|Russia Introduced Draft Law on Luxury Tax|
A draft law on luxury tax was introduced in the Parliament
Items subject to luxury tax would include immovable property with a value above RUB30m and vehicles with a value above RUB3m.
The tax base would be the market value of such assets.
The following annual tax rates are proposed:
For immovable property:
With a value between RUB30m-50m - 0,3%
With a value between RUB50m-100m - 0,6%
With a value between RUB100m-150m - 1%
With a value above RUB150m - 5%
With a value between RUB3m-5m - 1%
With a value between RUB5m-20m - 3%
With a value between RUB20m-60m - 5%
With a value above RUB60m - 7%
If adopted, the amendments would enter into force as of 2013.
The opinions expressed do not constitute investment advice and specialist advice should be sought about your specific circumstances.
Published on our website on March 19, 2012