Support The Moscow Times!

Large Moscow Properties Learn to Dodge Taxes

Large commercial properties and offices in Moscow have dodged up to 3 billion rubles ($86 million) in taxes this year by utilizing a variety of loopholes, said Maxim Reshetnikov, director of the city's economic development department.

Businesses with premises larger than 5,000 square meters should have paid up to 17 billion rubles in taxes but will pay at most 15 billion rubles, according to Reshetnikov. The final figure will be clearer by May after companies hand in their annual declarations, Kommersant reported.

Tax avoiders use a variety of measures to reduce or even eliminate their taxes. Some owners will transfer their businesses to a tax-exempt small business or break up their firms into portions of up to 300 square meters in size, the largest size still eligible for a tax exemption.

Other businesses have been transferred to pensioners, who are free from paying property taxes. Some actively used buildings are registered as unfinished construction projects or as put up for sale, and consequently do not pay taxes.

"Very large real estate locations do not exist at all from a tax point of view,"  Reshetnikov said.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more