How to calculate property tax for individuals and legal entities

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

Property taxation has been around for thousands of years. It was already used in the Roman Empire, and for many centuries it was the main form of replenishment of the state treasury. In the ancient world, requisitions of this kind were made in relation to rather individuals, because. cash savings and real estate belonging to a particular person were taxed. Today, property tax for individuals and legal entities is calculated differently.

How to calculate property tax for an individual? In order to find out, you need to refer to Federal Law No. 2003-1, adopted on December 9, 1991. Here, a list of persons who are taxpayers is defined - these are sole owners of property, as well as persons owning property on the basis of common joint or common shared ownership. There is also a list of objects of taxation, among which there are shares in common property, garages, cottages, rooms,apartments, houses and other buildings. Thus, in accordance with this law, you can find out how to calculate the tax on property that is immovable.

The law specifies tax rates - from 0.1 to 2.0 percent of the total inventory (non-market) value of taxable objects. The latter is established every year by the federal body authorized to conduct cadastral activities as of January 1. And on its basis, the tax authorities independently calculate the amount of tax payable and send a receipt to the place of registration of the taxpayer. The probability of errors in calculating tax amounts is always present, so it is better to know how to calculate property tax yourself.

Tax on certain "movable" property in Russian practice is represented by a transport tax. It is calculated on the basis of the requirements of Chapter 28 of the Tax Code of our country, which states that payers are persons (legal entities and individuals) to whom a particular vehicle (car, aircraft, watercraft, etc.) is registered. The tax rate is calculated based on the engine power and type of transport, and ranges from 1 to 200 rubles (for each horsepower). It is good for individuals to know the intricacies of how to calculate this type of property tax, because. they are again sent a receipt for payment by the tax authorities. But legal entities calculate the transport tax themselves.

Also, legal entities independently calculate other payments. Therefore, the accountant must know how to calculate the tax on the property of the organization. A feature of taxation in this case is that the tax is calculated both in relation to immovable and in relation to certain types of movable property owned by the organization or transferred by the organization to trust management, temporary possession, etc. The accrual is made on the amount of the average annual value of property objects and is no more than 2.2% of this figure. The specific rate is determined by the subjects of the Russian Federation. Detailed information on how to calculate the property tax of a legal entity is detailed in Chapter 30 of the Tax Code of the Russian Federation.