The Ministry of Economy of the Omsk region informs about tax preferences for corporate property tax

On March 15, 2018, the Legislative Assembly of the Omsk Region adopted the Law of the Omsk Region "On Amendments to the Law of the Omsk Region "On Corporate Property Tax" (hereinafter referred to as the Law), initiated by the Acting Governor of the Omsk Region, Chairman of the Government of the Omsk Region A.L. Burkov. Starting from January 1, 2018, the Law establishes three–year "tax holidays" for corporate property tax in respect of movable property registered as fixed assets after January 1, 2013 (hereinafter referred to as movable property).

1. The 0% tax rate for movable property until December 31, 2020 can be used by organizations that have provided an increase in corporate income tax and (or) personal income tax in the current tax period compared to the previous one, as well as organizations that have registered with the tax authority in the Omsk Region for the first time and have paid corporate income tax in the current tax period.

The term of the tax preference is set for 3 years, which ensures stable tax conditions for organizations, allowing them to form plans for financial and economic activities in the medium term, taking into account these conditions.

The law does not set an indicator of the rate of increase in taxes, which significantly expands the range of taxpayers who can take advantage of tax preferences. In addition, the taxpayer is given the opportunity to choose the tax for which the increase should be provided – corporate income tax or personal income tax (hereinafter referred to as personal income tax). Thus, even if an organization has experienced a decrease in profit, for example, when making capital investments in fixed assets, an increase in personal income tax may serve as a reason for receiving a reduced rate.

If the organization does not meet the conditions for an increase in income tax and/or personal income tax based on the results of 2018, then the corporate property tax on movable property must be paid in 2018 at a rate of 1.1%, which is also lower than the rate applied on a general basis (2.2%).

Among the regions of the Siberian Federal District, corporate property tax preferences for movable property have been introduced only in the Republic of Buryatia. Thus, the establishment of a zero rate for movable property in the Omsk region for 3 years is the best in terms of creating a favorable investment climate in the region and preventing the re-registration of legal entities in other regions.

2. In order to stimulate the modernization of production and use of modern energy-efficient equipment by organizations, the Law proposes to maintain in the Omsk region the tax benefit established by paragraph 21 of Article 381 of the Tax Code of the Russian Federation in respect of newly commissioned facilities with high energy efficiency (in accordance with the list of facilities established by the Government of the Russian Federation) or a high class of energy efficiency (if the determination of their energy efficiency classes is provided for such facilities), − within three years from the date of registration of the specified property.