxes SP, including lost such status prior to the entry of this law into force, and the arrears of penalties on it, formed on January 1, 2015. However, this provision will not apply to mineral extraction tax, excise duties and taxes payable in connection with movement of goods across the Russian border.

The law provides debt relief on insurance premiums PIS and in private practice entities (lawyers, notaries), accumulated by January 1, 2017.

The document proposed not to recognize the income of individuals income in respect of which the tax agent has not withheld the tax, and was given information to the tax authorities of the impossibility of his holding. This provision will apply to income derived from 1 January 2015 until 1 December 2017. Thus, individuals don’t will need to pay the income tax for which the tax agent did not withhold tax and report it to the tax authorities.

However, this will not apply to income in the form of rewards for the performance of labour or other duties, performance of works, rendering of services, dividends and interest, material gain, income in kind, including in the form of gifts and winnings and prizes.

Currently, reduced rates of insurance contributions in total amount of 14% is set to 2023, inclusive, for the organizations performing activities in the field of information technology. However, they do not apply to organizations that have concluded with controls special economic zones an agreement on exercising techno-promotional activities and make payments to natural persons working in such zones. The law provides opportunities for these IT companies during this period also to pay such reduced insurance premiums.

The law also clarifies the procedure of taxation of controlled foreign companies.