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Published: 04/03/2019
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“Luxury tax” is an unofficial name for a tax levy that cannot be found in the Tax Code of the Russian Federation (Tax Code of the Russian Federation).
- What the law says
- What is meant by luxury car tax? Which cars are subject to increased taxation in 2021?
- Calculator
There are special increasing coefficients that are used when calculating transport tax on expensive cars.
Luxury tax: cars (official list of the Ministry of Industry and Trade of the Russian Federation)
Every year, the Ministry of Industry and Trade updates the list of cars subject to the luxury tax, first introduced in 2014. This year was no exception either. For the period 2020-2021, the list has been supplemented with new vehicles. Moreover, some versions of cars that fall under the luxury tax do not fall under the category of prestigious luxury cars (we are talking about cars in the mass segment).
Let us remind you that the luxury tax for cars in Russia was introduced on January 1, 2014 as part of the so-called “luxury tax” - an increasing coefficient of property tax. This increasing coefficient included not only real estate, but also vehicles (clause 2 of Article 362 of the Tax Code of the Russian Federation). According to this federal law, all vehicles whose cost exceeds 3 million rubles are subject to the luxury tax. In this case, increasing coefficients are applied when calculating transport tax.
When purchasing expensive cars, owners should know a number of nuances in order to accurately understand whether the vehicle is subject to increased transport tax. We at 1Gai.Ru decided to collect answers to all frequently asked questions from luxury car owners related to paying luxury tax.
So, let's remember what a luxury tax for cars is, what is its description and what nuances are worth knowing for those who already own cars worth more than 3 million rubles, and for those who are only going to purchase a car in the future, which, in the opinion of the state , is "luxurious".
Download the list of cars subject to luxury tax:
Download file: List.pdf [251.1 Kb] (downloads: 5371) View online file: List.pdf
Download file: List.doc [112.57 Kb] (downloads: 1596) View online file: List.doc
Purposes of the automobile luxury tax
The so-called luxury tax was introduced to replenish the budget at the expense of those who are not limited in funds. It was the ownership of a luxury car that legislators considered an indicator of a liberated financial situation. Based on the fact that the innovation is tied to the transport tax, it is clear that as a result of deductions, the road fund is replenished. Consequently, additional funds received are used to repair and maintain public routes.
The luxury tax makes it possible to scale up repairs to severely deteriorated road surfaces everywhere. It is the additional revenues that are aimed at carrying out various federal programs for the maintenance of public highways.
Why was it introduced?
Firstly , to replenish regional budgets with additional funds;
Secondly , since domestic passenger cars are not subject to the luxury tax, and the list of luxury cars, due to the rise in price of foreign technology, is slowly being replenished with cars that six years ago cost an order of magnitude cheaper and were available to a relatively wide segment of the population, the purpose of introducing an increasing coefficient is also can be considered import substitution;
Thirdly , the application of the above formula that the propertied must pay more money to the treasury
At what price will luxury tax be imposed on cars in 2021?
It is used for cars with an average value under a sales contract of over 3 million rubles. This is the initial cost at which the car model is automatically included in the list of the Ministry of Industry and Trade, while the maximum cost has no restrictions. According to the list, the list in 2020 included passenger cars with an average price of 15 million rubles and above.
The “average cost” of a car, according to the explanation of the Ministry of Industry and Trade, is calculated on the basis of recommended retail prices for basic versions of a particular make, model and year of manufacture. Also, the Ministry of Industry and Trade notes that the calculations do not take into account the actual cost of the passenger vehicle.
The basis will be the recommended retail prices of new cars as of the reporting tax period on July 1 and December 1.
The procedure for calculating the average cost of passenger cars (www.consultant.ru):
“In order to carry out calculations according to formula No. 1, the Ministry of Industry and Trade of the Russian Federation sends annually no later than May 1 to manufacturers and/or authorized persons of the manufacturer a request to provide information on recommended retail prices for each make, model and basic version of cars, taking into account the year of manufacture, whose retail prices exceed 3 million rubles.”
The average cost of a car is determined in the manner approved by Order of the Ministry of Industry and Trade of Russia dated February 28, 2014 No. 316 “On approval of the Procedure for calculating the average cost of passenger cars for the purposes of Chapter 28 of the Tax Code of the Russian Federation.”
Increasing transport tax coefficient in 2021
The provision on the introduction of an increased coefficient for transport tax was introduced into the NKRF in 2021, as one of the types of progressive taxation. Only those passenger car models whose average cost exceeds 3 million rubles fall under it. The increased rate does not apply to trucks, buses and other equipment.
According to Art. No. 362 NKRF , when calculating, all premium passenger cars are divided into four categories, depending on age and price:
- Vehicles produced less than 3 years ago and costing from 3 to 5 million rubles. The applied coefficient is 1.1.
- Passenger cars less than 5 years old, with an average price of 5 to 10 million. Coefficient = 2.
- Cars produced less than 10 years ago, costing from 10 to 15 million rubles. Coefficient = 3.
- Cars no more than 20 years old and with a price over 15 million. Coefficient = 3.
The age of a car is counted from the year of its manufacture , and the price is calculated from the average cost of a new car of this model and configuration on the Russian car market.
What ratios apply for 2021 and 2021?
Increasing transport tax coefficients, according to the Tax Code of the Russian Federation, are as follows:
1.1 - for luxury cars worth 3-5 million and not older than 3 years; 2 - for cars worth 5-10 million and not older than 5 years; 3 - for a car worth 10-15 million rubles and not older than 10 years, as well as more expensive than 15 million and not older than 20 years
IMPORTANT! The exact amount of transport tax, taking into account the increasing coefficient, can only be found out if you have information about the exact cost of the tax base for your car model. In other words, knowing how much your car costs, according to official data, when new.
Luxury tax calculation example
The most reliable calculation can be obtained by using a special transport tax calculator. To obtain the final value, it is enough to correctly specify all machine parameters.
It is not difficult to calculate the amount of tax on an expensive car, taking into account the correction coefficient of the Ministry of Industry and Trade. The basis will be the basic amount of transport tax. The value can be taken from receipts of previous years. For example, for BMW 5 (265 hp) the amount is about 45,000 rubles. To calculate the tax taking into account the luxury adjustment, apply the coefficient to the base value:
- If a similar new car costs from 3 million rubles, and its age does not exceed 3 years, then the amount is multiplied by 1.1. Based on the value of the base given above, it turns out 49,500 rubles.
- If the cost of the car fluctuates in the range of 5-10 million rubles, and the age does not go beyond 5 years, then a coefficient of 2 is applied. Based on the value of the base given above, it turns out 90,000 rubles.
- For cars from the remaining 2 categories (not older than 10/20 years and costing 10-15 million rubles or more), the amount is calculated in the same way. The price of an identical new car and its age are taken into account. Based on the base value of 45,000 rubles. taking into account the correction factor 3, we get 135,000 rubles.
The Ministry of Industry and Trade is obliged to annually update data on cars included in the luxury list. Updated information becomes available on the official website of the department no later than the end of winter of the current year and is used to calculate tax for the previous reporting period.
When and how is it paid?
“Transport tax, regardless of whether the luxury vehicle tax is included in it or not, must be paid by December 1 of the year following the reporting period . If this day falls on a weekend, then the last day of tax payment is postponed to the next working day,” says the Federal Tax Service website.
Thus, the transport tax must be paid before the 1st of December, and if the car is included in the list of the Ministry of Industry and Trade, the luxury tax will be included in the payment automatically.
Payment period
Regardless of whether the amount of transport tax is adjusted by the adjustment factor or not, it must be paid before December 1 of the year following the reporting period. If the date falls on a weekend, the payment limit is moved to the next working day.
Regular transport tax for 2021 must be paid no later than December 1, 2021.
The period of ownership of an expensive car does not affect the amount of luxury tax.
Is it possible to bypass the luxury tax if the car is on the List, but costs less than 3 million rubles?
As we have already mentioned, when calculating whether a car should be subject to an increase factor or not, the term “average cost” is used (calculated based on the recommended retail prices for base versions of a particular make, model and year of manufacture).
In other words, even if you purchased a car at a discount and it cost you less than 3 million rubles, but the model is included in the general register of the Ministry of Industry and Trade, and even if the car was new or no more than 3 years old from the date of production, you will not be able to avoid the increasing factor.
List of cars subject to luxury tax in 2021
The list of expensive cars is updated every year. You can view it on the website of the Ministry of Industry and Trade. According to paragraph 2 of Art. 362 of the Tax Code of the Russian Federation, the Ministry of Industry and Trade is obliged to post a new version of the list on the official website no later than March 1 of the next tax period.
How has the official list of luxury cars changed since 2014?
The list of expensive cars is growing every year. At the time of the introduction of the premium for luxury cars in 2014, the Ministry of Industry and Trade included 187 car models on the list. In 2021, that number reaches 1,194.
Compared to last year, Mipromtorg has expanded the list of cars subject to luxury tax in 2021 by 201 models. So, a list of cars with a price (in rubles):
- 3 - 5 million increased by 70 points;
- 5 - 10 million - by 82;
- 10 - 15 million - at 19;
- over 15 million - by 30.
What should you pay attention to in the list from the Ministry of Industry and Trade?
The official list (we will give links to it below) is divided into 4 tables based on the price of cars. When searching for which cars according to the list of the Ministry of Industry and Trade are subject to the luxury tax in 2021, pay attention to each of the columns of the table. No additional payment will be charged to the vehicle if it does not meet at least one of the parameters. Model, configuration, engine type/volume and year of manufacture of the car - all these parameters must match completely.
Where can I see a list of all cars subject to the luxury tax in 2021?
Since this year we are paying TN for 2021, your car should be looked for in the 2021 list. You can view the official list here.
Where can I see a list of luxury cars you'll have to pay for in 2021?
View the new list of luxury cars with increased vehicle tax rates here.
Are there any luxury tax benefits?
Formally there are, but they are of little use, and here's why. Here it is worth turning to tax incentives for transport, established both at the federal and regional levels. In particular, subsidies are regulated by Article 358 of the Tax Code of the Russian Federation.
Namely: citizens who own (part 2 of article 358 “Object of taxation”):
passenger cars specially equipped for use by disabled people, as well as cars with an engine power of up to 100 horsepower (up to 73.55 kW), if the citizen’s disability is confirmed by the relevant authorities;
received (acquired) through social protection authorities in the manner prescribed by law.
As you can see, for this category of people there is no talk of providing benefits for an additional luxury tax due to the low engine power and low budget of these cars.
However, tax benefits for motorists do not end there; in particular, transport tax benefits are also provided for:
veterans and disabled combat veterans; large families; WWII veterans and disabled people; former minor prisoners of concentration camps; heroes of Russia and the USSR; disabled people of groups I and II; one of the guardians of a disabled person since childhood, recognized by the court as incompetent
These categories are exempt from the tax burden on vehicles, and therefore from the increasing coefficient of the “luxury tax”.
But there is a nuance here: transport tax benefits are provided to citizens of the above categories only if the engine power does not exceed 200 hp. With. For example, this procedure applies in the territory of the city of Moscow and is regulated by Part 5 of the Moscow City Law of July 9, 2008 No. 33 “On Transport Tax”:
The benefits established by paragraphs 3-8 and 11-14 of part 1 of this article do not apply to passenger cars with engine power over 200 hp. With. (over 147.1 kW).
And in a number of federal laws for victims of the Chernobyl disaster and other emergencies related to radiation leaks. In these cases, the law also provides for a power limit of up to 200 hp. With.
How to pay luxury tax on a car
Tax on cars worth more than 3 million rubles. is part of the road tax, so it should be paid in accordance with the rules for payment of TN.
What are the deadlines for paying car tax?
Phys. Individuals, regardless of their place of residence, pay car tax every year until December 1. TN is paid for the previous tax period - in 2021 we pay for 2021. That is, if you bought a car in 2021, then you will pay for it for the first time in 2021.
To pay for the TN, you should wait for a notification from the tax office, which usually arrives at the end of summer or beginning of autumn. By law, you must receive the letter by November 1st. The notice will indicate the exact amount to be paid and a receipt for payment.
Terms and procedure for paying legal auto tax. persons are regulated by local legislation, so they differ in different parts of the country. Read more about how TN organizations pay here.
How can I pay?
You can pay auto tax both at a bank branch and online. To pay at the bank, simply give the teller the receipt from your tax notice.
You can pay for TN online on State Services, the official website of the Federal Tax Service, using electronic wallets, as well as on our website. Read more about reliable online payment methods in a separate article.
An example of calculating transport tax taking into account increasing factors
Option with Federal Tax Service calculator (instructions)
Federal Tax Service calculator: www.nalog.ru
We will calculate the tax with an increasing coefficient on a car presented in the List of the Ministry of Industry and Trade, an Audi A6 Avant with a 3.0-liter V6 TFSI gasoline engine with a power of 245 kW (333 hp).
We enter the initial data into the official tax calculator of the Federal Tax Service: 2019 year of manufacture, ownership for a full year (you can select a report up to 1 month); vehicle type – passenger car, power – 333 hp. With.
Click the “Next” .
Open the tab “If the vehicle costs more than 3 million” and enter the data of the desired model, and calculate.
As you can see, the calculation formula also includes a multiplying factor.
Manual tax calculations taking into account the increasing coefficient
Everything is very simple here.
It is enough to know what transport tax your car is subject to, excluding luxury tax. Next, remember the coefficients and multiply the amount of transport tax by the required one.
For example, we have a Jaguar F-Pace with a 2.0-liter Ingenium turbocharged gasoline engine with a capacity of 300 hp. With. The transport tax will correspond to about 45,000 rubles . We multiply this number by 1.1 and get 49,500 rubles including luxury tax.
The tax for cars of other categories is calculated in the same way, only you need to multiply the coefficient by 2 and 2, respectively. That is, the tax will be 2 or 3 times higher.
Note:
Let us remind you that taxation on cars under three years old in 2021 progressively decreased from the moment of purchase from 1.5 for the first year of operation to 1.1 for models aged from 2 to 3 years .
From 2021, the coefficient has been reduced to 1.1 for all models costing from 3 to 5 million rubles .
And finally. The List published for 2021 now includes 1,298 models plus just over 100 cars. The full list, which includes most foreign automakers, can be found here: minpromtorg.gov.ru.
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Luxury tax is an additional vehicle tax levied on owners of very expensive cars.
The luxury tax is calculated by multiplying the regular vehicle tax rate by a multiplying factor. The coefficient depends on the cost and age of the car and varies from 1.1 to 3. The tax was introduced in 2014 and is a tool for relieving social tension. The number of cars to which this rule applies is small, so the tax does not significantly affect the formation of the country’s budget. You can find out which cars are subject to luxury tax in our article.
