The amendments to the Russian Tax Code that establish new trade tax were introduced by Federal Law No. 382-FZ dated November 29, 2014  and will come into force on January 1, 2015.

New trade tax will apply to cities with federal status: Moscow, St. Petersburg, Sevastopol.

Taxpayers of the trade tax are companies and the sole proprietors that are involved in retail and use real estate.

The following entities are exempt from trade tax:

• sole proprietors using the patent system of taxation;
• taxpayers using the tax system for agricultural commodity producers.

The period of taxation is a quarter (3 months).

The exact tax rate of the trade tax should be established by the authorities of the cities with federal status later (not earlier than July 1, 2015).

New Federal Law fixes the limits for the authorities of Moscow, St. Petersburg and Sevastopol to define the tax rate.

For example, the max tax rates in the territory of Moscow and St. Petersburg are the following:

Moscow:

• if the sales area of the taxpayer is more than 50 square meters on each trading object, the tax rate shall not exceed 600 rubles per 1 (one) square meter (to be paid quarterly);
• if the sales area of taxpayer is less than 50 square meters on each trading object the tax rate shall not exceed 30 000 rubles in total (per quarter).

 St. Petersburg:

• if the sales area of the taxpayer is more than 50 square meters on each trading object, the tax rate shall not exceed 585  rubles per 1 (one) square meter (to be paid quarterly);
• if the sales area of taxpayer is less than 50 square meters on each trading object the tax rate shall not exceed 29 250 rubles in total (per quarter).

Additional notes

Should any questions arise in connection with the above or if you need any additional materials, please contact Dmitry Churin or  Elena Lepneva, St. Petersburg Office of Capital Legal Services.

This Information letter keeps the clients of Capital Legal Services and other interested parties abreast of information that may, to any extent, affect their activity or cater to their particular interests. The opinions and commentaries expressed in this information letter shall not be deemed as legal opinions and do not cancel the need to obtain legal advice or legal opinion on separate issues.