For non-residential premises, property tax is calculated based on the cadastral value

Which individual entrepreneur can avoid paying property tax?

Individual entrepreneurs are regarded as individuals and according to the same scheme they pay property tax. Starting from 2019, individual entrepreneurs make payments only for real estate that:

• already refers to the housing stock - apartments, houses, cottages, if the building has a connection with the land;
• non-residential objects - garages, parking spaces;
• any other residential and non-residential finished buildings or those that are just being rebuilt, but are already registered as property.

At the same time, entrepreneurs on imputed income, patent or agricultural tax, do not pay for the real estate that is needed for work. For example, if they rented or bought an object for equipment, a workshop or a warehouse.

Those individual entrepreneurs who work on the main taxation system are required to pay real estate tax. Tax is also paid by simplified entrepreneurs if they have a store, retail space or office, as well as premises for the provision of services, which is included in the list of cadastral real estate.

In the Russian Federation, an entrepreneur has 5 taxation options when opening an individual entrepreneur:

• general taxation system - OSN;
• patent - PSN;
• simplified - simplified tax system;
• single tax on imputed tax - UTII;
• unified agricultural tax - Unified Agricultural Tax.

If the individual entrepreneur has not submitted an application to the tax service to change the tax regime, then according to the legislation of the Russian Federation he will work under the OSN.

To understand whether or not an individual entrepreneur should pay property tax, you can follow this rule:

1. There is no need to pay for real estate for work under a patent, imputation or agricultural tax. In a simplified way, you need to check whether the property belongs to the cadastral value or not. If not, then the individual entrepreneur does not pay tax; if yes, then he pays.
2. Entrepreneurs who operate under the basic taxation system are required to pay property taxes to the budget. It does not matter whether the property is included in the cadastral list or not.

Therefore, the tax regime and inclusion in the cadastre are the determining parameters.

Part VI. Important nuances of property tax

What objects are taxed based on cadastral value?

If the taxation of real estate of individuals is currently more or less clear (from 2021 in the constituent entities it is calculated based on the cadastral value (except for Sevastopol), then with the taxation of real estate of organizations, things are more complicated. The property tax of organizations is still distinguished by its dual nature , which manifests itself in several options for its calculation. Thus, as a general rule, according to Article 375 of the Tax Code of the Russian Federation, its tax base is determined as the average annual (book) value of real estate that is the object of taxation. However, for some real estate objects it is calculated according to the cadastral value. Distinction " balance" and "cadastral" objects in this case is of great importance, since in practice the cadastral value is much greater than the book value, which in turn burdens the owners of "cadastral real estate" more, increasing their tax burden (of course, there are reverse examples). cadastral real estate objects (the tax base of which is calculated based on the cadastral value) include:

1. real estate objects of foreign organizations that operate in Russia through representative offices;
2. real estate objects and unfinished construction located on plots of land with the purpose of “running personal subsidiary plots”, “gardening and gardening activities” and/or “individual housing construction”;
3. administrative and shopping centers (administrative and business centers, shopping centers (complexes), non-residential premises used for offices, retail outlets, public catering and consumer services or intended for such use according to the Unified State Register of Real Estate and/or technical accounting documents (inventory).

In relation to the objects of paragraphs 1 and 2, the tax base is determined on the basis of the cadastral value simply in the presence of a law of a constituent entity of the Russian Federation, where the corresponding obligation is established (and this is in all constituent entities of the Russian Federation). But the real estate objects of paragraph 3 must be included in a special regional “List of real estate objects in respect of which the tax base in the corresponding year is determined as the cadastral value,” which is annually approved by the executive body of the constituent entity of the Russian Federation and is often updated. Their cadastral value must be determined and entered into the Unified State Register (Subclause 1, Clause 7, Article 378.2 of the Tax Code of the Russian Federation). Accordingly, if as of January 1 of the current year the property is not on this list and/or the cadastral value has been determined already during the year, then the tax will be calculated at its book value (see Letter of the Ministry of Finance of Russia dated December 28, 2018 No. 03-05-05- 01/95999).

To stay up to date on real estate taxation, read our previous articles: Part I. What is real estate tax? Part II. What is land tax? Part III. Property tax: basic conceptsPart IV. Land tax: basic conceptsPart V. Division of property into movable and immovable: position of the courts, position of the tax authorities

“Cadastral objects” and regional lists of real estate

Especially for you, we have prepared a selection of relevant Lists for the constituent entities of the Russian Federation. Follow the link. When considering administrative and commercial objects, we must not forget about the definition of these same objects, because only after this is it possible to talk about their taxation at cadastral value. So, according to paragraph 3 and paragraph 4 of Art. 378.2 of the Tax Code of the Russian Federation, an administrative and commercial facility is recognized as a separate non-residential building (structure, structure), the premises in which belong to one/several owners and which meets at least one of the following conditions:

1. the building is located on a land plot, one of the types of permitted use (AUR) of which provides for the placement of office buildings for business, administrative and commercial purposes/trade facilities, public catering facilities and (or) consumer services;
2. the building is intended to be used or is actually used for the purpose of housing the above-mentioned facilities.

At the same time, the intended and actual use is based on a 20 percent criterion, that is:

• a building is recognized as intended for the appropriate use if the purpose, permitted use or name of premises with a total area of ​​at least 20% of the total area of ​​this building in accordance with information from the Unified State Register or technical registration documents provides for such use for the purpose of locating offices, office infrastructure (reception premises, rooms for meetings, office equipment, parking) / retail facilities, catering facilities and (or) consumer services;
• the building is actually used for appropriate purposes if at least 20% of its total area is actually used to accommodate facilities.

Although earlier we said that a land plot and the real estate objects located on it are considered separately in the tax space, here we see that the VRI of a land plot can affect the taxation of the building located on it. Formally, it may seem that if among the VRI of a land plot (and there may be several of them) there is one that allows the placement of administrative and commercial facilities, then all buildings on this plot can automatically be included in the List of real estate objects taxed at cadastral value.

And there were such precedents, for example, when the Moscow Government, on this basis, included buildings of transformer substations in the relevant List (exceptions from this List were achieved in court - Appeal ruling of the Judicial Collegium for Administrative Cases of the Supreme Court of the Russian Federation dated March 16, 2018 N 5-APG18 -2).

The Constitutional Court of the Russian Federation put an end to this issue in 2021, pointing out that in relation to an administrative and commercial facility, the tax cannot be calculated at the cadastral value, referring only to the type of permitted use of the land plot, which provides for the placement of such facilities. It is necessary to investigate the issue of the actual use of the property for the relevant purposes (Resolution of the Constitutional Court of the Russian Federation dated November 12, 2020 N 46-P “In the case of verifying the constitutionality of subparagraph 1 of paragraph 4 of Article 378.2 of the Tax Code of the Russian Federation in connection with the complaint of the open joint-stock company “Moscow Wool Spinning Plant” factory"). This is definitely the right step aimed at a fair and correct assessment of the property for tax purposes, because often inspectors involved in the formation of Lists of real estate items fill out the column with the type of permitted use of the land plot in the inspection report of the property without visiting the site, and guided only by satellite photographs and information from the Unified State Register of Real Estate. Administrative and commercial facilities do not include facilities intended or used (including by tenants) for social, medical, educational, scientific, production and other similar purposes, unless they meet the above criteria (Letter of the Ministry of Finance of Russia “On the possibility of imposing property tax organizations based on the cadastral value of buildings and premises used (including by tenants) for scientific and production purposes” dated November 17, 2020 N 03-05-04-01/99793). However, it seems possible that in an administrative building of an industrial enterprise “office” space with an area of ​​20 percent of the total area of ​​the building is rented out. In this case, property tax will be calculated based on the cadastral value. Thus, in order to establish at what value you should calculate the taxable base, you need to determine whether your property belongs to the categories of objects taxed at cadastral value. If not, then we will talk about the average annual (book) value. When a subject of the Russian Federation includes property in the List incorrectly, it is necessary to seek exclusion from the List. In the presence of confirming licenses, contracts, as well as statutory documents with the specified codes of types of economic activity, with appropriate actual use, exclusion from the list of “cadastral objects” is practically guaranteed, which is confirmed by positive court decisions (No. 5-APG17-22, N 5-APG18- 2, No. 5-APG16-116).

Transition to cadastral value at the initiative of the property owner

The decision to determine the taxable base for corporate property tax based on cadastral value does not exclude the possibility of switching to paying tax based on cadastral value at the initiative of the property owner. Such a need may arise in cases where the average annual (book) value exceeds the cadastral value. If there is reason to believe that your property is not illegally included in the List, then you must submit an application to the executive authority of the subject forming the List for an unscheduled inspection of the property and its inclusion in the relevant List for tax purposes at cadastral value, that is, to prove the need changes to the List regarding the inclusion of the required property.

How are premises taxed?

If we were talking above about individual administrative and commercial facilities as buildings, then what about non-residential premises? If they are actually used for offices, retail outlets, public catering and consumer services, or are intended for such use according to the Unified State Register of Real Estate and/or technical accounting (inventory) documents, then they are subject to property tax at cadastral value. At the same time, according to clause 5 of Art. 378.2 of the Tax Code of the Russian Federation, the 20 percent rule also applies here in relation to actually used premises: the actual use of non-residential premises for the placement of offices, retail facilities, public catering facilities and (or) consumer services facilities is recognized as the use of at least 20 percent of its total area for the placement of offices, retail facilities, public catering facilities and (or) consumer service facilities. The peculiarity is that if the cadastral value for the premises is not determined, then the tax base is determined as the share of the cadastral value of the building in which the premises are located, corresponding to the share of the premises area in the total area of ​​the building (tax base = premises area / building area X cadastral value of the building). This rule does not apply in cases where the value of the premises in the aggregate is higher than the cadastral value of the building and when the cadastral value is separately determined for the premises.

We are publishing a series of articles called “Property Taxes.”

It is important for us not only to share knowledge with you, but also to receive feedback from you on each article. If you notice an error or inaccuracy, want to suggest an addition or ask us about it, do not hesitate and be sure to write to us. By working together, we are sure to produce a great piece of work. We will give the most active ones a printed collection of our articles.

How to prove that property is used in the activities of an individual entrepreneur

An entrepreneur does not need to prove that the property is involved in business activities. The tax service itself will establish this fact during on-site inspections. To be exempt from paying tax in this case you will need:

• submit an application in free form;
• describe real estate objects that are involved in business activities;
• indicate the tax regime option used.

Entrepreneurs entitled to benefits do not need to attach supporting documents. This procedure has been in place since 2018.

What does the tax amount depend on?

Regions independently set the property tax rate, since the payment applies to local ones. The tax amount is affected by the price of the property; the higher it is, the greater the payment amount. The highest rate in Russia is 2%. On the tax website you can find out what percentage is set for a particular object. You will need to enter the tax type, region and year for which you plan to pay real estate taxes.

From the beginning of 2021, property taxes are calculated based on cadastral value. This price is determined not by the owner himself or the market, but by a government agency. But the cost is not much different from the market price. Recalculation of the cadastral valuation of real estate takes place every 5 years. The obtained data is published on the Rosreestr website.

Until the end of 2021, in some areas and regions, the tax was based not on the cadastral value, but on the inventory value; it was calculated according to the degree of depreciation of the object. Now there is no such thing, and all real estate taxes in the Russian Federation are calculated in a single way - at the price indicated in the cadastre.

The tax rate for individual entrepreneurs or individuals will depend on the type of object, cadastral value and location. For example, for the Yaroslavl region for 2021:

No one needs to calculate how much they need to pay into the budget. The tax office sends a letter indicating both the deadline and the amount. The Federal Tax Service sends out notifications once a year, and payment must also be made in one payment before December 1 of the next year. That is, upon receipt of a letter on January 1, 2021 to pay tax for 2021, it must be paid no later than December 1, 2020. There is no need to report with a separate declaration or write a report.

Commercial real estate tax from 2021

This article will answer the following questions:

• what real estate is considered commercial;
• what changes related to commercial property tax occurred in January 2021.

What is commercial real estate

Commercial is real estate that is not residential or summer cottage, and is not a personal plot of land or a garage. Although an apartment or house can be considered commercial, provided that it is rented out. In general, the purpose of such real estate is to make a profit.

Commercial real estate includes:

• catering canteens;
• cafes, bars and restaurants;
• production workshops;
• shopping and entertainment complexes;
• administrative and office premises.

Such real estate can be divided by type:

• industrial (warehouses, hangars, workshops and other industrial facilities);
• social (medical centers, libraries, airports and others like them);
• residential premises for rent;
• buildings and premises for free use.

Commercial real estate is a taxable property. Its owner calculates and pays tax. Payment terms are determined by regional authorities.

Previously, the tax on commercial real estate was calculated based on its average annual value. Then calculations for some objects began to be carried out according to cadastral value. Now the following should be calculated:

• shopping complexes and administrative premises with an area exceeding 3000 m²;
• real estate of organizations or individual entrepreneurs located outside the Russian Federation;
• office rooms;
• catering premises with a hall area exceeding 150 m²;
• residential premises, garages, parking spaces, unfinished construction projects, as well as residential buildings, garden houses, outbuildings or structures located on land plots provided for private farming, vegetable gardening, horticulture or individual housing construction.

The premises listed in the last paragraph were introduced by the new law.

Changes in 2021

On January 1, 2021, Law No. 379-FZ came into force, which makes changes to the procedure for calculating property tax. In particular, the changes affected paragraphs. 4 paragraphs 1 art. 378.2 Tax Code of the Russian Federation.

Previously, changes should have been made to paragraph 70 of Art. 2 of Law N 325-FZ. The text of the changes sounded like this:

“Other real estate objects recognized as objects of taxation in accordance with Chapter 32 of this Code, not provided for in subparagraphs 1 - 3 of this paragraph.”

That is, if the cadastral value of the property is determined, then it is the “cadastral” tax on the property of organizations that must be paid, regardless of the average annual value, address and presence in the regional list. Based on the concept of “other real estate”, we can conclude that all commercial real estate of organizations should be included in the cadastral value calculation.

How to calculate the tax amount

The full amount of tax at the cadastral value is determined by the following formula:

TnI = Tax base × Tax rate

The amount of advance payments is calculated using the following formula:

AP = Tax base × ¼ × Tax rate

For example, the cadastral value of a real estate property is 20 million rubles. The tax rate is 1.5%. Then:

• annual tax amount - 300,000 rubles (20,000,000 × 1.5%);
• advance payments for the first quarter, half a year and 9 months will be equal to 75,000 rubles (20,000,000 × ¼ × 1.5%);
• the amount of tax payable at the end of the year is 37,500 rubles (300,000 – 3 × 37,500).

If ownership arose or ceased during the reporting period, then the amount of tax is determined based on the number of full months of ownership.

Formula for calculating advance payments:

AP = Tax base × ¼ × Tax rate × Number of full months of ownership of the property in the reporting period/3.

Formula for calculating the total tax amount for the year:

NnI = Tax base × Tax rate / Number of full months of ownership of the property in a year / 12.

The wording introduced by paragraph 70 of Art. 2 of Law N 325-FZ, did not provide a clear definition and raised many questions. For this reason, changes introduced specifically to paragraph 2 of Art. 1 of Law N 379-FZ. Thus, the list of property, the tax base of which is determined as the cadastral value, was supplemented with specific examples.

How to calculate property tax for individual entrepreneurs

If the notification from the Federal Tax Service did not arrive until October of the current year, and the individual entrepreneur knows that he must pay property tax, then it is better to request a second notification yourself. Or at least check whether property taxes are charged or not.

If it seems that there was an error in the tax authority’s notification regarding the payment amount, then it can be double-checked on the Federal Tax Service website. For a clearer understanding of how tax is calculated, consider an example:

IP Ilkov, owns a warehouse in Moscow, in a building under cadastral number 77:09:0001015:1064. When indicating a real estate property in the form, we will select the type - another building, structure, structure. After this, we will indicate that the property is not included in the list of retail and office real estate.

The calculated cadastral value of the property is 78829968.44 rubles according to Rosreestr. The area of ​​the facility is 2029.6 sq. m. If you own a warehouse in the amount of 1/202 of the total area for more than 12 months, zero tax deduction, no benefits and a tax rate of 2%, the tax amount will be 7805 rubles.

This way you can check any object in the Russian Federation. To find the cadastral number, use a public map, where the address will suffice.

Property tax for individuals in 2021

Property tax in 2021: how to calculate and when to pay

If you ask a lawyer what property tax is, you will hear many beautiful and incomprehensible terms in response. For example, that this is a financial burden established on the territory of local entities, and individuals are bearers of tax obligations.

On the Russian Registers portal they will answer you in simple and understandable words.

So, what is property tax ? This is a payment to the state budget for the opportunity to own real estate. If you own a cottage, dacha, room, plot, apartment or other real estate, you are the owner of these objects, then you must replenish the budget of the municipality in which these objects are located, since property tax is classified by tax legislation as a local tax, as well as land tax. The more real estate you have, the more you will pay.

What objects are taxed?

Chapter 32 of the Tax Code of the Russian Federation answers taxpayers' questions by listing the objects of taxation. Among them:

• residential buildings;
• rooms and apartments;
• garages and parking spaces;
• unified real estate complexes;
• other buildings and premises, objects under construction.

The Tax Code equates country houses and buildings in SNT and on lands for personal farming with residential buildings.

What rates apply in 2021

The tax rate is a certain percentage of the base amount. The value of the property is taken as the basis for the calculation. This does not mean that property owners independently indicate the price of their homes for tax purposes. The law establishes a uniform assessment procedure, and the cadastral value of the property serves as the basis for all.

In other words, the government evaluates real estate based on a number of parameters and calculates a value that reflects market trends. The cadastral price of real estate changes regularly (revaluation takes place).

The tax is determined as follows:

KS (cadastral value) x C (rate) x PV (tenure period) x D (share)

The law establishes the main base rates:

• for residential premises - 0.1%;
• for commercial real estate and objects worth over 300 million rubles. – 2%;
• for all other real estate – 0.5%.

Regions are given the right to change basic tariffs. Municipalities can reduce or increase rates, from zero to 0.3% (the maximum allowed rate for residential premises).

Is it possible to reduce the payment amount?

Deductions and benefits are a legal way to reduce the tax burden on the taxpayer.

• The deduction is applied to the area of ​​the property, that is, square meters are exempt from taxation. Each owner has the right to apply this deduction. In 2021, the following deduction rates apply:
• apartments – 20 m2;
• houses – 40 m2;
• rooms – 10 m2.

Taking advantage of the deduction is simple: when calculating the fee, the area of ​​housing is reduced by a certain number of meters. For example, the owner of an apartment of 70 m2 will pay taxes for 50 m2 (70-20).

It is important to know: the deduction applies to each object, without submitting an application. If you own a house, apartment or dacha, the Federal Tax Service will automatically make calculations, reducing the tax base of each property. The property owner can only check the correctness of the calculation and pay the fee on time.

• Benefits of 100% or 50% are provided to certain categories of citizens. Federal law exempts war veterans, disabled people, combatants, and Heroes of Russia from paying the fee. A complete list of “beneficiaries” can be found in Article 407 of the Tax Code.

Let us note that in the regions there are additional benefits: municipalities fully or partially exempt large families, pensioners, etc. from the tax. You can check your membership in preferential categories of payers on the Federal Tax Service website.

It is important to know: the benefit applies to one object of each type of property. For example, if you have three rooms in communal apartments and two houses, you only need to select two properties (one room and one house) to apply the preferential taxation. Notification of the choice must be sent to the Federal Tax Service before December 31.

How to calculate tax correctly

The taxpayer himself does not have to calculate anything: the calculations are carried out by the Federal Tax Service. The property owner will receive a receipt listing the items and taxes due.

Let us recall that in Russia a calculation procedure based on the cadastral valuation of housing has come into effect. During the transition period, cadastral and inventory values ​​are taken into account in the calculation, and reduction factors are applied.

You will receive a tax notice either by mail, or in the taxpayer’s personal account, or yourself at any Federal Tax Service Inspectorate.

It is important to know: if a property is jointly owned by several people, then the tax is paid in proportion to their shares. If there are minor children among the homeowners, their share of the fee is paid by their parents or guardians.

The portal's lawyers recommend checking the data specified in the notification before making a payment. You need to make sure that all the objects listed in the document belong to you. Check the cadastral valuation, application of deductions and benefits. It will also not be difficult to recalculate the tax: using Rosreestr information about the cadastral price of the property and knowing the current rates in the region, you can quickly independently calculate the amount of the fee.

How to pay tax

The Federal Tax Service sends notifications to taxpayers no later than November 1, that is, 30 days before the payment deadline. Everyone chooses the method of receiving information independently: in paper or electronic form, by Russian Post or online.

In some cases you will not receive a notification by mail:

• if there are benefits that exempt the fee;
• if the payment is less than 100 rubles;
• if the taxpayer refused to receive paper documents.

In all other cases, delays in sending receipts can be attributed to technical errors or glitches.

Payment of the fee is made in any way convenient for the payer: through terminals, online, on the Federal Tax Service website, through the State Services portal, at the post office or at bank branches.

It is important to know: the final deadline for paying property taxes for individuals is December 1. Postal transfers are executed within 3 days, so the choice of payment method with the budget is important. If you choose mail or transfer by receipt at a bank branch, send the amount in advance to avoid paying late fees.

We recommend using online services that allow you to quickly make payments. For example, on the website https://taxes.online you can pay any fees for yourself, children and relatives, without registration and unnecessary bureaucracy.

Which entrepreneurs are entitled to benefits?

The amount of property tax for individual entrepreneurs depends on the benefits that the owner is entitled to. They are provided to pensioners, disabled people, and summer residents with a plot of land up to a certain size. Each region itself supplements the federal list of beneficiaries, so it can be many times longer. For example, it may include single-parent or large families. But, in general, the state list of categories of citizens who are entitled to benefits for paying real estate taxes looks like this:

If an individual entrepreneur falls under one of the preferential categories, then he can submit documents to the Federal Tax Service if the amount was incorrectly calculated for him.

The basis for recalculating the amount of property tax may be:

• incorrect information about the owner;
• the billed tax amount, which does not take into account benefits.

When an entrepreneur justifies a mistake, the tax inspectorate:

• will reset the amount and penalties that contained the error;
• will generate a new notification and place it in the taxpayer’s personal account.

If the individual entrepreneur does not use the taxpayer’s personal account as an individual, then he will receive a new notification by mail. According to the legislation, the Federal Tax Service can issue an invoice for payment of property tax to individual taxpayers, if for some reason the payer has not been involved in it earlier, within 3 years. In addition, the tax for the same tax period can be recalculated both downward and upward according to the Tax Code of the Russian Federation.

Which individual entrepreneurs are required to pay property tax?

An entrepreneur is required to pay tax if two conditions are met:

1. He is the owner of the property. If the property is used under a lease agreement, the tenant does not have to pay property taxes.
2. The property is located on the territory of the Russian Federation. If the object is located in another country and the individual entrepreneur legally owns it in that state, then he is not obliged to pay tax to the budget of the Russian Federation.

At the same time, an individual entrepreneur pays tax if he works according to OSNO, regardless of the use of property - for personal or business purposes. If the objects are leased, the owner-entrepreneur must also pay tax for them if he works for OSNO, and not the tenant. And even if an entrepreneur gives the property for free use, he will still pay property taxes.

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about the author

Klavdiya Treskova - higher education with qualification “Economist”, with specializations “Economics and Management” and “Computer Technologies” at PSU. She worked in a bank in positions from operator to acting. Head of the Department for servicing private and corporate clients. Every year she successfully passed certifications, education and training in banking services. Total work experience in the bank is more than 15 years. [email protected]

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Comments: 18

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Author of the article: Klavdiya Treskova

Consultant, author Popovich Anna

Financial author Olga Pikhotskaya

1. Tatiana
   12/14/2021 at 23:40 Hello, my husband, an individual entrepreneur, paid UTII in 2021.2019.2020. In his work he uses real estate that belongs to me by right of ownership. The objects were transferred to him under a free use agreement. How can you get a property tax break?
   Reply ↓ Anna Popovich
   12/15/2021 at 12:50

   Dear Tatyana, when applying UTII, an entrepreneur has the right to apply a tax benefit for the property tax of individuals only if he is the owner of the property and uses it in business activities (clause 3 of article 346.11, paragraph 2 of clause 4 of article 346.26, article 400 Tax Code).

   Reply ↓

For non-residential premises, property tax is calculated based on the cadastral value

The Supreme Court of the Russian Federation, in its ruling dated 02/03/2020 No. 304-ES19-26593, confirmed that non-residential premises of an individual entrepreneur are taxed precisely at their cadastral value if they are located in a building included in the relevant List. Let's take a closer look.

The essence of the dispute

Thus, in the commented ruling, the Supreme Court of the Russian Federation confirmed that non-residential premises are subject to taxation at cadastral value if they are located in a building included in the relevant List.

What is the essence of the dispute? The inspectorate sent the individual entrepreneur an updated notification on the calculation and payment of property tax for individuals. She discovered that the individual entrepreneur owns 4 non-residential premises in a building included in the List of real estate objects for which the tax base is determined as the cadastral value. Therefore, the amount of this tax in respect of each of them should be calculated at a rate of 2%. At the same time, there are no grounds for exempting individual entrepreneurs from the obligation to pay property tax for individuals.

However, the individual entrepreneur explained that the simplified tax system exempts him from the obligation to pay tax on any property. In addition, the premises owned by him are independent objects of taxation and are not included in the specified list. Therefore, the entrepreneur went to court.

The courts of three instances refused to satisfy the entrepreneur's demands. They pointed out that since the building is rightfully included in the List, all premises in it, owned by one or more owners, are subject to taxation based on the cadastral value. This rule does not depend on the absence of the premises themselves in the List.

Property tax based on cadastral value

In relation to individual real estate objects, when calculating tax, their cadastral value is applied as of January 1 of the tax period (clause 1 of Article 378.2 of the Tax Code of the Russian Federation).

Since 2021, new rules for taxation of real estate of organizations based on cadastral value, established by Federal Laws No. 325-FZ dated September 25, 2019 and No. 379-FZ dated November 28, 2019, have been in effect. The condition on the mandatory recording of real estate on the balance sheet of organizations as fixed assets no longer applies. But other conditions are preserved:

• on the ownership of the organization’s objects by right of ownership or economic management;
• about the availability of information about the cadastral value of the object in the Unified State Register of Real Estate;
• on the establishment by law of a constituent entity of the Russian Federation of the specifics of determining the tax base based on the cadastral value of real estate objects and the inclusion of objects in the list annually compiled by the authorized executive body of the region (Article 378.2 of the Tax Code of the Russian Federation).

Such objects include:

• administrative, business and shopping centers;
• non-residential premises intended for offices, retail facilities, catering and consumer services;
• real estate of foreign organizations that do not operate in the Russian Federation through permanent representative offices;
• residential buildings and residential premises that are not taken into account on the balance sheet as fixed assets in the manner established for accounting (valid until January 1, 2021).

This list has changed since 2021. In addition to the objects indicated in the first three paragraphs, it will include:

• housing;
• garages and parking spaces;
• unfinished construction projects;
• garden houses, outbuildings and other buildings, structures, structures on land provided for the personal needs of individuals.

The authorities of the subject must determine the list of objects for which property tax will be calculated based on the cadastral value, send it to the tax authorities at their location and post the information on the official website of the constituent entity of the Russian Federation no later than the 1st day of the next tax period (clause 7 of Article 378.2 Tax Code of the Russian Federation). If this is not done within the prescribed period, the owner of the property has the right to calculate the tax based on the average annual value of the property, and from the cadastral value - only from the next year.

Please note: the list of real estate objects for which the corporate property tax base depends on the cadastral value is compiled one-time no later than the 1st day of the next tax period (clause 7 of Article 378.2 of the Tax Code of the Russian Federation). It is not allowed to add new buildings to it after the start of the tax period.

We also note that the composition of a real estate property (trade building, complex) is determined based on the technical passport, according to which the structure includes the main structure and individual parts of the building and extensions. If all this is taken into account in the cadastral value of the structure, then the property tax of organizations is charged in relation to the general base based on the cadastral value.