The Federal Tax Service of Russia
Published: 21.06.2011 12:08
President Dmitry Medvedev signed the Federal Law on «Amendments to Article 217 of Part Two of the Tax Code of the Russian Federation and Article 4 of the Federal Law on «Personal subsidiary plot».
The Federal Law was enacted by the State Duma on 3 June 2011 and approved by the Federation Council on 8 June 2011.
According to official web site of the Russian President, the Federal Law exempts taxpayers’ financial resources received from the budgets of the budget system of the Russian Federation, from Personal Income Tax when they are used for a specified purpose for development of a personal subsidiary plot.
Furthermore, the Federal Law determines supplementary conditions, fulfilling which a taxpayer has the right to take advantage of this exemption as well as tax exemption of income derived from sale of animal or plant products grown by taxpayers at their personal subsidiary plots, as by Paragraph 13 Article 217 of Part Two of the Tax Code of the Russian Federation.
Such conditions include: availability of plot (plots) of land with the square not exceeding the upper maximum size established by the Federal Law «About personal subsidiary plot», and management of the personal subsidiary plot without labour power intake.
The upper maximum size of plot (plots) of land used as personal subsidiary plot (plots) is established at the dimension of 0,5 hectare. The regions of the Russian Federation have the right to increase this size, but no more than fivefold.