Moscow built-in parking lots should not be taxed

11.08.2015

Legal update No 528

Goltsblat BLP advises that positive case history has developed for corporate property tax relief in Moscow.

On 27 July 2015, when considering the Gasheka Realty case (No. А40-162157/2014), the Arbitration Court for the Moscow Circuit established that a Moscow company may be exempted from corporate property tax on parking lots that are:

  1. a multi-storey one;
  2. used for their intended purpose, i.e., for car parking.

Consequently, multi-storey parking lots (two or more storeys) built in Moscow office centres and shopping malls are not subject to tax.

This is especially relevant today, considering that the quite high cadastral value of such buildings. Average savings might run to several million US dollars and taxes paid for 2012–2014 may also be recovered.

By applying this relief, owners could boost the commercial appeal of their buildings for tenants.

Yet each case has its own specifics, including ones not directly governed by law (complying with car parking garage characteristics, booking parking areas in the accounting, including structural separation, etc.), so we strongly recommend owners of parking lots to apply for relevant professional legal advice.

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