Tax rates on property of organizations. Corporate property tax: features of tax calculation and payment
Property tax to the budget of the Russian Federation is paid from any object owned by the enterprise. It represents the percentage of the estimated cadastral value of the property of the organization.
Legal entities, unlike individuals, are required to fill out and submit a declaration to the Tax Service on their own. The interest rate charged is set by the regional authorities, but should not exceed the limits specified by the Tax Code.
Who is required to pay property tax
Legal entities are required to pay tax on property of an enterprise recognized as an object of taxation in accordance with Article 30 of the Tax Code of Russia.
According to the law, tax is levied:
- With domestic entrepreneurs. They pay tax on all property for which ownership is registered, as well as on real estate or movable property transferred to temporary management.
- With foreign citizens doing business in the Russian Federation. If the property is included in the fixed assets of a foreign organization, it pays the property fee. Objects located in Russia are subject to taxation, despite the fact that the entrepreneur does not conduct business in our country.
There are exceptions to each rule.
Based on Article 374 of the Tax Code, the following are exempted from making money in the country's budget:
- contractors preparing sports facilities for the football world championship scheduled for 2018;
- businessmen included in the organizing committee of the World Cup;
- various communities of persons with disabilities;
- religious organizations;
- drug companies.
In order for the pharmaceutical company not to pay property tax, this type of activity should be officially recognized as the main one. The listed benefits are guaranteed by the Tax Code and cannot be canceled by local authorities.
How to calculate property tax arrears for legal entities
Tax calculation is simple, but requires knowledge of economic terms, the most important of which. It characterizes the average value of the registered property, for a certain period of time - one year.
If the property is located in different parts of the country, use separate counting. This is due to different tax rates between regions. With large investments, the tax base is reduced in accordance with the size of the financial project.
The federal property tax rate is not more than 2.2%. Municipal authorities cannot collect taxes from entrepreneurs at tariffs that exceed those established by the government.
Often, local authorities apply a heterogeneous tax rate for various business sectors operating in the region. For example, in 2016, a tax rate of 1.3% is adopted for transport communications (power lines, pipelines and railroad tracks).
To calculate the amount, they find out the tax rate in the region and the average annual price of the property. The value of the property is determined by adding the number of months for the reporting period to the residual value of the property. In this case, the period between the first and last day of the reporting year is taken.
After the establishment of intermediate values, they proceed to determine the amount to be paid to the budget.
They take the calculated value of the property and multiply it by the rate applicable in a specific region of Russia:
- Tax \u003d value of property * tax rate
When determining the price of registered property, enterprises are allowed to use a cadastral valuation. These data are obtained in Rosreestr. Why do you need to contact the Tax Service of Russia. Information is fully published on the website of the municipality government.
When to pay property tax
The property tax of the enterprise is paid in parts. Regional authorities establish the necessary dates, which are as follows:
- for cadastral value payers, the tax period was divided into three advance payments: the first, second and third quarters of the current year;
- at the end of the tax period, the entrepreneur pays the balance of funds not paid to the state.
The amount of the advance payment is a quarter of the calculated amount intended for the state.
The amount of the final payment is equal to the difference between the money already paid for the three advance payments and the total amount of property tax. When a company loses the right to own property, the tax is calculated for the time during which the management of the company disposes of this property.
Before a visit to the Federal Tax Service of the Russian Federation, an individual entrepreneur fills out a tax return with his own hand. It is the main reporting document and is filed at the place of registration of taxable property.
The tax return is submitted by organizations in the form of:
- an advance report that is submitted within 30 days after a three-month period;
- final declaration, surrendering no later than the end of March.
Terms of payment of property tax by legal entities:
- tax is closed no later than March 30 after the end of the reporting period;
- money is paid in every quarter, but the deadline for payment is one month from the end of the agreed period.
Tax legislation is constantly being improved. The government makes adjustments aimed at matching the mechanism for collecting the current situation.
So, by law No. 366, approved on 11.24.2014, the methods of taxation were changed:
- If the property fell on the balance sheet of the enterprise in early 2013, no tax will be levied on it. The exception is cases of company reorganization or its liquidation.
- The taxable objects are fixed assets of the enterprise included in the first two depreciation groups.
- The price included in the state register is not equalized with the real estate base in mutual investment funds.
- Potential expenses included in the fixed assets of the company are not taxed.
It doesn’t matter which state’s passport a legal entity carrying on business in Russia has in its pocket. Everyone should pay for the property. Whoever does not understand this immediately will lose more in the future. Indeed, for non-compliance with the requirements of the Tax Code penalties are provided.
Organizations - this is a tax on movable and immovable property (including property transferred to temporary possession, use, disposal or contributed to joint activities).
The accounting procedure for fixed assets is regulated by the Federal Law No. 129-ФЗ “On Accounting”, the Accounting Regulation “Accounting for Fixed Assets” PBU 6/01 (approved by Order of the Ministry of Finance of the Russian Federation No. 26n).
The object of taxation for foreign organizations operating in the Russian Federation through permanent missions is recognized as movable and immovable property related to fixed assets.
At the same time, for the purpose of calculating property tax, foreign organizations keep records of taxable objects in accordance with the accounting procedure established in the Russian Federation.
The object of taxation for foreign organizations that do not carry out activities in the Russian Federation through permanent missions "shall be immovable property located on the territory of the Russian Federation belonging to the specified foreign organizations by right of ownership (clause 3).
Not recognized as objects of taxation:
Land plots and other objects (water bodies and other natural resources);
property owned by the right of economic management or operational management of federal executive bodies, which legislatively provide for the military and (or) equivalent service used by these bodies for the needs of defense, civil defense, security and law enforcement in the Russian Federation.
The tax base
The tax base is defined as the average annual value of property recognized as an object of taxation.When determining the tax base of Russian organizations and foreign organizations operating in the Russian Federation through permanent missions, property recognized as an object of taxation is taken into account at its residual value, formed in accordance with the established accounting procedure, approved in, that is, equal to the difference between the initial value of the fixed asset and the amount of accrued depreciation.
If depreciation is not provided for certain fixed assets, their value for tax purposes is determined as the difference between the initial cost and the amount of depreciation calculated according to established standards for accounting purposes at the end of each tax (reporting) period.
The tax base for immovable property of foreign organizations that do not carry out activities in the Russian Federation through permanent missions, as well as for immovable property of foreign organizations that are not related to the activities of these organizations in the Russian Federation through permanent missions, is the inventory value of these facilities according to technical bodies inventory.
Authorized bodies and specialized organizations carrying out accounting and technical inventory of real estate objects are required to inform the tax authority at the location of these objects information on the inventory value of each such object located in the territory of the relevant subject of the Russian Federation, within 10 days from the date of assessment (revaluation) of these objects.
The tax base for each of the above-mentioned immovable property of foreign organizations is taken equal to the inventory value of this immovable property as of January 1 of the year, which is the tax period.
The tax base at the place of registration of foreign organizations that do not carry out activities in the Russian Federation through permanent missions, determined on the basis of the value of the following property:
The value of property located in the territory of the Russian Federation;
the value of property located in the territorial sea of \u200b\u200bthe Russian Federation (on the continental shelf of the Russian Federation or in the exclusive economic zone of the Russian Federation).
The tax base is reduced by the amount of commissioned, reconstructed and (or) modernized navigable hydraulic structures located on the inland waterways of the Russian Federation, port hydraulic structures, air transport facilities (except for the centralized aircraft refueling system, cosmodrome) completed for construction, reconstruction and (or) modernization . This provision does not apply to completed capital investments recorded in the carrying amount of these facilities (clause introduced by Federal Law No. 308-ФЗ; applies until January 1, 2025).
Features of determining the tax base:
1. under a simple partnership agreement (agreement on joint activities)
2. for property transferred to trust, to a mutual fund, under a concession agreement
Tax benefits
In accordance with the provisions of the Tax Code of the Russian Federation, two types of tax benefits are established for tax on property of organizations:Tax incentives provided at the federal level in the form of full exemption from tax;
tax incentives established by the constituent entities of the Russian Federation, which are mainly provided for in legislative acts on the introduction of tax in the territory of the corresponding constituent entity of the Russian Federation.
Federal benefits for paying property tax on organizations are established by Article 381 of the Tax Code of the Russian Federation. Additional tax exemptions on corporate property tax may be provided for in regional legislation.
According to Art. 381 of the Tax Code of the Russian Federation, the following are exempt from tax:
1) organizations and institutions of the penal system - in relation to property used to carry out the functions assigned to them;
2) religious organizations - in relation to property used by them for carrying out religious activities;
3) all-Russian disabled people:
Among the members of whom the disabled and their legal representatives make up at least 80%, regarding property used by them to carry out their statutory activities;
which consists entirely of the contributions of these organizations, if the average number of disabled people among their employees is at least 50%, and their share in the wage fund is at least 25%, in relation to the property used by them for the production and (or) sale of goods ( with the exception of excisable and some other), works and services (with the exception of brokerage and other intermediary services);
institutions, the sole owners of the property of which are the indicated organizations of persons with disabilities, with respect to property used by them to achieve educational, cultural, medical, recreational, sports, scientific, informational and other goals of social protection and rehabilitation of persons with disabilities, as well as to provide legal and other assistance to persons with disabilities, children with disabilities and their parents;
4) organizations whose main activity is the production of pharmaceutical products - in relation to property used by them for the production of veterinary immunobiological preparations;
5) organizations:
in relation to objects recognized as monuments of history and culture of federal significance;
with respect to nuclear facilities used for scientific purposes, storage facilities for nuclear materials and radioactive substances, as well as storage facilities for radioactive waste;
in relation to icebreakers, ships with nuclear power plants and ships of nuclear technology services;
in relation to railways and federal public roads, trunk pipelines, power transmission lines and other structures according to the list approved by Decree of the Government of the Russian Federation N 504;
in relation to space objects;
in relation to property recorded on the balance sheet of a resident organization of a special economic zone created or acquired for use in the territory of the SEZ for conducting activities within the framework of an agreement (within 10 years from the month following the month of registration of the said property);
in relation to ships registered in the Russian International Register of Ships;
recognized by management companies of the Skolkovo Innovation Center;
who received the status of participants in the Skolkovo project to carry out research, development and commercialization of their results;
6) property:
specialized prosthetic and orthopedic enterprises;
bar associations, law offices and legal advice;
government research centers.
Worth paying attention to!
Property tax is not paid within 3 years from the date of registration of the objects entered after this date with:
High energy efficiency (according to the list established by the Government of the Russian Federation);
- a high class of energy efficiency, if in relation to these objects the legislation provides for the definition of these classes.
In addition, a property tax relief has been established for shipbuilding organizations. They do not pay tax on property used for the construction and repair of ships - the exemption applies for 10 years from the date of registration of the taxpayer as a resident of the SEZ.
ADDITIONAL BENEFITS ARE INSTALLED IN MOSCOW.
The following are exempt from tax:
1) autonomous, budgetary and state-owned institutions of the city of Moscow and intracity municipalities;
2) state-owned enterprises of the city of Moscow and intracity municipalities in the city of Moscow;
3) state authorities of the city of Moscow and bodies in the city of Moscow;
4) organizations of public urban passenger transport (except for taxis, including minibus) and the subway, receiving appropriations from the budget of the city of Moscow;
5) organizations - in relation to property intended for the storage of liquid and solid deicing reagents;
6) organizations - in relation to highways and road-bridge facilities for general use, roadside landscaping, as well as structures that are an integral technological part of these facilities. The list of property related to these facilities is approved by the Moscow Government;
7) organizations using the work of people with disabilities, if the average number of people with disabilities among their employees for the tax and (or) reporting periods is at least 50 percent, and their share in the payroll fund is at least 25 percent, in relation to property used by them for production and (or) sale of goods, works and services.
This benefit does not apply to organizations engaged in the sale of brokerage and other intermediary services, production and (or) sale of excisable goods, minerals and other minerals, as well as other goods according to the list approved by the Government of the Russian Federation in coordination with all-Russian public organizations of disabled people. When determining the total number of persons with disabilities, the average number of employees does not include persons with disabilities working concurrently, work contracts and other contracts of a civil law nature;
8) organizations - in relation to objects recognized as monuments of history and culture, included in accordance with the Law of the city of Moscow N 26 "On the Protection and Use of Immovable Monuments of History and Culture" in the City Register of Immovable Monuments of History and Culture and their Territories and which are city property - this item is canceled;
9) organizations - in relation to multi-story parking garages;
10) organizations - in respect of housing facilities used in the reporting (tax) period for their intended purpose on the basis of an employment contract, a contract for gratuitous use;
10.1) organizations - in relation to objects of engineering infrastructure of the housing and communal complex, the maintenance of which is fully or partially financed from the city budget and (or) budgets of intracity municipalities of Moscow, as well as in relation to underground collectors for utilities and property intended for their maintenance and operation;
10.2) organizations - in relation to the facilities of the municipal complex for utilization (neutralization) of municipal solid waste, water supply and sanitation;
11) housing, housing construction cooperatives, homeowners associations;
12) religious organizations registered in the established manner - in relation to property used by them for the implementation of statutory activities;
13) public organizations of persons with disabilities registered in the prescribed manner - in relation to property used by them for the implementation of statutory activities;
14) organizations of freight road transport that fulfill the state defense order - in respect of vehicles enlisted in the states of military convoys of military type;
15) organizations - in relation to objects of mobilization purpose and mobilization capacities, preserved and (or) not used in production. The procedure for the preparation and execution of documents necessary to confirm the right of organizations to apply this benefit is approved by the Moscow Government;
16) organizations engaged in the production of cars in Moscow - in relation to property used by them for this purpose;
17) organizations - in relation to property leased to organizations that manufacture cars in Moscow and use the specified property for the production of cars;
18) organizations - in relation to airfields and objects of a unified system of air traffic management.
Tax (reporting) period
The tax period for corporate property tax is a calendar year.The reporting periods are the first quarter, six months and nine months of the calendar year.
When establishing a tax, the legislative (representative) body of a subject of the Russian Federation has the right not to establish (exclude) reporting periods. But the legislative (representative) bodies of the constituent entities of the Russian Federation are not entitled to establish other reporting periods. ()
Tax rates
Corporate property tax rates are established by laws of the constituent entities of the Russian Federation and cannot exceed 2.2 percent.It is allowed to establish differentiated (various) tax rates depending on the categories of taxpayers and (or) property recognized as an object of taxation.
In most constituent entities of the Russian Federation, maximum tax rates are established.
Reporting and procedure for paying corporate property tax
1. The tax payable upon expiration of the tax period shall be paid no later than March 30 of the year following the expired tax period.
2. Advance tax payments based on the results of the reporting period shall be paid no later than 30 days from the end date of the corresponding reporting period.
Tax returns following the results of the tax period shall be submitted no later than March 30 of the year following the expired tax period.
The tax return and tax calculation forms for advance payments are approved by Order of the Federal Tax Service of the Russian Federation No. MMV-7-11 / 895.
The procedure for calculating corporate property tax
For Russian organizations and foreign organizations operating in the Russian Federation through permanent missions, the tax amount is calculated based on the results of the tax period as a product of the corresponding tax rate and tax base determined for the tax period:Accrued tax for the year \u003d Tax base * Tax rate
The amount of tax payable to the budget based on the results of the tax period is determined as the difference between the amount of tax calculated as a whole for the year and the amounts of advance tax payments calculated during the tax period:
Tax amount for the year (payable) \u003d Accrued tax for the year - Advance payments
The amount of the advance tax payment is calculated at the end of each reporting period in the amount of 1/4 of the product of the corresponding tax rate and the average value of the property determined for the reporting period:
Advance payment \u003d (Average property value * Tax rate): 4
For foreign organizations that do not carry out activities in the Russian Federation through permanent missions, the amount of the advance tax payment in respect of certain immovable property of foreign organizations is calculated at the end of the reporting period as 1/4 of the inventory value of the immovable property as of January 1 of the tax year period multiplied by the corresponding tax rate.
If the organization has separate divisions allocated to a separate balance sheet, they pay tax at their location. In accordance with paragraph 1 of Article 376 of the Tax Code of the Russian Federation, the tax base for a separate division having a separate balance sheet includes property that is recorded on this balance sheet.
The tax is also transferred at the location of the immovable property, which is located outside the location of the organization or its separate subdivision, allocated to a separate balance sheet.
Corporate property tax
Objects related to movable property (machinery, equipment) will be exempted from taxing property of organizations. Regions will be empowered to set tax rates. In the future, the tax base for tax will be determined based on the cadastral value of real estate, and not on the residual value of the property, as it is now.Recall also that in the letter of the Federal Tax Service N BS-4-11 / [email protected] it is reported that the Federal Tax Service of Russia is working to create a single resource for information on benefits and property tax rates in Russia. It will be posted on the Service website.
And in conclusion of the material considering the property tax of organizations, we emphasize that the Government of Russia has decided to abolish the property tax for organizations. This was announced by Prime Minister Vladimir Putin today, speaking at an expanded meeting of the board of the Ministry of Finance of the Russian Federation in Moscow. According to the prime minister, this will save up to 80 billion rubles in taxes.
Corporate property tax is paid by legal entities owning real estate in the Russian Federation. In a number of regions, tax is also paid on movable property. The tax is calculated based on the average annual or cadastral value of the property. The tax rate depends on the region, and in general does not exceed 2.2%. This article is devoted to Chapter 30 of the Tax Code of the Russian Federation “Corporate Property Tax”. It is accessible, in a simple language, about the procedure for calculating and paying property tax, tax rates and deadlines for reporting. This material is part of the Tax Code for Dummies series. Please note: articles from this series give only a general idea of \u200b\u200btaxes; for practical activities it is necessary to refer to the source - the Tax Code of the Russian Federation.
Corporate property tax
Where the tax on property of organizations was introduced
In all constituent entities of the Russian Federation: republics, territories, regions, autonomous okrugs, and in cities of federal significance Moscow, St. Petersburg, and Sevastopol. Moreover, in each of the entities the payment of property tax is introduced by its own separate law, which provides for regional features.
How do the general rules and regional features compare?
The rules for calculating and paying corporate property tax are enshrined in Chapter 30 of the Tax Code. The provisions of this chapter are the same for all constituent entities of the Russian Federation, but at the same time, regional authorities are entitled to establish certain features within the framework of general rules.
Thus, a subject of the Russian Federation can approve its tax rates by regional law, but these rates should not exceed 2.2 percent in the general case. In addition, the region has the right to set its own deadlines for tax and advance payments. Finally, the authorities of the constituent entities of the Russian Federation may, at their discretion, introduce regional property tax exemptions, as well as establish (or not establish) reporting periods within the framework of the tax period.
Who pays corporate property tax
- Russian organizations on the balance of which real estate is listed as fixed assets (OS).
- Foreign organizations operating in Russia through permanent missions and having real estate recorded as fixed assets, or having received real estate under a concession agreement (such companies account for property in accordance with Russian accounting rules).
- Foreign organizations that have not established permanent representative offices in Russia, but who own real estate in the Russian Federation, or who have received such real estate under a concession agreement.
Who does not pay corporate property tax
The Tax Code provides a closed list of taxpayers exempt from tax on property of organizations. This list includes religious organizations, public organizations of people with disabilities, pharmaceutical manufacturers and a number of other enterprises. This list is valid in all regions of Russia without exception. In addition, each region has the right to additionally establish its own benefits.
What is the tax on property of organizations
Russian companies charge real estate tax, which is recorded on the balance sheet as fixed assets, that is, on debit account 01.
As for the “movable” fixed assets, until 2019 they were exempted from property tax in those constituent entities of the Russian Federation where the relevant laws were adopted (only objects put on balance in 2013 or later fell under the exemption). Starting in 2019, no property tax has been paid in any region.
The tax is accrued on all of the above OSs, including those transferred for temporary use, ownership, disposal, trust, contributed to joint activities or received under a concession agreement. Either the lessor or the lessee accrues tax on property transferred to leasing, depending on whose balance the property is on.
Foreign companies that have opened permanent representative offices in Russia charge a tax on immovable objects, which are fixed assets according to Russian accounting standards. Foreign enterprises that do not have permanent representative offices - for any real estate owned by them on the right of ownership and located on the territory of the Russian Federation.
What is not taxed on property of organizations
In all regions of the Russian Federation without exception, tax is not charged on land, water and other natural resources. In addition, property of bar associations, law firms, legal consultations, specialized prosthetic and orthopedic enterprises and some other facilities are exempted from taxation.
Note that the constituent entities of the Russian Federation may additionally approve lists of property that is not subject to taxation in the territory of this region.
Corporate property tax rate
Each region approves its own corporate property tax rate. The only restriction prescribed in the Tax Code is that the rate cannot exceed 2.2 percent. Moreover, in relation to real estate objects, the tax base for which is defined as the cadastral value, the tax rate may not exceed the values \u200b\u200bestablished in the Tax Code of the Russian Federation.
The subjects of the Russian Federation have the right to differentiate rates depending on the categories of taxpayers and property.
You can find out what rates and benefits have been introduced in your region at your tax office.
Who should be involved in calculating corporate property tax
How to calculate corporate property tax
To calculate the tax on property of organizations, you need to determine the tax base and multiply it by the tax rate. Until 2019, the tax base was calculated separately for the property of the parent organization; in relation to the property of each separate division having its own balance sheet; for each property located outside the location of the parent organization, a unit having its own balance sheet, or a permanent establishment of a foreign company. Starting from 2019, the tax base is calculated separately for each property
If the property is located in different regions, the tax base for it is calculated separately from other property. In this case, it is necessary to determine the share attributable to each of the regions.
The tax base is generally the average annual value of taxable property. The base is determined by the results of the tax period, which is equal to the calendar year. To calculate the base, you need to add the values \u200b\u200bof the residual value of the objects on the 1st day of each month and on the last day of the tax period. Then, the amount received must be divided by the number of months in the tax period, increased by one.
We give an example. Suppose that the residual value of the company's property was equal to the values \u200b\u200bgiven in table 1. Then, the average annual value will be 1,200,000 rubles ((1,500,000 + 1,450,000 + 1,400,000 + 1,350,000 + 1,300,000 + 1,250,000+ 1 200,000 + 1,150,000 + 1,100,000 + 1,050,000 + 1,000,000 + 950,000 + 900,000): (12 + 1).
Table 1
We add that the residual value must be determined according to the standards set out in PBU 6/01 “Accounting for fixed assets”, and according to the rules given in the guidelines for accounting of fixed assets *. It is also necessary to adhere to the procedure enshrined in the accounting policies of the enterprise.
Since 2014, in relation to some real estate objects (trade and administrative-business centers, offices, catering outlets, etc.), the taxable base is recognized not as an average annual, but as a cadastral value. For such objects, the tax amount in the general case is equal to the cadastral value of the object as of January 1 of the corresponding year, multiplied by the tax rate. We add that information on the cadastral value of real estate should be taken from the Unified State Register of Real Estate.
How to calculate the advance payment of corporate property tax
For property, the tax on which is calculated on the basis of the average annual value, the reporting periods are the quarter, six months and nine months. In regions where reporting periods are introduced, organizations must pay advance payments during the year.
In order to calculate the amount of the advance payment, it is generally necessary to find the average value of the property for the reporting period. It is determined by the rules that are used to calculate the average annual value. The difference is that instead of the residual value on the last day of the period, you need to add the residual value on the 1st day of the next month.
Let us illustrate with an example. Suppose the residual value of the company's property for the quarter was equal to the values \u200b\u200bgiven in table 2. Then the average value in the reporting period will be 1,425,000 rubles ((1,500,000 + 1,450,000 + 1,400,000 + 1,350,000): (3+ 1)). Please note that the formula takes into account the value of the residual value as of April 1, and not as of March 31.
table 2
The advance payment amount is equal to one fourth of the average property value for the reporting period, multiplied by the tax rate. If we assume that the rate is 2.2 percent, then the amount of the advance payment for the quarter in our example will be 7,837 rubles. (1,425,000 rubles x 2.2%: 4).
For property which tax is calculated based on the cadastral value, the reporting periods are the first, second and third quarters. In regions where reporting periods are introduced, companies must make advance payments equal to one fourth cadastral value multiplied by the bid.
When to transfer money
The tax on the property of organizations and advance payments on it must be transferred within the time period established by the legislation of the region. You can find out specific dates for transferring money in your tax office.
When paying the total tax, advance payments made during the year must be taken into account. Regions where reporting periods are introduced are entitled to exempt certain categories of taxpayers from paying advance payments.
Where to transfer money
Tax and advance payments in respect of property belonging to the parent organization must be transferred to the budget at the location of this organization.
Tax and advance payments in respect of property belonging to a separate unit having a separate balance sheet must be transferred to the budget at the location of this unit. When calculating the amount of tax and advance payments, the rate established for the region where the unit is located should be applied.
The tax and advance payments in respect of real estate located outside the location of the parent organization and units having their own balance must be transferred to the budget at the location of such real estate. Calculate the amount of tax and advance payments should be at the rate established for the region where the property is located.
How to report on corporate property tax
Taxpayers must submit a corporate property tax return no later than March 30 of the year following the expired tax period.
In regions where reporting periods have been introduced, it is necessary to make payments on advance payments no later than 30 calendar days from the end date of the reporting period (no later than April 30, July 30 and October 30, respectively).
Organizations that do not own taxable property are not taxpayers, and therefore must not submit declarations and calculations.
Where to report
Since the beginning of 2019, organizations are generally required to report property tax at the location of each property. At the same time, a company that has several real estate objects is entitled to submit a single declaration or a single calculation of property tax. This can be done if all objects are located on the territory of one constituent entity of the Russian Federation, the budget of which property tax is fully credited. A single declaration (calculation) is allowed only in respect of objects for which tax is calculated based on the average annual value. The procedure for submitting unified reports should be previously agreed with the regional department of the Federal Tax Service, having sent a corresponding notification there
The calculation of property tax always raises many questions among accountants, as it has a lot of nuances. Which objects are taxed at the average annual value, and which are taxed at the cadastral value, how to calculate the tax and report on it? All these questions are disclosed in our article.
Who pays property tax
The Tax Code of the Russian Federation obliges all organizations that have property recognized as an object of taxation to pay property tax (Clause 1, Article 373 of the Tax Code of the Russian Federation). These include Russian and foreign companies with and without a representative office in the Russian Federation, but owning property here.
Companies that work on the simplified tax system must also pay property tax. True, not always. We are only talking about situations where a simplified company owns real estate, the tax base for which is defined as their cadastral value. Moreover, in relation to property, the tax base for which is defined as the average annual value, there is no need to pay tax (paragraph 2 of article 346.11 of the Tax Code).
If the cadastral value of a building is determined, but it is not indicated for a specific room, then the tax base in relation to the room is determined as the share of the cadastral value of the building in which it is located, corresponding to the area of \u200b\u200bthe room in the total area of \u200b\u200bthe building.
Moreover, if a building is not included in the specified list, the tax base is determined as the average annual value of the property. This is confirmed by the Ministry of Finance of the Russian Federation (letter of 03/17/2015 No. 03-05-05-01 / 35000).
It should be noted that the cadastral value of real estate can be changed during the calendar year. The fact is that in the period between the work on state cadastral valuation, it is possible to change the market conditions, methodological approaches to determining the cadastral value.
In addition, the basis for the revision of the results of cadastral valuation is the inaccuracy of information about the property used in determining its cadastral value. This may be due to a change in the cadastral value of the property being valued both downward and upward.
Federal Law of July 29, 1998 No. 135-ФЗ establishes that in case of disagreement with the results of the cadastral value, they can be challenged. Both companies and authorities can do this.
At what point should a taxpayer apply the changed cadastral value of an object? If the indicated value is adjusted due to an identified error, then the new value can be applied starting from the tax period in which the erroneously determined cadastral value was applied.
If this indicator was changed in connection with the decision of the relevant commission or judicial act, then the updated cadastral value should be taken into account starting from the tax period in which the application for revision of the cadastral value was submitted, but not earlier than the date of entry into the Unified State Register of Real Estate Cadastral the value that was the subject of the dispute.
Property Tax Terms
The tax period is a calendar year. The reporting periods are the first quarter, six months and nine months of the calendar year. Although the tax is regional, entities are not entitled to establish their reporting periods other than those specified in the Tax Code. The property tax rate is set by the regional authorities. Moreover, it cannot exceed 2.2 percent.
The time periods when the organization must pay property tax are as follows:
- until April 30 - I quarter;
- july 30 - half a year;
- until October 30 - 9 months;
- january 30 is the year.
Property Tax Reporting
If the company has property that is taxed, then it is obliged to report on it to the IFTS. Form according to KND 1152026 - Tax return on property tax (Order of the Federal Tax Service of November 5, 2013 No. MMV-7-11 / [email protected]) Property tax reporting must be submitted even if all fixed assets are depreciated (letter of the Federal Tax Service of the Russian Federation of 02.02.2010 No. 3-3-05 / 128). The exception is the zero declaration, it is not necessary to submit it (letter of the RF Ministry of Finance dated 02.28.2013 No. 03-02-08 / 5904).
The organization’s declaration is submitted only at the end of the year. The term is no later than March 30 of the year following the expired tax period (Clause 3, Article 386 of the Tax Code of the Russian Federation). On a quarterly basis, companies are required to provide with the inspectorate the calculation of advance payments of property tax. This must be done no later than 30 calendar days from the end date of the corresponding reporting period.
When preparing the title page of the reporting in 2017, it is necessary to pay attention to filling in the field “Code of the type of economic activity according to the classifier of OKVED”. The procedure for filling in the reporting requires indicating in this line the code of the type of economic activity according to the classifier of OKVED according to the All-Russian classifier of types of economic activity (OKVED) OK 029-2001. However, this classifier has expired since 01/01/2017. The fact is that by the Order of Rosstandart dated January 31, 2014 No. 14-st, OKVED2 was put into effect, which applies to legal relations arising from 01.01.2014, with the establishment of a transitional period until 01.01.2017. Despite this, no adjustments were made to the procedure for filling out tax reports on property.
Therefore, the question arises: what codes should be indicated when submitting updated tax reporting for the previous reporting (tax) periods in 2017 - according to the All-Russian Classifier of Economic Activities OK 029-2001 or OKVED2?
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The tax on property of an organization should be based on the results of reporting periods. Which organizations should pay tax? How to correctly calculate property tax in 2018? How to calculate the tax amount based on the cadastral value of real estate? We will study the answers to these and other questions in the material further, and also consider an example of calculating property tax for 2018.
How a legal entity to calculate property tax: general principles
Property tax by legal entities must be paid at the end of the year and can be transferred throughout it in the form of advances at the end of each quarter. The issue of availability and obligation to pay advances is decided at the regional level. If they are entered, then organizations make advance payments 3 times a year: after the 1st quarter, 6 months and 9 months.
However, advances may not be paid. This occurs in the following cases:
- if the subject of the Russian Federation, in accordance with paragraph 3 of Art. 379 of the Tax Code, does not introduce payment of advance payments;
- if the regional authorities, in accordance with paragraph 6 of Art. 382 of the Tax Code, establish for certain categories of legal entities the right not to calculate and not to pay advances.
Read about how and for whom property tax exemption can be introduced. “Who is exempt from property tax?” .
How is property tax charged?
- Tax Code of the Russian Federation;
- The procedure for filling out a tax return on corporate property tax, approved by order of the Federal Tax Service of Russia dated 03.31.2017 No. MMV-7-21 / [email protected] (hereinafter referred to as the Procedure for filling out the declaration).
The tax on property is carried out:
- Organizations based on basic assets based on the average annual value of the property and tax rate.
- All companies, regardless of the applicable tax system in relation to certain types of real estate. The tax should be calculated on the basis of the cadastral value established on January 1 of the tax period and the tax rate.
Regional authorities establish tax rates, but their value should not exceed the rates prescribed in the Tax Code.
The amount of property tax, according to paragraph 1 of Art. 382 of the Tax Code of the Russian Federation, it is necessary to calculate both for the reporting period (if introduced in the region) and for the entire tax period.
About how tax calculation is reflected in accounting entries, read the material “Accrued property tax - accounting entries” .
Formula for calculating advances for property tax
When calculating the property tax of organizations, a certain procedure is required (paragraphs 1, 2 of article 382 of the Tax Code of the Russian Federation, sections IV, V, VI, VII of the Procedure for filling out a declaration).
Based on the provisions of these documents, in respect of property taxed on the average annual value, the formula for calculating advances for corporate property tax is as follows:
Ao \u003d (STsr - STsrl) × STn / 4 - Al,
Ao - advance tax tax for the reporting period;
STSR - the average value of the property, calculated for the reporting period;
STsrl - the average value of property that is not taxed in connection with the provision of benefits;
STn - the rate for calculating property tax;
If the organization during the entire tax period has the property specified in sub. 1, 2, 4 p. 1 art. 378.2 of the Tax Code of the Russian Federation, in respect of it, the advance payment is calculated from the cadastral value of the real estate property, established as of January 1 of the year that is the tax period, according to the formula:
Ao \u003d KS / 4 × STn - Al,
KS - cadastral value of the property as of January 1 of the year, which is the tax period;
STn - property tax rate calculated on the basis of cadastral value;
Al is an advance payment that the organization does not need to pay to the budget due to the privilege of partial tax reduction.
How property tax is considered for a quarter
To obtain the data included in the above formula when calculating advances for property tax in 2018, taxable on the basis of the average annual value, the following actions are performed:
- The property that is taxed is separated from the total volume, that is, the object of taxation is determined. For this, the value of non-taxable property and the value of those fixed assets for which the tax is considered separately are deducted from the value of the property (paragraph 4 of article 374, paragraph 1 of article 376 and paragraph 3 of article 382 of the Tax Code of the Russian Federation).
Read about the features of taxation of movable property in 2018 in the article.“Tax on movable property of organizations since 2018” . And since 2019, movability is exempt from taxation. See details
- The average cost of this property for the quarter (reporting period) is determined, that is, the tax base for advances is calculated. In this case, the calculation should take into account the benefits of tax exemption.
How to calculate the average cost of fixed assets, read the material“The formula for calculating the average annual value of fixed assets” .
- Allocated 1/4 of the product.
- Existing tax reduction benefits are used.
How to calculate property tax payable for a tax period: calculation formula
To find out how property tax is calculated from the average annual value due to be paid at the end of the year, you need to use the following formula:
Nnp \u003d (STsrg - STsrgl) × STn - A - Nl - Nin,
NNP - the amount of tax payable according to the results of the year;
STsr - average property value calculated over the year;
STsrgl - the average value of the property, calculated for the year, which is not taxed in connection with the provision of benefits;
STn - property tax rate;
A - the total amount of advance payments made for the year;
Nl - that part of the tax that the organization does not need to pay to the budget in connection with the privilege of partial tax reduction;
Ning - that part of the tax that is not paid to the budget in connection with the payment of it abroad.
How is property tax considered for the entire tax period: calculation steps
When calculating property tax for a year, the following actions are taken:
- The property that is taxed is separated from the total volume, that is, the object of taxation is determined. For this, the value of non-taxable property and the amounts of fixed assets for which the tax is considered separately are deducted from the value of the property (paragraph 4 of article 374, paragraph 1 of article 376 and paragraph 3 of article 382 of the Tax Code of the Russian Federation).
- The average value of this property for the year (tax period) is determined, that is, the tax base is calculated. In this case, the calculation should take into account the benefits of tax exemption.
- The tax base is multiplied by the tax rate.
- Existing tax reduction and payment benefits made abroad are used.
Property Tax: Calculation Example
Consider the example of calculating the tax on property of organizations.
Example of calculating corporate property tax
Sigma owns a distribution network in Moscow and the Moscow Region. Separate units in the Moscow Region rent buildings and premises and do not maintain separate balances.
On account 01 “Fixed assets” at “Sigma” are listed the following objects and sites:
- land in Podolsk, on the territory of which it is planned to build a trading base (not recognized as an object of taxation on the basis of subparagraph 1 p. 4 tbsp. 374 of the Tax Code);
- a building in the South-West district of the capital, in which the company’s office is located;
- the building of a multi-storey garage for car parking, used both for their own needs and for the needs of residents of Moscow (this property is entitled to a privilege - 100% tax exemption on the basis of subparagraph 9, paragraph 1, article 4 of the law of Moscow dated 05.11. 2003 No. 64);
- other objects of movable property necessary for the operation of the head office and separate divisions (office equipment, elevators), belonging to the 1-2 depreciation groups (this property is not taxed in accordance with subparagraph 8 of paragraph 4 of article 374 of the Tax Code of the Russian Federation) ;
- other objects of movable property necessary for the operation of the head office and separate divisions (automobiles, retail equipment, etc.), registered until 2013;
- other objects of movable property necessary for the operation of the head office and separate divisions (cars, retail equipment, etc.), registered after 2013 (this property is not taxed on property in Moscow in 2018 on the basis of 31 part 1 of article 4 of the law of Moscow No. 64, article 2 of the law of Moscow of February 21, 2018 No. 4).
When to include the value of movable property in the calculation of tax for 2018, from the date of issue of which more than 3 years have passed, read the material“Tax on movable property: if 3 years from the date of issue expired” .
We agree that for these buildings there is no reason to calculate the tax on cadastral value.
- The average annual value of all property included in fixed assets is 25,876,700 rubles.
- The average annual value of property that is not subject to taxation (i.e., falling under the scope of benefits and taxed with another (land) tax) is 18,570,000 rubles.
According to the results of reporting periods, the company paid the following advances:
1st quarter - 40 189 rubles.
Six months - 40,176 rubles.
9 months - 40 192 rubles.
Now we begin to substitute the available data into the formula.
1. The property that is taxed is separated from the total volume, that is, the object of taxation is determined. For this, the value of tax-free property is deducted from the total value of the property:
25 876 \u200b\u200b700 rub. - 18 570 000 rubles. \u003d 7 306 700 rub.
The resulting indicator will be reflected in line 190 of section 2 of the tax return.
It should be noted that due to the presence of property falling under benefits (multi-storey garage building), the accountant must fill out a separate section 2 of the declaration. In it, in lines from 020 to 140, you need to reflect the value of the property that fell under the scope of the benefits, and in lines 150 and 170 - indicate the average annual value of the property, respectively, the full and the discounted.
2. The amount of tax for the past year is calculated.
In order to find the required amount of annual tax, the calculated tax base is multiplied by the tax rate. For Moscow, it is 2.2% for organizations.
7 306 700 rub. × 2.2% \u003d 160,747 rubles.
3. Subtract all advance payments from the received tax value:
160 747 rub. - 40 189 rubles. - 40,176 rubles. - 40 192 rub. \u003d 40,190 rubles.
If values \u200b\u200bwith copecks are formed in the calculations, they are rounded or discarded as a general rule.
A sample certificate of calculation of property tax can be downloaded from the link below.
As a result, property tax payable at the end of the year to an accountant Sigma LLC should reflect in the amount of 40,190 rubles. on line 030 of section 1 of the declaration.
In Moscow, property tax must be paid at the same time as the declaration is filed. In other words, the company must submit a declaration for the last year to the IFTS and pay the tax by March 30 of the year following the reporting year.
Summary
The procedure for calculating property tax depends on the method of determining the tax base established in the region of tax rates and benefits. The calculation frequency - based on the results of reporting periods or according to the results of the year - is also determined by regional legislation.