Object of taxation
Construction projects that have not yet been put into operation are considered to be construction in progress. Objects in this category include:
- Mothballed construction site.
- At the suspension stage.
- Completely stopped.
- A finished object undergoing safety testing and compliance with technical parameters.
Chapters 30-32 of the Tax Code of the Russian Federation determine the taxation procedure for such objects. The law clearly establishes the requirement to pay property taxes on unfinished construction.
The main nuances of its payment are established by local authorities, since this tax relates to regional fees.
Tax on unfinished construction of individuals 2021
Okay, where the additional tax came from is clear. Also, according to clause 3. Art. 409 of the Tax Code of the Russian Federation, “sending a tax notice is allowed no more than three tax periods preceding the calendar year of its sending,” it becomes clear why they counted for several years.
We go to the BTI in Asbest - they tell us, yes, we provide information about the cost to the tax office upon their request, the cost of your object is exactly that, there is no technical error. In response to the remark that in Yekaterinburg the inventory value of apartments near the center is lower, they shrug their shoulders.
27 Jun 2021 stopurist 432
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Legal basis of tax
Article 408 of the Tax Code states that property tax is calculated by the tax service. Its employees send notifications about the need to pay taxes to property owners at the end of the tax period. The notice indicates the payment amount.
In addition to Article 406, some aspects of property taxation are regulated by Articles 52, 401, 402, 403, 406 and 407 of the Tax Code of the Russian Federation.
Property tax for individuals in 2021
In Art. 407 of the Tax Code of the Russian Federation lists 15 main categories of taxpayers who are entitled to tax benefits. Under one condition: the benefit applies exclusively to one of the taxable objects of a certain type, except for those involved in business activities.
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Which properties must pay property tax for individuals in 2021? This is real estate: rooms, apartments, residential buildings, garages, unfinished construction projects; as well as parking spaces owned by the taxpayer by right of ownership.
Calculation of property tax on unfinished construction projects
In a situation where property rights have already been registered for unfinished construction, it is necessary to pay property tax in full. Its calculation may vary depending on the region. In particular, in some regions of the Russian Federation, the tax is calculated based on the cadastral value of the property.
The only way to avoid paying tax in this case is not to register ownership of the property until construction is completely completed.
In what cases do rights to an unfinished construction project need to be registered with Rosreestr?
Such a need may arise, for example, if it is not currently possible to complete the construction of a facility, but you need to take out a bank loan against it. A situation may arise when there is a need to transfer the rights to an unfinished ONZS object under a civil law transaction, then state registration of the right to such an object is mandatory.
Article 40 of the Law of the Russian Federation dated July 13, 2015 No. 218-FZ “On State Registration of Real Estate” (hereinafter referred to as the Registration Law) establishes the features of state registration of rights to unfinished construction projects.
As a general rule, state registration of rights to an unfinished object (ONZS) if in the Unified State Register of Real Estate
(USRN) the applicant’s right to the land plot on which the object is located is not registered, are carried out simultaneously with state cadastral registration and (or) state registration of the applicant’s right to such land plot.
We recommend using the help of a specialist
so that there are no problems with the property in the future.
Removal from the state cadastral registration of an unfinished construction object and state registration of termination of rights to this object, if the state cadastral registration and state registration of rights in relation to it were carried out earlier, are carried out simultaneously with the state cadastral registration of the building, structure or all created as a result of the completion of construction of this object premises or parking spaces in them and state registration of rights to them. There will be no problems with documents if you contact a specialist. We will help you, just follow the link
.
How to apply for a tax exemption for an unfinished construction project?
Despite the fact that in some cases property tax can indeed be paid at a preferential rate, this does not apply to unfinished properties.
The tax on unfinished construction in all constituent entities of the Russian Federation must be paid in full. Therefore, you can receive the benefit only after completion of construction and registration of the building as a full-fledged real estate object.
It is also worth checking the lists of preferential tax payments with the local administration. Sometimes unfinished objects can also end up there. Lists of benefits for different regions can be found on the website of the Federal Tax Service.
Letter from the Department of Tax and Customs Policy of the Ministry of Finance of Russia dated December 14, 2021
Moreover, if an unfinished construction project was erected after January 1, 2013, state technical accounting was not carried out in relation to such an object and its inventory value was not determined. Consequently, taxation of such a property is not carried out due to the lack of a tax base.
Thus, as a general rule, the obligation to pay property tax for individuals arises from the moment of state registration of rights to the relevant real estate and in the presence of documents confirming the ownership of this property.
Tax rate
The tax rate may vary in different regions. Certain restrictions are imposed by Article 406 of the Tax Code of the Russian Federation. In particular, according to it, the regional rate cannot exceed the minimum by more than three times. By the way, in most regions the tax rate on unfinished construction is 0.1%, and in Moscow it is 0.3% of the cadastral value of the property.
For individuals, when calculating on the basis of cadastral value, the marginal tax rates are determined by Article 406 of the Tax Code of the Russian Federation:
- 0.1% for residential buildings.
- 2% for administrative, retail facilities and facilities worth more than 300 thousand rubles.
- 0.5% for other objects.
Legal entities do not have to pay tax on unfinished objects at all, since these objects are not used in their commercial activities. The tax will need to be paid only after the facility is put into operation.
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Tax rates, benefits and payment procedures
The main conditions associated with the taxation of unfinished construction are tax rates, tax benefits and tax payment procedures. Let's consider these conditions in more detail.
In accordance with Russian legislation, tax rates are established by regulations of local governments. But these regional tax rates are tied to the rates established by the Tax Code of the Russian Federation.
In accordance with the Tax Code of the Russian Federation, when determining the tax base based on the cadastral value of an unfinished construction project, tax rates are set in amounts not exceeding 0.1 percent.
Regional tax rates may be increased, but must comply with the increase limits established by the Tax Code.
For example, in Moscow the rate for unfinished housing construction projects is set at 0.3% of the cadastral value.
As for benefits and tax deductions, the picture is as follows. Property tax deductions are not available for unfinished construction projects. There are also no benefits provided at the federal level. However, at the regional level, such tax benefits can be established by regulatory legal acts of municipalities or legislative acts of the cities of Moscow, St. Petersburg and Sevastopol.
To pay the tax, the tax office sends the owner of the property, the construction of which is not completed, a notice of tax payment, which is the basis for payment. If the construction project is in common shared ownership, each shareholder receives a notification. The tax must be paid at the location of the unfinished project.
Calculation of tax amount
Tax authorities determine the cadastral value of an unfinished property at the end of the year, and based on this data, they charge tax according to the regional rate. Therefore, the calculation procedure is general, but the tax may differ in different regions.
In the case of shared ownership of a construction project, each owner must pay tax on his share. Accordingly, the debts of one of the shareholders do not concern other owners and cannot be transferred to them.
If the property has been owned by the taxpayer for less than a year, then special rules for calculating property tax apply to it. In this case, the annual tax is divided into 12 months, and then multiplied by the number of months during which the payer is the owner of the unfinished property. Thus, the tax will be less than the annual one.
It is important to take into account that Article 23 of the Tax Code of the Russian Federation obliges the owner of the property to report to the tax office about all objects that he owns and for which tax notifications are not received. But if notifications do not arrive because the owner has the right to tax benefits, then there is no need to report such buildings to the tax office.
Tax calculation rules
Tax calculations are made by the tax office after the end of the calendar year based on information provided by Rosreestr authorities.
In the case of several participants in shared ownership of an unfinished object, each of its participants pays the tax in proportion to its share.
If an unfinished construction project is in common joint ownership of the spouses, they pay the tax equally.
If the object was owned for less than a full year, then the tax is calculated in proportion to the time of ownership of the unfinished construction project.
There is an important feature related to the calculation of tax during the first three years of ownership of the property. These three years are transitional years during which tax is paid in a reduced amount. For the transition period, a special calculation procedure and the use of temporary reducing coefficients have been established, which make it possible to reduce the tax burden on citizens (in the first year - 0.2; in the second - 0.4; in the third - 0.6).
The formula for calculating the amount of tax on an unfinished construction project for the transition period (the first three years) is established by the Tax Code of the Russian Federation. According to this formula, the tax amount is equal to:
H = (H1 - H2) x K + H2,
Where
- N1 - tax amount - the result of multiplying the tax base by the tax rate;
- N2 - the amount of tax based on the inventory value for the year preceding the year of transition to calculation based on cadastral value, or the amount of tax for 2014 in case of transition to calculation based on cadastral value from 01/01/2015;
- K - coefficient equal to:
- 0.2 - in relation to the first tax period;
- 0.4 - in relation to the second tax period;
- 0.6 - in relation to the third tax period.
If the inventory value of an unfinished construction project has not been determined, the H2 indicator will be equal to 0. Thus, the amount of tax payable is equal to the product of the tax amount for the year (H1) without taking into account the transitional rules and the corresponding reducing factor.
When calculating tax starting from the third year, a special rule applies. In this case, the tax amount is calculated based on the cadastral value of the property for the previous year, taking into account the coefficient of 1.1. The resulting value is compared with the amount of tax calculated on the basis of the cadastral value of the property for the current year without applying the specified coefficient. If the first amount is less than the second, then the first amount is paid. In this case, the provisions on the calculation of tax in relation to objects in common ownership and the time the object was owned in the current year are taken into account.
Starting from the fourth year, the tax is calculated based on the cadastral value without applying reducing factors.
Features of property tax under the NZS
Despite the fact that this is a type of property tax, this fee has the following features:
- It is calculated for each region separately, which means it may differ.
- It is calculated according to the cadastral value, although previously it was calculated according to the inventory value.
Also, the tax amount for unfinished construction is always less than for completed and commissioned objects.
Tax on unfinished construction of individuals 2021
The tax office will calculate the tax and send tax notices to citizens regarding the payment of the tax. Every taxpayer has the right to know the calculation procedure in order to check the correctness of the calculation. Therefore, we want to talk in as much detail as possible about the procedure for calculating property tax for individuals.
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Therefore, if you own at least one of the above types of property, you are a property tax payer. Please note that if you own a plot of land, then we will be talking about land tax, and not about property tax.
Cadastral value of NZS objects
The cadastral value is determined on the basis of the state cadastral valuation. For both finished buildings and unfinished ones, the cadastral value is usually less than the market value. In rare cases, the opposite happens, but this is possible for objects that have already been put into operation, which have increased in price due to the development of infrastructure around them or for other reasons. For unfinished construction, the cadastral value is always lower than the market value.
Tax accounting of work in progress
As in accounting, in tax accounting expenses are divided into direct and indirect (Clause 1, Article 318 of the Tax Code of the Russian Federation). However, these are completely different concepts. If in accounting, direct costs are understood as those expenses that are directly (in particular, without distribution) included in the cost of production, then in tax accounting, direct expenses are understood as all expenses that are included in the tax cost of products.
The taxpayer independently determines in the accounting policy for tax purposes a list of direct expenses associated with the production of goods (performance of work, provision of services) (clause 1 of Article 318 of the Tax Code of the Russian Federation). Accordingly, they relate to expenses of the current reporting (tax) period as products are sold (clause 2 of Article 318 of the Tax Code of the Russian Federation). The procedure for including direct expenses in the balances of work in progress, balances of finished products, and shipped goods is established by Art. 319 of the Tax Code of the Russian Federation.
