17.11.2022 BLCONS GROUP

News digest (November 17)

Дайджест новостей от 17 ноября: BLCONS GROUP

Dear colleagues and partners! News: we present the new overview of changes in the legislation of the Russian Federation…

Transport Tax: Multiplying Factors

Organizations must apply an increasing tax coefficient even if there is no detailed description of a particular configuration, brand and model (version) of the vehicle mentioned in the list of the Ministry of Industry and Trade.

When assessing the validity of tax authorities’ claims, it is considered whether cars meet the conditions of Article 362 in terms of price and year of manufacture (Supreme Court Law № 305-ЭС22-8615 of August, 26 2022).

It is important to notice that since 2022, the lower limit of car prices, in relation to which an increasing coefficient is applied, has been changed from 3 to 10 million rubles (Law No. 67- Federal Law of March, 26 2022).

Individual Entrepreneur Zero return reporting with Simplified Tax System and personal property tax

Real estate owned by an individual entrepreneur and used in entrepreneurial activities is relieved from property taxation of individuals if IE applies the simplified taxation system (except cases when cadastral value of land recognized as the subject to taxation).

The fact that an individual entrepreneur does not use real estate in entrepreneurial activities may be confirmed by a “zero” declaration for the simplified taxation system (USN). In this case, IE must pay property tax on individuals in the general order (Determination of the Supreme Court № 301- ЭС 2-11895 of September, 15 2022).

Individual entrepreneurs need to provide proper documentation of the use of real estate for commercial purposes.

Tax reconstruction during the splitting of a business

The Federal Tax Service has clarified the procedure of calculating taxes in case a business “split”, considering the amounts of taxes paid by all participants in the “scheme” (Letter of the Federal Tax Service № BV-4-7/13774 of October, 14 2022).

The Tax Service clarified that the final calculation of additional charges is made as if all the simplified taxation system (USN) taxes paid by the participants in the “scheme” would have been paid by the main taxpayer.

In this case, the participants of the scheme do not have the option to “zero” their declarations to generate their individual tax overpayments, if the overall identified “scheme” has an unpaid debt to the budget.