How to Apply Maximize Your Tax Benefits on Russian Property

Managing your tax obligations in Russia can be difficult if you don’t understand Russian property law. To put it simply, if you’re not familiar with Russian laws governing property transactions and ownership you’ll run into problems. You may even discover that tax payments aren’t even calculated correctly. Fortunately, there are professionals who can help you understand what’s happening when you own property in Russia.

When you purchase real estate in Russia, you have certain tax privileges that allow you to enjoy certain properties free of income and capital gains taxes. To calculate the full balance and installment amounts for your personal privilege related to such a property purchase, you access an authorized link from the Russian Association of Foreign Investors (RYF) website to the relevant wage categories. You access the link in Customizing For Russian Payroll. You may also access relevant information on Russian tax payments in Russia through the Russian Ministry of Finance’s web site.

The key to successfully dealing with Russian tax privileges is understanding how your tax class status applies to your property purchase. As soon as you get an OK from the Russian tax authorities to enjoy tax privileges, you must learn about your Russian tax class status and select a tax class that best suits your property purchase. In this article you will learn how to manage tax payments with Russian tax privileges.

Every individual has differing tax liability and entitlements based on their tax code. You might find that your Russian tax privileges allow you to enjoy favorable mortgage rates and exemption from tax payment. However, just because your tax code privileges allow you to enjoy certain tax treatments doesn’t mean you need to fully exploit them.

You can effectively use your tax privileges to your advantage when it comes to property investment by customizing your Russian tax position. This means you are aware of your own tax position and can actively reduce or maximize your tax liability according to your current circumstances. For example, if you have adequate Russian social insurance payments and your tax burden is concentrated in the high income tax bracket then you can afford to enjoy substantial tax discounts on your real estate investment. Similarly, if you have adequate tax deductions due to your diligent tax compliance then you can enjoy significant tax savings on your overseas property investments.

If you are looking to take advantage of your Russian tax privileges to reduce or maximize your tax savings then you have to fully explore the scope of Russian tax law. There is a wealth of information available on the internet regarding tax laws and tax privileges. You can effectively utilize your privilege-free tax status to realize maximum tax savings. For example, if you have adequate Russian tax deductions due to your diligent tax compliance then you can avail of the major tax savings that would equate to over half your annual income.

You can also use this infotype to store data pertaining to your spouse’s and children’s offshore accounts. The Russian government makes it mandatory for any individual who owns assets abroad to report them to the Russian authorities. With the help of your Russian tax privilege, you can request your spouse and children are informed of their offshore account status. However, in most cases it is best to have your spouse personally informed so as to avoid any complications in future legal proceedings.

To summarize, the most common tax privileges infotypes that are used by most professionals globally include the Russian Social Tax Privilege, the Foreign Private Interest Privilege, the Russian Non-Resident Privilege and the Russian Security Affair Privilege. You can effectively minimize your tax liabilities by utilizing any one of these tax privileges, while you maintain your professional status. As such, ensure you utilize your privileges in a way that best meets your tax needs.