Legal entity property tax in 2019

2024 Author: James Gerald | [email protected]. Last modified: 2024-01-12 17:37

Since this year, amendments to the Tax Code have come into effect, thanks to which the tax on property of organizations in 2019 for legal entities has been reduced by withdrawing from the taxable base of movable property. Almost immediately, the new rules for calculating property tax caused a number of difficulties, since the legislator does not specify what relates to movable and immovable property.

What the property of organizations consists of

According to Federal Law No. 302, which approved the amendments to the Tax Code of the Russian Federation, the property of an organization, which must be taxed, is real estate that is on the balance sheet as a basic means of production.

According to the amendments introduced, which came into force on January 1, 2019, any property of the organization should be taxed, including:

• transferred into temporary possession, use or disposal;
• leased;
• issued in trust management;
• used in joint activities with business partners;
• received under a concession agreement.

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Pointing out that the tax on property of organizations in 2019 for legal entities is not levied on movable property, the legislator does not specify that he refers to such property a legal entity operating in the market in the form of an organization.

In such a situation, legal terms and concepts should be interpreted in the same meanings in which they are applied in other branches of law. This is permitted by the Tax Code itself in Part 1 of Article 11. All real estate on the balance sheet must be registered in the USRN.

To clarify the situation, the tax authorities sent a special letter dated 01.10.2018 No. BS-4-21 / [email protected], which indicates that other property can also be attributed to real estate, which constitutes a single and indivisible whole with it.

In addition, unregistered objects can also be attributed to the property base from which the tax is levied, if there are weighty justifications for the strong connection of such structures with the land and the impossibility of moving them without violating the integrity of such property.

The main basis for classifying capital construction at the registered site of the organization is technical documentation containing information about the future object.

Such property is subject to taxation as it is considered real estate by law. From it you will need to pay corporate property tax in 2019 for legal entities.

All other property of the organization is automatically classified as movable and is not taxed. It includes:

• cars and trucks;
• motor vehicles;
• other transport that has not been classified as real estate.

Changes in the methodology for calculating property tax are caused by the revision of the cadastral value of registered objects.

What causes the cadastral value of objects to change?

Before drawing up tax reports, for the correct choice of the calculation methodology, the rules for calculating the property tax of organizations in 2019 for legal entities are revised. Changes in the cadastral value can be caused by various reasons. This factor should also be taken into account in the new calculation of corporate property tax.

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The cadastral value of the object of property taxation may change due to changes in its main characteristics:

• appointment;
• total area;
• operating conditions, etc.

In this case, the tax on property of organizations in 2019 for legal entities will have to be calculated taking into account the time of making such changes to the USRN.

Also, the size of the cadastral value of the object may change as a result of an appeal. In this case, the calculation of the tax begins from the moment of filing an application for revising the cadastral value, if the taxpayer receives a positive decision of the commission of the territorial Rosreestr or a court decision.

In such a situation, the owner has the opportunity to recalculate if he receives a decision to revise the cadastral value downward. This will allow the organization to return taxes paid for previous years, but not before filing an appeal.

Registration of a new tax return when paying tax on property of organizations

In connection with changes in the methodology for calculating the property tax of organizations in 2019, a new declaration form is introduced for legal entities. The old form should be used to report for the past 2018. A new tax return form for property taxes is due from 2019.

According to the order of the Federal Tax Service of the Russian Federation dated 04.10.2018 No. ММВ-7-21 / 575, property tax should be paid only by those organizations that have registered real estate, put on the balance sheet of the enterprise.

In the event that there is no such property, then you do not need to pay advance payments and submit a tax return.

The new form of reporting on property taxes has changed in the sections:

• 2;
• 2.1;
• 3.

In the second section, there is no paragraph "Including real estate" and "Residual value of fixed assets". You do not need to specify the subsidiaries of the organization that pay taxes themselves.

But there were points in section 3, in which the changed cadastral value may be indicated. For them, special provisions of the tax declaration are intended, which allow calculating the tax when the cadastral value of the property changes, or its qualitative and quantitative characteristics, giving the taxpayer the right, in the event of a decrease in the size of the real estate appraisal, to reduce the tax amount.

If a change in characteristics leads to an increase in the price of such real estate, then the amount of tax increases.

It is necessary to indicate in the tax declaration the address of such an object of taxation if it is located on the territory of the Russian Federation. This information must be indicated if the object is not entered in the USRN and it does not have a cadastral number. According to the current provisions of the Tax Code, tax may also be levied on unregistered real estate in some cases.

If during the year the quality and quantity characteristics of the property have changed, they must be indicated in the 3rd section, in the line "Ki coefficient". In the calculation documents, this line is indicated with the code 085, and in the new tax return - 095.

Also, in the third section, a line appeared in which it is necessary to indicate the registration code of cadastral real estate objects. For buildings for various purposes, this is a unit, for garages, parking lots and other utility rooms it is 2.

In the new tax return, you now need to indicate the codes of the subjects of the Russian Federation. The procedure for filing a tax return for paying taxes to the budget of the subject in which the organization is registered and operates has also changed.

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The 2018 report had to be submitted in the old form by April 1, 2019. The new form should be used in the tax reporting of organizations from the first period of filing reports to the tax in the current year.