Tourist Tax Rolled Out in Russia From Jan. 1

Effective January 1, 2025, Russia introduced a new tourist tax, replacing the earlier resort fee. This initiative, implemented through amendments to the Russian Tax Code, aims to strengthen regional tourism infrastructure. The phased plan will initially charge travelers 1% of their lodging costs, with the rate set to increase to 3% by 2027. The tax applies to hotels and other accommodations, with costs indirectly passed to tourists. Regional authorities are empowered to implement this as a local levy, making it a key step in enhancing Russia’s tourism landscape.

Key Details of Russia’s New Tourist Tax

Implementation Date

  • Effective from January 1, 2025.

Tax Rates

  • Starts at 1% of lodging costs in 2025.
  • Gradually increases to 3% by 2027.
  • Minimum daily charge set at 100 rubles (0.9 USD).

Purpose

  • To bolster regional tourism infrastructure and support local economies.

Legislative Background

  • Introduced via amendments to the Russian Tax Code in July 2024.
  • Includes a new chapter titled “Tourist Tax”.

Regional Discretion

  • Regional authorities can implement the tax as a local levy.
  • Widely adopted by regions with thriving or emerging tourism sectors.

Collection Mechanism

  • Tax is paid by hotels and lodging providers, incorporated into accommodation prices.
  • Cost ultimately borne by tourists.

Transition From Resort Fee

  • Replaces the earlier resort fee, offering a more structured and scalable framework.
Summary/Static Details
Why in the news? Tourist Tax Rolled Out in Russia Form Jan. 1
Initial Tax Rate 1% of lodging costs (2025)
Future Tax Rate Up to 3% by 2027
Minimum Daily Charge 100 rubles (0.9 USD)
Purpose Bolster regional tourism infrastructure and local economies
Legislative Basis Amendments to the Russian Tax Code (July 2024), new chapter titled “Tourist Tax”
Regional Authority Regions empowered to impose the tax as a local levy
Taxpayer Hotels and lodging providers (cost passed on to tourists)
Predecessor Replaces the previous resort fee
Shivam

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