Tax benefits in Moscow: who is expected and how to get them

Key Feature

All tax obligations are classified into three large groups: federal, regional and local taxes (enacted by a regulatory act of the government at the appropriate level).
The key difference between these types is that financial funds go entirely to the federal budget, and are then distributed among lower budgets in the form of grants and subsidies. But regional and local taxes and fees are established to replenish the treasury of the subject or municipality. Therefore, a local tax is a payment or fee that taxpayers pay into the treasury of a municipality. In addition, the key procedure for paying local taxes is established exclusively by municipal authorities. That is, the rate, procedure and terms of payments, frequency of reporting and the composition of benefits are determined by the municipality.

Local taxes and fees - 2021: list

In 2021, the list of taxes and fees at the local level includes (Article 15 of the Tax Code of the Russian Federation):

1. land tax,
2. property tax for individuals,
3. trade fee.

Thus, today the norms of the Tax Code of the Russian Federation include only two taxes and one fee as local taxes and fees, in part of which local authorities can determine tax rates, payment procedures, and terms of transfer to the budget. It is also within the competence of municipal authorities to establish tax benefits and the procedure for their application.

How are payments classified?

All payments administered by the Federal Tax Service, when credited to the treasury, are classified according to the budget classification code. That is, when transferring funds to the budget, the taxpayer indicates the BCC in the payment order or receipt, which corresponds to a specific fiscal obligation.

Obligations credited to the municipal treasury can be determined by the 12th and 13th symbols of the 20-digit budget classification code. So, when transferring to the KBK, indicate the value “03” (precisely by 12-13 characters).

What taxes go to the local budget

Let us repeat that almost all taxes are transferred to the local budget; it makes no sense to provide a list. Since part of the federal or regional budget revenues is returned as subsidies or other transfers to the municipal treasury. However, it is fundamentally wrong to consider all fiscal obligations and fees to be municipal.

Let us determine which payments are classified as local taxes. That is, what tax liabilities are credited directly to the municipal treasury. So, local taxes, list:

• land tax;
• trade fee;
• BUT on the property of individuals.

Now let's look at the characteristics of each of the listed tax obligations.

Budget institutions

A budget organization produces all taxes from the budget funds received into its account. The tax is paid in full, unless, of course, local or federal law provides for a benefit or complete exemption of the organization from paying this type of tax.

Privileges

Land tax benefits for budgetary organizations are not provided for by federal legislation. The provision of benefits in this case falls entirely within the competence of municipalities and other bodies. Benefits are being introduced:

• at the level of republics, regions, territories by a legislative act, for example, a decree;
• at the level of district, city, village government - normative, for example, a resolution.

Benefits are usually provided to budgetary institutions working in the social sphere. Schools, kindergartens, sports clubs and the like. Who is entitled to receive such a benefit, the procedure for receiving it, as well as the list of beneficiaries can always be found on the state portal of a particular region on the Internet. There you can also get comprehensive information about whether pensioners must pay land tax.

Liberation

Federal legislation exempts universities, research and scientific institutions, healthcare real estate, culture, sports organizations, tourism and a number of others from paying land tax. A complete list of persons exempt from this type of tax can be found in the Tax Code (Chapter 31, Article 395) and the Federal Law “On Payment for Land” (Article 12).

Land tax

Key provisions on land tax are regulated in Chapter 31 of the Tax Code of the Russian Federation. All organizations, individual entrepreneurs, private owners and ordinary citizens who own land plots are required to pay it.

The object of taxation for local tax is established as the cadastral value of the site, determined as of January 1 of the reporting period, that is, the year.

Municipal authorities set land tax rates independently. However, their maximum value is regulated in the Tax Code of the Russian Federation. In other words, the municipality cannot approve a land tax rate higher than the value regulated by the Tax Code of the Russian Federation.

The maximum values ​​are fixed in Art. 394 Tax Code of the Russian Federation:

• 0.3% - for agricultural land, as well as for plots used for personal subsidiary plots and gardening, occupied by residential buildings and related buildings, structures and infrastructure. Also included in this category are lands limited in circulation, used for defense, customs and security needs;
• 1.5% - applies to other categories of land plots.

IMPORTANT!

The municipality has the right to approve reporting periods, as well as provide for advance payments for taxpayer organizations. Such exceptions do not apply to individuals.

The approval of the list of beneficiaries, as well as the procedure for receiving tax deductions and concessions, is established by the authorities of the municipal formation.

Objects of taxation

It is established at the legislative level what income tax is calculated on in 2021. Moscow provides for two groups of revenues on which a fee is levied.

Income tax in Moscow is calculated on two types of income:

• sales: the fee is calculated from direct revenue after direct trade or provision of services;
• non-operating: income received from any sources other than sales.

According to Art. 247 of the Tax Code of the Russian Federation, these groups of revenues are received by four categories of payers.

At the legislative level, there is a category of income that is not subject to income tax. From January 1, 2021, the government added three more types of profit to the closed register, which are not subject to income tax:

1. Returned money that the shareholder contributed to the company's budget. Provided that these funds were returned to the shareholder free of charge from the business partnership and the amount is equal to that which was contributed earlier.
2. The results of work on the reconstruction and transfer of fixed assets that are in the payer’s possession by right of ownership. Condition: the work was performed by other enterprises in connection with the capital construction of a new real estate facility on the municipal territory of Moscow and is sponsored by the local budget.
3. Subsidiary funds aimed at reimbursement of costs in the form of targeted financing not taken into account when calculating the amount of tax. Exception: costs of purchasing and creating depreciable property.

Other types of income that are not taken into account when calculating the National Bank are prescribed in Art. 251 Tax Code of the Russian Federation.

Trade fee

The current fiscal obligation applies exclusively to the territory of our capital. Only the Moscow authorities regulated that all companies and entrepreneurs conducting trading activities must pay an additional contribution to the municipal treasury. These local taxes and fees are introduced by Moscow Law No. 62 as amended. dated November 23, 2016.

Only individual entrepreneurs using the patent taxation system, as well as agricultural producers, can avoid paying TC.

Tax rates for local taxes are established depending on the area and (or) size, type of object of taxation. Let us recall that the object is movable and immovable property used for trade, both wholesale and retail.

Payment deadline

You must pay duties on the income of organizations according to the reporting and tax period. Thus, the duty is paid directly until March 28 of the year following the reporting year. And advance payments are made:

• monthly - no later than the 28th day of the month following the reporting month;
• quarterly - until the 28th day of the month following the reporting month.

The tax amount calculated from funds received from transactions with municipal and state securities is paid within 10 days after the end of the month in which the company received income.

Property obligations for citizens

Thus, local taxes and fees include obligations regulated in Chapter 32 of the Tax Code of the Russian Federation. The tax must be paid by all citizens who own real estate. For example, residential buildings, apartments, garages, other structures and buildings, as well as unfinished construction projects.

Maximum permissible local property taxes and fees 2021, list of rates:

• 0.1% - for unfinished construction projects with an area of ​​up to 50 m², the authorities can reduce the rate to 0%, or increase to 0.3%;
• 2% - for real estate whose value is over 300 million rubles, or real estate that is included in the list of clause 10 of Art. 378.2 Tax Code of the Russian Federation;
• 0.5% - for other real estate.

We repeat that these are only recommended values. The Moscow Region authorities may approve other interest rates or approve a list of benefits.

Tax benefits

The tax tariff for calculating amounts credited to the Moscow budget is 18%. Preferential rate - 13.5% - valid for:

• companies that employ people with disabilities;
• residents of the technology-innovation zone;
• residents of technopolis, technological, industrial park zones;
• oil industry enterprises;
• companies that produce automobiles.

Other preferences in the form of a zero rate

In November 2021, the Federal Tax Service of Russia clarified in Letter No. SD-4-3/21516 dated November 6, 2018 that from January 1, 2021, regional authorities do not have the right to set profit tax rates at their own discretion. But since local rates are set for a legislative period, income tax payers have the right to calculate the amount taking into account the reduced coefficient, provided that the tariff began to apply before 01/01/2018. The reduced rate is valid only until 01/01/2023. From this date, all calculations are carried out in accordance with Art. 284 Tax Code of the Russian Federation.

Specific values: how to find out

As we defined above, each municipality may have individual tax rules and regulations. Therefore, taxpayers need to know the specific values ​​and established procedures in a timely manner to avoid penalties.

You can find out what standards are established in a particular municipality or region at the nearest branch of the Federal Tax Service or on a special portal. The electronic service was developed by the Federal Tax Service and allows you to obtain information about established tax standards free of charge and without registration.

To obtain the information you are interested in, you will need to select a region (the location of the taxpayer) and determine the type of fiscal liability. The system generates information based on approved regulations.