property taxes

The procedure for granting benefits on the property tax of individuals to individual entrepreneurs

The use by individual entrepreneurs of a simplified or patent system of taxation provides for their release from the obligation to pay tax on the property of individuals in relation to property used for entrepreneurial activities, with the exception of objects of taxation by tax on the property of individuals included in the list determined in accordance with paragraph 7 of the article 378.2 of the Tax Code of the Russian Federation (hereinafter referred to as the Code), taking into account the specifics provided for in paragraph two of clause 10 of Article 378.2 of the Code.

Exemption from payment of property tax for individuals for individual entrepreneurs applying special tax regimes is a tax benefit (letter of the Ministry of Finance of Russia dated April 26, 2018 No. 03-05-06-01 / 28324).

In accordance with the provisions of Article 407 of the Code, individuals entitled to tax benefits established by the legislation on taxes and fees submit to the tax authority of their choice an application for granting a tax benefit, and also have the right to submit documents confirming the taxpayer's right to a tax benefit.

In view of the foregoing, entrepreneurs applying special tax regimes, in order to use the right to a tax relief on the property of individuals, submit an application for a tax relief, drawn up in the prescribed manner.

The application form for granting a tax benefit, the procedure for filling it out, the format for submitting such an application in electronic form were approved by order of the Federal Tax Service of Russia dated November 14, 2017 No. ММВ-7-21/897@. Taxpayers have the right to submit documents confirming the right to the benefit with the application.

You can apply for a tax exemption on property taxes for individuals to any tax authority, a multifunctional center for the provision of public services in Moscow, as well as through the “Personal Taxpayer Account for Individuals” service.

Non-declarative procedure for submission to individuals property tax relief

For certain categories of citizens specified in subparagraph 2, 3, 10, 10.1, 12, 15 points 1 articles 407, subparagraph 2 — 4, 7 — 10 paragraph 5 of Article 391 Tax Code of the Russian Federation (including retirees, pre-retirees, disabled people of I and II disability groups, disabled since childhood, disabled children, persons with three or more minor children, war veterans), and those entitled to a tax benefit, there is an unclaimed procedure for granting tax benefits and (or) tax deductions for property tax on individuals and land tax.

From 2020, an unclaimed procedure for granting benefits is provided for the transport tax.

The no-declaration procedure provides for the provision of a tax benefit and (or) a tax deduction based on the information available to the tax authority, that is, without the taxpayer's application.

The tax legislation provides for the possibility of applying an unclaimed procedure for granting tax benefits for all categories of individuals entitled to tax benefits for the specified taxes, from the tax period in which the taxpayer became entitled to the benefit.

At the same time, these categories of taxpayers have the right to independently apply to the tax authorities to receive a tax benefit.

Taxpayers have the right to submit documents confirming the right to a benefit with the application (or specify the details of the documents in the application).

Detailed information on the established tax benefits in the Russian Federation can be found on the website of the Federal Tax Service of Russia: http://www.nalog.gov.ru in the "Electronic Services" section, using the information resource "Reference information on rates and privileges on property taxes”.

Declaration-free administration of property tax

From January 1, 2023, a non-declaration administration of the corporate property tax was introduced in relation to objects, the tax base for which is determined as the cadastral value.

For the tax period of 2022 and subsequent periods, taxpayers that are Russian organizations do not include information about objects of taxation, the tax base for which is determined as the cadastral value, in the tax declaration for corporate property tax.

If the taxpayer - a Russian organization in the expired tax period has only the above objects of taxation, then the tax return is not submitted.

To conduct a reconciliation of objects of taxation, it is advisable to request an extract from the Unified State Register of Taxpayers about your organization, indicating all registered real estate objects.

If discrepancies are found in the information, please report this to the tax authority at the location of the real estate, indicating the discrepancies identified and attaching supporting documents on the characteristics of the relevant objects.

The procedure for granting tax benefits for transport, land taxes and corporate property tax, calculated for objects from the cadastral value:

Russian organizations in respect of objects, the tax base for which is determined as their cadastral value, that are entitled to benefits, must submit to the tax authority an application from the taxpaying organization for the granting of a tax benefit.
Organizations that are entitled to transport or land tax benefits must submit to the tax authority an application from the taxpaying organization for a transport tax and (or) land tax exemption.
If a taxpayer entitled to a tax benefit has not submitted to the tax authority an application for granting a tax benefit or has not reported a refusal to apply the tax benefit, the tax benefit is granted on the basis of information received by the tax authority in accordance with the Tax Code of the Russian Federation and other federal laws, starting from the tax period in which the taxpayer became entitled to a tax benefit.