Starting January 1, 2025, local taxes and levies will be subject to new rules across Russia and Belarus. These changes aim to streamline the tax process and introduce new regulations, making it imperative for taxpayers to understand the modifications thoroughly to avoid penalties and to comply effectively.
The new regulations specify which taxes are classified as local, largely governed by the Tax Code of each country. According to Article 12 of the Tax Code of Russia, local taxes are those defined by municipal legislation and collected for the municipal, city district, or town budget.
Among the changes taking effect is the adjustment of various local tax rates. One significant addition is the introduction of the tourist tax, which local authorities can set and regulate based on regional needs. This tax is expected to generate additional revenue for municipalities, especially in cities with heavy tourism traffic.
Changes are also evident for property taxes. For organizations, as outlined, there will be no more requirement to file declarations related to land tax. From the 2020 reporting year onwards, companies will self-calculate their taxes based on their respective land plot’s cadastral value. The transitional phase aims to create more efficient financial management within municipal services.
Deadlines for tax payments have been established, with key dates set for advancing portion payments and annual settlements. For example, the first quarter tax payments will be due by April 28, 2025, with similar deadlines set for subsequent quarters. The authorities clearly state these dates to avoid confusion among taxpayers.
For citizens, the property tax calculation will rely on data held by the tax inspections, meaning individuals need not worry about calculating their property taxes. Instead, taxpayers will receive notifications based on the tax inspection's calculations, which will include details such as the tax year's value and applicable rates. The rates can range significantly based on jurisdiction; for example, residential properties may be taxed at 0.1% of their cadastral value, setting the stage for more manageable personal finances.
Important to note, the Tax Code also recognizes certain exemptions. Qualified individuals, such as veterans or persons with disabilities, can receive tax reductions, depending on their historical status and contributions. Local governments are encouraged to establish additional subsidies and relief to support vulnerable populations during these changes.
Another significant adjustment is related to the tax on the income derived from property sales. Starting 2025, the approach to this tax will shift as local authorities must adopt changes to reflect current economic conditions, and transition matters such as defining earnings realized from real estate transactions will now fall under more stringent guidelines.
Municipalities are also tasked with identifying and introducing special rates for levies related to public services such as waste disposal and local transportation. These levies are often necessary for maintaining infrastructure and supporting community services, reflecting the local government's priority to improve quality of life.
Tax inspectors will also be adopting new technology, integrating electronic data operations (EDO) to improve tax collection efficiency and transparency. Notifications and assessments will regularly be communicated through digital platforms, thereby enhancing the taxpayer’s engagement with local tax authorities.
To sum up, individuals and organizations will need to stay informed of the forthcoming alterations to prevent unnecessary penalties. Between self-assessing property value and staying attuned to deadlines and exemptions, the 2025 tax year promises substantial shifts within the taxation framework of Russia and Belarus. How well taxpayers adapt to these changes will certainly impact local economics and governance efficiency moving forward.