Private Client 2017 – Country Overview

1 Pre-entry Tax Planning

1.1 In your jurisdiction, what pre-entry estate and gift tax planning can be undertaken?

Law on the estate and gift tax was abolished in 2005 and has not been applied since 1 January 2006. However, it should be noted that property acquired as inheritance or gifts is an economic benefit for a person and is subject to personal income tax. Russian Tax Code exempts from taxation all types of income arising from inheritance and some types of gifts from natural persons. Gifts from persons other than natural persons are taxable (taking into account tax residency and source of origin; see question 2.3) if the threshold of 4,000 RUB is exceeded. Gifts in the form of real estate, vehicles, stocks and shares from persons other than close relatives are also subject to personal income tax. Therefore, establishing pre-entry gift tax planning in Russia could provide for receipt of gifts from close relatives (all types of gifts) and other natural persons