Basic provisions
The Duma of the Russian Federation approved the new 32nd chapter of the country's Tax Code, which describes in detail the property tax for individuals, as well as the updated procedure for its calculation and collection. The main provisions of the innovation can be considered:
- Calculation of payment based on the cadastral value of a house or apartment, while the previous one was calculated based on the inventory price;
- An interim period of 5 years from 2015 to 2021, during which there will be a soft transition from the old tax to the new one;
- Transfer of powers to establish the amount of tax on individual real estate objects to municipal authorities.
It is worth noting that the issue of introducing a new property tax was discussed back in 2004. However, at that time, the cadastral value of most real estate in the Russian Federation remained unknown, but it is precisely this value that is more close to the market price of housing.
In many regions, the previous taxation system will remain in effect until 2021, since this is considered the deadline, and everything else is at the discretion of the municipal authorities.
Real estate tax will be levied on the following types of property:
- Apartments and private residential buildings;
- Summer cottages;
- Garages and other non-residential objects;
- Shopping and office complexes;
- Construction in progress.
The obligation to pay tax will be assigned to property owners. The process of collecting it will begin from the moment regional officials establish an updated procedure for calculating and collecting the tax. However, by 2021, all of Russia must switch to the new system.
Why do we pay housing tax?
We explain why Russians pay property taxes in addition to utilities and mortgages.
— Why should I pay tax on my only home if I have already paid off the mortgage with interest and pay monthly maintenance fees for the apartment?
Real estate tax is calculated on its cadastral value, and there is no difference whether a citizen has one or not: this is written in the Tax Code, Svoykirovsky lawyer Ian Chebotarev explained to the portal. That is, the more apartments a person has, for example, the greater their total cost and the greater the amount of tax he will have to pay.
— A tax in general, by definition, is a mandatory gratuitous payment for the purpose of carrying out state activities. That is, everyone who does not have merits and benefits must support the state with their taxes,” the lawyer clarified.
The Federal Tax Service for the Kirov Region also reported that the obligation to pay taxes established by law is enshrined in Article 57 of the Constitution of the Russian Federation. And the procedure for paying property taxes is determined by the Tax Code of the Russian Federation, Article 400 of which states that property taxes for individuals are paid by the owner of real estate.
At the same time, the tax service reminded about the existence of benefits and tax deductions:
— So, for example, when calculating property tax for individuals, a tax deduction is provided for an apartment in the amount of the cadastral value of 20 square meters of the total area of the apartment, and for a residential building - 50 square meters of the total area of the residential building.
To receive this deduction in the Kirov region, you do not need to submit any additional documents; it is calculated automatically. You can check this by looking at the tax notice: if it indicates the area of the property is less than the actual area, then you have been provided with a deduction.
Also in Kirov, by decision of the City Duma, individuals who own real estate in the city, which is pledged under a mortgage agreement, have the right to a tax break for the entire period of loan repayment. A complete list of benefits for property tax for individuals is posted on the website of the Federal Tax Service of Russia.
Many are generally exempt from paying tax, clarified Yan Chebotarev: these are pensioners, military personnel, pre-retirement people, disabled people of the 1st and 2nd groups, internationalist soldiers, Chernobyl survivors and others - the full list can be found in Article 407 of the Tax Code.
Briefly about the main thing:
1. We are obligated to pay taxes by the Constitution and the Tax Code in order to support the state.
2. Property tax for individuals is paid by the owner of the property. Moreover, it makes no difference whether a citizen has one or not.
3. For some categories of taxpayers there are benefits and tax deductions, and some groups of citizens are generally exempt from paying taxes.
If you have questions that you can't find the answer to, ask us and we will try to answer them.
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Calculation features
The calculation of the amount, as before, will be carried out by tax inspectors at the local level and sent notifications to taxpayers. As for tax rates, in the new version they are determined at the following level:
- Houses, apartments, including those that are unfinished construction, as well as garages, parking spaces, country houses and plots - 0.1% of the cadastral value;
- Retail and office premises, the cadastral price of which is more than 300 million rubles – 2%;
- Other objects – 0.5%.
These rates are considered basic. In turn, local authorities have the right to reduce them to zero or increase them - but no more than 3 times (for example, they can increase taxes on small businesses 10 times).
Some mandatory deductions from the area are also assumed:
- apartments – 20 square meters;
- private house - 50 square meters;
- rooms - 10 square meters.
Obviously, if the housing area falls within the specified deductions, such a property is not subject to tax at all. In addition, if several objects are registered for one owner, then deductions will apply to each of them.
Land tax - payment for protection and convenience
An apartment or land with a house cannot be moved from the place where it is originally located. And they are located on the territory of the state, and this means that benefits paid from the budget apply to them.
Conducting communications, laying and maintaining roads, protecting the army and law enforcement agencies - money for all this and much more is allocated from the budget, which needs constant replenishment. And it is replenished, among other things, by land tax and real estate tax.
Do you consider the private property mechanism established in the Russian Federation fair? Share your opinion in the comments to this publication. Thank you for your attention!
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Calculation example
The taxpayer owns an apartment with an area of 60 square meters. As for the cadastral price, it is 5 million rubles. The total amount of mandatory payment to the treasury for this property will be determined as follows:
- Taxable area = 60 – 20 (mandatory deduction) = 40 square meters
- Cadastral value 40 sq. meters = 5,000,000*40/60 = 3,333,333 rubles
- Real estate tax = 3,333,333 * 0.001 = 3,333 rubles per year.
It turns out that the owner of such an apartment will pay only 277 rubles per month to the treasury, which is not much different from the property tax calculated based on the inventory value.
Legal basis
The main regulatory act regulating issues of this nature is the Tax Code of the Russian Federation. It contains information about the objects and subjects of such payments. In other words, the Tax Code of the Russian Federation determined who should pay taxes and in respect of what types of property. Also, this regulatory act determined the categories of persons who can take advantage of benefits, as well as the procedure for when non-payment of property taxes is possible.
Privileges
It is expected that benefits for individuals will be limited. For example, categories of citizens such as pensioners, large families and military personnel will be able to count on a tax reduction for only one piece of real estate they own. So, if a pensioner has an apartment and a summer cottage, then the benefits will apply to only one of the objects.
The lists of beneficiaries will include the following categories of citizens:
- heroes of the USSR;
- disabled people of groups I and II;
- participants in wars and elimination of the explosion at the Chernobyl nuclear power plant;
- pensioners;
- large families;
- military personnel.
It should also be noted that regional authorities have the right to independently determine the tax rate and create additional benefits for it. In addition, during the first five years it is planned to gradually introduce a new mandatory payment to the budget. In particular, in the first year, tax inspectors are required to calculate the difference between the cadastral and inventory values and multiply it by a special coefficient equal to 0.2. In subsequent years it will gradually increase and amount to 0.4, 0.6, 0.8, respectively. This will ensure a smoother transition to the new tax system.
Thus, by 2021, a complete transition to the collection of a new property tax will be implemented. The next few years will show the viability and effectiveness of this mandatory payment. The main goal that should be achieved by the reform of the taxation system in Russia should be the formation of a more effective mechanism for distributing the tax burden.
Consequences of non-compliance
Since paying taxes is the responsibility of most property owners, the law provides for liability for non-compliance. The sanctions depend on the type of violation. For example, for late submission of a declaration, the guilty person will pay a fine of five percent of the tax amount for each month of delay, including incomplete ones. The specified sanction cannot be less than a thousand rubles and more than thirty percent of the total payment amount. Failure to comply with the procedure for submitting a declaration will entail a fine of two hundred rubles. Partial or complete non-payment threatens the guilty party with payment of from twenty to forty percent of the tax amount.
For violation of obligations of this nature, administrative and criminal sanctions may be applied to the guilty person, provided for by the Code of Administrative Offenses of the Russian Federation and the Criminal Code of the Russian Federation.
Objects of taxation
According to Article 401 of the Tax Code of the Russian Federation, the following are the objects of taxation:
- Residential buildings. This also includes buildings located on land plots provided for personal subsidiary plots, dacha farming, vegetable gardening, horticulture, and individual housing construction.
- Apartments and rooms.
- Place for vehicles and garage.
- A single real estate complex.
- An unfinished building.
- Premises, structures and buildings for technical purposes.
The owners of the said property must pay tax. It should be noted that property that is part of the common property in an apartment building is not subject to tax.
