Ministry of Finance of the Russian Federation
Ministry of Finance of the Russian Federation
19.10.2011

Statements of State Secretary - Deputy Finance Minister of the Russian Federation S.Shatalov

 

Russian ministry to impose tax on golden parachute payments

MOSCOW, Oct 19 (PRIME) -- Personal income tax is to be imposed on golden parachute payments for top managers of Russian companies from 2012, Deputy Finance Minister Sergei Shatalov said Wednesday.

Specifically, the personal income tax rate of 13% is to be levied on golden parachute payments exceeding three months’ wages of top managers, Shatalov said.

However, the tax is not to be imposed on those golden parachute payments which are equal to or less than three months’ wages of top managers, he added.

A golden parachute is a clause in many top managers’ contracts specifying that a person is to receive a considerable redundancy package if their contract is terminated.

 

Official sees single real estate tax set in many Russian regs 2013

MOSCOW, Oct 19 (PRIME) -- A single real estate tax may be introduced in many Russian regions in 2013, Russian Deputy Finance Minister Sergei Shatalov told reporters Wednesday.

In late July, Shatalov said, commenting on a statement by Russian President Dmitry Medvedev, that the tax could be introduced in up to six of Russian regions starting from 2013. In late June, Medvedev said that the tax could be introduced in 2012 in regions that managed to complete a cadastral appraisal of real estate property.

“I think it is realistic, at least in test regions, to do it (to introduce s single real estate tax) in 2013… I don’t believe that this is possible to do it across the entire country, but in a fairly large part of the regions (it is) possible,” Shatalov said, adding that a corresponding draft bill had only been approved by the State Duma, the parliament’s lower house, in the first reading and had to be significantly improved.

Moreover, several regions have to pass legislation that regulates the implementation of provisions of the future law by December 1, he added.

Shatalov also reiterated that a cadastral appraisal of real estate property had been completed in only 12 regions, and that the goal is to finish the appraisal in the remaining regions by 2012.

Meanwhile, it is still unclear how to set tax rates, deductions, and discounts, Shatalov said, adding that this issue has to be thoroughly worked out.

Former Deputy Prime Minister and Finance Minister Alexei Kudrin said in late June that the government planned to introduce a real estate tax sometime in 2013–2014. Preparations for the tax’ introduction are expected to be completed by the end of 2012.

Presently, owners are taxed based on the book value of real estate, which is often lower than the market value of the property.