Corporate property tax: due date for advance payments

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

Among those few fees to the state treasury of the Russian Federation that are classified as regional, is the property tax of organizations. It must be paid by both Russian and foreign firms. What is the nature of this tax? How is it calculated in practice? How often should enterprises contribute the corresponding amounts to the state treasury?

The essence of the tax

What is corporate property tax? Is payment to the budget obligatory for all types of businesses or only for organizations that fall under certain criteria? Corporate property tax is categorized as regional.

It is set at the level of the provisions of the Tax Code of the Russian Federation and is mandatory for firms that operate in the territory of a particular subject of the Russian Federation. Payers of this type of fees are Russian and foreign companies that own real estate in Russia.

Payment of tax on property of organizations under the simplified tax system is carried out only for real estate, and also provided that the tax base forfixed assets of the company is defined as the cadastral value established for them.

Object of taxation

What is the object of taxation for organizations within the calculation of the fee in question? In accordance with the provisions of the Tax Code of the Russian Federation, both movable and immovable property (including that transferred to the company by way of trust management), which is accounted for on the balance sheet as an object of fixed assets, is recognized as such. As for foreign companies, in relation to them the object of taxation is only real estate. We will study the key aspects that characterize the property tax of organizations (payment, terms). We then explore some examples of calculating the corresponding payments.

Features of the calculation and payment of the fee

What are the principles for calculating and paying such a fee as corporate property tax? It is paid to the budget in accordance with the tax and reporting periods established by law. What are their specifics?

The tax period, as for most other types of fees to the Russian budget, in this case is a calendar year. As for the reporting periods, this is the first quarter, half a year, and also 9 months of the year.

Regional specifics

The calculation of the fee in question is carried out at tax rates, which are approved by the legislative authorities of the constituent entities of the Russian Federation. Their maximum value should not exceed 2.2%. In accordance with the provisions of the Tax Code of the Russian Federation, regional authoritiesmay use a differentiated approach to determining the size of the relevant tax rates. The criterion here may be the category of the taxpayer or the specifics of the property that is the object of taxation.

Benefits

What other nuances regarding the calculation and payment characterize the property tax of organizations? Payment to the budget of the corresponding amounts can be carried out using various benefits. Preferences of this type can be established both at the level of the provisions of the Tax Code of the Russian Federation, and in regional sources of law. The benefits defined in federal laws and those adopted in the constituent entities of the Russian Federation can be applied simultaneously.

Formula for calculating the fee

Practical calculation of the fee to the treasury in question is carried out by taxpayers on their own as soon as the tax period ends. The formula for determining the amount of tax is simple: you need to multiply the rate approved by the authorities of the region by the amount of the base. But before transferring the resulting amount to the treasury, it is necessary to reduce it by the amount of advance payments made during the tax period. The most important feature that characterizes the property tax of organizations is that it is paid to the budget for each branch or other separate division of the company separately (if it has an independent balance sheet).

Terms for payment of tax and the procedure for settlements with the Federal Tax Service

The most important aspect of tax settlements between enterprises and the state in question is timing. We will study them, as well as some practical nuances regarding the payment of the correspondingcollection.

So, the most important aspect that characterizes the property tax of organizations is the timing of its payment. They are fixed in legislative acts adopted at the level of subjects of the Russian Federation.

We noted above that the fee in question has tax periods. Within their framework, enterprises must make advance payments. This is the most important feature that characterizes the property tax of organizations. The deadline for making advance payments is quarterly, immediately after the end of the tax period. The enterprise must transfer to the treasury 1/4 of the tax, which is calculated as of the 1st day of the month immediately following the reporting period. The payment of tax on property of organizations at the end of the year is made until March 30 of the next year.

It is quite possible that the company did not start working from the very beginning of the year. How is the property tax of organizations transferred to the state in this case? The deadline for paying this fee under the relevant scenario is immediately after the completion of the state registration procedure, as well as the acceptance of property forming the tax base in accordance with the established procedure.

In some cases, the Federal Tax Service may oblige enterprises to pay a fee as soon as the company begins to actually operate the relevant fixed assets. Lawyers recommend that special attention be paid to entities that pay corporate property tax. We understand the deadline for paying the relevant fee. Consider nowsome practical examples of settlements between enterprises and the state for the tax in question.

Examples of tax calculation

Let's say Industry Lux LLC was registered on February 11, 2014. At the time of entering data about the organization into the relevant state registers, the company had property in the amount of 1.5 million rubles on its balance sheet. Suppose that the corresponding indicator on March 1, 2014 increased to 1.7 million, on April 1 - up to 1.8 million, on May 1 - up to 2 million, and on June 1 - up to 2.5 million rubles. Let's say the property tax rate in the region where the company operates is 2.2%.

So, in accordance with the provisions of the Tax Code of the Russian Federation, the tax period in relation to the fee in question is a calendar year, and the reporting period is the first quarter, half a year, and also 9 months of the year. As we noted above, Industry Lux LLC was registered on February 11, that is, after the beginning of the calendar year. In accordance with the provisions of the Tax Code of the Russian Federation, for a company, the tax period will be the period from the day of registration to the end of the year.

The Tax Code of the Russian Federation instructs Industry Lux LLC by July 30 to provide a duly executed calculation of advance payments for the six months. Also, in accordance with the provisions of the Code, the firm needs to make an advance payment for the fee in question. The size of the tax base of the organization will be equal to the average annual residual value of the balance sheet property. In order to calculate it, you need to divide the sum,resulting from the addition of the residual value of the property as of the 1st day of the tax period and the 1st day of the month following the corresponding interval, by the total number of months, which is increased by 1.

Thus, first we summarize the numbers that we have: 1.5 + 1. 7 + 1. 8 + 2 + 2. 5 (this is the book value of the property of Industry Lux LLC for March, April, May, June and July 2014 in million rubles), it turns out 9.5 million rubles. 6 months have passed since the beginning of the year, we add 1 more. It turns out that the average annual value of the property of Industry Lux LLC is about 1 million 357 thousand rubles. From this amount it is necessary to pay an advance payment. It is calculated as 1/4 of the total tax in accordance with the rate approved by the regional authorities. In our example, it is 2.2%. That is, 2.2% of 1 million 357 thousand is 29 thousand 854 rubles. We take 1/4 of this value, it turns out 7463 rubles. 50 kop. This will be the advance payment for Industry Lux LLC.

Property tax: the nuances

So, we have reviewed the key features regarding corporate property tax, as well as an example of calculating advance payments for the corresponding fee. We learned that the legislation can establish both a common criterion for the entire territory of the Russian Federation that characterizes the property tax of organizations - the payment period (Moscow, St. Petersburg or Nizhny Novgorod - pay this fee with the same frequency), and an indicator fixed for each region separately, namely the amount of the bet.

At the same time, a number of other nuances are very important that characterize the obligation in question, which organizations operating in the Russian Federation must fulfill. The fact is that federal laws and regional legal acts regulating the calculation and payment of corporate property tax often contain general formulations relating to the relevant sphere of legal relations. Of course, the key provisions of the Federal Law and sources of law in the subjects of the Russian Federation, concerning, for example, the frequency of settlements between enterprises and the state, are logical and understandable. In particular, we noted that the deadline for paying corporate property tax in Moscow is the same as in other regions. However, there are nuances related to the practice of companies fulfilling their respective obligations to the Federal Tax Service, which are not directly spelled out in federal and regional laws. In this case, by-laws will be the main source of law for us. Which ones should you pay special attention to?

The importance of the actual use of property

Among the most notable by-laws in question is the Letter of the Ministry of Finance of the Russian Federation No. 03-06-01-02/28. It reflects the recommendations of the department regarding the payment of property tax on funds that enterprises have not registered in the prescribed manner. This document clarifies that the inclusion of information about fixed assets of firms in state registers is not the main criterion in establishing the obligation of a firm to pay the corresponding tax, despite the fact that registration of property is mandatory.

If certain fixed assets are used in production, then they should be included in the tax base of the organization, and a fee should be paid from them. In this case, the property must be recorded on the account 08. The refusal of the organization to follow such recommendations can be assessed by the Federal Tax Service as tax evasion.

Payment of tax by foreign organizations

Having studied the specifics of the key aspects of such an obligation as corporate property tax (payment, terms), we can study the specifics of the implementation of the relevant requirement by foreign organizations.

The tax base in this case is formed only at the expense of real estate. At the same time, it does not matter whether it is located on the territory of the actual activity of a foreign company in the Russian Federation or outside it.

Calculation of property tax in the event that it is owned by a foreign company is carried out on the basis of data reflecting its inventory value as of the beginning of the calendar year. This information should be transferred to the Federal Tax Service by organizations that carry out a technical inventory of the relevant type of objects. Advance payments on property owned by foreign firms are calculated at the end of the reporting period as 1/4 of the inventory value of the property, multiplied by the rate established by regional laws.

If the ownership of the corresponding typeproperty is registered after the calendar year has begun, then the actual period of use of the relevant funds by the organization is taken into account in the process of calculating advance payments. It should be noted that the main thing for the legislator is not a legal fact that reflects the entry of data on the property of foreign companies in state registers, but the fact that the organization practically uses the available resources.

It can be noted that, just as in the case of Russian companies, foreign structures must fulfill their property tax obligations based on the tax period that corresponds to the calendar year, and also working within such reporting intervals, as I quarter, half a year, and also 9 months of the year. The deadline for paying corporate property tax for the year, as in the case of Russian firms, ends on March 30 of the next year.

The importance of the actual location of the property

An important nuance: foreign organizations must transfer tax and advance payments to the regional budget at the actual location of the property they own. After the expiration of the tax or reporting period, the company must submit to the Federal Tax Service at the address of the office or branch that has an independent balance sheet, as well as at the location of each property, tax calculations reflecting the amount of advance payments. Another obligation of firms is the formation of declarations in the prescribed form and sending them to the Federal Tax Service.

When a foreign organization does not conduct business in Russia, it stillmust pay property tax if the relevant funds are owned by her in the Russian Federation.

Payment of tax on property of organizations according to quarterly calculations is made by foreign firms at the actual location of the property. Terms, as in the case of Russian companies, are fixed in the legislative acts of the constituent entities of the Russian Federation.