Individual entrepreneur and enterprise calculation and payment of property tax
Average annual residual value of fixed assets of the enterprise and individual entrepreneur for taxation purposes Article 202 of the Tax Codewhat is basically defined.
This is the property tax if the fixed assets of the individual entrepreneur and the enterprise are insured at a price higher than their residual value corresponding to the market value of that property on the date of insurance is calculated by applying the property tax rate to the value (Article 14 of the Tax Code). The provisions of Article 202 of the Tax Code shall not be applied if the value of the insured fixed assets is determined taking into account the market price.
The tax period for the property tax of an individual entrepreneur and an enterprise is a calendar year.
Individual entrepreneurs and enterprises must pay property tax as current tax payments no later than the 15th of the second month of each quarter. This tax is calculated in the amount of 20 percent of the property tax amount for the previous year.
Newly established legal entities and individual entrepreneurs who are property tax payers, as well as those who were not property tax payers in the previous reporting year and are payers of this tax in the following year, must make their current tax payments no later than the 15th of the second month of the quarter following the quarter in which the fixed assets were acquired, equal to 20% of the annual property tax amount they have to pay interest.
Property tax refers to the amount of tax collected from the taxpayer for the tax year.
The amount of tax to be paid to the state budget for the reporting period is determined based on previously calculated payments during this period.
If current tax payments are not paid within the specified period, interest is charged to the taxpayer for unpaid current tax payments for each day that passes. (Article 59 of the Tax Code)
After the end of the reporting year, property tax is recalculated. If the calculated current tax amount is greater than the reported tax amount, the already calculated current tax and interest amounts are reduced.
An individual entrepreneur and enterprise must submit the annual declaration of property tax to the tax authority no later than March 31 of the year following the reporting year.
The declaration must be submitted within 30 days from the time the legal entity or permanent representative office of the non-resident submits the liquidation balance to the registration authority.
In cases of liquidation of individual entrepreneurial activity, a declaration must be submitted within 30 days from the date of submission of the application for removal from tax records.
Taxes on annual returns are paid by the deadline for filing these returns.
Property tax of individual entrepreneurs and enterprises is paid to the state budget.
Individual entrepreneur and enterprise determining the taxable value of property
For taxation purposes, the average annual residual value of the fixed assets of the individual entrepreneur and the enterprise is taken. The average annual residual value of the fixed assets of the individual entrepreneur and the enterprise is calculated as follows:
The residual value of the fixed assets of an individual entrepreneur and enterprise at the beginning and end of the reporting year is collected and divided into two. When calculating the average annual residual value of fixed assets of an enterprise and an individual entrepreneur, the increase (positive difference) arising from the revaluation of fixed assets is not taken into account.
- When an individual entrepreneur or enterprise is created (registered) during the reporting year or becomes a property tax payer:
the residual value at the end of the year and the date of creation (recording) of the fixed assets or the property tax payer is collected and divided by 24. Then, after the month of creation or becoming a property tax payer, it is multiplied by the months until the end of the year.
- If an individual entrepreneur or enterprise is liquidated or deregistered during the reporting year:
the residual value of fixed assets at the beginning of the year and the date of derecognition or liquidation is collected and divided by 24. It is multiplied by the number of months from the beginning of the year until the month when the individual entrepreneur was deregistered or the enterprise was liquidated.
- credit institutions reporting year during when declared bankrupt:
the residual value of his property at the beginning of the year and the date of bankruptcy is collected and divided by 24. It is multiplied by the number of months from the beginning of the year to the month of bankruptcy.
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