Property tax under the simplified tax system: to pay or not to pay

Tax base

A dependence has been established on whether it is necessary to pay property tax under the simplified tax system in 2022, on the category of taxpayer:

• organizations pay, but only for real estate taxed at cadastral value;
• entrepreneurs are exempt from this obligation if the property is not included in a special list of retail and office real estate taxed at cadastral value. An individual entrepreneur is not exempt from paying property taxes on personal real estate not used in business.

The obligation to pay property taxes to organizations using a simplified taxation system was imposed by Federal Law No. 52-FZ of April 2, 2014. He introduced amendments to the first paragraph of clause 2 of Article 346.11 of the Tax Code of the Russian Federation, according to which the property tax of organizations on the simplified tax system was introduced in relation to real estate objects, the tax base for which is determined as their cadastral value.

In this case, the cadastral value is determined as of January 1 of the current year (if there was no such data as of January 1, then there is no need to pay a fee). Thus, the tax base is all types of real estate that have a cadastral value at the beginning of the tax period and belong to the organization.

What applies to such property:

1. Shopping and business centers, premises in them.
2. Office and retail premises.
3. Restaurants, cafes, canteens - public catering facilities.
4. Public service buildings.
5. Residential buildings and premises, we will talk about them separately.

conclusions

We looked at the property tax of organizations and the tax on property of entrepreneurs that is used in business, which are valid for payers of the simplified tax system. They are levied on the real estate for which the cadastral value has been determined. If it has not yet been installed, you do not need to pay taxes.

You can find out exactly whether a particular commercial real estate property is taxable or not by checking the list that is posted on the website of the regional executive authority. Individual entrepreneurs don’t have to worry - the Federal Tax Service will calculate the tax itself and send a receipt.

The taxes that business entities pay on their real estate are regional. Therefore, specific rates, payment terms, and benefits may vary. To find out all the nuances, we recommend that you familiarize yourself with the laws of the relevant constituent entity of the Russian Federation.

Special conditions

But these are not all tax conditions. To answer the question of how to find out whether it is necessary to pay property tax according to the cadastral value under the simplified tax system, the following requirements must be met:

1. The building, structure, structure or premises therein must belong to the taxpayer organization on the right of ownership or right of economic management.
2. Real estate must be accounted for on the organization’s balance sheet as part of fixed assets (account 01 “Fixed Assets” or 03 “Income Investments in Material Assets”).
3. The land plot under the real estate has a certain type of permitted use: for the placement of retail units, public catering and (or) consumer services; for the placement of office buildings for business, administrative and commercial purposes.
4. More than 20% of real estate, according to the Unified State Register of Real Estate, is intended for use for these purposes. For example, to host trading platforms. It is important to confirm the actual use of the facility for the specified purposes in the declared volume - not less than 20%.
5. Real estate is included in the list of property for which the tax base is determined as the cadastral value.

The list from the last paragraph is determined by the subject of the Russian Federation (according to the location of the real estate), it is published on the official website of this subject of the Russian Federation. You can find out the cadastral value by receiving an extract from Rosreestr about the cadastral value of the object, in accordance with Article 63 of Law No. 218-FZ.

If all conditions are met, then you must pay property tax during the simplification. If any condition is not met or the cadastral value is not determined, then tax obligations for that year do not arise.

The Ministry of Finance of Russia, in a letter dated March 11, 2016 No. 07-01-09/13596, reminded that the simplified people still do not pay the property tax, based on the book value of the objects. It also states whether or not to pay property tax for individual entrepreneurs using the simplified tax system in 2022 - entrepreneurs do not have this obligation, with one exception, which will be discussed below.

How to pay taxes on the simplified tax system

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Purchase documents

The main document is the contract. Price, moment of transfer of ownership, condition and components (if we are talking about a complex of premises) - everything will be spelled out in it. If an organization buys an OS in installments, then perhaps it will be transferred to its ownership, but will remain pledged to the seller until full payment.

The contract may provide that the right of ownership is transferred only after payment of the entire amount and interest (if any). Most often, this condition applies to leasing (actually a special type of lease with the right to buy). Leasing conditions may provide for both accounting on the balance sheet of the lessor and the lessee; accounting and tax accounting depend on this.

If for the seller the object is:

• the main means, then he draws up act OS-1a in one copy, which keeps for himself the invoice TORG-12 in two copies;
• goods, then only TORG-12 is compiled.

By the way! Form OS-1a can be drawn up in two copies and signed as a transfer document between the seller and the buyer. In some cases, the buyer takes into account the period of use specified by the seller for its own accounting purposes.

Additionally provided by the seller:

1. Technical plan.
2. Cadastral passport.
3. Extract from the Unified State Register of Real Estate (real estate register) - note that there is no mention of the encumbrance in it.
4. Acts on the transfer of water and electric meters. They indicate the meter number and its readings on the date of transfer of the object, so that you do not have to pay other people’s utility debts.
5. The act of delimiting the balance sheet ownership of electrical networks is necessary to determine where responsibility for the condition of the subscriber’s networks and equipment begins.
6. An expert opinion on the condition of the property and its compliance with fire and sanitary standards. Not necessarily, if the parties have no disagreements on this matter, then the status data is simply indicated in the text of the contract.
7. Other technical and registration documents.

To conclude a transaction and register you will need:

1. Documents confirming payment, if the moment of transfer of ownership depends on it.
2. The decision of the meeting of participants (the only participant) to approve the transaction. Moreover, such a decision is usually asked for, even if the transaction is not large, for reinsurance. Or it’s worth stocking up on evidence confirming that the transaction is not a major one and does not require a separate decision. As a rule, it is even more difficult.
3. Agreement and deed of transfer.
4. Documents of representatives. If a manager acts on behalf of an organization, then nothing is needed except a passport. If another employee, then a power of attorney is required.

So, the purchase and sale took place, and the organization became the owner of the property. Further actions depend on its readiness for use.

Residential Properties

Is property tax paid under the simplified tax system in 2022 for LLC “Income minus expenses” on residential buildings and premises? Residential real estate is recognized as an object of taxation. But there are exceptional rules for such objects.

A residential property is recognized as taxable if it is not listed in the organization as a fixed asset. That is, residential real estate is taxable if it is taken into account in the organization’s balance sheet in the following accounts:

• 08 “Investments in non-current assets”;
• 41 "Products";
• 43 “Finished products”.

In relation to such objects, property tax under the simplified tax system “Income minus expenses” for LLCs in 2022 is calculated according to the cadastral value (letter of the Ministry of Finance of Russia dated May 19, 2017 No. 03-05-05-01/30753, dated January 25, 2019 No. 03-05 -05-01/4064).

IMPORTANT!

If residential real estate is taken into account in or 03 “Profitable investments in material assets,” then it is not recognized as a taxable object (letter of the Ministry of Finance of Russia dated December 22, 2017 No. 03-05-05-01/86054).

Individual entrepreneur position

The taxpayer challenged the additional charges in court. He stated that income from the sale of real estate is subject to a single tax under the simplified tax system only in two cases:

• if the Unified State Register of Individual Entrepreneurs indicates such a type of activity as the sale of real estate (in this dispute the individual entrepreneur did not declare this type of activity);
• or if the fact of systematic implementation of such type of activity as the sale of real estate has been established (since “systematicity” is one of the signs of entrepreneurial activity specified in clause 1 of Article of the Civil Code of the Russian Federation).

At least two similar paid transactions can indicate the systematic receipt of profit, and the individual entrepreneur concluded only one purchase and sale agreement for 13 objects. That is, the sale of real estate was of a one-time nature.

The entrepreneur also noted that he was the owner of the mentioned buildings as an “ordinary” individual, and not as an individual entrepreneur.

Property tax for individual entrepreneurs using the simplified tax system

By virtue of Article 346.11 of the Tax Code of the Russian Federation, the use of the simplified tax system by individual entrepreneurs provides for their exemption from payment of property tax for individuals in relation to property used in business activities. There is an exception.

The specifics of calculation and payment for individual entrepreneurs are regulated by Chapter 32 “Property Tax for Individuals” of the Tax Code of the Russian Federation, introduced by Federal Law No. 284-FZ of October 4, 2014. Article 400 of the Tax Code of the Russian Federation states that payers of property tax for individuals are recognized as all citizens who have the right of ownership of property recognized as an object of taxation. This applies equally to individual entrepreneurs.

How to find out whether an individual entrepreneur must pay property tax if it is simplified - find out whether the real estate he owns is included in the list of administrative, business and shopping centers approved by the constituent entity of the Russian Federation in accordance with paragraph 7 of Article 378.2 of the Tax Code of the Russian Federation. If yes, then you will have to pay tax.

The basic procedure for calculating property tax for individual entrepreneurs is as follows:

1. By virtue of Article 405 of the Tax Code of the Russian Federation, the tax period is recognized as a calendar year.
2. According to the provisions of Article 408 of the Tax Code of the Russian Federation, the amount payable is calculated by the Federal Tax Service upon the expiration of the tax period. This amount is determined by tax authorities separately for each taxable item.
3. It is necessary to pay the property tax of individual entrepreneurs under the simplified tax system no later than October 1 of the year following the expired tax period, this is stated in Article 409 of the Tax Code of the Russian Federation.
4. The amount must be calculated and paid at the location of the property. For example, if an individual entrepreneur is registered in one region, and the property is in another, then payment is made at its location.

Now we know that individual entrepreneurs themselves do not calculate the amount to be paid and do not report to the Federal Tax Service. The tax notice will be sent to him by the Federal Tax Service itself at the location of the property. Also, the individual entrepreneur does not make any advance payments. But individual entrepreneurs, like legal entities, have questions related to cadastral value.

The essence of the dispute

An individual entrepreneur using the simplified tax system with the object “income” sold 13 non-residential properties (warehouse, workshop, wells, etc.), which he had previously rented out.
The main type of activity of an entrepreneur, specified in the Unified State Register of Individual Entrepreneurs, is the rental of his own real estate. Register real estate transactions and receive reports from the Unified State Register of Real Estate via the Internet Obtain legally

Tax officials stated the following: since the sold buildings were previously rented out, that is, used in business activities, then a single tax had to be paid on the income from their sale within the framework of the simplified tax system. Since this was not done, the inspectors assessed an additional “simplified” tax to the entrepreneur.

How to deal with cadastral value

An organization or individual entrepreneur using the simplified tax system has found out that they are obliged to pay tax on the cadastral value. How to do this practically? First of all, on the basis of Art. 378.2 the tax base in the entity in which the company is registered as a taxpayer must be established by the cadastral value of real estate objects. It’s easy to find out on the Rosreestr website.

If disagreements arise based on the results of the assessment, the value of the object can be challenged in court or out of court. In the second case, you should submit an application within six months from the date the object was entered into the cadastral register to a special commission dealing with this issue. This requires compelling reasons: either the area of ​​the property is incorrectly determined, or the cost does not correspond to the market assessment. You will also need to attach the necessary documents:

• cadastral passport;
• documents on the ownership of the disputed property, certified by a notary;
• documents on the basis of which you claim that the cadastral valuation is biased;
• conclusion of an expert member of the SRO on the assessment of the market value of the property.

If after the appeal the cadastral value has changed, then the amount payable is recalculated from the beginning of the period, even if the decision was made in December.

How to take into account the costs of using property

When purchasing property for your family and business, do not forget that the assets will have to be maintained. Some objects do not require significant investments. But most properties require monthly maintenance. For example, gasoline, fuel, spare parts, utility bills, payment for communication services and the Internet and much more.

Transport costs

Confirm business trips using personal transport with documents in order to write off fuel and lubricants. To do this, you will have to issue waybills for each trip. Be sure to indicate the odometer readings on your trip ticket (before leaving and upon returning to the garage). You can develop your own travel form.

If the individual entrepreneur is engaged in cargo transportation or passenger transportation, then you will have to fill out special travel forms.

Read more: “How to correctly fill out a truck’s waybill.”

Conclude a separate contract for vehicle maintenance and replacement of spare parts with a specialized organization. It is important that the customer in the contract is a merchant, and not an ordinary individual. Apply for insurance in the same way. Otherwise, the Federal Tax Service will not agree with the position of the businessman.

Utilities and Internet

For most businessmen, an apartment is both an office and a home. And you have to pay for housing monthly. Payments for utility services cannot be taken into account when calculating the simplified tax system: utility bills are calculated in relation to users of residential premises. There is no talk of any business. And you can't split utility costs between personal and business purposes.

The situation with the Internet and landline communications is similar. It is impossible to prove to tax authorities that home Internet is used only for business. All that remains is to go to court. But the courts do not always support the position of businessmen.

mobile connection

It is permissible to include expenses for cellular communications when calculating the simplified tax system. But there are a number of nuances:

1. Execute the contract for the provision of services to the individual entrepreneur.
2. Confirm your communication expenses monthly by receiving certificates of completed services from your operator.
3. Reissue the old SIM card to a merchant. For example, to maintain a customer base.
4. You use your cell phone for business and family. Order call details from the operator. Consider costs for business calls only. Do not take personal negotiations into account.

Connecting an unlimited tariff for an individual is risky. The Federal Tax Service will not be able to prove that communications expenses were made exclusively for business purposes.

How to calculate the amount to be paid

Since the property tax is a regional tax, all amendments to federal legislation are approved by local authorities. This applies to both rates and the obligation to pay. The tax base is always the cadastral value of the property. If there are several such objects, then calculations must be made for each of them. The fee rate is determined by the authorities of the constituent entity of the Russian Federation. The Tax Code of the Russian Federation only determines the maximum rates from 0.1% to 2%, depending on the type of object. Property tax benefits for individual entrepreneurs using the simplified tax system by region are established by regulations adopted by local authorities. The Tax Code grants them such powers.

Legal entities are required to make advance payments every quarter. The procedure for their calculation is determined by Article 382 of the Tax Code of the Russian Federation: the amount of the advance payment is calculated once a quarter as 1/4 of the cadastral value of real estate as of January 1 of the year that is the tax period, multiplied by the corresponding tax rate.

If the cadastral value of the entire building or structure has been determined, and the payer owns only part of it, then the tax base is calculated in proportion to the area.

The deadlines within which it is necessary to transfer the fee to the budget and submit reports are set by local authorities.

Accounting

Organizations using the simplified tax system are required to maintain accounting records, and they need to reflect all tax transactions in them. To reflect accrued amounts of property tax in accounting, follow the general rules for recognizing expenses. Thus, in PBU 10/99, all expenses of the organization, depending on their nature, conditions of implementation and areas of activity, are divided into:

• expenses for ordinary activities;
• other expenses.

All expenses other than expenses for ordinary activities are recognized as other. The calculated amounts relate to expenses for ordinary activities. The Ministry of Finance warns about this in letter No. 03-05-05-01/16.

To make accounting entries, the instructions for using the chart of accounts for accounting the financial and economic activities of organizations, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 No. 94n, are used. It says that entries in property tax accounting are reflected by an entry in the debit of account 26 “General business expenses” and the credit of account 68 “Calculations for taxes and fees.” The wiring looks like this:

• debit 26, 44 credit 68 - accrued;
• debit 68 credit 51 - transferred.

Material on the topic Property tax return: filling out a new form for the 2021 report

Documentation for registration

An OS-6 card is created for each object (for a group of objects OS-6a), it reflects key information. The use of these forms is not necessary; you can develop your own version, the main thing is that it contains all the necessary data.

Small enterprises can use not cards, but an accounting book (unified OS-6b, your own form is allowed). Information to be filled out is taken from the documentation received upon purchase. During the ownership period, data on repairs carried out, as well as modernization, reconstruction and write-off, is filled in.

For commissioning, a commission is appointed by order and an act is drawn up.