On 3 September 2026, the Federal Tax Service issued methodological clarifications on the application of increasing coefficients (povyshayushchie koeffitsienty) to land tax for plots designated for housing construction. The guidance interprets Article 394 of the Tax Code, which allows municipalities to set coefficients up to 2.0 for land not used for its intended purpose. The FTS emphasizes that coefficients must be justified by local normative acts and cannot be applied arbitrarily.
Key Takeaways
- Municipal Discretion with Limits: Local authorities may increase coefficients only if land remains undeveloped beyond statutory periods (typically 3 years), and must publish the decision on the official website.
- Exemptions for Active Development: Plots where construction has commenced (building permit obtained, construction in progress) are exempt from increased coefficients, provided the developer meets milestone deadlines.
- Judicial Precedent Alignment: The guidance references recent Supreme Court rulings confirming that coefficients cannot be applied retroactively and must be proportionate to the violation.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement