At the moment, the debate is the question of how to correctly calculate the property tax. The procedure for paying real estate tax has a distinctive feature that allows it to stand out against other payments to the budget. This difference is manifested in the discrepancy between the object of taxation and the source of payment.
So, according to the current legislation, the residual value of the buildings and structures of the enterprise is the object of taxation, but the property tax itself is paid from the profit earned by the organization in the reporting period. This actually leads to the fact that for some enterprises with high profits, paying real estate tax does not pose a threat of being (becoming) unprofitable. Having even a large number of expensive buildings and structures, for one business entity there is enough earned profit to pay off the specified payment, and for another to accrue and pay real estate tax means to become (remain) unprofitable. This is the negative effect of property tax on the amount of profit that remains with the business entity after payment. Sometimes this is one of the factors of unprofitable enterprises.
If the profit of the reporting period remains unchanged, the change in the value of the property tax than the income tax has a greater effect on the profit parameters that remain. The amount of income tax depends on the amount of profit for the reporting period. Since it is constant in this case, the value of this tax will not change, which means that it will affect the profit remaining at the disposal. In this case, it is advisable to apply a single property tax. In case of increase in the residual value of the property, the value of the property tax will increase, that is, a new property tax will be formed, which will reduce the amount of remaining profit. Based on the foregoing, in order to improve the taxation of real estate, it is proposed to replace the existing, fundamentally new methodology for calculating real estate tax, which involves the use of flexible tax rates. It is based on the principle of sufficiency of profit for the reporting period.
In practice, it is advisable to reduce real estate tax and its rate with a multiple increase in residual value in relation to the profit of the reporting period. This factor will also affect the depreciation on real estate. But it must be borne in mind that the accelerated depreciation method in the first years increases depreciation deductions, and hence the cost. Unprofitable organizations cannot afford this. For such organizations, it is better to use a productive method. This will allow them to regulate their costs, especially during periods of lack of stable use of production capacities. The non-linear method is more suitable for profitable enterprises, which, however, experience a shortage of resources to expand fixed assets.
The new methodology will ensure the fulfillment of not only the fiscal function of real estate tax , but also stimulating, which is especially important in the context of the implementation of the sustainable development strategy and the improvement of the existing economic structure.
The strategy of the business entity should be aimed at maximizing the value of real estate. In connection with the developing global crisis trends, organizations should review the content of depreciation policy, where the linear method is considered the most popular today. The depreciation policy should be based on the goals pursued by the organization at one stage or another of its economic activity.