Property tax refers to regional types of taxes. The collection is carried out directly. The subject of taxation is legal entities with immovable and movable property on their own balance sheets. The accrual procedure and tax structure have a number of features.
Calculation of corporate property tax
Two types of taxation are practiced in Russia: the first is federal taxes, the second is territorial taxes. Federal obey the general rules established by the Government of the Russian Federation.
Territorial taxes may be changed in terms of payment, rates or ratios as decided by local authorities. From this point of view, the tax on property of organizations is a territorial tax. Accordingly, its rates and payment procedure are determined by local authorities. At the same time, there is an important requirement - local laws and regulations of any purpose should not contradict federal documents, in particular, the Tax Code of the Russian Federation.
Features
Before starting a business, the main issue should be the study of the legislative aspects of each of its types. The priority in this process is taxation issues. For example, an entrepreneur should be interested in what kind of property tax law is in force and what rules does it dictate?
The issues of settlement of this tax are considered to be Articles 372-386 of the Tax Code of the Russian Federation. In addition, managers and accountants should monitor changes in taxation at two levels: federal and territorial.
Corporate property tax is a specific type of tax that recognizes movable or immovable property listed on the balance sheet of an enterprise as fixed asset. But there are many subtleties and reservations.
Nuances
There are a number of nuances that managers and accountants of enterprises need to know in order to avoid reporting errors. For instance:
- All companies, regardless of the participation of the founders, are subject to a single accrual and payment procedure. That is, the property tax of organizations does not make any difference for both domestic companies and foreign organizations.
- The next feature concerns enterprises that use UTII and STS in their work. Such legal entities use the cadastral value of real estate as a tax base.
- If an enterprise owns residential premises, they will be taxed regardless of whether they are listed as fixed assets or not.
- If real estate or other types of material assets from the list of fixed assets are leased or transferred to trust, then the payment of tax on property of organizations is not canceled. Such an object is exempt from tax if it is alienated in favor of another entity that is not listed as a payer of this tax.
- Also, for taxation it does not matter whether the right to property is registered with state bodies or not, the actual use is considered. Such circumstances do not cancel the need to pay it.
Who pays?
Each type of tax is intended only for certain categories of business entities. At the same time, the freedom of choice of the taxpayer is preserved. He has the right to independently choose the tax system and types of taxes.
As for the letters of the law on tax on property of organizations, you should refer to article 374 of the Tax Code. According to her, the tax is charged on the following types of property:
- Real estate and movable property owned by legal entities.
- Including those types of property that are transferred for temporary use to other companies or persons.
- Real estate and movable property of companies with foreign participation.
- Property transferred to the balance sheet of the enterprise under a concession agreement.
- Property of companies operating in the Russian Federation and not having official representative offices.
What is not taxed?
In this case, the main criterion for property tax of organizations in Moscow or in any other city remains one - reflection on the balance sheet as fixed assets.
At the same time, at the legislative level, a list of types of property that are not considered objects of taxation is defined:
- Objects of nature management.
- Land shares.
- Objects of water origin.
- Other natural resources.
- Objects of civil defense.
- Objects of military service.
- Property owned by structural units of law enforcement agencies.
- The property of services and structures that are equivalent to one of these services.
- Objects of cultural purpose.
- Nuclear installations.
- Icebreakers and ships.
- Space objects.
To clarify information about a particular type of object, you should refer to local laws and regulations.
Exempted Category
Under the exemption, it is customary to understand two categories: fully exempted subjects and subjects with the right to benefits. However, the difference between them is fundamental. Therefore, they should be clearly distinguished. So, the list of exempted categories includes the following organizations:
- Associations involved in organizing and conducting football games for the championship this year (2018).
- The main football organization or FIFA.
- Organizations directly related to FIFA, for example, its subsidiaries.
- Companies created and participating in the Olympic Games in 2014.
- Organizations involved in marketing these events.
The procedure for providing benefits
The property tax exemptions for organizations are also provided at two levels: federal and territorial. Federal benefits may provide for the full exemption or exemption for certain types of property. Regional benefits, their determination and implementation are in the competence of local authorities.
If we are talking about exemptions by type of property, then such exemptions can be temporary or be implemented for an indefinite time. Full details on this part are reflected in article 381 of the Tax Code.
Also in practice, specialized benefits are applied. The procedures for their implementation and other rules should be clarified with local authorities.
Preferential category
A number of companies are exempt from this type of tax.
- Companies manufacturing prosthetic and orthopedic products.
- Pharmaceutical companies. In their activities, the types of property participating in production processes are not taxed.
- Property of organizations dealing with disability issues. An important condition is that the share of persons with disabilities in the company should be at least 80%. Exemption refers to the types of property that is used to implement statutory activities.
- Real estate and movable property owned by lawyers, lawyers and notaries.
- Organizations conducting religious and spiritual-educational activities.
- Organizations conducting scientific and research activities
- Residents of special economic zones for the first 5 years.
The territorial authorities have the right to independently make adjustments, including additions to the preferential part. After approval, innovations must be introduced into the relevant laws.
A striking example of the territorial complement is the Moscow region. Here the object of tax on property of organizations is not taxed if it belongs to budgetary and municipal organizations of the city of Moscow.
Settlement procedure
Calculations are made according to a simple formula. The legal aspect is much more important. To find the final amount, you need to know the tax rate and the amount of the tax base. The tax rate is set at the federal level - 2.2%. Territorial adjustments may not exceed this mark.
The tax base on property of organizations is calculated as the average value of the taxable item for the year. The following formula applies:
- The estimated price of the taxable item on the 1st day of the month is added to the value of the property on the last day of the reporting period. The amount received is divided by 13. The result is used when calculating the property tax of organizations for legal entities as the amount of the tax base.
Total tax amount will be equal to the tax rate multiplied by the tax base divided by 100%.
It is important to remember that if a company uses other people's property on the basis of a temporary use agreement, then the coefficient will be different - the number of months during which it is planned to operate the property.
Principles of tax base formation
The tax base deserves special attention, since the final amount of the tax, the correctness or errors in the calculation methods depend on it. As already mentioned, this value represents the average cost of an object for a tax period. But there are a number of objects in respect of which calculations should be made in a separate order. These are the following:
- Fixed assets of enterprises engaged in the gas supply system of the population.
- Types of fixed assets to which various rates have previously been applied, depending on the tax system.
- Objects from the list of fixed assets located separately from the enterprise and maintaining a separate balance sheet.
- Fixed assets in respect of which there is a legal obligation to maintain tax records at the actual location.
In this case, a reduction in the tax base by the amount of investments is allowed, if we are talking about the procedure for calculating taxes of shipping or hydraulic enterprises.
Rates by type of property
As already mentioned, rates are individual for each region. The established mark - 2.2% - this is the maximum figure. Rates in the regions cannot be higher than this amount. Consider some features of the application of rates depending on the type of property.
Conditional indicator - 0% is applied in relation to the following categories:
- Objects of gas mains.
- Helium mining and storage companies.
- Companies engaged in the development and technical plans of mineral areas.
- Companies involved in project documentation and construction work commissioned by enterprises in the field of production and storage of helium, laying of gas pipelines.
The full list of objects with 0% rates is approved by Order of the Government of the Russian Federation under number 2188.
Rates of 1.6% are relevant for facilities that are part of the production activities of companies in the above industries.
Railroad property for general operation and other facilities from this industry apply a rate of 1%. The basis for such calculations is the Government Decree numbered 504. If such facilities are built and transferred for use after December 30, 2016, then they have the right to apply reduction factors in the calculations.
Real estate objects throughout the country, with the exception of Moscow, for which the property tax of organizations has been mandatory for a year, and the cadastral value is used as the base, are entitled to apply a 2% rate. In Moscow, such facilities accept a rate of 1.4%.
A striking example of an individual territorial solution is the Yaroslavl region. Here, priority is given to investment projects implemented in the most important industries for the region. For such companies and their property, a rate of choice is provided: from 0 to 2%.
If the territorial authorities have not determined the rates for certain types of property, then the general rule applies to them - the maximum values are used.
Legal framework
In the legal aspect, this tax is guided by a whole list of articles and provisions from the law. The accountant needs to know the following articles:
- The situation of business entities for which this tax is mandatory - Article 373 of the Tax Code. The procedures and rules for both domestic and foreign companies are described here.
- Information about which property and according to what principles is taxed is indicated in article 374 of the Tax Code. The procedure described here applies to both immovable and movable property.
- The federal value of the tax on property of organizations, as well as the procedure for its formation in territorial divisions, is regulated by article 380 of the Tax Code of the Russian Federation.
- Article 375 of the Tax Code of the Russian Federation informs what the tax base is and by what principles it should be determined.
- There are also clarifications regarding the tax period. In practice, several options are used. The taxpayer can choose what is convenient for himself using article 379 of the Tax Code.
When to pay?
The timing of territorial taxes must be determined by local authorities. If the date is not determined, then the general rules specified in federal laws and other applicable official documents apply. Regarding the tax period for property of organizations, advance payments are allowed during the tax period. The amount of tax can be paid at the end of this period. The minimum amount of advance payments for this type of tax is at least 25% of the tax amount.
It is important to consider that local authorities have the right to determine the category of taxpayers who are exempted from the obligation to make advance payments during the tax period.
The order of payment is also subject to a number of rules:
- Enterprises with foreign participation operating in the Russian Federation through the formation of an official representative office must pay tax at the place of registration.
- Advance payments and taxes made using the cadastral value of objects of taxation must pay tax at the actual location of the object.
- Domestic enterprises make all payments of corporate property tax to local tax.
At the end of each reporting period, reports are prepared both on advance payments and on tax assessment. Submission to the relevant authorities should not be delayed later than 1 month after the end of the reporting period. Reports are generated quarterly. The number of quarters per year gives one tax period. The tax period is summarized by the declaration.