Increasing coefficients for expensive cars
The need to apply an increasing factor depends not only on the average cost of the car, but also on its age. Moreover, the lower the cost of the vehicle (within the established limits), the less time from the date of release from the assembly line it falls under increased rates.
Paragraph 2 of Article 362 of the Tax Code of the Russian Federation establishes the following increasing coefficients:
| Average cost of a vehicle, million rubles. | During what period from the production date does the coefficient apply? | Coefficient value |
| From 3 to 5 | 3 years | 1,1 |
| From 5 to 10 | 5 years | 2 |
| From 10 to 15 | 10 years | 3 |
| From 15 | 20 years | 3 |
These coefficients are used regardless of who owns the car, an individual or an enterprise. The average cost is determined using the list of the Ministry of Industry and Trade compiled for the corresponding tax period.
Luxury odds size in 2021
The formation of an increasing coefficient depends on such indicators as:
- Cost of the vehicle.
- Vehicle production date.
The higher the cost of the car, the higher the coefficient. However, as the age of operation of a passenger car increases, the tax amount becomes smaller, and upon reaching a certain limit, the luxury tax is canceled.
IMPORTANT
When calculating the tax amount, you need to pay attention to the vehicle's equipment.
The same model, for example, a Ford Explorer, is subject to the tax in the extended Limited trim level, but the base trim level is not subject to the additional factor. When calculating the luxury transport tax, the price category of the passenger car is taken into account. Depending on the cost, a coefficient is assigned:
- First category (3-5 million rubles) – 1.1. Suitable for cars up to 3 years old.
- Second category (5-10 million rubles) – 2. Applicable for cars up to 5 years old.
- Third category (10-15 million rubles) – 3. Applicable for cars up to 10 years old.
- Fourth category (more than 15 million rubles) – 3. Applicable to cars up to 20 years old.
REFERENCE
In 2021, the coefficient for passenger cars worth 3-5 million has been reduced. Previously, it ranged from 1.1 to 1.5 depending on the age of the car. According to the amendment to Art. 362 of the Tax Code of the Russian Federation, Federal Law No. 335-FZ, when calculating transport tax, a minimum coefficient of 1.1 will be applied to all cars.
Procedure for paying tax by legal entities
Organizations that own cars must calculate the tax amount themselves. They need to make advance tax payments quarterly in the amount of ¼ of the tax amount. At the end of the year, the balance of the tax amount is paid, and a tax return is drawn up, which is submitted to the Federal Tax Service no later than February 1 of the year following the tax period.
Tax and advances are paid at the location of the car within the time limits approved by local legislation. If a multiplying factor is applied to a car, the procedure for transferring tax does not change.
Procedure for paying tax by individuals
For individuals, tax amounts are calculated by specialists from the Federal Tax Service, guided by the data provided to them by organizations registering vehicles. Individual car owners are required to transfer the tax to the budget using a receipt sent by the tax authorities no later than December 1 of the year following the year for which the tax was calculated.
Note! When purchasing an expensive car, you do not need to specifically notify the tax authorities (neither an individual nor a legal entity), but the legal entity will be required to apply an increasing coefficient when independently determining the tax, including for advance amounts.
Size of the multiplying factor
In order to correctly calculate the amount of tax (for legal entities) or to check the accuracy of the information in the notification (for individuals), you need to know the size of the increasing coefficient.
For 2021
For 2021, transport tax is paid by individuals and legal entities in 2021. In this case, when calculating, you need to use the old values:
| Price | Number of years since graduation | Applicable coefficient |
| 3 – 5 million rubles | Less than 1 | 1,1 |
| 1 – 2 | 1,3 | |
| 2 – 3 | 1,5 | |
| 5 – 10 million rubles | Up to 5 | 2 |
| 10 – 15 million rubles | To 10 | 3 |
| Over 15 million rubles | Up to 20 | 3 |
Moreover, you additionally need to look at the age requirements in the list of the Ministry of Industry and Trade, since different car models have their own values.
Example . Evgrafov owns a 2021 Audi R8 quattro. For 2021 he will pay transport tax. What magnification factor should he use? This car is included in the list of cars worth from 5 to 10 million rubles. Moreover, the corresponding coefficient is applicable to cars under 3 years old. In this case, you will have to pay luxury tax using coefficient 2.
From 2021
Starting from 2021, the calculation of the increasing coefficient has changed slightly after the entry into force of Federal Law No. 335-FZ of November 27, 2017. From January 1 of this year (according to the new rules, payments for 2021 will be made in 2021), the coefficients for cars with a price of 3 to 5 million rubles have changed. Now the three subgroups are combined into one - up to 3 years. A single coefficient is established for them - 1.1. In general, the table of increasing coefficients looks like this:
| Price | Car age | Coefficient |
| 3 – 5 million rubles | Up to 3 years | 1,1 |
| 5 – 10 million rubles | Up to 5 years | 2 |
| 10 – 15 million rubles | Up to 10 years | 3 |
| From 15 million rubles | Up to 20 years | 3 |
This means that the amount of tax, taking into account the increasing coefficient, for owners of new cars in the price category from 3 to 5 million rubles will decrease.
An example of calculating vehicle tax using a multiplying factor
After you have purchased a car of the appropriate price category, you need to determine its age. According to the law, the period for calculating this period begins with the year of manufacture of the car (regardless of the date of purchase) and ends with the tax period.
For example, a car was produced in 2014 and costs 4 million rubles. Its age for calculating tax for 2021 will be 4 years, accordingly, despite the high cost, an increasing factor will no longer be applied to it in 2021.
The tax amount is calculated as the product of the tax base (engine power in horsepower) and the tax rate, multiplied by the value of the coefficient.
Example
A company in Moscow owns a Land Rover car worth 6 million rubles, the model of which is included in the list of the Ministry of Industry and Trade. Its year of manufacture is 2021. Engine capacity is 250 horsepower, the tax rate in Moscow is 75 rubles (transport tax rates may vary by region).
Since the car is “younger” than 5 years, and its cost is in the range of 5-10 million rubles, a coefficient of 2 is applied.
The amount of transport tax in 2021 will be: (250 x 75) x 2 = 37,500 rubles.
What is luxury tax
In 2013, the state decided to increase the transport tax for those who use expensive cars costing 3 million rubles and more. For this purpose, amendments were made to the Tax Code of the Russian Federation.
Formally, there are three reasons for introducing a luxury tax. It exists to maintain social balance, stimulate the purchase of domestic cars (the tax does not apply to vehicles manufactured in Russia), and also replenish regional budgets. It is clear that the last task is the first priority. Mainly the state wants to take additional money from those who have this money.
The law divides cars worth more than three million rubles into four groups:
- worth from 3 to 5 million rubles, which were issued no more than 3 years ago.
- worth from 5 to 10 million rubles, which were issued no more than 5 years ago.
- worth from 10 to 15 million rubles, which were issued no more than 10 years ago.
- costing from 15 million rubles and above, which were issued no more than 20 years ago.
The cost of the car in this case is a guideline exclusively for the Ministry of Industry and Trade. It compiles a list of cars subject to the luxury tax, focusing on their current market value. Therefore, if you own an expensive vehicle, it does not matter how much you actually or formally purchased it for. If the car is on the list of the Ministry of Industry and Trade, the transport tax on it will be higher.
The system of increasing coefficients, due to which the transport tax on expensive cars is increased, looks like this:
- for cars of group 1 - coefficient 1.1
- for cars of group 2 - coefficient 2.0
- for cars of groups 3 and 4 - coefficient 3.0
This means, for example, that for a car that costs more than 10 million rubles and that was produced less than 10 years ago (the third group of vehicles falling under the luxury tax), you will have to pay a tax three times higher than the base rate.
Photo: pxhere.com
Ministry of Industry and Trade: list of cars 2021
“Luxury tax” in 2021 must be paid for cars listed in the list compiled by the Ministry of Industry and Trade (published on February 28, 2018). This list is approved annually before March 1 of the corresponding year, and is published on the department’s website. The list allows you to determine which price category the car brand belongs to, and the real cost of its acquisition is not taken into account.
Thus, the amount of luxury tax (cars) in 2021 depends on the following factors: whether the car is on the list of the Ministry of Industry and Trade (its average cost) and “age”. Increased tax rates for expensive cars should be applied to both legal entities and individuals.
Transport tax: increasing coefficient, list of cars
So, the transport tax depends on the increase factor, which in turn is influenced by the list of cars approved by the Ministry of Industry and Trade. The list is posted on the official website of the Ministry of Industry and Trade https://minpromtorg.gov.ru, and this list includes the following information:
- vehicle make
- car model or version
- engine's type
- engine capacity
- number of years since graduation
This list is gradually updated: for example, in 2021, 217 brands of cars were additionally included in it, and currently the list includes 1,126 types of vehicles worth more than 3 million rubles.
As for the increasing coefficient, in accordance with paragraph 2 of Art. 362 of the Tax Code of the Russian Federation until 2021 there were 5 of them:
| Number in order | Coefficient | Description | |
| Cost of the car, (million rubles) | Number of years since the car was produced | ||
| 1. | 1,1 | 3-5 | 2-3 years |
| 2. | 1,3 | 3-5 | 1-2 years |
| 3. | 1,5 | 3-5 | less than 1 year |
| 4. | 2,0 | 5-10 | less than 5 years |
| 5. | 3,0 | 10-15 | less than 10 years |
| more than 15 | less than 20 years | ||
Thus, from the table you can easily find out which increase factor should be used in a particular case. The main thing is to be extremely careful and not try to hide the fact that you have a car worth more than 3 million rubles. and don't try to pay less on your vehicle tax.
Regarding reporting and payment of transport tax, the following particularly important points can be noted:
- individuals do not need to generate any reporting, since transport tax is calculated by specialists from tax services in the regions of the Russian Federation. It is they who send in paper or electronic form a notice of the need to pay tax, which also indicates the deadline for transferring the payment
- legal entities must independently calculate the payment and submit quarterly transport tax reports for verification to the tax authorities. When using the increase coefficient in tax calculations, its value must be taken from the list approved by the Ministry of Industry and Trade. In addition, the indicator used should be indicated in the transport tax return, namely in line 180 from section 2
