Differentiation Between Movable and Immovable Property for Tax Purposes

Property taxation plays an important role in the development of regions and organisations. The social implication of the property taxation is manifested in significantly large number of tax benefits. Moreover, some law changes may result in the exclusion of some previously taxable items. For example, all movable property was excluded from property tax starting in 2019. As of this date the Tax Code of the Russian Federation does not contain any definition of movable/immovable property but refers to the Civil Law to clarify the concept. However, the definition and criteria contained in the Civil Code of the Russian Federation are not definite. This problem causes numerous disputes between tax authorities and taxpayers. In the final qualification work, the issue of differentiation between movable and immovable property for tax purposes is considered. The formation of such criteria in the tax legislation is important for the correct formation of the tax base and the application tax benefits. The scope of research contains analysis of the theoretical foundations of property taxation, identification of the criteria applicable in the Tax Law to differentiate movable property from immovable, analysis of the practical application of such criteria, and analysis of foreign law and court practice. The study is focused on the elaboration of the criteria for classification of tax items as movable or immovable in order to reduce the risks of taxpayers and tax disputes. Based on the results of the study, the author makes suggestions for improving modern tax legislation through the settlement of the criteria for differentiation between movable and immovable property.