RBC: The Ministry of Finance proposed to levy a cadastral tax on all business real estate

The Ministry of Finance plans to switch to taxation of all real estate of organizations at the cadastral value until 2025, reports RBC. Currently, only a part of the objects is taxed at the book value.

According to the draft of the Ministry of Finance, which is at the disposal of RBC, the changes will create a “fair competitive environment” and “equalize the tax burden for organizations and individuals.” However, the document notes that some structures will become exceptions, for which they will continue to establish a tax at the cadastral price. Details, according to RBC, are not given.

At the moment, following the general rule, organizations pay real estate tax based on the average annual book value of the object, which is determined minus the depreciation of the structure. Each region of Russia independently sets the tax rate, but it cannot exceed 2.2%.

For shopping and business centers, real estate objects of foreign companies, residential premises, garages, as well as public catering facilities, according to the Tax Code of the Russian Federation, taxation is determined by the cadastral value of objects. For them, the rate is also set by the region, but within 2% of the cadastral price.

Previously, the Ministry of Finance suggested collect tax from organizations based not on the book value, but on the cadastral value of the object. In 2020, the head of the department, Anton Siluanov, supported the idea, but drew attention to the risks of increasing the burden on business. According to Mr. Siluanov, from 2020, about 40% of the objects were taxed at the cadastral value, with 60% of the objects the tax was paid at the book value.

Milena Kostereva