- Property tax rates for individuals in Moscow in 2015 - 2019
- Property tax rates for individuals in Moscow in 2014
- How to calculate tax
- Benefits for property tax for individuals in Moscow
- Why has the property tax on individuals increased in Moscow and the region?
- Procedure for collecting arrears of taxes (penalties, fines)
- Useful links on the topic
Why has the real estate tax for individuals increased since 2021?
From January 1, 2015, amendments were made to the tax legislation of the Russian Federation, to Chapter 32 of the Tax Code of the Russian Federation (“Property Tax for Individuals”). If previously homeowners - individuals - paid real estate tax (on owning an apartment), based on its inventory value according to the BTI assessment, then after the changes, the same tax is calculated from the cadastral value of the apartment (Article 402 of the Tax Code of the Russian Federation). And the cadastral value is as close as possible to the real market value of the apartment, and is several times higher than the previous BTI assessment.
Payment of apartment tax for owners occurs once a year - in the current year (until December 1) for the previous year. That is, the tax, for example, for 2021 is paid in the fall of 2021.
The property tax of individuals on an apartment is paid at the location of this apartment, on the basis of a tax notice , which the owner receives by mail from the local Federal Tax Service inspectorate (in paper form), or electronically in the taxpayer’s personal account on the Federal Tax Service website.
How the purchase and sale of an apartment takes place, and whether a realtor is needed for this - see this article.
Calculation of the amount
Legal entities, unlike individual entrepreneurs and individuals, calculate the organization’s property tax independently.
Based on the cadastral value, the tax for the quarter is calculated as follows:
Property value according to the cadastre * tax rate / 4.
To obtain information about the cadastral value of an object, you should contact the local offices of the Cadastral Chamber or the Rosreestr website. If the cost is too high, you can leave a request to review the amount .
For individuals and entrepreneurs, the tax is calculated by the Federal Tax Service, after which it sends a receipt for payment.
The calculation of the amount of tax on retail and office real estate included in the list in Article 378.2 of the Tax Code of the Russian Federation is carried out as follows:
Value of property according to the cadastre * tax rate taking into account the conditions reflected in Article 408 of the Tax Code of the Russian Federation.
Tax rate on property of individuals
The basic rate of property tax for individuals for apartments remained the same, that is, equal to 0.1% (clause 2, article 406 of the Tax Code of the Russian Federation). Only the tax base itself has changed.
At the same time, the law allows local authorities in municipalities of the constituent entities of the Russian Federation to independently set tax rates for their subordinate territories, but within the framework specified by the Tax Code. If local authorities have not made any decision regarding local tax rates the basic tax rate specified in the code (see above) applies
For Moscow, for example, tax rates for apartments are determined by local authorities as follows:
- if the cadastral value of the apartment does not exceed 10 million rubles. (inclusive), then the tax rate applies 0,1%;
- from 10 to 20 million rubles. (inclusive) – tax rate 0,15%;
- from 20 to 50 million rubles. (inclusive) – tax rate 0,2%;
- over 50 million rubles – tax rate 0,3%.
Current real estate tax rates personal property tax benefits
For other constituent entities of the Russian Federation and municipalities within them, property tax rates for individuals established by the local executive authority, as well as local tax benefits can be found in a special reference book on the website of the Federal Tax Service of Russia - here.
Calculator for calculating property tax for individuals (apartment) - see below in the article, follow the link.
In what cases you can avoid paying tax when selling an apartment - see here.
Taxation
The owner of a property is required to pay tax on the property he owns . The concept of “commercial real estate” is not introduced by the legislation of the Russian Federation as a separate category subject to a certain type of taxation. The calculation of the tax amount and rate is determined by several criteria.
- Status of the owner of the property . The person who owns real estate can act as an individual, individual entrepreneur or legal entity.
- Citizenship or place of registration . If the owner is not a citizen of Russia, tax rates will be higher.
- When selling an object or transferring it for use , it depends on the type of agreement concluded between the owner and the tenant or buyer.
How is property tax calculated for apartment owners?
The introduced innovations provide that the tax increase due to changes in the tax base will occur gradually, and not immediately. In other words, legislators gave us a four-year “transition period”, during which the amount of the new property tax will gradually increase to its maximum value (Article 408, Tax Code of the Russian Federation). What does it look like?
Literally like this:
- in 2021 we pay only 20% of the tax amount (for 2015) calculated based on the cadastral value of the apartment, plus 80% of the tax amount calculated the old fashioned way (according to the BTI estimate).
- in 2021 we pay (for 2021) already 40% of the cadastre, and 60% of the BTI assessment;
- in 2021 we pay (for 2021) 60% from the cadastre, and 40% from the BTI assessment;
- in 2021 we pay (for 2021) 80% from the cadastre, and 20% from the BTI assessment.
And only from 2021, property tax for individuals will be charged in full on the amount of the cadastral value of the apartment. True, in 2021 some of these rules have already been changed (see below).
What are the risks of buying a privatized apartment? Nuances of privatization. What the Buyer needs to know – see the link in the Glossary.
Amendments to the law!
Another surprise! In August 2021, a law was introduced that reduces the growing tax burden on citizens. Our Duma clerks thought and thought and decided that it was still too much for an ordinary person to pay such amounts of tax for their apartment. And they refused to apply the next coefficient of 80%, starting from the 4th year (see list above) of using the cadastral value for paying property (apartment) tax for individuals. Confirmation is here.
Therefore, from 2021 the above coefficients no longer apply.
At the same time, the law introduced a 10% limit on the annual increase in the amount of tax calculated at the cadastral value. That is, if the amount of tax for a certain tax period (year) exceeds the amount of tax for the previous year by more than 10%, then the amount of the previous tax + 10% is due for payment (clause 8.1, article 408, Tax Code of the Russian Federation).
And one more pleasant innovation in the same law. If, for example, property (apartment) tax was calculated in previous years based on an erroneous cadastral value , which was later challenged , then the recalculation occurs not from the moment the application for challenge was filed, but from the date the application of the erroneous cadastral value began.
How can the Buyer of an apartment return personal income tax? What is the procedure here? See the link.
In what documents should it be reflected and how exactly?
Since entrepreneurs and individuals receive calculations directly from the Federal Tax Service, they do not submit tax reports and do not have to reflect its amount in any documents. Organizations need to reflect property tax :
- For advance payments - on a quarterly basis.
- At the end of the year - in the property tax declaration.
Please note that the forms of calculation and property will change in 2021 in accordance with the Order of the Federal Tax Service dated 10/04/2018.
Are there any benefits for real estate taxes?
Eat! For all owners of apartments and rooms, legislators have provided a pleasant benefit (Article 403 of the Tax Code of the Russian Federation). Paragraph 3 of this article states that when determining the tax base for an apartment, 20 square meters of the total area of the apartment are NOT taxed (i.e., deducted from the tax base). For a room this deduction is 10 sq. m.
Moreover, local authorities are given the authority to increase the size of this benefit at their discretion (they cannot be reduced).
In other words, when calculating the tax on real estate in the form of an apartment or room, the cadastral value is 20 sq. m. m. for an apartment or 10 sq. m. m. for a room - not taken into account.
In addition, all existing tax benefits for certain categories of citizens , which include veterans of the Great Patriotic War and other military operations, disabled people of the 1st and 2nd groups, some categories of military personnel and members of their families, pensioners and some categories of other citizens. The full list of categories of beneficiaries is listed in Article 407 of the Tax Code of the Russian Federation.
This benefit for them is that they are completely exempt from paying property tax for individuals , provided that they do not use their apartment for business purposes (clause 2 of Article 407 of the Tax Code of the Russian Federation). And they can apply this benefit to only one apartment that they own.
To receive a tax benefit, you need to provide the local tax office with an appropriate application and documents confirming your right to the benefit. You can read more about applying for benefits for pensioners at the link provided.
If a person owns two or more apartments and rooms , then a tax deduction of 20 and 10 square meters. m., accordingly, applies to each property (see explanations on this matter on the Federal Tax Service website - here).
In this case, the same deduction (for example, 20 sq. m.) applies to one property, regardless of the number of owners of this property.
Is it possible to get a tax deduction for a child when buying an apartment if the child has a share of the property - see this article.
Who is eligible for benefits and how to get them?
In addition to organizations exempt from paying tax, legal entities operating in certain areas have the right to partially pay property tax.
Organizations paying 25% of the calculated amount must operate in the field:
- Medical care and public services.
- Scientific research or educational services.
To receive property benefits, you must indicate a special seven-digit code reflecting the right to preferential conditions on the declaration form.
In 2021, a new type of declaration and advance payment was approved. The coded tax benefit number can be found in Order of the Federal Tax Service of Russia No. ММВ-7-21/271 dated March 31, 2021. The codes are reflected in Appendix 6 to the Procedure for filling out a tax return for the property tax of organizations.
Individuals, after collecting supporting documents, must submit an application to the tax authority. The application must indicate :
- Tax authority number.
- Full name, tax identification number and contact details of the taxpayer.
- Technical or cadastral passport of the premises.
- Details of the document confirming the benefit.
- The duration of the benefit and the date on which it was granted.
In addition to the application, the taxpayer must provide notice of the choice of taxation for which it is planned to use the benefit before November 1 of the reporting year.
Who is the payer?
The obligation to carefully make payments for property is assigned to all individuals who own real estate in Russia, that is, these are not only citizens of the country, but also foreigners. Please note that the fee is paid only for objects located in our country. If a Russian purchases real estate on the territory of another state, he does not have to pay taxes to the treasury of the Russian Federation.
The tax is established for those who have ownership rights to property. It turns out that a person who has bought, for example, housing, but has not yet become an owner, is exempt from the tax burden. Now let’s look at what exactly is the property that the state taxes.
