Calculation of property tax usually does not cause difficulties for accountants. However, this procedure has its own subtleties that should be considered in order to avoid errors.
Which organizations pay property tax
Property tax is a regional budget payment, which is regulated by article 30 of the Tax Code. It is the regional authorities that determine the tax rate, terms of payment and benefits. For the provision of preferences, the Tax Code establishes its list in Article 381, and such action may be allowed to the regions by separate legislative acts.
The calculation of property tax should be carried out by all legal entities, regardless of the industry in which they are engaged. This duty has not passed and budgetary institutions. True, accounting in such organizations is specific and due to certain features of tax payment control.
What may be subject to taxation
For a given tax as object of taxation immovable or movable property appears if, in accordance with the rules of accounting, it is recorded in the balance sheet as fixed assets. At the same time, the list also includes property that has been transferred to other persons for a while:
- for temporary possession or use;
- in management or use on trust;
- for sharing.
In accordance with the Civil Code (Article 130), real estate includes such objects, the movement of which is impossible in principle or cannot be done without disproportionate damage to them (land, mineral resources, buildings, structures, structures, etc.). In addition to these obvious objects, the law refers to real estate space objects, as well as ships - air, sea and inland navigation.
However, it should be borne in mind that in the field of real estate land, water bodies other natural resources and objects on which military service takes place should not be taxed on property, although they are part of fixed assets. They do not calculate the amount of property tax.
The law refers to movable property all things that are not included in the category of immovable. But property tax is imposed on only those objects that are recorded in the balance sheet as fixed assets.
The tax base
The basis for this type of budget payment should be considered the value of the property, calculated on average for the year, and which has all the signs of an object of taxation. At the same time, such property is accounted for at the residual value reflected accordingly in the accounting records. This procedure for determining the base and the principle by which property tax is calculated should be fixed in the accounting policy.
It may happen that for some types of fixed assets depreciation charges are not made. In such circumstances, the value of the objects will need to be calculated by subtracting the amount of depreciation determined from the depreciation rate from the original cost.
How to calculate the tax base
The tax on property of enterprises is carried out for each object separately. If they are distributed among different constituent entities of the Russian Federation, then the calculation is carried out taking into account legislative norms and rates adopted in the respective regions.
In order to calculate the average value of taxable property, you must first add the value of its residual value at the beginning of each month of the quarter and the value of the residual value on the first day of the month following the quarter, then divide the resulting amount by the number of months in the reporting period plus one.A quarter is a reporting period for corporate property tax, so it will be necessary to divide the amount by four.
The rules for calculating property tax are such that for the tax period the value of property is determined on average per year. For its calculation, the principle is somewhat different: you must first add the value of its residual value at the beginning of each month of the year (it is a tax period) with the value of the residual value at the end of the year, and then divide the resulting amount by the number of months in the tax period plus one.
Features of the calculation for cadastral valuation
In 2013, a law was passed according to which, in the future, real estate will be valued at the cadastral value. This process is gradual, but has already begun in 2014 in certain regions and for certain types of real estate (office, retail, etc.). But soon this order will be implemented throughout the Russian Federation.
Such property tax has the same calculation procedure. However, there are features of the transition period. For example, if a cadastral valuation is made for the entire building, and the organization owns only part of it. To calculate the tax base, the accountant will first need to determine the share of ownership in the total area of the building (in percent or fractions - it doesn’t matter), and then multiply the result by the total cadastral value.
Tax and reporting periods
For corporate property tax, the Tax Code provides for reporting and tax periods.
The reporting period is designed for organizations to prepare and draw up a report on the value changes of property and its movement based on the results of the stipulated time period. When determining property tax, the calculation procedure should be such that it is carried out in the following reporting periods: first quarter, six months, nine months. Subjects of the Russian Federation represented by their representative bodies are allowed not to establish reporting periods.
As the tax period, the year is set, according to the results of which the organization will have to make the final tax calculation and pay it to the budget.
Tax rates
The calculation of the property tax rate is not carried out, since the Federal Center has set a limit for them of 2.2%, which the subjects of the Russian Federation are not entitled to exceed. But differentiating bets to the specified limit is allowed. It all depends on the category of taxpayer and the nature of the property subject to tax.
For some property objects (railways, pipelines, power lines, and some others), the limit is set even lower - up to 1.0% in 2015 and up to 1.3% in 2016. The list of such objects is approved by the Government of the Russian Federation.
There are already regions that have implemented property tax (calculation) on these principles. An example is Moscow and the Moscow Region, some others. It can be seen from them that in connection with the implementation of the cadastral valuation, differentiated frameworks began to be set separately for real estate tax rates. They vary greatly by region.
- For Moscow, it is 1.7% in 2015, all subsequent ones - 2%.
- For other constituent entities of the Russian Federation in 2015 it is equal to 1%, all subsequent years - 2%.
- Part of property that relates to gas pipelines generally taxed at a rate of 0%. True, there are some restrictive conditions.
At the same time, the legislation allows to set rates depending on the type of real estate or category of taxpayers.
If the subject has not decided on the tax rate, then the above framework should be applied.
Privileges
There are many benefits for this type of tax. Moreover, they can be installed by both the federal center and the regions. As a benefit, one can also regard the fact that it is not necessary to calculate the property tax of individual entrepreneurs, since individual entrepreneurs are individuals, and they have their own rules for paying this tax.
According to federal decisions, the organizations indicated in Article 381 of the Tax Code enjoy privileges. It identifies 17 categories of organizations that have preferences. These are, in particular, enterprises of persons with disabilities, pharmaceuticals, scientific associations, organizations working in special economic zones, and other legal entities that possess valuable properties for the state.
Privileges for Movable Property
On January 1, 2015, a new version of the aforementioned Article 381 of the Tax Code of the Russian Federation entered into force. In this regard, organizations have the opportunity in the vast majority of cases to not include movable property in the tax base.
As a result, it turns out that the property tax of organizations will not be paid:
- Organizations with fixed assets whose useful lives are from one to two years (1st depreciation group) and from two to three years (2nd depreciation group).
- Organizations that do not have fixed assets at all.
- Organizations possessing movable property of groups 3-10, if it is registered after January 1, 2013 and the benefit of clause 25 of article 1 applies to it. 381 of the Tax Code of the Russian Federation.
In the latter case, however, there are exceptions, and the exemption does not apply to property received from interdependent persons, as well as a result of liquidation or reorganization of the company.
When to pay
The payment deadlines are the responsibility of the constituent entities of the Russian Federation, which establish the time frame by their legislative acts. However, throughout the year, the taxpayer is required to submit declarations on this tax at the end of each reporting period. The deadline is the 30th of the month following the quarter. The deadline for making advance payments is tied to the same date.
The advance tax on property tax is calculated as follows: first, the product of the average value of the property in the reporting period and the tax rate is found, and then the result is divided into four.
The annual tax return must be submitted to the inspection no later than March 30 of the year that follows the reporting one. The deadline for payment is also tied to this date. The formula for calculating property tax is such that the annual tax is determined taking into account the advances paid, that is, the amount already paid to the budget should be deducted from the tax amount received.
Subjects of the Russian Federation are given the right not to require taxpayers' declarations on a quarterly basis, however advance payments and tax payments following the results of the tax period are an indispensable obligation.
The tax return must be filed at the location of the payer, if there are separate divisions with separate balance sheets - at the place of location, if there is property with a separately established calculation procedure - at the location of this property. If an organization is included in the category of largest taxpayers, then the advance calculation of property tax and tax return must be submitted to the tax office to which this organization is assigned.
Some tips
When paying property tax, legal entities have several subtleties, not taking into account which, it is possible to calculate property tax to make claims of tax authorities. So, the tips:
- Zero declarations should always be submitted, even if the organization enjoys benefits or the property has gone through a full depreciation cycle. Otherwise, the organization will be fined for violation of the reporting deadlines.
- In the calculation of tax when renting real estate should include inseparable improvements of this property. However, the property that is accepted on the balance sheet after 01.01.2013 should not be included, as well as land.
- It is imperative that before the end of the tax period it is necessary to indicate in the calculations the property sold during the year. Just in the months that follow the month of write-off, you should specify zero information.The same should be done if the property is taken to balance in the middle of the year. Then zero data will be all the months that have passed before this property was registered.
- Before sending to the inspectorate, using the control ratios available on the website of the Federal Tax Service of Russia, you should check for errors by compiling your own property tax calculation form. Specialists of the tax service have placed here special formulas that will allow online to determine whether there are errors in the declaration.
