Who is exempt from paying property taxes?

Payer categories

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In order to find out which categories of citizens can be provided with benefits when paying taxes, it is necessary to clarify who the taxpayers are:

persons who have reached the age of majority and own real estate by right of ownership;
IP;
organizations and enterprises;
citizens who are tax residents of the Russian Federation.

Accordingly, all citizens under 18 years of age are exempt from paying tax. The possibility of providing benefits is provided at the federal level. All tax breaks are divided into federal and local.

According to the resolutions of the Tax Code of the Russian Federation, there are the following categories of citizens who are partially or completely exempt from property tax:

Heroes of the Russian Federation and the USSR;
Knights of the Order of Glory of all degrees;
military pensioners;
military families who have lost their breadwinner;
combat veterans;
disabled people of various categories;
citizens injured during the liquidation of consequences of accidents at nuclear and nuclear facilities;
citizens who use property to conduct professional creative activities or as a cultural object;
persons who own outbuildings whose area does not exceed 50 square meters;
pensioners.

The citizens indicated in the above list are beneficiaries in all constituent entities of the Russian Federation. However, since Property tax is a local tax; at the regional level, their own benefits can also be established.

The main local beneficiaries are large families and people requiring increased social attention.

However, to clarify the categories of citizens who are provided with benefits in a particular region, you need to contact the tax department or check the information on electronic resources.

Objects

The main objects in relation to which the benefit can be applied are:

Living spaces;
premises and parking areas for personal vehicles;
premises used for various creative activities;
outbuildings whose area does not exceed 50 square meters.

The benefit cannot be applied to:

objects used for conducting business activities;
property whose cadastral value exceeds 300 million rubles.

Who is exempt from paying property tax?

Persons who are able to document their right to receive benefits are exempt from paying property tax.

Find out who submits property taxes for legal entities. What is the percentage of corporate property tax? See here.

Legal entities

The current legislation also provides for certain benefits for legal entities when paying property tax.

The following categories of legal entities can count on the provision of tax on preferential terms:

institutions and organizations involved in criminal correctional activities;
organization of a religious nature;
various associations of disabled people;
enterprises whose authorized capital consists entirely of contributions made by all-Russian associations of disabled people;
institutions whose property belongs to public organizations of disabled people;
enterprises that specialize in the production of medicines;
organizations that carry out activities for the repair of highways and their maintenance facilities;
property belonging to the bar association.

Detailed information about the categories of organizations that have the right to full or partial exemption from property tax can be found in Art. 381 Tax Code of the Russian Federation.

Who is exempt from paying property taxes?

The legislation of our state identifies several categories of citizens who, for certain reasons, may be exempt from paying taxes on the property they own. These categories include primarily those who are recognized as Heroes of the Russian Federation or those who were awarded the order of one of the three existing degrees. Secondly, disabled people who belong to the first or second group, as well as disabled people from childhood, can be exempt from property tax. Thirdly, current legislation exempts from property tax those who are currently military personnel, served in currently active army units, and took direct part in combat operations and other operations related to the defense of the territory of the state. This also includes participants in the Great Patriotic and Civil War. Other categories of persons who are entitled to an exemption from property tax are persons who were participants in operations to eliminate the consequences of the accident at the Chernobyl Nuclear Power Plant in Ukraine and at the Mayak production enterprise. Families that have lost a breadwinner who is a serviceman in the Russian army are also exempt from paying property taxes. To obtain the right to exemption from paying tax in the latter case, you must have the appropriate certificate, which contains a stamp granting the citizen the status of a widower or mother or father of a deceased soldier. Children who are orphans, as well as those recognized as deprived of parental care up to and including the age of 23, are unambiguously exempt from paying property tax.

On October 4, 2014, the President of the Russian Federation signed Law No. 284-FZ ON AMENDING ARTICLES 12 AND 85 OF PART ONE AND PART TWO OF THE TAX CODE OF THE RUSSIAN FEDERATION AND RECOGNIZING THE LAW OF THE RUSSIAN FEDERATION “ON PROPERTY TAXES” INDIVIDUALS" . Below is Section 407 of the law, which governs tax benefits. The law comes into force on January 1, 2015.

Article 407. Tax benefits
1. Taking into account the provisions of this article, the following categories of taxpayers have the right to tax benefits:
1) Heroes of the Soviet Union and Heroes of the Russian Federation, as well as persons awarded the Order of Glory of three degrees;
2) disabled people of disability groups I and II;
3) disabled since childhood;
4) participants in the Civil War and the Great Patriotic War, other military operations to defend the USSR from among military personnel who served in military units, headquarters and institutions that were part of the active army, and former partisans, as well as combat veterans;
5) civilian personnel of the Soviet Army, Navy, internal affairs and state security bodies who held regular positions in military units, headquarters and institutions that were part of the active army during the Great Patriotic War, or persons who were in military service during this period cities, participation in the defense of which is counted towards these persons' length of service for the purpose of granting a pension on preferential terms established for military personnel of active army units;
6) persons entitled to receive social support in accordance with the Law of the Russian Federation of May 15, 1991 N 1244-1 “On the social protection of citizens exposed to radiation due to the disaster at the Chernobyl nuclear power plant”, in accordance with the Federal Law of November 26, 1998 year N 175-FZ “On the social protection of citizens of the Russian Federation exposed to radiation as a result of the accident in 1957 at the Mayak production association and the discharge of radioactive waste into the Techa River” and Federal Law of January 10, 2002 N 2-FZ “On social guarantees to citizens exposed to radiation as a result of nuclear tests at the Semipalatinsk test site";
7) military personnel, as well as citizens discharged from military service upon reaching the age limit for military service, health conditions or in connection with organizational and staffing events, having a total duration of military service of 20 years or more;
persons who were directly involved as part of special risk units in testing nuclear and thermonuclear weapons, eliminating accidents of nuclear installations at weapons and military facilities;
9) family members of military personnel who have lost their breadwinner;
10) pensioners receiving pensions assigned in the manner established by pension legislation, as well as persons who have reached the ages of 60 and 55 years (men and women, respectively), who, in accordance with the legislation of the Russian Federation, are paid a monthly lifelong allowance;
11) citizens discharged from military service or called up for military training who performed international duty in Afghanistan and other countries where hostilities took place;
12) individuals who received or suffered radiation sickness or became disabled as a result of tests, exercises and other work related to any types of nuclear installations, including nuclear weapons and space technology;
13) parents and spouses of military personnel and government employees who died in the line of duty;
14) individuals carrying out professional creative activities - in relation to specially equipped premises, structures used by them exclusively as creative workshops, ateliers, studios, as well as residential premises used to organize non-state museums, galleries, libraries open to the public - for the period of such use;
15) individuals - in relation to economic buildings or structures, the area of each of which does not exceed 50 square meters and which are located on land plots provided for personal subsidiary farming, dacha farming, vegetable gardening, horticulture or individual housing construction.
2. A tax benefit is provided in the amount of tax payable by the taxpayer in relation to an object of taxation that is owned by the taxpayer and is not used by the taxpayer in business activities.
3. When determining the amount of tax payable by a taxpayer, a tax benefit is provided in respect of one taxable item of each type at the taxpayer’s choice, regardless of the number of grounds for applying tax benefits.
4. Tax benefits are provided in relation to the following types of taxable items:
1) apartment or room;
2) residential building;
3) the premises or structure specified in subparagraph 14 of paragraph 1 of this article;
4) economic building or structure specified in subparagraph 15 of paragraph 1 of this article;
5) garage or parking space.
5. Tax benefits are not provided in respect of taxable items specified in subparagraph 2 of paragraph 2 of Article 406 of this Code.
6. A person entitled to a tax benefit submits an application for the benefit and documents confirming the taxpayer’s right to a tax benefit to the tax authority of his choice.
7. A notification about the selected objects of taxation in respect of which a tax benefit is granted is submitted by the taxpayer to the tax authority of his choice before November 1 of the year, which is the tax period from which the tax benefit is applied to the specified objects.
A taxpayer who has submitted a notification to the tax authority about the selected taxable object does not have the right, after November 1 of the year that is the tax period, to submit an updated notification with a change in the taxable object in respect of which a tax benefit is granted in the specified tax period.
If a taxpayer entitled to a tax benefit fails to provide notice of the selected taxable item, the tax benefit is granted in respect of one taxable item of each type with the maximum calculated tax amount.
The form of the notification is approved by the federal executive body authorized for control and supervision in the field of taxes and fees.

Registration procedure

In 2020, benefits are provided to citizens only for one piece of real estate of each type. If a person owns several apartments or garages, he has the right to independently choose which of the objects he will pay tax on preferential terms.

To receive the benefit, a citizen will need to submit to the tax service an application and documents confirming the legality of his rights to receive the benefit before November 1.

In this case, the tax will be calculated on more favorable terms for the person from the next tax period.

However, a citizen has the right to contact the Federal Tax Service office in order to receive a tax break at any time convenient for him, because preferential treatment for the population is indicative in nature. You can contact any branch of the Federal Tax Service regarding this issue.

Statement

The application is filled out in the form prescribed by law. It will need to indicate on what rights the citizen requests to be given the opportunity to pay taxes on preferential terms.

The application form for property tax relief is here.
A sample application for property tax relief is here.

Documentation

Changes in the list of documentation required to be submitted to the tax authority change quite often, but the main points remain unchanged.

The main documents are:

original application;
documents that confirm the legality of a citizen’s right to receive benefits;
pension certificate, if available;
documents confirming the citizen's military service;
marriage and birth certificates of a child, if families of military personnel apply for benefits;
any other evidence of the legality of rights to receive benefits.

To clarify the additional package of documents required to be provided in each specific region, a person must contact the local tax authority or check the information on electronic resources.

Learn how to calculate personal property taxes. How to get corporate property tax benefits? Information here.

Are there property tax benefits for military retirees? Details in this article.

Mortgages are exempt from paying property taxes

Again, the coefficient of 0.7 can be reduced down to zero by the law of the constituent entity of the Russian Federation. If a cadastral valuation of real estate has not been carried out, this rule does not apply.

At the same time, taking into account the average cost of apartments (houses), in the vast majority of cases it is more profitable not to issue a deduction, but to reduce the taxable amount by the amount of documented expenses for the acquisition of real estate, i.e.

pay tax on the difference between the sale price and the purchase price.

Tax authority and mortgage: what payments and fees are provided

The bill “On amendments to Article 4 of Moscow City Law No. 64 of November 5, 2003 “On the property tax of organizations” was presented at a meeting of the Moscow City Duma by the Minister of the Moscow Government, Head of the Department of Economic Policy and Development of the City of Moscow Vladimir Efimov: “In accordance with the legislation in force before November last year, the edition of the Tax Code of the Russian Federation applied a norm that allowed companies to be exempt from paying tax on movable property of organizations accepted on the balance sheet as fixed assets from January 1, 2013. However, in November last year, changes were made to the Tax Code of the Russian Federation, according to which the application of this benefit from January 1, 2020 is possible only if the relevant law is adopted by the constituent entity of the Russian Federation.

Is property tax paid if the apartment has a mortgage?

Important What documents may be useful for a citizen to exercise the granted right? The list of requested papers varies depending on the category to which the owner belongs.

In general, a citizen is required to:

application (original);
ID card (passport required);
a document certifying a citizen’s rights to a particular property (extracts, certificates);
pension certificate (if any);
military ID (required for men);
marriage/birth certificate (for military families);
certificates of disability;
any other evidence of belonging to a preferential category of citizens.

In fact, everything is not as difficult as it seems. From now on, it is clear who is exempt from paying property taxes for individuals.

Remembering federal beneficiaries is not that difficult.

Got a mortgage? Claim your personal property tax benefit!

Chairman of the Moscow City Duma Commission on Economic Policy and Finance Lyudmila Guseva, UNITED RUSSIA faction: “Taking into account the fact that the movable property of organizations is not only vehicles, but also all fixed assets of industrial enterprises, the bill is aimed, first of all, at supporting everything the real sector of the capital's economy and will affect, according to the most general estimates, more than 43 thousand organizations. This is the measure that Moscow industry expects from us. The introduction of a zero tax rate on movable property will not lead to a loss of budget revenue, but will allow Moscow industry to more actively modernize production, purchase new equipment, and introduce modern technologies. This bill once again shows that the city authorities are attentive to the interests of the business community and create conditions for the development of the economic potential of the capital.”

Moscow enterprises are exempt from movable property tax

You will have to pay the full amount of the accrued debt. About the deduction All citizens who own real estate can demand from the state a standard tax deduction for the payment under study.

It is aimed at reducing the tax base in calculations.

Thus, you can count on a reduction in the cadastral value of the property by:

10 “squares” - rooms;
20 square meters - apartments;
50 m2 - at home.

Real estate complexes provide a deduction of 1,000,000 rubles. No further features are provided. The deduction is due to all owners of the listed objects.

Those who are exempt from paying property taxes (in St. Petersburg or any other city), if they have several properties from the same category, can request a reduction in the tax base.

Thus, it is possible to obtain both a tax exemption and a reduction in payment for the second property.

Taxation of military personnel

Let us recall that until 2020, pensioners could boast of a more significant benefit, namely, they could not pay property tax on all real estate properties they owned.

From now on, if a pensioner owns several apartments, houses, utility buildings, garages, then they are required to choose one object from each category for which they will receive a benefit.

Citizens must notify the tax office of their decision before November 1; if the notification is not received, then the tax exemption will apply to the object with the highest tax amount.

Who is exempt from paying property tax: tax breaks

More and more often, people are thinking about the question of who is exempt from paying property taxes. What does every citizen of the country need to know and remember about this? In Russia, tax obligations cause a lot of trouble. However, sometimes you can free yourself from them. Some categories of citizens may not pay property taxes.

Below we will talk in more detail about how to obtain the appropriate benefit. Who has the right to it? Where can I apply for an exemption from real estate taxes? What is taxed First, you need to understand what objects of taxation will be taken into account when making the corresponding payment.

Not all property is taken into account when calculating property taxes.

The size of the pension in Russia leaves much to be desired. Therefore, when you retire, or even earlier, you can’t help but think about whether there are any tax benefits for pensioners.

Among the list of taxes established by law, the most relevant for persons who have reached retirement age are the following:

transport tax;
land tax;
property tax for individuals.

Later in the article we will look in more detail at what taxes pensioners do not pay or pay in smaller amounts. You can find out more about providing this or that tax benefit to pensioners by clicking on the appropriate link.

Benefits for transport tax Transport tax is a tax classified as regional, therefore it is enforced by the laws of the constituent entities of the Russian Federation and is subject to mandatory payment on their territory.

Source: https://agnbotulinum.com/ipotechniki-osvobozhdayutsya-ot-uplaty-naloga-na-imushhestvo/

Tax deduction as a type of benefit

When determining the tax base based on cadastral value, the law provides for the possibility of applying a tax deduction. It is expressed in a reduction in the tax base by the amount established by the Tax Code.

When calculating the amount of payment based on the cadastral value, the area of the property is subject to reduction by:

10 sq.m. for the room;
20 sq.m. for an apartment;
50 sq.m. for a residential building;
1 million rubles for a real estate complex.

Regional authorities have the right to independently establish the amount of tax deductions within the framework of federal legislation. Also, the authorities of a constituent entity of the Russian Federation have the right to regulate the tax rate and other nuances of the calculation and payment of property tax.