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IEs and legal entities are obliged to pay the taxes stipulated by the selected tax regime from the rental income. Legal entities - income tax and VAT, IE - UTII (Unified tax on imputed income) or STS (Simplified Tax System) at the rate of 6% or 15%, depending on the selected object of accounting. For an individual, this income is subject to personal income tax. However, if there are circumstances that indicate the commercial nature of an individual who does not have the status of an IE, this income must be paid VAT," - said managing partner of the law firm Tax Compliance Mikhail Begunov. Recently, inspections of non-residential facilities owners, who lease them, have become more frequent, said Begunov. The inspections result in fines and penalties, as well as bringing an individual to administrative and possibly criminal responsibility. "A series of additional charges for VAT followed after the Supreme Court of Russia in July last year, confirmed that a citizen must pay VAT if he is engaged in commercial activities for renting their own non-residential facilities without registration as an individual entrepreneur. In particular, they are aimed at making profit, i.e. acquiring property for its subsequent use for profit, as well as the systematic generation of this income," said the lawyer of Tax Compliance. He explained that the one-time nature of the transaction in itself does not indicate the business activity of an individual.

According to the managing partner of the law firm Tax Compliance, Mikhail Begunov, “the arrest warrant issued demonstrates the sufficiency of evidence in the commission of the alleged crime and the desire to extradite the person to the U.S. territory for legal proceedings”.