Property tax: rate, declaration, payment deadlines

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Every person and company owning their own property must pay the appropriate property tax. It is calculated on the basis of the cadastral price of the object, although in some regions the inventory indicator is still used. Each taxpayer must understand how this fee is calculated and paid.

Tax for individuals

It is paid by every Russian citizen who has properly registered immovable property. For calculation, the rate is used in the range from 0.1 to 2 percent.

Certain taxpayers, based on their status, can count on special benefits. These include pensioners, veterans and the disabled, as well as some other citizens.

What is taxable?

Payment of property tax is based on the value of valuables. The object is the property registered by citizens in the ownership. In Art. 130 of the Civil Code lists all types of real estate. It includes:

• different structures and buildings, and not only completed objects are taken into account, butand unfinished;
• numerous sea and river vessels;
• objects used in space;
• aircraft;
• other items that cannot be moved without causing significant damage to them.

There are significant differences between real estate and movable property, which include the following:

• real estate must be registered with Rosreestr;
• the rules for acquiring these objects are different;
• property is inherited based on its location;
• litigation must take place at the place of registration of the object.

Property tax is calculated exclusively on real estate, so all citizens should be well versed in what can be attributed to it.

Who pays?

Payers of this fee are people who own objects:

• residential premises represented by apartments, rooms, private buildings, dachas or cottages;
• garages or parking spaces for cars;
• immovable complexes that may have different purposes;
• structures or buildings that are unfinished;
• other buildings;
• fraction of any of the above objects.

Any building, regardless of its size and purpose, is subject to taxation if it is properly registered for a citizen. According to the law, the object of property tax cannot be common property,belonging to all apartment owners in a high-rise building.

Tax base

Until 2020, the calculation of this fee will be transferred to the cadastral value of objects. If these changes have not been introduced in a particular region or a cadastral valuation of a certain structure has not yet been carried out, then it is still required to apply the inventory indicator for the calculation.

When determining the tax base, the opportunity to use special benefits for each person is taken into account, therefore, certain square meters are deducted from the quadrature of the object:

• for an apartment, you need to subtract 20 square meters. m;
• when calculating the fee for the room, the object is reduced by 10 sq. m;
• for a residential building, the calculation is carried out without taking into account 50 sq. m;
• if there is a single complex in which there is at least one residential facility, it is necessary to reduce the tax base by 1 million rubles.

Due to these relaxations, a situation may arise when the tax base has a negative value, so there is no need to pay property tax. According to Art. 403 of the Tax Code, these deductions may be increased by the municipal authorities. If, after using the deduction, a positive value is obtained, then it is multiplied by the deflator coefficient, and then by the tax rate.

Tax period

According to art. 405 of the Tax Code, the tax period is a year. It is not uncommon to purchase properties in the middle of this period, in which case the fee must be calculated based on the full months of ownership. In this case, it is guaranteed thatproperty tax will be determined. Payment terms are the same for all citizens, so funds must be transferred before December 1 of the year following the reporting year.

Payment is made on the basis of information from receipts sent by the Federal Tax Service annually. Citizens themselves can check the correctness of the calculation, for which you can use online calculators or standard formulas.

What rates are used?

The property tax rate for individuals may vary depending on what kind of object is owned. Therefore, the following values are used:

• 0, 1%. This rate is used for all residential properties, complexes and even unfinished properties.
• 2%. It is applied to types of real estate, the cadastral price of which exceeds 3 million rubles, which is taken into account in Art. 378.2 NK.
• 0.5%. Used for all other objects.

Regional authorities under Art. 406 can decrease or increase rates. With an increase in this indicator, it can be tripled as much as possible, but it can be reduced to 0.

Calculation rules

Payment of property tax is made on special receipts received from the Federal Tax Service. Additionally, the calculation can be performed independently, for which you need to know the rate, the size of the deflator and the cadastral price of the object. Additionally, the area of the premises and the ability to use benefits are taken into account.

For example, there is an apartment whose size is 48 square meters. m. The deflator coefficient is 7, and the rate is used in the amount of 0.1%. The cadastral price of the object is 27 million rubles. Initially, the deduction is removed, so the quadrature is reduced by 20 square meters. m. The cost of 1 square. m. is equal to: 2,700,000 / 48=56,250. The tax base under such conditions is: 56,25028=1,575,000 rubles. This indicator is reduced by the deflator coefficient, so the tax base is equal to: 1,464,750 rubles.

Next, the amount of the fee is determined, for which the tax rate is taken into account: 1,464,7500.1%=1464.75 rubles.

Who can benefit?

Property tax benefits for individuals are provided to many categories of the population. All of them are listed in Art. 407 NK.

This includes pensioners, veterans, the disabled and other vulnerable categories of the population. It is allowed to use the right to exemption only in relation to one object, therefore, if the beneficiary has two houses, then for one he pays a fee on a general basis.

Corporate tax

Property tax is paid not only by individuals, but also by various companies that have correctly registered objects that are used in the process of doing business. Firms and individual entrepreneurs pay it once a year or quarterly by transferring advance payments.

The object is real estate, which is the main asset of the enterprise, so it must be accepted in the course of the company's work.

Who pays the fee?

The tax on property of legal entities is paid by all enterprises on the basis of Art. 373 and 346 of the Tax Code. And it does not matter what tax regime for thisin use.

Therefore, the calculation is carried out by both firms on the OSNO, and organizations that use simplified systems for calculating taxes.

Property types

Firms pay tax not only on real estate that is registered on them, but even on valuables that are used on the basis of trust or temporary use. The objects of taxation include various buildings and land plots.

This takes into account the values on the balance sheet of the enterprise.

Tax base and period

Each firm should know how to properly calculate the fee, as well as what is the deadline for paying property tax. The tax base is determined based on the value of the cadastral price of the object.

The calculation is carried out quarterly, so you have to transfer advance payments to the Federal Tax Service every three months. At the end of the year, the balance is transferred. Regional authorities can change the deadline for paying property tax, so they can set their own reporting periods in a particular subject of the Russian Federation.

Tax rate

This indicator is set for different companies by regional authorities, but it cannot exceed the rate established by federal law.

In different regions, the maximum value is 2%.

If the company has property included in a special list, which is contained in Art. 381 of the Tax Code, it is not allowed for the rate to be higher than 1.1%. If the regional authorities do not set their own values,then you need to use the indicators that are prescribed in the Tax Code.

Calculation rules

The property tax declaration for the year of operation of the enterprise is submitted four times a year, since advance payments are required to be transferred the same number of times.

The calculation rules are based on the actual formula. To determine the amount of the advance payment, it is required to divide the tax base represented by the cadastral price of the object into 4 quarters, after which the resulting value is multiplied by the rate.

The payment per year is determined by multiplying the tax base by the rate. The surcharge at the end of the year is calculated by finding the difference between the total amount of tax and all advance payments transferred to the budget for the year of operation of the enterprise.

Payment due dates

Like the corporate property tax return, payments are required to be made on a quarterly basis, so the entire payment is split into advance payments. At the end of the reporting year, the final calculation and transfer of the balance is made.

All tax must be paid by March 30 of the year following the reporting year. The deadline may be slightly modified by regional authorities. For example, in Ryazan, funds must be transferred before April 1.

Advance payments due quarterly.

Reporting

Companies must file and file a property tax return. For each tax period represented by a quarter, it is required to generate a document, afterof which it is due by the 30th day of the month following the last month of each quarter.

At the end of the year, a property tax return for the year is also required, and it is submitted by March 30 of the next year. In some regions there are no reporting periods represented by quarters. Under such conditions, enterprises are required to compile and submit reports only once a year for a whole year of work.

Where to pay funds and submit declarations?

When choosing a branch of the Federal Tax Service where funds will be transferred and reports submitted, some rules are taken into account:

• if the company is located at the location of the property, then you need to work with the department of the Federal Tax Service where the company is registered;
• if the property is located at the location of the unit, then according to Art. 384 Tax Code is required to transfer funds and send declarations to the branch of the Federal Tax Service, where exactly the branch is registered;
• often real estate is located in another region, and in this case it is necessary to work with the inspection department that services this territory.

All the above conditions apply to the submission of the declaration.

Reporting rules

Each company that has certain real estate on its balance sheet must pay the appropriate property tax. Completion of the declaration for this fee can be carried out in paper or electronic form. The electronic form must be used according to Art. 80 NC in situations where the company employs more than 100 people.

The Declaration consists of several important sections:

• title page, which indicates basic information about the taxpayer and the department of the Federal Tax Service where the document is sent;
• 1 section includes tax amount;
• 2 section is intended for the correct calculation of the tax base on the basis of which the fee is calculated;
• 2.1 section is used to enter information regarding all objects from which tax is required;
• 3 section is used for the competent calculation of the fee, for which the cadastral price of real estate is taken into account.

Thus, the declaration must contain all the basic information about the enterprise itself, its property and other data.

Filling rules

When compiling this document, the accountant of the company must adhere to certain rules. These include:

• indicators are entered only in full rubles, so kopecks are not taken into account;
• continuous pagination is required, with the first page represented by a title page;
• it is not allowed to correct detected errors using different correctors or other means;
• you cannot print text on both sides of one page;
• sheets should not be bound in such a way that they are damaged;
• when filling out the document, you must use black, purple or blue ink;
• fill all lines exclusively from left to right;
• if to generate a documentspecial computer programs are used, only the latest version of the selected software should be used.

The Orders of the Federal Tax Service detail the basic rules for filling out this document.

What if the property was only owned by the firm for part of the year?

It is not uncommon for companies to acquire or get different properties to operate in the middle of the year, so it is not allowed to calculate tax for the entire period. If inventory price is still used, this fact has no effect on the applied formula.

If an enterprise already uses the cadastral price of objects, then when calculating advance payments, it is necessary to take into account the ownership ratio under Art. 382 NK. To calculate this ratio, you need to divide the number of full months during which the enterprise owned the object by the total number of months in the period. When determining the full months of ownership, it is taken into account that if an object was received before the 15th day of a particular month, then it is included in the calculation. If the transfer was made after the 15th, then the calculation is carried out from the next month.

Thus, property tax is paid by both individuals and different companies. It is important to understand how the tax base is determined, what property price should be used, and how to report this fee. With a competent approach to the calculation and payment of the fee, it will be possible to avoid the accrual of fines and pen alties. Firms are required to remit this tax regardless of the chosen taxation regime. When calculating this fee, individual entrepreneurs are equated to individuals.