Commercial property tax: calculation features, rates and interest

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

Changes in legislation concern different areas. One of them is commercial real estate, the owners of which, starting from 2016, have to pay taxes according to the new rules. There is no total bet, there is only its maximum value. You must first calculate how much you need to pay, as well as familiarize yourself with possible options for reducing the amount.

Commercial real estate tax has increased due to the need to use the cadastral value in the calculation. But before, only inventory was used, which was less than the real price of the object. The cadastral value may be higher than the market value. For non-payment of taxes, liability is provided in the form of payment of a fine.

What is included in commercial property?

Commercial real estate is the premises provided from the housing stock. Its owners use it to make a profit. Each premises that is rented, or is a warehouse, workshop, is considered commercial. These include:

• cafe;
• restaurants;
• offices;
• workshops;
• shops.

Types of objects

Properties of this type have a division by use case:

• social;
• industrial;
• office;
• for free application;
• apartments.

Commercial property tax is mandatory. Until 2016, it was calculated on the basis of the average annual cost. Now only the cadastral valuation is used with the calculation:

• shopping complex;
• foreign property;
• administrative buildings;
• non-residential premises for business.

For all other owners, the amount of tax remains unchanged and will be approved at book value. If the owner has several types of real estate, then the tax is calculated for each. Benefits are provided to owners of real estate, which is used in the field of medicine, education, science. The new tax does not apply to:

• religious and budget organizations;
• HOA, ZHSK;
• transport establishments;
• defense enterprises;
• subway;
• enterprises employing people with disabilities;
• car firms;
• cultural institutions.

Approved Rates

Each region may have a different tax rate for commercial property. But almost everywhere the maximum is 2% of the cadastral value. If you know it, you can determine the amount of tax.

You can get the necessary information at the Cadastral Chamber. If the price is very high, then you need to write an application for its revision. It is possible to order an independent assessment at your own expense, after which you can go to court. Individual commercial property tax may be less if the owner falls into categories such as:

• war veteran;
• combatant;
• disabled group 1 and 2;
• disabled since childhood.

Commercial real estate tax does not need to be paid by entrepreneurs who have chosen a simplified taxation option. The condition that the property is used in commercial work must be observed, and a single tax is deducted from the income. Legal entities will also not be able to apply the book value of the premises, the cadastral value is taken into account for them.

In each region, the authorities can supplement and remove specific types of premises from the list of preferential objects. If the buildings work in the field of medicine, science and education, then their owners need to pay only 25% of the tax.

Sale

Commercial real estate sales tax is determined by the following factors:

• seller status;
• taxation system;
• duration of ownership;
• using the object in chores;
• the availability of documents, the costs of purchasing the object are set.

What commercial property tax do residents pay? It is equal to 13%, and for non-residents -thirty%. The cadastral value is taken as the basis. If it is not set, then the contract price for the sale of the object is taken into account.

Tax calculation

Since 2016, only one criterion has been changed that determines the need to calculate and pay sales tax. All properties purchased from now on must be in the owner's possession for at least 5 years. In this case, you do not need to pay sales tax.

If the property was purchased before 2016, then the tax does not need to be paid on the sale of premises that have been owned for more than 3 years. There are exceptions to the new rules. Need 3 years of ownership to avoid paying tax:

• property received as a gift;
• inherited;
• was privatized.

There is a right to use the tax deduction. Its size is 250 thousand rubles. The income from the sale of the object is the citizen's profit, therefore, for individuals, the personal income tax rate of 13% is applied. If he does not live in Russia for 183 days a year and did not receive income during this time, then he is considered a non-resident. In this case, the rate is 30%.

Reducing the amount without violating the tax

In order not to pay tax on commercial property, if it was sold, you need to pre-calculate the transaction. Everything must be documented so that the time of ownership of the object is more than 36 months.

For an urgent deal, you can choose a simple settlement. To do this, you need to calculate the amount with a deduction, subtract the cost of the purchase. There are two types of legalcalculation. The transaction should not be delayed. The exchange rate may increase the value of the property, and therefore the tax will increase.

Individuals, if they are registered as individual entrepreneurs, may not pay tax. Only they need to conclude a lease with taxation of rental payments. In this case, it will turn out to pay 6% instead of 13%. It is desirable for legal entities to carry out 2 transactions in 1 tax period. This will reduce the tax burden. This will balance income and expenses, as well as reduce tax.

Tax amounts

If the owner is not among the participants in benefits, then he must pay property tax. Commercial properties are subject to the following rates:

• 0, 1% - if the property costs up to 300 thousand rubles;
• 0, 1-0, 3% - 300 - 500 thousand rubles;
• 0, 3-2% - more than 500 thousand rubles.

The Tax Service monitors compliance with the payment of amounts. You should also contact this organization if you have any questions in this area.

Consequences of non-payment of tax

Full or partial non-payment of tax due to a decrease in the payment base, incorrect calculation of the amount, as well as other illegal actions leads to liability. According to the Tax Code, a fine of 20% of the total amount is required.

The collection authorities should have all the information and documents evidencing the existence of such an offense. These data include the definition of taxes based on the legislation of the Russian Federation, the direction of the notification, and the factsconfirmation of receipt.

In the period specified by law, a pen alty fee for late payments is approved. The interest is 1/300 of the Central Bank financing rate. Persons over the age of 16 are subject to liability. This type of taxation is considered new in Russia, but it is mandatory, so everyone will have to pay it. Timely repayment will allow you to freely conduct commercial activities.

In addition to commercial properties, the tax is also levied on ordinary real estate. There are categories of citizens who are exempt from paying fees. In any case, it is important to document the preferential group, and then the tax will be reduced or absent.