Assets Tax In Russia

Assets tax is one of the most important among the regional taxes. If a Representative Office, or a foreign organization, or its branch, or subdivision has the assets on the territory of the  Russian Federation, it should pay assets tax.

 
The legislative body of each region of the Russian Federation determines (fixes) the final size of assets tax rate, but the latter can't exceed 2% of the tax base (which equals the annual average  value of the assets). 

From January, 1, 2004 a new chapter to Tax Code that governs assets tax came into force. The following main provisions of this chapter should be mentioned:

 
1. The maximum size of assets tax rate will not exceed 2.2%

 
2. Representative Offices that don’t conduct commercial activity, i.e. not create “permanent establishment” on the territory of the Russian Federation, will not pay assets tax on the assets/property other than real estate that it owns.