From 2021, increasing coefficients will be applied when calculating land tax

Peculiarities of paying land tax Individuals and organizations that own land plots are required to annually pay taxes on them to the state treasury.

In this article we will look at the procedure for calculating them, the changes that have occurred in the current year and the features of calculation.

After the rights to the property of the site are registered, the supervisory inspection receives information about the new owner and accrual begins. They are subject to:

• areas intended for agricultural purposes;
• land for individual housing construction;
• plots purchased for farming and gardening;
• lands of gardening partnerships.

Land tax rate for individuals and legal entities

Individuals pay the fee on a general basis. It is calculated based on the cadastral value of the property, which is indicated in the state register. This value is then multiplied by the coefficient established in a particular region.

For enterprises and entrepreneurs, it is the same as for individuals and cannot be more than the established value if the object is used for agricultural needs or for housing construction. Other areas are taxed at 1.5%. Legal entities independently draw up declarations and make payments. The tax period for this duty is one year.

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Rates

The current land tax rate in Moscow is stated in Article 2 of the mentioned law of the capital. Its value is as follows and can have 4 values:

Also see "Land tax: rate in 2021".

Deadline for payment of land tax

Individuals and entrepreneurs are required to transfer funds before December 1 of the current year. Please remember that payments are made for the past year. This year, reporting persons will pay for 2021. A month before the specified date, they receive written notifications from the supervisory authority, which indicate the amount of payment and have a receipt for payment. You can do it using online services or through the cash desk of any bank branch.

For legal entities, a different time frame is established, since they do not receive written notifications, but they independently draw up a declaration and transfer funds. Organizations make advance payments once a quarter, which include the amount of tax. At the end of April, July and October, companies and firms pay them for the current year. The last quarter of the current period is paid until February of the following year.

Legislative framework for land tax for individuals in the Moscow region

Please note that we are talking about the tax on land ownership in the Moscow region, and not about the income tax arising from purchase and sale transactions of land plots .
Land tax is a local tax regulated by the Tax Code of the Russian Federation (Chapter 31), laws of the Moscow region and regulations of local deputies. Tax payers are organizations and individuals owning land plots. The following applies only to plots of land owned by individuals and located in the Moscow region

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Every year, the Tax Service assesses land taxes for the previous calendar year and sends tax notices to land owners for payment. The tax base is determined by the cadastral value of the land plot. In 2013, a global revaluation of the cadastral value of lands near Moscow was carried out. The cadastral value of land plots has increased significantly. Sometimes several times. The results of the state cadastral valuation (revaluation of value) of plots were approved by the Orders of the Ministry of Ecology and Natural Resources Management of the Moscow Region dated November 27, 2013: No. 566-RM (land plots as part of the lands of settlements in the region); No. 564-RM (lands of horticultural, gardening and dacha associations); No. 563-RM (agricultural land). The new value of land near Moscow has become the basis for calculating tax since 2014. In addition, since 2014, in some areas of the region, the land tax rate for household plots and summer cottages has increased significantly. Thus, since 2014, due to an increase in the tax rate with a simultaneous increase in the cadastral value, the land tax has increased “out of this world” (that is, astronomically)
. However, if you carefully study the resolutions of local deputies, you can find one very interesting benefit on personal land plots in some areas of the Moscow region.

Tax on the sale of land

Its value is 13% of the value of the property being sold. It is paid if the period of ownership is less than 5 years. You can sell land before this period without charging a duty when it:

• privatized;
• became the property under a maintenance agreement with a dependent;
• received under a gift agreement or inheritance from close relatives.

In these cases, the tenure period is reduced to 3 years. If you make a sale before this period, you will need to make mandatory contributions to the state treasury.

Land tax for individuals and legal entities

Any person who owns a land plot is obliged to pay contributions to the budget for this area. The rates applied to owners are the same, regardless of whether they are private users, entrepreneurs or organizations.

The only difference is the timing of payment and the procedure for completing documentation. Firms and companies independently fill out declarations and submit reports to the supervisory authority. Individuals only need to make contributions on time according to the statements that come from the supervisory service.

New changes in land tax

Interesting fact! This year, a change regarding the procedure for calculating and calculating this duty comes into force. It will be calculated based on the cadastral value, which is equal to the market price.

This will hit citizens’ pockets and affect the amount of deductions, significantly increasing them. Previously, the amount of deductions was determined based on the balance sheet valuation, which is why their size was so low.

The increase will occur gradually and will stretch over several stages. Starting this year, the payment amount will increase by 1/5 and will reach the required value no earlier than by 2022. This will allow the country’s citizens to comfortably adapt to the new amounts that will have to be transferred to the state budget. These changes will affect all regions of the Russian Federation.

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All funds of the owners will remain in local budgets, thereby forming them. This will create a new source of funding that will help improve infrastructure. Currently, this issue is extremely relevant, since after the crisis the situation in some regions remains extremely deplorable and the budget is experiencing an acute shortage of funds.

Property tax on an organization's land plot: tax base

You can find out the size of the tax base of the land available to the company by contacting the Rosreestr website, or make an official request to the territorial office of the department and receive the appropriate certificate. The cadastral value of the site must be established as of January 1 in the reporting period and published on the administrative website by the regional authorities. If the value according to the cadastre has not been calculated, since not all regions have yet managed to establish it, then the standard value is included in the calculation.

How to calculate land tax

The formula for determining the amount of deductions is as follows:

Cadastral value (per 1 m²) * object area (m²) * coefficient (%)

This is a standard calculation option that does not take into account all kinds of deductions and benefits. If there are any, they will be aimed at reducing the base, which will affect the reduction in the amount of mandatory contributions.

For owners who took possession in the middle or end of the calendar year, the amount received will be divided by 12 months and multiplied by the actual number of months of ownership of the plot. Shared ownership implies distribution of payment according to the size of the share in use. Those who have ¼ of the area will have to pay a quarter of the total amount.

You can find out the cadastral value by contacting the Cadastral Chamber or the Rose Register. It contains all the data about the object, its area, location, individual number and cost used in determining the amount of the fee. You can also find it out using online services that are available on various websites.

Individual entrepreneurs, along with private individuals, are exempt from independent calculations. They receive a written notice containing information and the exact amount to be paid. Organizations make the calculations themselves and then make transfers.

Calculation of land tax in 2021

Land tax in 2021 is calculated by the Federal Tax Service of Russia. Fiscal authorities send notifications containing information about the amount that needs to be transferred to the budget to all land owners. Land tax is calculated for 2021, taking into account the full months of your ownership of the plot. The tax amount is calculated as the product of the rate and the cadastral value of the property. If the plot was registered in your name in 2021, the resulting value is multiplied by the number of full months of ownership and divided by 12.

Land tax: cadastral value and category of land plots

As we noted above, for Russians paying land tax, the cadastral value of land plots is just as important in the calculations as the rate set by the fiscal authorities. If necessary, the price of the land you own can be double-checked on the Rosreestr website for an additional fee. There you can also get information about the category of the plot, taking into account which the land tax rate is determined. But the easiest way to obtain this information is from real estate documents, which should remain in the hands of the owner after its registration.

Land tax rates

Land tax for pensioners and other individuals is subject to payment to local budgets (Article 15 of the Tax Code of the Russian Federation), therefore rates for it are set primarily at the regional level. But according to the Tax Code of the Russian Federation, this year in any case they cannot exceed 1.5%. You can find out the land tax rate for individuals in 2021 by checking the information about the plot in your real estate documents on the Federal Tax Service website. It is installed taking into account the intended purpose of the land, as well as the activity of its exploitation. Thus, for the owner of a plot for residential construction on which appropriate work is temporarily not being carried out, land tax for individuals in 2021 may be calculated at a reduced rate.

Payment of land tax

Previously, when the deadline for paying land tax came, an individual had to go with the received receipt to the nearest bank with the most acceptable tariffs for making payments. For the last five years, Russians have had the opportunity to use an online service on the Federal Tax Service website, special payment terminals and bank ATMs. The easiest way for a taxpayer to repay the debt is by scanning the barcode on the receipt using the “Payment by QR or barcode” option in the “Payments” section in the Sberbank Online system. In addition, payment of land tax can be made through the Internet banking of most other domestic financial institutions.

Land tax benefits

Not only certain categories of citizens are exempt from payment, but also, in some cases, organizations and entrepreneurs. Individuals who have benefits include:

• Heroes of the Soviet Union and Russia, as well as those awarded the Order of Glory;
• disabled people of 1st and 2nd degree, established before 2004, disabled people of 3rd degree;
• nuclear weapons testers and man-made disaster liquidators;
• liquidators of the accident at the Chernobyl nuclear power plant;
• participants in the Great Patriotic War and other military operations.

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The listed categories can count on a deduction that reduces the taxable base by 10,000 rubles. Other relaxations are established by regional authorities. These are federal benefits established by the state.

Interesting fact! Each region has the right to independently expand the list. In some regions, pensioners are exempt from paying; exemptions also apply to large families, labor veterans and other segments of the population. To clarify information on benefits, you must contact the inspectorate at the place of registration of the payer.

Entrepreneurs carrying out agricultural activities on a plot of land for the purpose of making a profit can count on exemption from the duty if they own the property under a lease agreement. In this case, the responsibility for payment falls on the shoulders of the owner.

Organizations that own land on which a forest, reservoir or nature reserve is located are completely exempt from this burden. In other cases, they are required to calculate and transfer funds to the supervisory inspection on a general basis.

Objects of taxation and tax base

So, what can be considered an object of taxation?
According to the law, they are considered to be those lands that are located within the municipality on whose territory taxation was introduced. However, there are objects that cannot be recognized as taxable. This:

• Lands that were previously withdrawn from circulation by the Government of the Russian Federation;
• Lands that are occupied by various nature reserves, cultural heritage sites, and so on;
• Lands that are part of the forest fund;
• Lands that are occupied by water bodies and are part of the water fund;
• Land that belongs to the common property of a house consisting of many apartments.

If we talk about the tax base, it is determined primarily as the cadastral value of the land. At the same time, the cadastral value itself must be determined in accordance with the legislation of the Russian Federation.

Organizations that pay land tax calculate the tax base themselves in accordance with the state cadastre information about each plot of land that belongs to them on the basis of permanent use or ownership.

It is worth understanding that for those lands that are in common shared ownership, the tax base is determined for each taxpayer separately. But if we are talking about common joint property, then the tax base is determined in equal shares.

The size of the tax base will directly depend on the size of the property.