On 2026/08/06, the Federal Tax Service of Russia published detailed instructions on the application of the tax exemption for real estate used by farm managers. The guidance clarifies that the exemption covers land and buildings directly involved in agricultural production, provided that the entities are registered as farm managers and can present appropriate ownership documents. The instructions specify that the exemption is applicable to property used for crop cultivation, livestock breeding, and related activities, and that it extends to both privately owned and leased assets when the lease terms meet statutory requirements. The document also introduces a verification procedure that requires tax inspectors to conduct on-site inspections within 30 days of receipt of the exemption claim, and it outlines the evidentiary standards that will be applied. Additionally, the guidance encourages taxpayers to submit electronic proof of ownership through the unified portal, which streamlines the approval process and reduces administrative burdens. The publication emphasizes compliance with reporting obligations and warns that improper appropriation of the exemption may result in reassessment of taxes together with penalties. It further clarifies that only the portion of property used for qualifying agricultural activities qualifies for the exemption, while any portion used for non-agricultural purposes will be subject to standard tax rates. The guidance also sets out the methodology for calculating the taxable base, clarifying that only the portion of property used for qualifying agricultural activities qualifies for the exemption, while any portion used for non-agricultural purposes will be subject to standard tax rates. It additionally provides examples of eligible farm manager categories, such as individual entrepreneurs and legal entities engaged in crop cultivation, and outlines the documentation required, including registration certificates, land use declarations, and tax identification numbers. The Service advises taxpayers to retain all supporting documents for at least five years and to update their filings in case of changes in the scope of agricultural activities.
Key Takeaways
- Scope: Exemption applies to land and structures used for agricultural production, including leased properties that satisfy statutory lease conditions.
- Verification Timeline: Tax authorities must complete on-site inspections within 30 days of receiving the exemption request.
- Electronic Proof: Submission of digital ownership documents via the unified portal accelerates processing and reduces paperwork.
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