Russia Tax Agency Clarifies Tax Exemption for Movable Property

The Russian Federal Tax Service Nov. 16 posted online Letter No. BS-4-21 / 15939, explaining a Supreme Court decision distinguishing movable and immovable property for income tax exemption purposes. The taxpayer company accounted for the cost of a power plant as movable property and applied for the tax relevant exemption. Upon an audit, the tax authority stated that the cost of the power plant should be included in the tax base as real estate because it was part of the building and the exemption should therefore be disallowed. The Supreme Court held that the exemption applies to the power plant ...