Property taxes for individuals: what has changed in the Tax Code of the Russian Federation and how much to pay now

Who pays property tax

Russian organizations are required to pay tax if four conditions are simultaneously met:

• there is real estate on the balance sheet (including those transferred for temporary possession, use, disposal, trust management, contributed to joint activities, received under a concession agreement);
• this property is accounted for on the balance sheet as a fixed asset in accounts 01 “Fixed Assets” or 03 “Income Investments in Material Assets”;
• existing property is recognized as an object of taxation on the grounds specified in Art. 374 Tax Code of the Russian Federation;
• the tax base for such real estate is determined as the average annual value.

Also, property tax is paid on real estate located in the Russian Federation and, as a general rule, owned by an organization, obtained under a concession agreement, if the tax base for it is the cadastral value.

Please note that from 2021 the movable property tax has been abolished!

Enterprises will not have to pay tax on land plots, water and cultural objects, as well as on other types of property named in paragraph 4 of Art. 374 Tax Code of the Russian Federation.

A number of organizations, depending on the type of activity, are not charged tax (Article 381 of the Tax Code of the Russian Federation).

Fill out and submit reports to the Federal Tax Service on time and without errors with Extern. 14 days of service are free for you!

Try for free

Calculating tax on a garden house

There is an opinion that registering your dacha house as a non-residential building is more profitable for paying taxes. But this opinion is wrong. For tax purposes in 2021, a residential building is a house and residential building located on plots for private household plots, individual housing construction, gardening and vegetable gardening.

Therefore, a garden house is also subject to tax, like a residential building, if information about it is included in the Unified State Register of Real Estate. In order to calculate the tax on a garden house, you should also know the components for paying the tax: cadastral value, area, tax rate, availability of tax benefits.

It should be remembered that if your property has several houses - for example, two or three, then tax exemption for 50 sq.m. only applies to one of them.

Tax calculation based on average annual cost

In turn, the average annual value = (total residual value of the property as of the 1st day of each month + residual value as of December 31) / 13.

Calculation example. Kompas LLC has been on the services market for 8 years. During this time, the Company purchased various fixed assets that help carry out its activities. Some of the property is still depreciated and considered taxable. In addition, the company purchased new equipment on July 4, 2020. The region applies a rate of 2.2%. The accountant, filling out the declaration for the past year, used the following data:

Let's calculate the average annual cost: (100 + 95 + 90 + 85 + 80 + 75 +70 + 234 + 207 +191 + 174 + 146 + 118) / 13 x 1000 = 128,077 rubles.

Tax payable for the year = 128,077 x 2.2% = 2,818 rubles. (provided that the organization does not pay advances).

If advance payments are established in the region, organizations need to pay them three times a year, and then reduce the tax payable for the year by their amounts.

Let us assume that in the proposed example, in addition to tax, it is required to calculate the amount of the advance for all reporting periods.

Average cost of taxable objects for the first quarter = (100 + 95 + 90 + 85) / 4 x 1000 = 92,500 rubles.

According to Art. 382 of the Tax Code of the Russian Federation, the advance payment is equal to ¼ of the average cost for the reporting period, multiplied by the rate.

Advance payment for the first quarter = 92,500 x ¼ x 2.2% = 509 rubles.

The half-year payment is calculated in the same way.

Average cost for half a year = (100 + 95 + 90 + 85 + 80 + 75 + 70) / 7 x 1,000 = 85,000 rubles.

Advance for half a year = 85,000 x ¼ x 2.2% = 468 rubles.

Average cost for 9 months = (100 + 95 + 90 + 85 + 80 + 75 + 70 + 234 + 207 +191) / 10 x 1,000 = 122,700 rubles.

Advance for 9 months = 122,700 x ¼ x 2.2% = 675 rubles.

The annual tax is paid minus any advance payments.

Tax for 2021 payable to the budget = 2,818 – (509 + 468 + 675) = 1,166 rubles.

Tax notice

For individuals, property tax is calculated by the tax service, after which it sends a tax notice to their place of residence, which contains information about the amount of tax, the deadline for its payment, etc.

Tax notices in 2021 will be sent to residents of Russia between April and November

, but no later than 30 days before the payment date.

Many real estate owners mistakenly believe that if they have not received a notice from the tax service, then they do not need to pay property tax. This is wrong

.

On January 1, 2015, a law came into force according to which taxpayers, in the event of non-receipt of tax notices, are required to independently report

to the Federal Tax Service about the availability of real estate assets, as well as vehicles.

The above message, accompanied by copies of title documents, must be submitted to the Federal Tax Service in respect of each taxable object once before December 31 of the following year. For example, if an apartment was purchased in 2021, but no notifications were received regarding it, then information must be provided to the Federal Tax Service by December 31, 2021.

Therefore, if you do not receive a notification, the Federal Tax Service recommends taking the initiative and contacting the inspectorate in person (you can use this service to make an appointment online).

If a citizen independently reports that he has a vehicle for which tax has not been assessed, the payment will be calculated for the year in which the specified report was submitted. However, this condition only applies if the tax office did not have information about the reported object. If the payment notice was not sent for other reasons (for example, the taxpayer’s address was incorrectly indicated, or it was lost in the mail), then the calculation will be made for all three years.

For failure to submit such a message within the prescribed period, the citizen will be held accountable under clause 3 of Art. 129.1 and was fined in the amount of 20% of the unpaid tax amount for the object for which he did not submit a report.

Tax calculation based on cadastral value

The tax base for a certain part of real estate corresponds to the cadastral value indicated in the Unified State Register as of January 1 (Article 375 of the Tax Code of the Russian Federation). This includes real estate from clause 1 of Art. 378.2 Tax Code of the Russian Federation.

If a company pays tax based on cadastral value, then you must first find it out in the regional office of Rosreestr or in an extract from the Unified State Register of Real Estate. You can also view the cost online on the Rosreestr website or in the regulatory act of your region, which approved the results of determining the cadastral value. If your property is included in the regional list, but the cadastral value for it has not been established, you do not need to pay tax. However, residential premises, garages, unfinished construction and other objects from paragraphs. 4 paragraphs 1 art. 378.2 of the Tax Code of the Russian Federation, is not indicated in regional lists. The tax on them is paid on the basis of regional law, which should provide for cadastral taxation of these objects. If the cadastral value for them has not been determined, calculate the tax at the average annual value.

Formula for calculating tax based on cadastral value:

Tax amount for the year = Cadastral value × 2.2% - advance payments.

Advance payment = Cadastral value of the property as of January 1 × 2.2% × ¼.

Calculation example . PlusMinus LLC owns an office in the business center. The cadastral value of the premises has not been determined, but it is known that it occupies 1/16 of the building’s area. According to Rosreestr, the cadastral value of the business center is 184 million rubles.

Cadastral value of the office = 184 million rubles / 16 = 11.5 million rubles.

Tax amount for the year = 11.5 million rubles × 2.2% = 253,000 rubles.

Advance payments will be = 253,000 / 4 = 63,250 rubles per quarter.

Tax benefits for the sale of real estate and benefits for “failed” pensioners

Regarding real estate, this year the amendments affected not only the 2021 personal property tax itself - the changes also affected benefits for its sale.

On January 1, 2020, Law No. 325-FZ of September 29, 2019 came into force, which reduced the period of ownership of property before its sale from 5 to 3 years for the purpose of exemption from personal income tax. This benefit applies to an individual’s only home. To use it, the owner (clause 4, clause 3, article 217.1 of the Tax Code of the Russian Federation):

• there must be no other home or interest in it at the time of sale;
• or a new home to replace the one being sold was purchased within 90 days from the date of transfer of ownership (of the sold home) to the new owner.

If these conditions are met, then you will not need to pay personal income tax on the sale of housing owned for more than 3 years. This applies not only to houses and apartments, but also to land plots on which residential premises with outbuildings are located (Law No. 210-FZ of July 26, 2019).

The benefit also exists for persons who were supposed to retire, but were subject to an increase in the retirement age as part of the latest pension reform. Law No. 378-FZ of October 30, 2018 provided for the preservation of tax benefits for property tax for persons who were unable to retire on time due to an increase in the retirement age (clause 10.1, clause 1, article 407 of the Tax Code of the Russian Federation). The law came into force on January 1, 2019, and its provisions are also in force this year. If a person, according to all conditions, was eligible for a pension as of December 31, 2018, but was unable to do so due to changes in legislation, then he retains the right to a tax benefit on property tax, on an equal basis with persons who actually retired . One of each type of real estate (house, apartment, garage, etc.) is exempt from taxation.

Thus, the main news for individual owners of real estate will be the calculation of property tax based on the cadastral value (and not the inventory value) throughout the country. If in 2021, when paying tax for 2021, the majority of owners will follow the new rules, then in 2021 the calculation of cadastral value will affect all regions, with the only exception being the city of Sevastopol.

Procedure and deadlines for tax payment

The tax period is a calendar year (Article 379 of the Tax Code of the Russian Federation).

The reporting period is 1 year. Previously, advance payments had to be submitted every quarter. Now they have been included in the declaration, so there is no need to report separately. The last report on advances was submitted for 9 months of 2021.

At the end of the year, property taxes are paid, and at the end of quarters, advance payments are paid. Regional authorities may decide not to establish advance payments, in which case the tax will only have to be paid once a year.

The deadlines for payment are also set by the constituent entities of the Russian Federation (Article 383 of the Tax Code of the Russian Federation).

To ensure that property tax is received as intended, fill out payment orders correctly and indicate the current BCC. For legal entities, different BCCs are provided for property that is and is not included in the unified gas supply system. In Externa you can prepare a payment order based on your property tax return.

Working with the calculator

To start making calculations, you should know the tax rate for the property tax of legal entities.

Let us clarify that tax rates are set at the regional level. This means that the rate is accepted by the representative bodies of the constituent entity of the Russian Federation within the limits established by Chapter 30 of the Tax Code of the Russian Federation.

Equally at the regional level, the following are also established:

• specific features of calculating the tax base;
• tax benefits;
• conditions for the application of benefits by business entities.

In relation to the calculator, this means that the tax rate and other indicators necessary for the calculation must be entered by the user himself - the taxpayer in accordance with Article 474 of the Tax Code of the Russian Federation, since not a single calculator is able to take into account all regional features.

In the windows specially designated for this, enter the residual value of all fixed assets on the balance sheet according to the following indicators:

• at the beginning of each month;
• at the end of the year.

The calculator has a separate window for each month. Thus, 13 indicators will need to be entered into 12 fields, two of which are for December.

After filling out all the fields, left-click on the “Calculate” button. The data obtained as a result of the calculation will be displayed in the table below.

Property tax declaration

Please note that by Order of the Federal Tax Service dated August 14, 2019 No. SA-7-21/ [email protected] as amended on July 28, 2020, a new form of property tax declaration for 2021 was approved. The order comes into force on November 3, 2020. Based on the results of 2021 (before April 1, 2021), you already need to report using the new form.

Rules for filling out a declaration with line-by-line comments from the appendix to the Order of the Federal Tax Service of the Russian Federation dated August 14, 2019 No. SA-7-21/ [email protected]

In the first section, line 005 “Taxpayer Attribute” was added, which is related to coronavirus benefits, and line 007 “SZPK Attribute” for organizations that have entered into an agreement on the protection and promotion of capital investments. For section two, new codes for coronavirus federal and regional benefits were approved, as well as a special code for the property of FEZ participants.

The most important innovation is the appearance of the fourth section, in which organizations will again have to reflect information on the average annual value of movable property recorded on the balance sheet as fixed assets (it is still not subject to tax). The amendments are being made to assess the value of movable property, which is currently exempt from tax. It is planned that taxation of movable property will return in the near future, but tax rates will be reduced.

The property tax return can be submitted on paper or electronically using the TKS. For companies whose average headcount for the past year exceeds 100 people, only an electronic declaration form is available.

How to use the calculator

Instructions for using the property tax calculator for legal entities

1. Enter the tax rate (default 2.2%) and the residual value of fixed assets (property) for all periods.
2. Click "CALCULATE". The calculator will calculate the total amount of property tax for the year, the average annual value of the property, the amount of advance payments and the amount of tax to be paid additionally.

The property tax calculator for legal entities is a simple and reliable assistant to the accountant in working on tax reports, including in calculating the property tax of a business entity.

How to correctly calculate property tax and is it worth challenging the cadastral value?

What is taxed?

Personal property tax is actually a tax on real estate. The main objects of taxation: apartments (rooms), residential buildings, garages and parking spaces, as well as unfinished construction objects, other buildings, structures, structures. In this case, the object of taxation will be the real estate for which ownership is registered, and the tax payer will be the owner indicated in the Unified Register of Rights to Real Estate.

How is tax calculated?

Advertising on Forbes

Previously, property tax for individuals was calculated based on the inventory value of property, but since 2015, regions have gradually switched to calculating based on cadastral value. In 2015, there were 28 such regions (including Moscow and the Moscow region), in 2021 - 49 (including St. Petersburg and the Leningrad region), and in 2021 - already 61. Finally, the process of transition to calculation based on cadastral value should be completed by 2021. A complete list of regions and the year in which the transition to calculating the cadastral value in the corresponding region was made can be found on the official website of the Tax Service.

The inventory cost is the cost calculated by the BTI in accordance with Order of the Ministry of Construction of Russia No. 87 dated April 4, 1992. In fact, it represents the replacement cost of the property (calculated based on the cost of materials at the time of construction), taking into account wear and tear, adjusted by various coefficients. It reflects the area of ​​the premises itself, the type of house, the year of construction and commissioning, but does not take into account such factors as the location of the object and the cost of the land plot under it, its transport accessibility, degree of comfort, etc.

The assessment of cadastral value involves determining the market value and, accordingly, taking into account all the factors described above.

In this regard, the maximum differences between inventory and cadastral values ​​will be for relatively old objects located on the most attractive (and expensive) land plots (for example, in the city center). The difference in the inventory and cadastral value of new buildings will be significantly less. A particularly significant difference is observed in Moscow, where the cost of an object can increase 30-40 times.

Only the owner of the property can find out the inventory value of the property by personally contacting the BTI. Information on the cadastral value of property can be obtained on the Rosreestr website (for example, in the section “Reference information on real estate objects online”.

To determine the tax base, the value of the property is adjusted for tax deductions and benefits established by the Tax Code and local regulations.

How have the rates changed?

Basic property tax rates and main benefits are fixed in the Tax Code of the Russian Federation. At the same time, tax rates and benefits can be adjusted (within the limits established by the Tax Code of the Russian Federation) by local regulations, and in Moscow, St. Petersburg and Sevastopol - by the laws of the corresponding cities.

Reduction factors

After switching to calculation based on cadastral value, the level of tax rates (0.1-2%) remains the same, and the base for calculating the tax increases significantly: as a rule, the cadastral value is several (and sometimes tens) times higher than the inventory value. In connection with this, the Tax Code of the Russian Federation establishes reduction coefficients that are applied to the difference between the amount of tax calculated according to the new rules and the amount of tax calculated in the last year of application of the old rules. Reducing factors are applied during the first four years after the transition to the new rules and are: 0.2 in the first year, 0.4 in the second year, 0.6 in the third year and 0.8 in the fourth year. Starting from the fifth year (for example, in relation to Moscow - from 2021), the tax is paid in full.

How to challenge a cadastral valuation?

With the transition to calculating property taxes based on market value, the amount to be paid is steadily increasing. This is due both to the gradual abolition of the reduction factors described above, and to a sharp one-time increase in the cost of the object.

It is assumed that the cadastral valuation should reflect the market value of the property. At the same time, in practice, owners often have doubts about the objectivity of the cadastral valuation and want to challenge it.

You can appeal the value of the cadastral value to the commission for reviewing disputes about the results of determining the cadastral value (at the territorial departments of Rosreestr) or in court.

Advantages of applying to the commission:

Advertising on Forbes

• quick consideration of the dispute (within a month) (in court - 2 months with the possibility of an additional extension);
• no legal costs (for example, state fees, forensic examination);
• the opportunity to challenge the decision of the commission, if it does not suit the applicant, in court (however, there is also the possibility of challenging a decision made by the commission in favor of an individual by local government bodies).

In the same time:

• the statistics on satisfying claims by the commission (about 50%) is slightly lower than by the courts (about 60%);
• with a positive decision of the commission, the potential reduction in cost is usually lower than with a court decision (commission - 10-20%, court - about 40%). It is worth considering that when making a decision, the court will most likely not be based on the appraiser’s report provided by the plaintiff, but will order a forensic examination, which usually gives an intermediate value.

A few examples from the actual practice of considering cases in court:

• Object: residential building with an area of ​​286 sq. m. Initial cadastral value - 38.2 million rubles; the market value according to the plaintiff is 11.8 million rubles; and forensic examination estimated the market value at 14.2 million rubles.
• Object: apartment with an area of ​​190.3 sq. m, apartment area 157.4 sq. m. The initial cadastral value is 51.6 million rubles and 42.7 million rubles; the market value according to the plaintiff is 27.8 million rubles and 21.7 million rubles; the result of the forensic examination was 48.9 million rubles and 39.4 million rubles.

Pros and cons of appealing

In practice, it is worth challenging the cadastral value of a property if its revision will provide an opportunity to benefit from tax savings. To do this, it is necessary to estimate both the total amount of tax savings (i.e. how the amount of tax payable will change) and the costs of revising the cadastral value.

When assessing tax savings, you need to pay attention to the following factors:

Advertising on Forbes

1. Is cadastral value used to calculate tax on a specific property? In addition to property tax, currently the cadastral value serves as the basis for calculating land tax (in relation to land plots) and tax on personal income from the sale of real estate (if the sale price of the property specified in the contract is less than its cadastral value multiplied by the coefficient 0.7 (“calculated value”), then income tax is calculated based on such calculated value). If the cadastral value has already been determined, but is not yet used to calculate the tax, the court may refuse to change it.
2. Is the cadastral value really too high compared to the market value? Both appraisal organizations providing similar services and publicly available information, including Rosreestr data on the assessment of the market value of real estate in various regions, can help to answer this question.
3. For what period will the effect of changes in cadastral value extend? The cadastral value is subject to regular revision (no more than once every 3 years (2 years in relation to Moscow and St. Petersburg) and at least once every 5 years), so the maximum effect will be to challenge the cadastral value immediately after its establishment or revision. The cadastral value changed as a result of the appeal is taken into account starting from the year in which the taxpayer’s statement of disagreement with the established value was submitted. After the cadastral value has been revised, its value must be challenged again.
4. Are there any additional complicating factors? For example, a refusal to revise the cadastral value is likely if the object is removed from the cadastral register (for example, in the case of demolition of a building or the merger or division of land plots).

How much will it cost to appeal?

Costs associated with challenging the cadastral value include:

• the cost of preparing a report on the assessment of the market value of the property. It depends on the characteristics and area of ​​the object, as well as on the status of the appraisal organization (for example, the assessment of the cost of an apartment with an area of ​​less than 100 sq.m. - from 15,000 rubles);
• the cost of a forensic examination (if the court is not satisfied with the quality of the assessment report). It also varies depending on the characteristics of the object and can in some cases reach 100,000 rubles or more;
• state duty - 300 rubles per individual;
• the cost of legal services for preparing documents and representing the plaintiff’s interests is from 50,000 rubles.

If the court makes a decision in favor of the plaintiff, court costs and attorney fees should be borne by the defendant, but in practice, not all costs are actually reimbursed. For example, the court may impose the cost of a forensic examination on the plaintiff and reduce the plaintiff's claimed attorney fees.

Joining efforts with neighbors in an apartment building or village can help reduce costs, but currently in judicial practice there are practically no class actions from citizens challenging the cadastral value.

In general, the legislation is structured in such a way as to minimize the opportunities for citizens to challenge the cadastral value. In most cases, only owners of large objects can afford this. In addition, the possibility of regular (including during the transition period) revision of the cadastral value significantly reduces the effect of reducing coefficients and challenging the cadastral value and leads to an actual increase in the tax levied.

Advertising on Forbes