The taxable base for real estate tax for certain properties is now calculated as cadastral value as of January 1 of the 2014 fiscal year. Article 378 of the Tax Code lists types of real estate properties subject to this regulation and procedures for calculating the taxable base as cadastral value.
Each constituent entity of the Russian Federation will make a decision on the introduction of special procedures for calculating the taxable base for real estate. The authorized agency of the constituent entity will determine the actual property (building, structure) use type in compliance with the Tax Code norms. For example, regional authorities must take into consideration regulations of the Tax Code according to which property (building, structure) may be claimed as retail, food service, and/or utilities in actual use if at least 20% of the total area of the property is used for the provision of any of the abovementioned services.
Therefore, the list of real estate objects for which taxable base is calculated according to cadastral value must be compiled by the constituent entities of the Russian Federation with due consideration of the abovementioned guidelines.
New procedures for the calculation of taxable base already have been introduced in several regions. For example, Moscow's procedures are already in effect. Moscow authorities have established a list of real estate objects for 2014 for which taxable base is calculated according to cadastral value.
Introduction of new procedures for property tax resulted in new questions from property owners.
For Each Property Owner – Their Own Property Object
Question 1: How will the taxable base for organizations who own individual premises in a building included by the regional authorities in the List of properties for which taxable base is calculated according to cadastral value (hereafter – List) be calculated?
Answer: Financial specialists noted that if a property has several owners, each owner must calculate the taxable base proceeding from the legally established cadastral value of the owned premises with an appropriate cadastral number.
Property Does Not Have Cadastral Value
Question 2: What must a company do when a building where they own individual premises has a cadastral value, but the individual premises do not have a registered cadastral value?
Answer: In this case taxable base for premises within a property is calculated as a fraction/percentage of the total cadastral value of the property based on the percentage of each premises in the total area of the building.
If Property Is Not Listed
Question 3: What property tax calculation procedures should be used if the property is not included in the List?
Answer: A simple rule is in effect in this case: if the authorized agency did not include the property in the List as of January 1 of the fiscal period, the taxable base and property tax must be calculated according to currently existing regulations – based on the balance sheet value of the property.
The same procedure must be used if regional authorized agency included the property in the List during the calendar year, but not at beginning of the year.
How To Determine Cadastral Value
If the results of calculating cadastral value affect rights and responsibilities of legal entities, these entities have a right to submit a request to the cadastral registration agency for data about the cadastral value of the property.
The data may be obtained via mail or Internet, including Unified Portal for State and Municipal Services.
Cadastral information is presented free upon request of any entity.
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