4.4.8. Tax on transport vehicles

Who is a payer of tax on transport vehicles?

Individuals having the objects of taxation in ownership, as well as legal entities and their departments having objects of taxation in ownership, economic or operational management shall be deemed the payers of tax on transport vehicles. Certain categories of taxpayers as stipulated for by Article 345 of the Tax Code shall not pay tax on transport vehicle. Such categories, in particular, shall include the payers of single land tax within the quotas of use of transport vehicles, organizations funded only by state budget and some other categories.

What is an object of taxation by tax on transport vehicles?

According to Article 346 of the Tax Code, transport vehicles except for trailers subject to state registration an (or) registered in the authorized body shall be deemed the objects of taxation. At the same time the mine (dump) trucks with the load capacity of 40 tones and above, as well as specialized medical transport vehicles shall not be objects of taxation.

What rates are applied to transport vehicles?

Tax assessment shall be carried out at the rates established in the monthly calculated indexes (MCI). The amounts of rates are stipulated for by Article 347 of the Tax Code and, in particular, shall be from 4 up to 117 MCI for passenger vehicles, from 6 up to 15 MCI for freight and specialized vehicles. At the same time the adjustment coefficients shall be applied to the tax rates. Thus, the adjustment coefficients from 0.1 up to 1.0 shall be applied to passenger vehicles whose period of operation exceeds 6 years before the expiry of the period established for tax payment.

What is a procedure to assess and pay the tax?

Taxpayers (except for legal entities that make payments to the budget using the special tax regime for the producers of agricultural goods) shall individually assess the tax amount taking into consideration the objects of taxation, tax rates and adjustment coefficients on each transport vehicle.

Payment of tax shall be carried out to the budget at the place of registration of the objects of taxation not later than 1 July of the reporting period (calendar year). Taxpayers, legal entities, shall make final payment of the tax on transport vehicles within a period of no later than 10 days from the moment the period to submit the declaration on tax on transport vehicles for a reporting period occurs. At the same time the declaration shall be submitted by no later than 31 March of a year following the reporting one.