Luxury Tax Calculation and Car List in 2021

2024 Author: James Gerald | [email protected]. Last modified: 2023-12-17 14:00

People planning to buy an expensive car should know the procedure for calculating the luxury tax, the list of cars that will be included in the corresponding list in 2021. Now this document has been replenished with new car models.

List of taxable car models

It is quite extensive and includes many names and brands. Five more new brands are on the list of cars that fall under the recently approved luxury tax amendments. This, as well as the procedure for calculating the coefficients in 2021, was reported on the website of the Ministry of Industry and Trade. The list now includes a number of vehicles:

• Jeep;
• Chrysler;
• Subaru;
• Honda;
• Mazda.

It is noteworthy that these are not premium models. In total, the list under consideration now includes 1, 3 thousand modifications. This includes cars, the cost of which is from 3 million rubles. Among the cars subject to luxury tax are Porsche, Bentley and others. They can be categorized according to cost:

• 632 cars worth up to 5 million rubles - 54 more than in the year before last;
• 484 cars costing 5-10 million rubles;
• 100 cars, the price of which is 10-15 million rubles;
• 82 cars are more expensive than 15 million rubles.

Individual cars, which the Accounting Chamber pointed to in its previous data, were not included in this list. The agency considered them as subject to an increased coefficient, in accordance with the Tax Code of the Russian Federation.

In the summer of 2019, the chamber's experts in a statement said that a number of Russian regions receive insufficient amounts of transport tax due to the absence of premium cars in the list of the Ministry of Industry and Trade. Models such as the Mercedes-Benz S63, Tesla Motors Model S, and modifications of the Limousine and Bugatti cars were named.

Deputy A. Vasiliev, a member of the government's transport and construction committee, said that electric vehicles should not be taxed on luxury, as is the case with conventional vehicles.

Calculation methods

When calculating the average price for a car, which is indicated in the documentation of the Ministry of Industry and Trade, the retail prices recommended by experts for the basic variants of the model are used. The brand and year of appearance on the market are also important. In the event that the car is included in the list of taxable, then a coefficient with an increase of 1, 1-3 is applied.

At the legislative level, the transport tax with a coefficient of 1, 5 is paid by all owners of cars equated to the category of luxury cars. In this case, modifications are meant with a price of $ 3 to $ 5 million.

If the age of the car does not exceed 1 or 2 years, the coefficient is taken as 1, 3. For car models, the age of which varies from 2 to 3 years, the coefficient for calculating the tax is 1, 1.

Key objectives of the tax introduction

The luxury tax is not a stand-alone tax. This is the name of a special coefficient, which is spelled out in the law as an increase. It is traditionally included in the transport payment. Article 362 of the Tax Code of Russia, more precisely, its second part, is responsible for the regulation of settlements.

In accordance with it, 4 categories of expensive cars are distinguished. Calculations are underway regarding them. The law determines the coefficient, set at a certain level, in accordance with the age of the machine and its value. Updated information on these coefficients is published every year on the website of the Ministry of Industry and Trade.

For what purpose was this tax introduced? Russian legislators first of all tried to adopt the experience of civilized countries. The purpose of the tax is to divide the citizens who belong to the middle class and those with high incomes.

In fact, this means that the rich have to pay for any kind of excess. This applies primarily to luxury goods. The luxury tax on cars makes it possible to receive additional money for the budgets of regions and regions of Russia.

It also leads to stimulating growth in demand for cars that were much cheaper a few years ago. Passenger cars of the domestic auto industry are not included in the list of luxury taxes.

At the same time, foreign models are becoming more expensive, which pushes people to buy models of domestic brands. It turns out that this is a kind of import substitution measure.

What has changed in terms of cost

In 2020, the average cost of premium cars included in the above list and subject to luxury tax was about 3-5 million rubles. The marginal cost did not have any calculation restrictions at that time. In 2021, the specified list includes cars, the average price of which is 10-15 million rubles.

But how can you calculate the average cost of a car? The Ministry of Industry and Trade claims that it is used to focusing on the basic versions of a particular brand. At the same time, the experts of the department say that they do not look at the actual level of the cost of a passenger car.

The latest car listing data is developed according to the different new car prices for the reporting tax period, which covers the time from July 1 to December 1.

Not later than the first days of May, the Ministry of Industry and Trade sends a request to car manufacturers or their authorized representatives. In it, he asks to provide up-to-date information on each current modification of the car, its basic version with an orientation to the year of manufacture. I mean cars that cost more than 3 million rubles.

How long does the increased coefficient apply?

If a car is subject to a luxury tax, then usually the increased rate is applied to it until it is more than 3 years old from the date of manufacture. But here an important nuance is the use of a special timeline.

It is used for the purpose of graduation according to the year of manufacture, which is provided as the price of a machine intended for individual use increases. Here are the data that are relevant today on this scale:

1. With an average price of 3-5 million rubles, the increased coefficient is applied if the car is not more than 3 years old at the moment.
2. In the case of an average price of 5-10 million rubles inclusive, the luxury tax at an increased coefficient will be applied if not more than 5 years have passed since the date of the car's release.
3. If the average price is 10-15 million rubles, then payment at an increased rate is assumed if the age of the car does not exceed 10 years.
4. At a cost of 15 million rubles or more, a car is taxed if more than 20 years have not passed since the date of its release.

The tax legislation of Russia states that the timing is counted from the year of production of a passenger car. At the same time, when calculating the luxury tax, it doesn't matter if the car was released in January 2021 or in the last quarter of the year.

If for cars not older than 3 years and costing 3-5 million rubles the coefficient is 1, 1, then for cars with a price of 5-10 million, not older than 5 years from the date of production, it will be 2. If the vehicle is classified as luxury, costs 10-15 million rubles, and its age is no more than 10 years, a coefficient 3 will be applied to it. The same is true for the list of cars that are more expensive than 15 million, but do not exceed the age of 20 years.

Summarize

1. The list of cars subject to luxury tax includes 5 new brands.
2. The premium rate used to calculate the luxury car tax differs depending on the age of the car and its value.
3. The minimum coefficient is set for cars under 3 years old, the price of which does not exceed 5 million rubles. It is 1, 1.