Tax privileges are provided - Pillar

Tax privileges are provided

According to the Resolution of the President #PP-104 dated 27 January 2022 (further – “The Resolution”), the following tax exemptions are stipulated:

Social tax rate for the taxpayers providing the following services is set at 1% (rather than standard rate of 12%) from 1 April 2022 till 1 January 2025, if the revenue from the respective services accounts for at least 60% of aggregate revenue in respective reporting (tax) period:

  • retail
  • catering
  • hotel services
  • passenger and cargo transportation services
  • repair and technical maintenance of vehicles
  • computer services
  • repair of appliances (kitchen, household equipment)
  • agriculture and vet services
  • services provided in entertainment centers

Taxpayers having shopping malls with the area more than 5 thousand sq.m and hotels have rights to:

  • decrease the rate of land tax and property tax by 90% from 1 January 2022 till 1 January 2027 (if the objects are built by 1 January 2027, the privilege is applied for 5 years from the commencement of the exploitation).
  • deduct the cost of buildings as depreciation within 2 years in calculating corporate income tax.

For the taxpayers registered in the special touristic zones as per the statutory list, which provide catering, hoteling, trading, entertainment, tour-operating and tour-agency services, from 1 April 2022 till 1 January 2025 it is established that:

  • rate of turnover tax is 1% (rather than standard rate of 4%)
  • property tax and land tax for respective territories are levied at 1% of the calculated tax

The following changes in the taxation of operators of mobile communication is contemplated:

  • decrease of the excise tax rate for mobile communication services of operators from 15% to 10% from 1 January 2022.
  • categorizing antenna-mast metallic constructions located on land and installed adjacent constructions being the indivisible parts as immovable property for the purposes of calculation of property tax.
  • exemption from property tax and land tax antenna-mast metallic constructions located on rural area, including installed adjacent construction being the indivisible parts.