Property tax benefits for “cadastral” objects

What property is taxed?

Now we are talking exclusively about real estate. Previously, movable property was also taxed, but from 2022 this norm was abolished.

You will have to pay not only for objects that are used independently. If an organization transferred property for temporary possession, trust management, received it under a concession agreement, or contributed it to joint activities under an agreement with other enterprises, tax is also paid. In accounting, such real estate is reflected as “Fixed Assets” or “Income Investments in Material Assets” if the property is intended for rental.

Residential real estate is also subject to tax if it is not reflected in fixed assets. From 2022, this applies to all objects that are otherwise subject to real estate tax for individuals. For example, you will also have to pay money for a garage or parking space.

It is not necessary for the Tax Code of the Russian Federation Article 374. The object of taxation to pay for:

• land, water and other natural resources;
• historical and cultural monuments;
• nuclear installations;
• icebreakers, ships with nuclear power plants and nuclear technology service ships;
• space objects;
• ships registered in the Russian International Register of Ships.

Who pays corporate property tax

If an organization owns property, it pays this tax. It does not matter whether it is a Russian or foreign enterprise. The main thing is that their real estate is located on the territory of the Russian Federation.

Organizations operating under special taxation systems are exempt from payment:

• On UTII, if the property is used for imputed activities and is taxed at the average annual value. If the tax base for real estate is the cadastral value, then property tax is paid. We will describe below what objects belong here.
• The simplified tax system is similar: you don’t need to pay tax for property taxed at the average annual value, but you need to pay it according to the cadastral value.
• Under the Unified Agricultural Tax, no tax is paid on real estate that is used for the production, processing and sale of agricultural products and for the provision of services to agricultural producers. The rest is paid.

Is it necessary to submit a zero declaration for property?

The norms of the Tax Code of the Russian Federation establish that declarations should be submitted only by taxpayers for the corresponding type of tax. If the enterprise does not have property tax objects on its balance sheet, the reporting form is not filled out and is not sent to the tax authority.

A zero property tax return will not be required in cases where an enterprise does not own taxable real estate, but its balance sheet contains fixed assets in the form of movable property. The new section of the declaration on the value of movable property is for informational purposes only; its completion is not the basis for the assessment or payment of a tax liability.

Thus, in general, a zero return for property tax 2022 is not filed. There is an exception to this rule - if the organization has fully depreciated property, taxed at the average annual value, the declaration is filled out. In letter dated 02/08/2010 No. 3-3-05/128, the Federal Tax Service indicated that fixed assets with zero value should be reflected in the declaration until they are removed from the balance sheet. When selling, donating, or liquidating the corresponding asset, it will be written off from the balance sheet, after which the company may cease to reflect the zero value of the object in the declaration.

A zero property declaration 2022 is also submitted if there is preferential property on which tax is not paid. In this situation, the enterprise has real estate assets that are subject to taxation, but there is no tax liability as a result of the application of appropriate tax incentives. The list of such benefits is given in Art. 381 Tax Code of the Russian Federation.

Thus, the basis for submitting a declaration is the fact that the organization is classified as a taxpayer for property tax. The benefits available to the company or the zero residual value of assets do not lead to the exclusion of the enterprise from the number of taxpayers; this factor causes only zero obligations to the budget. Consequently, such organizations need to draw up a sample zero declaration for property tax in the current form and submit the document to the fiscal authority.

The deadline for filing a “zero” is March 30 of the year following the reporting year.

What benefits are there for corporate property tax?

Benefits are federal, that is, valid throughout Russia, and local, exclusively for the subject.

Federal benefits

The following are exempt from property tax:

• religious organizations;
• all-Russian public organizations of disabled people, if at least 80% of their members are disabled;
• pharmaceutical manufacturers - in relation to property used for the production of veterinary immunobiological drugs to combat epidemics and epizootics;
• prosthetic and orthopedic enterprises;
• bar associations, law offices and legal consultations;
• organizations that have been assigned the status of state research centers.

The full list is presented in 381 Tax Code of the Russian Federation, Article 381. Tax benefits, article of the Tax Code.

Regional benefits

Established by the authorities of the subject. They can expand the federal list, but not narrow it. You can find out the benefits for each region in the same place as the tax rate - on the Federal Tax Service website.

When the benefit is not yet valid

Let's look at some clarifications from the Ministry of Finance.

In relation to movable property registered as fixed assets from January 1, 2013 under a commission agreement concluded with an interdependent party - a commission agent, the customer has the right to apply the benefit under paragraph 25 of Article 381 of the Tax Code of the Russian Federation. The benefit does not apply if the third party (supplier) is interdependent in relation to the commission agent and (or) the customer (Letter of the Ministry of Finance of Russia dated November 3, 2016 No. 03-05-05-01/64423).

Under a construction contract, the contractor independently purchases equipment that requires installation and carries out installation work. Then the finished movable property is transferred to the customer, who is an interdependent party with the contractor. As the Federal Tax Service of Russia indicated in letter No. BS-4-11/12245 dated July 8, 2016, the exemption from property tax established by paragraph 25 of Article 381 of the Tax Code of the Russian Federation does not apply to such movable property.

How is the tax base calculated?

When calculated at the average annual cost

For most objects, the tax base is their average annual cost. The organization itself does the calculations. To do this, you need to sum up the Tax Code of the Russian Federation Article 376. The procedure for determining the tax base is the residual value of real estate on the first day of each month with the same indicator for December 31, and then divide everything by 13. The formula will look like this (OS - residual value, it is equal to the original cost for minus depreciation):

Average annual cost = (AS January 1 + OS 1 February + OS 1 March + OS 1 April + OS 1 May + OS 1 June + OS 1 July + OS 1 August + OS 1 September + OS 1 October + OS 1 November + OS 1 December + OS December 31) / 13

To calculate the average value of real estate for a certain period, for example, a quarter, its price on the 1st day of each month from this period of time is summed up with the same indicator for the last day of the last month. The resulting amount is divided by the number of months in the reporting period, to which one is added. For the first quarter the formula will look like this:

Average cost = (OS January 1 + OS February 1 + OS March 1 + OS March 31) / 4

When calculating based on cadastral value

There are objects for which the tax is necessarily calculated based on the cadastral value and not the average annual value. Their list is approved annually by regional authorities. Such a list may include Article 378.2. Features of determining the tax base, calculation and payment of tax in relation to individual real estate objects include:

• administrative, business and shopping centers;
• non-residential premises housing offices, shops, catering and consumer services;
• real estate of foreign organizations that do not have permanent representative offices in Russia;
• residential real estate not included in fixed assets.

Accordingly, you can find this list on the website of the regional authority or by contacting officials directly.

To calculate the tax, the cadastral value of the property is taken as of January 1 of the year for which you are going to pay.

Property tax benefits for “cadastral” objects

Property tax benefits related to the “cadastral” objects of companies, from 2022, are provided on an application basis . When should I apply to receive the benefit? Is it possible to make an “advance” before submitting the application? Is the benefit taken into account? Should I notify about a benefit for an object whose tax base depends on the average annual cost? Letter No. BS-4-21/ [email protected] will provide answers to questions about how enterprises can use property tax benefits.

How to claim a benefit for objects whose tax base depends on the average annual cost?

Clause 8 art. 382 of the Tax Code of the Russian Federation establishes that the application for a benefit shall indicate objects whose tax base is formed according to cadastral value. The property tax declaration also includes benefits for other objects ( clause 1 of Article 386 of the Tax Code of the Russian Federation ).

Liquidation of the company is scheduled for 2022. How to get benefits from the beginning of 2022 until the organization closes?

Property tax benefits are provided on an application basis, starting with reporting for 2022. Since the tax period has not yet ended at the time of liquidation, the benefit is declared according to the previous rules in the property tax return.

The taxpayer did not apply for the benefit. Is it possible to use it when making “advances” for the tax period?

The Tax Code of the Russian Federation establishes that filing an application is not related to the payment of advances. If neither an application nor a refusal has been received, the inspectors will analyze the information available to them and calculate the benefit themselves ( clause 8 of Article 382 of the Tax Code of the Russian Federation ).

What are the deadlines for applying for benefits?

The Tax Code of the Russian Federation does not stipulate a maximum period for filing an application. The company has the right to claim a property tax benefit at any time .

One application for the benefit was received. Does the inspection have the right to respond to it with both consent and refusal?

In relation to one application, the inspectorate may simultaneously send the taxpayer a notification of the provision of a benefit and a message of refusal, and there are several reasons for this. Separate decisions are made in relation to different objects of taxation and different periods of validity of the benefit.

Let’s assume that the benefit period specified in the application is from January 1, 2022 to December 31, 2022. The effect of the benefit was confirmed only for part of the period (from January 1, 2022 to May 31, 2022). The taxpayer is sent a notice of the provision of benefits for him. For the remainder of the period (from June 1, 2022 to December 31, 2022), the benefit was not valid. During this period of time, the benefit is not provided - the applicant receives a refusal.

How to calculate corporate property tax

In general, the formula for calculating tax for the year is extremely simple: the tax base is multiplied by the tax rate. But advance payments must be made once a quarter. So the final formula will look like this:

Tax amount = Tax rate × Tax base − Amount of advance payments

The advance payment when calculated according to the cadastral value is equal to a quarter of the annual tax amount. When calculating based on the average annual cost, calculations are made using the formula:

Advance payment = Average cost for the period / 4 × Tax rate

Property tax return updated

Updating the form was required due to innovations introduced by Law No. 63-FZ, in particular, in connection with the abolition of quarterly reports.
Please note: the form is subject to use from the tax period of 2022, that is, the next submission of reports must take place on a new form. There are few changes compared to the previous form:

• in section 1, four new lines appeared - 021, 023, 025 and 027. They will need to reflect the calculated amount of tax that must be paid to the budget for the tax period, and advance payments for each reporting period;
• The line with the amount of advance payments has been removed from sections 2 and 3.

In sections 2 and 3, a new line will appear: “Calculated amount of tax to be paid to the budget for the tax period (in rubles).”

ORDER of the Federal Tax Service of the Russian Federation dated August 14, 2019 No. SA-7-21/ [email protected] “On approval of the form and format for submitting a tax return for the property tax of organizations in electronic form and the procedure for filling it out, as well as on the recognition of orders of the Federal Tax Service as invalid dated 03/31/2017 No. ММВ-7-21/ [email protected] and dated 10/04/2018 No. ММВ-7-21/ [email protected] »

When and how to submit corporate property tax reports

From January 1, 2022, the declaration must be submitted once a year - before April 30 of the year following the reporting year. If the organization’s real estate is located in one region, you can select one inspection and submit a declaration to it, but only if the following conditions are met:

• the tax base is calculated based on the average annual value of property;
• in the region there are no standards according to which taxes are distributed to local budgets.

Reporting on property for which the tax is calculated based on the cadastral value is submitted to the inspectorate at the location of the real estate.

Quarterly property tax reporting has been cancelled.

The law made three changes to the procedure for calculating property taxes.
1. The obligation to submit quarterly property tax payments has been cancelled. Thus, organizations will only have to prepare an annual declaration based on the results of the tax period. The form of the declaration, as well as the procedure and format for its submission, were approved by Order of the Federal Tax Service of the Russian Federation dated August 14, 2019 No. SA-7-21/ [email protected]

2. It has become possible to submit a single tax return from 01/01/2020. Taxpayers who own real estate have the right to use it:

• taxable solely on the average annual value;
• located on the territory of one subject of the Russian Federation, but registered in different inspectorates.

The right to submit a single declaration is granted after sending a notification to the regional Federal Tax Service.
Owners of such property will be able to report on it to one tax authority of their choice. Applicants for a single tax return must submit a notification to the Federal Tax Service for the entity where the organization’s property is located before the end of the reporting campaign for the first quarter, that is, no later than 03/02/2020.

The possibility of filing a single declaration does not apply if regional legislation provides for tax deductions to local budgets.

3. The procedure for determining the tax base has been changed: from 2022, advances for the year in which the cadastral value changed are calculated at the new value. That is, from paragraphs. 1 clause 12 art. 378.2 of the Tax Code of the Russian Federation, as amended, effective from 01/01/2020, excluded the indication that in order to calculate the advance payment, the cadastral value must be taken exactly as of January 1 of the current year.

FEDERAL LAW No. 63-FZ dated April 15, 2019 “On amendments to part two of the Tax Code of the Russian Federation and Article 9 of the Federal Law “On amendments to parts one and two of the Tax Code of the Russian Federation and certain legislative acts of the Russian Federation on taxes and fees”