Minstroy: reduced tax load will help developers to optimize costs
The abolition of income tax and VAT for developers transferring social facilities to the state and municipalities will help development companies optimize costs and prevent a significant increase in the cost of projects, said Vladimir Yakushev, Minister of Construction and Housing and Communal Services of the Russian Federation.
“The proposed amendments will help avoid additional tax costs for developers and, therefore, a significant increase in the cost of housing construction,” said Vladimir Yakushev.
Recall the proposal for the introduction of such tax incentives for developers announced by Russian President Vladimir Putin, speaking with an annual message to the Federal Assembly.
At present, there is a rule prescribing the transfer of the infrastructure of a residential quarter created by the developer at his own expense, under the jurisdiction of the municipality free of charge, but does not relieve him of the obligation to pay taxes on these objects.
Source: Ministry of Construction of the Russian Federation