29.09.08

Expenses for repairs made to non-residential premises rented from a private entrepreneur are not tax deductible, according to Letter of the Ministry of Finance 03-03-06/1/462 from August 12, 2008.

Permanent assets owned by private entrepreneurs are not treated as depreciable capital assets in the Russian tax system. Consequently, provisions for expenditure records (including repair expenses) prescribed in Article 260 of the Tax Code may not be applied to such expenses. Provisions of the above article are used for records of expenses incurred by renters of depreciable capital assets in cases when agreement between the owner and renter does not include provisions for reimbursement of such expenses by the property owner (article 260 paragraph 2 of the TC of the RF).

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