Individual entrepreneurs, as well as organizations that use the simplified tax system, are exempt from a number of taxes. Among the taxes that “simplified” people do not pay is property tax. Until 2021, absolutely all individual entrepreneurs and LLCs operating under the simplified tax system were exempt from paying property tax. On July 3, 2021, Law 237 Federal Law was adopted, by which simplified residents were obliged to pay property tax calculated from the cadastral value. However, there are some exceptions. From the article you will learn what taxes are paid and not paid under the simplified tax system, who and how should pay property tax under the simplified tax system in 2021.
Tax base
The obligation to pay property taxes to organizations using a simplified taxation system was imposed by Federal Law No. 52-FZ of April 2, 2014.
He introduced amendments to the first paragraph of clause 2 of Article 346.11 of the Tax Code of the Russian Federation, according to which the property tax of organizations under the simplified tax system was introduced in relation to real estate objects, the tax base for which is determined as their cadastral value. In this case, the cadastral value is determined as of January 1 of the current year (if there was no such data as of January 1, then there is no need to pay a fee). Thus, the tax base is all types of real estate that have a cadastral value at the beginning of the tax period and belong to the organization.
What applies to such property:
- Shopping and business centers, premises in them.
- Office and retail premises.
- Restaurants, cafes, canteens - public catering facilities.
- Public service buildings.
- Residential buildings and premises, we will talk about them separately.
Results
Every year, before January 1, regional authorities approve the cadastral value of real estate, information about which is included in special lists. If the assets of the “simplified” person are present in this list, then he becomes a payer of property tax. At the same time, companies are required to submit quarterly calculations for advance payments, and at the end of the year, the declaration itself. For individual entrepreneurs using the simplified tax system, the calculation is carried out by the tax office and sends a corresponding notification to the place of residence.
Whether it is possible to write off the tax paid as expenses under the simplified tax system, find out here .
Read about the calculation of property from the cadastral value by the UTII payer here .
Sources: Tax Code of the Russian Federation
You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.
Special conditions
But these are not all tax conditions. The following requirements must be met:
- The building, structure, structure or premises therein must belong to the taxpayer organization on the right of ownership or right of economic management.
- Real estate must be accounted for on the organization’s balance sheet as part of fixed assets (account 01 “Fixed Assets” or 03 “Income Investments in Material Assets”).
- The land plot under the real estate has a certain type of permitted use: for the placement of retail units, public catering and (or) consumer services; for the placement of office buildings for business, administrative and commercial purposes.
- More than 20% of real estate, according to the Unified State Register of Real Estate, is intended for use for these purposes. For example, to host trading platforms. It is important to confirm the actual use of the facility for the specified purposes in the declared volume - not less than 20%.
- Real estate is included in the list of property for which the tax base is determined as the cadastral value.
The list from the last paragraph is determined by the subject of the Russian Federation (according to the location of the real estate), it is published on the official website of this subject of the Russian Federation. You can find out the cadastral value by receiving an extract from Rosreestr about the cadastral value of the object, in accordance with Article 63 of Law No. 218-FZ.
If all conditions are met, you must pay property tax under simplification. If any condition is not met or the cadastral value is not determined, no tax liability arises for that year.
The Ministry of Finance of Russia, in a letter dated March 11, 2016 No. 07-01-09/13596, reminded that the simplified people still do not pay the property tax, based on the book value of the objects. It also states whether or not to pay property tax for individual entrepreneurs using the simplified tax system in 2021 - entrepreneurs do not have this obligation, with one exception, which will be discussed below.
How to pay taxes on the simplified tax system
To avoid paying large fines, use a ready-made solution from ConsultantPlus. Experts have sorted out all the nuances of taxes on the simplified tax system: what, how and when to pay. The link below has free access.
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Residential Properties
Is property tax paid under the simplified tax system on residential buildings and premises? Residential real estate is recognized as an object of taxation. But there are exceptional rules for such objects.
A residential property is recognized as taxable if it is not listed in the organization as a fixed asset. That is, residential real estate is taxable if it is taken into account in the organization’s balance sheet in the following accounts:
- 08 “Investments in non-current assets”;
- 41 "Products";
- 43 “Finished products”.
In relation to such objects, property tax under the simplified tax system “Income minus expenses” for LLCs in 2021 is calculated according to the cadastral value (letter of the Ministry of Finance of Russia dated May 19, 2017 No. 03-05-05-01/30753, dated January 25, 2019 No. 03-05 -05-01/4064).
IMPORTANT!
If residential real estate is taken into account in or 03 “Profitable investments in material assets,” then it is not recognized as a taxable object (letter of the Ministry of Finance of Russia dated December 22, 2017 No. 03-05-05-01/86054).
conclusions
We looked at the property tax of organizations and the tax on property of entrepreneurs that is used in business, which are valid for payers of the simplified tax system. They are levied on the real estate for which the cadastral value has been determined. If it has not yet been installed, you do not need to pay taxes.
You can find out exactly whether a particular commercial real estate property is taxable or not by checking the list that is posted on the website of the regional executive authority. Individual entrepreneurs don’t have to worry - the Federal Tax Service will calculate the tax itself and send a receipt.
The taxes that business entities pay on their real estate are regional. Therefore, specific rates, payment terms, and benefits may vary. To find out all the nuances, we recommend that you familiarize yourself with the laws of the relevant constituent entity of the Russian Federation.
Property tax for individual entrepreneurs using the simplified tax system
By virtue of Article 346.11 of the Tax Code of the Russian Federation, the use of the simplified tax system by individual entrepreneurs provides for their exemption from payment of property tax for individuals in relation to property used in business activities. There is an exception. How to find out whether it is necessary to pay property tax based on the cadastral value of an individual entrepreneur - find out whether the real estate owned by him is included in the list of administrative, business and shopping centers approved by the constituent entity of the Russian Federation in accordance with paragraph 7 of Article 378.2 of the Tax Code of the Russian Federation. If yes, then you will have to pay tax.
The specifics of calculation and payment for individual entrepreneurs are regulated by Chapter 32 “Property Tax for Individuals” of the Tax Code of the Russian Federation, introduced by Federal Law No. 284-FZ of October 4, 2014. Article 400 of the Tax Code of the Russian Federation states that payers of property tax for individuals are recognized as all citizens who have the right of ownership of property recognized as an object of taxation. This applies equally to individual entrepreneurs.
The basic rules that individual entrepreneurs must adhere to when calculating the amount payable are as follows:
- By virtue of Article 405 of the Tax Code of the Russian Federation, the tax period is a calendar year.
- According to the provisions of Article 408 of the Tax Code of the Russian Federation, the amount payable is calculated by the Federal Tax Service upon the expiration of the tax period. This amount is determined by tax authorities separately for each taxable item.
- It is necessary to pay the property tax of individual entrepreneurs under the simplified tax system no later than October 1 of the year following the expired tax period, this is stated in Article 409 of the Tax Code of the Russian Federation.
- The amount must be calculated and paid at the location of the property. For example, if an individual entrepreneur is registered in one region, and the property is in another, payment is made at its location.
Now we know that individual entrepreneurs themselves do not calculate the amount to be paid and do not report to the Federal Tax Service. The tax notice will be sent to him by the Federal Tax Service itself at the location of the property. Also, the individual entrepreneur does not make any advance payments. But individual entrepreneurs, like legal entities, have questions related to cadastral value.
Property subject to taxation
Article 374 of the Tax Code establishes what kind of property is recognized as an object of taxation.
Property tax is levied on movable property and immovable property* , or only on immovable property, depending on the category of taxpayer.
*In accordance with paragraph 1 of Article 130 of the Civil Code, real estate (real estate) includes:
