Parliamentarians have extended the validity of the lowered rates on the property tax till January 1, 2019

In the first reading and in general the bill of introduction of amendments to the republican law "About the Property Tax of the Organizations" which provides extension of validity period preferential, and also reduction of tax rates for separate categories of taxpayers, has been adopted at the meeting of the State Council today.  

The validity of privileges on the property tax of the organizations is extended till January 1, 2019. This decision is made for the state support and development of business in the Republic of Tatarstan, attraction of small and medium business to the innovative sphere as the adopted bill provides the state support of such enterprises.

Now concerning real estate objects which tax base is defined as cadastral cost the rate is established of 1,2%, for 2018 - 1,8%. From cadastral cost the tax is estimated if the area of shopping centers makes over 2 thousand square meters, and they are located in settlements with population of more than 145 thousand people (Kazan, Naberezhnye Chelny, Almetyevsk and Nizhnekamsk). The list of these shopping centers is annually approved by the Ministry of Land and Property of the Republic of Tatarstan.

The submitted bill reduces a rate of the property tax for 2018 to 1,5%. The budget of the republic in this case will receive less about 290 million rubles, however in general economic effect, parliamentarians consider, will be higher. Especially, in comparison with this year a certain growth after all is available – 1,5% instead of the acting 1,2%.

The submitted bill is also offered to extend the validity of privileges on the property tax till January 1, 2019 for the following categories of taxpayers:

• to the organizations concerning the objects of the welfare sphere used for needs of health care, physical culture and sport;

• to the air enterprises which are carrying out air transport for a payment (it will allow them to aim additional resources at the development of the enterprises);

• to research and design institutions;

• to gardening, market-gardening and country noncommercial associations of citizens.

The bill establishes also preferential tax rate of 0,5% for science and technology parks and the innovative and technological centers.

The budget in case of establishment of a preferential tax rate for owners of health care facilities, physical culture and sport, the air enterprises, to gardeners and science and technology parks will receive less 420 million rubles.