List of cars subject to luxury tax in 2021

Increasing coefficients for expensive cars

The need to apply an increasing factor depends not only on the average cost of the car, but also on its age. Moreover, the lower the cost of the vehicle (within the established limits), the less time from the date of release from the assembly line it falls under increased rates.

Paragraph 2 of Article 362 of the Tax Code of the Russian Federation establishes the following increasing coefficients:

Average cost of a vehicle, million rubles.	During what period from the production date does the coefficient apply?	Coefficient value
From 3 to 5	3 years	1,1
From 5 to 10	5 years	2
From 10 to 15	10 years	3
From 15	20 years	3

These coefficients are used regardless of who owns the car, an individual or an enterprise. The average cost is determined using the list of the Ministry of Industry and Trade compiled for the corresponding tax period.

What is a multiplying factor?

Transport tax is charged on all types of transport, and the total amount depends on the power of the vehicle and the established tax rate. But in addition to the base rate, since 2014, owners of expensive cars are forced to use an increasing coefficient when calculating, i.e. multiply the calculated tax amount by a certain derivative, and pay the increased amount to the budget. The category of expensive transport includes cars that cost more than 3 million rubles; the more expensive the property, the more you will have to pay for it. The application of the coefficient depends on the cost and year of manufacture of the vehicle in accordance with the table below.

Table - Increasing coefficients for calculating transport tax in 2021

Vehicle cost	Vehicle age
Vehicle cost	Up to 1 year	1-2 years	2-3 years	Up to 5 years	Up to 10 years	Up to 20 years
3-5 million	1.5	1.3	1.1	—	—	—
5-10 million	2	2	2	2	—	—
10-15 million	3	3	3	3	3	—
From 15 million	3	3	3	3	3	3

According to paragraph 2 of Art. 362 of the Tax Code of the Russian Federation “Procedure for calculating the amount of tax and amounts of advance payments for tax”

The main nuance is that the owner of the vehicle cannot be guided by the amount actually paid for the car. The functions of determining which group a particular brand falls into are assigned to the Ministry of Industry and Trade. Every year, before 01.03, a list of car brands is printed on the official website, indicating the cost group. The list contains the following characteristics:

Make and model of the vehicle;
Engine type and size;
Number of years starting from the year of manufacture.

Every year this list expands; in 2021 it included almost thousands of items. For comparison, in 2015 the published list had 280 positions. The absence of a brand on the list is a sufficient reason for not applying the increasing coefficient. Separately, it is necessary to clarify the issue regarding cars that are not sold in the Russian Federation and are imported from abroad. The peculiarity of using the coefficient is that it is set at the federal level, while tax rates are adopted at the level of regional entities.

Procedure for paying tax by legal entities

Organizations that own cars must calculate the tax amount themselves. They need to make advance tax payments quarterly in the amount of ¼ of the tax amount. At the end of the year, the balance of the tax amount is paid, and a tax return is drawn up, which is submitted to the Federal Tax Service no later than February 1 of the year following the tax period.

Tax and advances are paid at the location of the car within the time limits approved by local legislation. If a multiplying factor is applied to a car, the procedure for transferring tax does not change.

What will the transport tax be in 2021?

There are currently no global changes in the taxation procedure in the Tax Code of the Russian Federation. The issue of abolishing the transport tax or replacing it with some other fee, which worries many, remains unresolved.

So, what will the transport tax be in 2021 according to the main parameters?

As before, the tax will be collected into the treasury of the region where the vehicle is registered. Regions also set final rates.

The base from which you must pay car tax in 2021 will be horsepower. As before.

For more information about determining the tax base for different types of transport and the procedure for calculating the tax, read the article “How is the tax base for transport tax determined?”

Tax rates are given in paragraph 2 of Art. 361 Tax Code of the Russian Federation. Their final value is determined by the regions.

The tax period is a year, and according to its results, you must pay tax. For individuals, the payment deadline is December 1 of the following year. For owner-organizations there are reporting periods - I, II, III quarters. After their completion, they also need to pay an advance, if this is stipulated in the regional law. The annual declaration must be submitted by February 1 of the following year. The dates for payment of taxes and advances are set by the region.

In 2021, there will still be benefits for individuals - owners of heavy trucks who pay to Platon. Only the procedure for confirming the right to benefits will become more stringent. For organizations in this regard, everything is the same - they have the right to a tax deduction.

We will tell you more about individuals below.

Procedure for paying tax by individuals

For individuals, tax amounts are calculated by specialists from the Federal Tax Service, guided by the data provided to them by organizations registering vehicles. Individual car owners are required to transfer the tax to the budget using a receipt sent by the tax authorities no later than December 1 of the year following the year for which the tax was calculated.

Note! When purchasing an expensive car, you do not need to specifically notify the tax authorities (neither an individual nor a legal entity), but the legal entity will be required to apply an increasing coefficient when independently determining the tax, including for advance amounts.

New list of cars subject to luxury tax in 2018 – Ministry of Industry and Trade

The introduction of a luxury tax in the Russian Federation is not an innovation. Transport taxes have been collected in Russia for several years now. It applies not only to passenger cars, but also to other vehicles: sea and river transport (including yachts, boats), aircraft.

When searching for information about the luxury tax, Russian citizens are most often interested in the list of car models subject to additional taxes in 2021. The Ministry of Industry and Trade published a 44-page document including a complete register of “luxury” cars. View the list on the official website of the Ministry.

The Ministry of Industry and Trade obliges owners of cars over a certain value to pay a luxury tax, regardless of the price at which they were purchased. Thus, the list may include cars whose purchase price was less than the current market value. This is due to the constant increase in prices for vehicles due to inflation, changes in exchange rates, etc.

Despite price hikes, the government has yet to increase the threshold for car prices eligible for luxury tax deduction. Because of this, the list of cars is constantly expanding. In 2021, additional expenses will have to be incurred by car owners whose cars are valued at more than 3 million rubles. However, some cars more expensive than this amount are not on the list, so you should check the official list before paying the tax.

About half of the list consists of cars costing from 3 to 5 million rubles, and they can hardly be called luxury. Just 4 years ago, when purchased, they cost less than 2 million and were barely entry-level premium.

An example of calculating vehicle tax using a multiplying factor

After you have purchased a car of the appropriate price category, you need to determine its age. According to the law, the period for calculating this period begins with the year of manufacture of the car (regardless of the date of purchase) and ends with the tax period.

For example, a car was produced in 2014 and costs 4 million rubles. Its age for calculating tax for 2021 will be 4 years, accordingly, despite the high cost, an increasing factor will no longer be applied to it in 2021.

The tax amount is calculated as the product of the tax base (engine power in horsepower) and the tax rate, multiplied by the value of the coefficient.

Example
A company in Moscow owns a Land Rover car worth 6 million rubles, the model of which is included in the list of the Ministry of Industry and Trade. Its year of manufacture is 2021. Engine capacity is 250 horsepower, the tax rate in Moscow is 75 rubles (transport tax rates may vary by region).
Since the car is “younger” than 5 years, and its cost is in the range of 5-10 million rubles, a coefficient of 2 is applied.
The amount of transport tax in 2021 will be: (250 x 75) x 2 = 37,500 rubles.

How does it affect transport tax?

All owners of cars (except for preferential categories and certain cases) and other vehicles annually pay transport tax, calculated as follows:

Transport tax = Tax base (engine power in hp) * Tax rate * Increasing factor * Number of months of use / 12

For each car, the tax value is calculated individually. The tax base is calculated based on engine power, but the tax rate can vary from region to region (federal values can be increased up to 10, and sometimes more times).

One of the important factors determining the amount of transport tax is the increasing coefficient. It was introduced not so long ago - in 2014. The final amount of tax paid due to the increasing coefficient can increase significantly - from 1.1 to 3 times.

For example, if the tax amount for the year was 10,000 rubles, then if the luxury tax is paid, its amount can increase to 11,000 - 30,000 rubles.

Ministry of Industry and Trade: list of cars 2021

“Luxury tax” in 2021 must be paid for cars listed in the list compiled by the Ministry of Industry and Trade (published on February 28, 2018). This list is approved annually before March 1 of the corresponding year, and is published on the department’s website. The list allows you to determine which price category the car brand belongs to, and the real cost of its acquisition is not taken into account.

Thus, the amount of luxury tax (cars) in 2021 depends on the following factors: whether the car is on the list of the Ministry of Industry and Trade (its average cost) and “age”. Increased tax rates for expensive cars should be applied to both legal entities and individuals.

Why is there a luxury tax on cars?

Replenishment of regional budgets.
Support social balance.
Stimulating demand for domestic cars that are not subject to an additional coefficient.

REFERENCE

The luxury tax is a factor that increases the tax on transport in 2021. Payment of transport tax applies to all owners of passenger cars. For cars whose cost exceeds 3 million rubles, when calculating the amount of transport tax, an additional coefficient is applied in accordance with clause 2 of Article 362 of the Tax Code.

Rules for calculating transport tax

The rules for calculating transport tax will not change. Yes, and the rate itself will remain at the 2021 level. As before, the amount of tax depends on the engine power, year of manufacture of the car and its service life. It is expected that the amount that will go to the regional budget will be used, among other things, for road repairs. Therefore, the taxpayer can hope that the quality of the road surface will be better.

Prospects for amendments

Many expected drastic amendments in 2021, but they never happened. But the question of what might still happen worries many. And then about the forecasts.

Many say, including in the State Duma, that it would be more expedient to replace the fuel tax with an excise tax, which all motorists already pay when purchasing gasoline. This fee should also be used for the development of highways. And this is quite logical.

Such proposals are justified by the fact that each driver will pay money in proportion to how often the car is driven and the roads are used. But in order for the TN to be abolished, the excise tax must be raised quite substantially, which will greatly increase the cost of fuel.

But for now these are just discussions. Maybe there will be some adjustments already in 2021, we just have to wait.