Property tax: if the building is not on the cadastral list

House tax

In the window that appears, you will have to indicate: the cadastral number of the property (not necessary, but desirable), conditional number, area and type of property that will be taxed.
You will also have to register the cadastral value of housing. And after that you can click on “Continue”. A few minutes of waiting - the amount due for payment will appear on the screen. The thing is that the tax on a private house or any other property is levied on all taxpayers. That is, if a citizen is 18 years old, he is fully capable, he owns either a house, or part of it, or at least a room, then he will have to pay money. More on calculations later.

Taxes and Law

You can already find out the preliminary tax amount on the Federal Tax Service website - just indicate the cadastral number of the property. “According to my calculations using the Federal Tax Service website, this year the tax amount, taking into account the preferential 20 square meters. m and a coefficient of 0.2 increased 3 times compared to last year,” says Tatyana Zatsepina, the owner of a three-room Khrushchev house on the outskirts of Moscow: the cadastral value of her apartment turned out to be 23 times higher than the inventory value. And the tax on a 100-meter apartment near the Timiryazevskaya metro station for one of the Vedomosti employees, calculated by a calculator on the Federal Tax Service website, was 1000 rubles. less than last year.

“If an apartment or house is in common shared ownership of several citizens, its cadastral value is reduced by the cost of 20 square meters. m, and, based on the balance, each owner pays tax in proportion to his share,” explains Leonenkova.

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Taxation of real estate as a “single real estate complex” pros and cons

Both of the above legal structures assume that they may include both immovable and movable things, which are generally recognized as immovable property by virtue of a direct indication of the law. However, these designs also have significant differences, which, in particular, include the following:

From an accounting point of view, including issues of writing off the cost of fixed assets, it is also difficult to predict whether an economic entity will in any case be obliged to account for the unified asset as one inventory item or will have the right to account for objects within the unified asset separately if the useful lives of such objects differ significantly. Also, at this stage, it is difficult to assess whether, and to what extent, the rules used for accounting purposes in relation to property complexes and complex things will be applied to ENK.

Taxation of real estate

Enterprise property tax. Currently, the property tax of an enterprise, including real estate, is charged at a rate set by the legislative authorities of the constituent entities of the Russian Federation depending on the type of activity of the enterprise in an amount not exceeding two percent of the tax base.

Legislation may provide for categories of citizens who are exempt from paying this tax. So, at present, these include, in particular, disabled people of groups I and II, disabled people from childhood, participants of the Second World War, citizens who received or suffered radiation sickness and other diseases associated with radiation exposure as a result of the Chernobyl disaster, citizens who became disabled as a result of the Chernobyl disaster etc.

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Real estate as an object of taxation for corporate property tax

 The success of economic development of any state largely depends on its tax policy. At the same time, a prerequisite for this is a fair and maximally efficient tax system. Its competent implementation was and remains relevant both in the past and now.

The most important component of the entire volume of taxation is the taxation of enterprise property. The level of development of the production base and the well-being of the population depend on how property taxation is carried out.

The legal basis for regulating all taxes is the Tax Code of the Russian Federation (TC). It collects taxes from all categories of things and property. The procedure for determining the property tax of enterprises is enshrined in Chapter 30 of the Tax Code.

The object of taxation on the property of organizations is a variety of objects. For tax purposes, objects such as movable and immovable property are used. It must be accounted for on the balance sheet as an object of fixed assets [1].

The Tax Code does not define the concepts of movable and immovable property. These provisions are enshrined and used in other areas of legislation (Article 11 of the Tax Code).

The concepts of movable and immovable property, enshrined in Art. 130 of the Civil Code of the Russian Federation, explained by the Ministry of Finance of the Russian Federation [6].

An object is immovable by its natural properties or by law classifying it as real estate.

Distinctive features of real estate are:

1. An unbreakable connection with the earth. All real estate cannot be moved without causing damage to them (Article 130 of the Civil Code of the Russian Federation).

Therefore, capital buildings and structures are classified as real estate. An exception to this are objects without a foundation that can be moved without damaging its purpose (country houses, kiosks, etc.), which are classified as movable property.

1. Classification of an object as real estate by law (Clause 1, Article 130 of the Civil Code of the Russian Federation).

Thus, communication lines are classified as real estate according to the Law “On Communications”, as well as space objects according to the Law “On Space Activities”. Real estate also includes aircraft and sea vessels.

1. State registration in the Unified State Register of Real Estate (USRN), in accordance with Art. 131 Civil Code of the Russian Federation. However, it is not a necessary condition for recognizing an object as real estate [1, 8]. Tax authorities, when carrying out their inspections of real estate, take information from the Unified State Register of Real Estate.
2. Availability of permits for real estate.
3. Inability of real estate to function independently. At the same time, it is taken into account and taxed as part of the entire property complex of real estate [9]. These are various assets: elevators, garbage chutes, water pipes, etc. [10].
4. Preservation of the natural and material form of an object throughout its entire life cycle.
5. Duration of use of real estate, therefore increasing its economic value and stability.
6. To preserve and develop real estate, a constant influx of investment is required.
7. The high price of real estate as a commodity, and the tendency for its value to increase over time.
8. The dependence of the value of real estate on the location on the land and the possibilities of its use.

Real estate is a structural object of a single capital construction, functionally connected with the building. In this case, moving an object without causing damage to it is impossible [4].

Immovable objects include (Article 130 of the Civil Code of the Russian Federation):

– plots of land and subsoil;

– objects firmly connected to the ground;

– various buildings and structures, as well as unfinished construction projects;

– premises, both residential and non-residential; [4]

– parts of buildings or structures intended for the location of vehicles;

– complex things that make up a single immovable property object; [7]

– various pipelines for gas, heat and other networks;

– various landscaping elements: lawns, sidewalks, paving, fences, considered as land improvements;

– aircraft and sea vessels;

– various other property.

Ownership of real estate is subject to state registration (Article 131 of the Civil Code of the Russian Federation). At the same time, state registration is not a mandatory condition for recognizing a thing as real estate.

All real estate taxes are combined into the real estate taxation system. Their characteristic feature is that real estate by its nature cannot be arbitrarily moved from one place to another.

The common common features of real estate taxes are the following:

– are included in direct taxes because their payers are themselves subjects of real estate taxation;

– refer to real taxes because these are physical real estate objects;

– are charged as a percentage of income.

Movable property is things that are not related to real estate and do not require its special registration (Clause 2 of Article 130 of the Civil Code of the Russian Federation). All movable property is not subject to taxation from January 1, 2019, and only real estate is subject to tax [2, Article 2].

However, individual real estate is not recognized as taxable objects [12, p. 22]. This category includes:

– land and environmental management objects that are part of natural and water resources;

– property objects owned by government agencies, intended for military service, and used by them for defensive purposes, ensuring the security of Russia;

– various historical and cultural monuments related to cultural heritage;

– various nuclear storage facilities and installations on ships;

– all sorts of different space objects;

– vessels, both sea and air; [3]

– paved areas, transformer substations and pipelines;

– landscaping facilities (lawns, sidewalks and some others);

– equipment for which a separate building was built; [eleven]

Based on the specified property objects, the main types of real estate taxes are:

1. Real estate taxes, which are mandatory for the following objects:

– property of organizations included on their balance sheet;

– property of individuals subject to taxation;

– land taxes.

These taxes are paid periodically at predetermined times.

1. Taxes on various actions for the alienation of real estate. These are the following tax categories:

– income tax;

– tax on a citizen’s income;

– tax on property received through inheritance or gift.

Since 2020, all taxpayers began to pay taxes on real estate in accordance with their cadastral value (CV). In this case, the price of real estate is determined by the cadastral registration service, which establishes the state cadastral valuation. The Constitutional Code is periodically adjusted, which is why taxes change.

The tax base is established by taxpayers independently in accordance with Chapter. 30 NK.KS taxable real estate must be publicly available information. When establishing the tax system, the following rules for determining it for taxation apply:

– The KS specified in the Unified State Register is used;

– When the qualitative or quantitative data of an object changes, the CS takes this into account to determine the tax base;

– If changes have occurred to the KS of an object due to a technical error in the information of the Unified State Register, data on the changed KS are taken into account when determining the tax from the beginning of its application for taxation;

– If the KS of an object is changed by a decision of the dispute resolution commission or by a court order, the amended KS is applied to determine taxes from the beginning of the application of taxation;

– If the KS of objects is uncertain, tax payments are made in accordance with Chapter. 30 NK.

Starting from 2020, with the mandatory determination of the amount of taxes under the Constitutional Code, until now, the innovation has not had time to fully take root in the everyday life of property owners. Therefore, the question of what it is—a cadastral valuation of an object—is still very relevant today.

Given the current state of the Russian economy, the role of real estate taxes, both for the state and for taxpayers, is not completely positive and sufficiently defined.

This type of tax is assessed from different points of view:

– for the state, an increase in this type of tax is a positive phenomenon;

– for citizen taxpayers, any increase in this tax will have a negative impact on their solvency.

The opposite phenomenon will also occur:

– minimum collections of property taxes will not meet the needs of the state necessary to fulfill its managerial and social tasks;

– reducing taxes on all types of property will not necessarily lead to an increase in the solvency of the working population, and for the non-working it will be necessary to increase social payments.

Therefore, to optimize the entire complex of real estate taxes, it is necessary to take into account the interests of all parties, both the state and citizen taxpayers. In the process of further development of the tax system, these interests must coincide.

When taxing real estate, due to the constant increase in its value, budget revenues from them increase. This is also facilitated by the practical impossibility of evading property taxes.

When taxing real estate, it is always important to balance the interests of the state and taxpayers. Therefore, the fiscal function of the tax, significant for the development of society, does not meet the interests of taxpayers, obliges them to pay all taxes. It is necessary that the state pursue not only fiscal goals, but also fulfill its socio-political goals. To optimize taxes on real estate, it is necessary to introduce a progressive tax scale. This will mitigate social inequality in society and will have an impact on the distribution of property and income among the population, which will be a positive factor for the tax system as a whole.

Literature:

1. Tax Code of the Russian Federation. //FZ dated July 31, 1998. No. 146 as amended by Federal Law No. 325 dated September 29, 2019.
2. Federal Law dated August 3, 2018 No. 302 “On amendments to parts 1 and 2 of the Tax Code of the Russian Federation.”
3. Federal Law of August 3, 2018 No. 291 “On special administrative districts in the territories of the Kaliningrad Region and Primorsky Territory.”
4. Federal Law dated December 30, 2009 No. 384-FZ “Technical Regulations on the Safety of Buildings and Structures.”
5. Determination of the Supreme Court of the Russian Federation dated September 30, 2015 No. 303-ES15–5520.
6. Letter of the Ministry of Finance of the Russian Federation dated February 17, 2017 No. 03–05–05–01/9043.
7. Letter of the Ministry of Finance of the Russian Federation dated March 29, 2013 No. 03–05–05–01/10050.
8. Letter of the Federal Tax Service dated October 1, 2018 No. BS-4–21/19038.
9. Letter of the Federal Tax Service dated April 23, 2018 No. BS-4–21/7770.
10. Letter of the Federal Tax Service dated 02/08/2019 No. BS-4–21/2181, No. BS-4–21/2179.
11. Letter of the Federal Tax Service dated July 30, 2019 No. BS-4–21/14997.
12. Rusakov I. “Movable and immovable property for tax purposes.” // “Economics and Life (Accounting Supplement)” No. 42 (9758) 2020.P. 21–28.
13. Shashkova E. “What objects are classified as real and movable property for the purpose of calculating property tax?” //IA GARANT. Legal consulting GARANT. 08/15/2018.

Taxation of real estate

The legislative basis for assessment for tax purposes is another defining characteristic of the tax on real estate residential property. Taxation can be carried out on the basis of two fundamental approaches: on a value basis and on a non-value basis.

In Japan, individuals and businesses pay property taxes at the same rate. This is typically 1.4% of the property's value. They are reviewed every three years. The tax base includes all real estate, including residential premises and land; securities, bank deposits Shuvalova E. B., Klimovitsky V. V., Puzin A. M. Tax systems of foreign countries / M.: Dashkov and Co., 2009. - P. 104.

Taxation of real estate of foreign legal entities

If a foreign (international) organization has property on the territory of the Russian Federation related to its branch in the Russian Federation, but located on the territory controlled by another tax authority, it is obliged to inform both tax authorities by sending a message provided for in clause 2.4.5 of the Regulations.

In accordance with the Law of the Russian Federation “On Enterprise Property Tax,” the value of the property of a foreign legal entity located on the territory of the Russian Federation, calculated for tax purposes, may be reduced by the book (standard) value:

Property tax by cadastral value list of regions 2020

Currently, 28 Russian regions are working on a pilot project regarding the payment of property taxes; the purpose of the innovations is to increase treasury revenues. What property tax changes can property owners expect in 2020? There are concepts of estimated (or inventory) and cadastral prices of real estate. Previously, the property tax rate depended on the first value obtained as a result of calculations of the original cost of development, taking into account adjustments for materials used, wear and tear and design features.

In accordance with the Tax Code, the constituent entities of the Russian Federation make an independent decision on the moment of transition to taxation of real estate, based on the cadastral value. Since 2020, another 12 regions have expressed a desire to calculate property taxes for individuals based on cadastral value, reports the press service of the Federal Tax Service of Russia; taxpayers in these regions will receive notifications under the new rules in 2020.

Taxation of real estate - categories of taxes that an investor should know about

• property on the balance sheet of an enterprise is something that belongs to a specific legal entity;
• taxes on all kinds of property (in this article we mean real estate) of individuals;
• land taxes (if the subject has property rights to a specific land plot, even if there are no buildings on it).

Responsibility for offenses in the tax sphere may fall under criminal law in cases of evasion of payment by failure to submit mandatory documents or submission of knowingly false documents. The amount of non-payment must be large or especially large.

Taxation of real estate

3. The amount of real estate tax is determined only for completed construction projects that are actually in use, even if they are not registered with the appropriate state authorities and the relevant technical or other documentation has not been drawn up for them.

Tax rates may vary depending on the location (city, district, town, microdistrict, isolated territory, street, etc.), functional use of the tax base and other factors (in particular, the type of building materials used to create real estate, degree of depreciation (year of commissioning of real estate)), affecting the value of the tax base.

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Taxation of real estate

Tax on property transferred to individuals by inheritance

, will not be charged. Since 01/01/2006, income received by citizens of the same family or close relatives when inheriting real estate, vehicles, stocks, shares, shares is not subject to personal income tax. For everyone else, there is a “hard” personal income tax rate of 13%, which does not depend on the value of the inheritance.

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Tax on real estate and transactions with it

Until 2006, the legislation of the Russian Federation established a special tax on property transferred by inheritance or gift, which was abolished by federal law dated July 1, 2005 No. 78-FZ. After the adoption of this law, taxation of gift and inheritance agreements is carried out in accordance with the provisions of the Tax Code of the Russian Federation. According to the above-mentioned normative act, property received as a gift was classified as the income of individuals. Inherited property is completely exempt from taxation.

The tax rate on the property of an organization is established by the law of the constituent entity of the Russian Federation and cannot exceed 2.2%. However, the law allows differentiated (different) tax rates for property tax depending on the category of taxpayer or property that is recognized as an object of taxation. The provisions of the Tax Code of the Russian Federation establish two types of tax benefits for the property of organizations: these are benefits that are approved at the federal level (Article 381 of the Tax Code of the Russian Federation) as a complete exemption from paying tax, as well as deductions that are established by the constituent entities of the Russian Federation.

Movable property is not recognized as an object of taxation.

In accordance with paragraphs. 8 clause 4 art. 374 of the Tax Code of the Russian Federation, from January 1, 2013, movable property registered as fixed assets is not subject to property tax for organizations. Movable property is all office equipment, cars, equipment, furniture of the organization, etc. This provision applies to movable property registered starting from January 1, 2013. All movable property that was registered earlier than this date will continue to be subject to taxation until its original cost is completely written off in accounting, or until sale (other disposal).

It should be noted that organizations are required to timely take into account fixed assets and reflect them on balance sheet accounts 01 “Fixed Assets” and 03 “Profitable Investments in Material Assets”.

NEW PROCEDURE FOR PAYING PROPERTY TAX ON MOVABLE PROPERTY

In accordance with Order of the Ministry of Finance of the Russian Federation dated October 31, 2000 N 94n (as amended on November 8, 2010) “On approval of the Chart of Accounts for accounting financial and economic activities of organizations and Instructions for its application,” the balance on account 08 “Investments in non-current assets” can only reflect the amount of the organization’s investments in construction in progress, unfinished transactions for the acquisition of fixed assets, intangible and other non-current assets.

Thus, movable property items that do not require installation must be put into operation immediately after their acquisition. If for objective reasons this does not happen, the organization must have primary documents that provide a clear list of work to prepare the facility for use.

From 2013, all movable property of an organization will be divided into those that are subject to property tax and those that are not subject to taxation. It is advisable to open two sub-accounts for movable property accounts: for objects registered before 2013, and for objects registered after 2013.

ACCOUNTING SERVICES, PRICE

Primary documents confirming the moment of acceptance of movable property for accounting may be acts of acceptance - transfer of fixed assets and inventory cards. The organization must develop these documents independently and approve them in its accounting policies for 2013.

It should be noted that organizations can approve in their accounting policies the unified forms N OS-1 “Act of acceptance and transfer of fixed assets (except buildings, structures)” and N OS-6 “Inventory card for recording fixed assets” previously adopted by the State Statistics Committee of the Russian Federation. (Resolution of the State Statistics Committee of the Russian Federation dated January 21, 2003 N 7 “On approval of unified forms of primary accounting documentation for accounting of fixed assets”).

TAXATION OF SERVICES OF A FOREIGN ORGANIZATION FROM A RUSSIAN CONTRACTOR

Taxation of real estate of individuals

Immovable things (real estate, real estate) include land plots, subsoil plots and everything that is firmly connected to the land, that is, objects the movement of which is impossible without disproportionate damage to their purpose, including buildings, structures, unfinished construction objects (Art. 130 GK).

If property recognized as an object of taxation is in the common shared ownership of several individuals, each of these individuals is recognized as a taxpayer in relation to this property in proportion to its share in this property. Taxpayers are determined in a similar manner if such property is in the common shared ownership of individuals and enterprises (organizations).

What is movable property?

Each organization may have in its use both movable and immovable property. To understand the differences between them, you need to familiarize yourself with Article 130 of the Civil Code.

Thus, it is possible to identify real estate, which will include all objects that are inextricably linked with the land and a specific location. That is, these are those objects that cannot be moved to another place without causing damage to them. In addition, this category includes marine and space objects.

In this regard, the definition of movable property is based on the previous description, that is, this category will include everything that cannot be attributed to real estate. This also includes financial assets and securities. A distinctive feature of such funds is the elimination of the need to carry out their state registration.

But at the same time, many people have disagreements about what exactly can be classified as movable property and what cannot.

To distinguish movable property from real estate, you need to understand that its service life, in comparison with the entire property, will be significantly shorter. This could include, for example, elevators in buildings.