Russia | The Supreme Court has summarized the case law on litigation related to the taxation of corporate property

Resolution No. 6A/2026 of the Presidium of the Supreme Court of the Russian Federation, dated April 29, 2026, approved the “Thematic Review of the Supreme Court of the Russian Federation
No. 4/2026: On the Consideration by Arbitration Courts of Disputes Related to the Taxation of Organizational Property.”

This document contains 17 legal positions developed to ensure a consistent approach to resolving disputes regarding the taxation of corporate property.

The Supreme Court analyzed case law and questions submitted by lower courts regarding the application of Chapter 30 of the Tax Code, which governs corporate property tax. Since 2019, only real estate has been subject to taxation; however, the law lacks clear criteria for distinguishing between movable and immovable property, which sometimes causes difficulties when considering cases in this category.

In this regard, the Supreme Court has included the most illustrative examples in its review.

1. Production equipment inside the workshop.
   Processing equipment intended for the manufacture of finished products or for supporting the production process, and recorded as a separate fixed asset, is not subject to property tax, even if it is installed inside a building. The installation of equipment inside a factory building does not preclude eligibility for property tax exemption.

2. A building and the equipment technologically connected to it.
   The application of the legal regime governing indivisible or composite objects to a building and its associated equipment does not automatically constitute grounds for levying corporate property tax on the building and equipment as a single taxable object.
   Equipment serving the building (e.g., a transformer substation) does not always become part of the real estate for tax purposes. Civil law criteria regarding indivisible objects do not automatically apply to tax relations.

3. Asset portfolio at auction.
   The consolidation of an organization’s assets into a single property complex for the purpose of conducting transactions involving it (sale, transfer as collateral, etc.) is not sufficient grounds for classifying the equipment included in it as subject to corporate property tax. It is important how the assets are classified under the OKOF.

4. For tax purposes, it is necessary to determine whether the equipment constitutes part of the building’s infrastructure or other facilities that ensure its proper functioning.
   For tax purposes, it is important to determine whether the equipment constitutes part of the building’s infrastructure or ensures its proper functioning. For example, elevators and lighting systems are part of the building, whereas satellite television is not.

5. Unregistered property.
   A structure is subject to corporate property tax if it qualifies as a fixed asset and actually meets the criteria for real estate, regardless of whether the rights to such property are registered in the state registry.
   For example, a grain elevator constructed after renovation is subject to tax as real estate if it meets the criteria for a structure and was built in accordance with urban planning regulations.

6. Structures and associated equipment.
   A structure intended for use in production activities is considered a taxable entity as a whole, together with all equipment necessary for its operation.
   If a structure (e.g., process piping) is designed and constructed as a single unit with equipment, it is taxed in its entirety. However, the installation of equipment or cables on a third-party structure does not always result in the formation of a single taxable unit.

7. The classification of a fixed asset as taxable is determined by the legally significant characteristics of the property and cannot be subject to the taxpayer’s discretion.
   Equipment that can function only as part of another asset (for example, deck cranes on a drilling rig) is accounted for as part of that asset and is subject to property tax along with it.

8. Equipment of a hydroelectric power plant unit.
   Equipment that is part of a separate property complex is excluded from the taxable base for corporate property tax (compressors, boilers, tanks) if accounting rules permit the equipment to be recorded as separate inventory items and the tax authority has not disputed the correctness of its inclusion in the appropriate depreciation group.

9. Underground mine workings.
   Artificial structures located underground, such as underground mine workings created as a result of mining operations and used in the production activities of a mining enterprise, generally constitute a taxable object, as they are structures intended to perform the primary and auxiliary functions of a mining enterprise.
10. Landscaping of a land plot.
    Outdoor landscaping features and other inseparable improvements to a land plot (paving, surfacing) are generally not subject to corporate property tax, since such improvements do not give rise to a separate taxable object, and, in accordance with accounting rules, their value is not included in the cost of capital structures erected on the land plot.
11. Transactions between Related Parties.
    The tax authority has the right to determine the tax base based on documented information regarding the market value of the property if it determines that the taxpayer acquired it from a related party at a price significantly different from the market value, and/or the value of the property received as recorded in the accounting records is knowingly inaccurate.

12. Interest on loans.
    Interest on debt obligations is included in the tax base when calculating corporate property tax to the extent that the borrowed funds were used by the taxpayer to acquire or construct taxable fixed assets.

13. Demolition of a Real Estate Property.
    The existence of an entry for a real estate property in the state registry does not establish a tax liability if the taxpayer proves that the property has effectively ceased to exist (lost its physical properties), including as a result of demolition or destruction.
    If the building has actually been demolished, no tax is payable, even if the entry in the Unified State Register of Real Estate (USRRE) still exists. Evidence includes reports from a cadastral engineer, construction supervision documents, and contracts with contractors. However, if such evidence pertains not to the disputed tax period but to a later one, these documents cannot serve as a basis for concluding that the tax liability for the disputed tax period has ceased.

14. Invalid Transactions.
    If property is acquired in violation of the law, including through a transaction deemed invalid, the tax is payable by the party to the transaction that actually owned the property and used it in business operations. In other words, the tax is paid by the party who actually owned and used the property, regardless of the entry in the registry.

15. Concession Agreements.
    Property transferred to a concessionaire under a concession agreement is subject to taxation in the concessionaire’s hands as of the date of the actual transfer of such property, regardless of whether the information has been entered into the state register in a timely manner.

16. Residential Properties and Cadastral Value.
    The determination of the cadastral value of completed residential premises, residential buildings, apartment buildings, rental houses, garden houses, garages, parking spaces serves as the basis for levying tax on such properties, regardless of the permitted use of the land plots on which they are located.

17. Construction in Progress.
    Properties under construction for which a cadastral value has been determined and approved in accordance with established procedures are subject to corporate property tax, regardless of whether such properties are used in the taxpayer’s business operations.

Link: https://vsrf.ru/documents/reviews/35815/