The tax system of the Russian Federation is arranged on the multi-level scheme. There are fees that are charged to the Federal budget, there are those that are sent to the regional Treasury, and there are those for calculation and collection of which the municipality is responsible. What are the local taxes and fees established in Russia? What is the procedure of their calculation and distribution?
Local taxes and levies is obligatory for the individual legal entities payments established by the tax code. Also sources of the law in this area can be local acts adopted by the authorities of the municipalities.
Local taxes include taxes on land and property tax. enter relevant obligations or cease its operation in accordance with the Tax code and normative acts adopted by the municipalities.
The distribution of powers
Consider how local taxes and levies are imposed in practice. When it comes to this type of municipality, city district, the powers of the authorities in connection with the establishment or termination of the respective payments shall be borne by the representative branch of local government or similar structure within the districts, subject, of course, that in the region of the Russian Federation adopted local acts on the delimitation of powers between these bodies.
Taxes in cities of Federal significance
If we are talking about the cities of Federal importance – Moscow, St.-Petersburg, Sevastopol, local taxes and fees regulated by NK and laws of the specified subjects of the Russian Federation. If to speak about establishment of appropriate charges, the authorities in cities of Federal significance can be associated with the regulation of the rates, procedure and terms of payment of fees – but only if tax code, no relevant definitions.
In turn, the legislative Assembly of the said cities can determine how to calculate the tax base, to install facilities.
Taxes of local government in the Russian Federation are charged under the following key principles.
First, a specific list of payments is determined by the level of Federal legislation, as well as the powers of municipalities related to the establishment, adjustment or cancellation of taxes and fees.
Second, if the region is provided such administrative-territorial units like districts, then they may set the permissions associated with the regulation of taxes and fees that are adopted for settlements and districts.
Third, the relevant payments are designed to fill local budgets. Taxes and fees, thus, is among the key mechanisms of financial support of municipalities. Payment rates are set by the legislative authorities of the local territorial entities. Also, the tax code provides the standards of appropriate enrollment fees and taxes to the budget of the municipality.
Fourth, if we are talking about a separate Treasury settlement which is part of the district, then it may be credited to the revenues from local taxes and fees under the rules of realization of fiscal policy at the appropriate level, enshrined in Federal legislation.
Aspects of setting taxes and fees
Let us consider some key aspects related to the establishment of this type of payments. As we have noted above, among the local are taxes on land and property. Key nuances of their establishment at the district level, districts and Federal cities we explored. It is useful however to note what regulations governed the establishment of local taxes and fees associated with the property and land. This is primarily NK of the Russian Federation and FZ, adopted on 9 December 1991 “On tax on property of physical persons”. Establishes local taxes and duties the tax code. However, this aspect can also be used and local regulations of the municipalities.
Who pays local taxes and fees? It all depends on the type of commitment involved. Consider this nuance in more detail.
Who pays in the local budget?
If we are talking about land tax, the obligation to pay may be imposed both on individuals and on organizations that own the land by right of ownership, perpetual use or inheritable possession. That is, it can be noted that if the person or firm renting the land, obligations for the payment of the corresponding taxes they carry.
With regard to the tax on property of physical persons, then it must pay all owners of property falling under the category listed in the relevant laws. Thus, the objects of taxation are houses, cottages, apartments, and garages and other buildings. That is, the local taxes and fees of the Russian Federation in this aspect, somehow related to real estate.
The calculation of taxes
The corresponding estimated payments to the local Treasury in accordance with the recommendations set forth in the letters of the FTS and the Ministry of Finance. With regard to land tax, it is possible to be guided by the wording of the letters of the Finance Ministry dated 9 April 2007, No. 03-05-05-02/21 and dated 6 June 2006, No. 03-06-02-02/75.
Having considered the types of local taxes and fees, examine the aspect rate set by law for this type of payment.
How to determine the value for land tax? Rate is determined, as we have identified above, authorities of the municipalities or cities of Federal importance, however, in accordance with the provisions of the tax code, they can not be higher than 0,3% of the cadastral value of the land, if we are talking about the land for agricultural purposes, or those used in housing, infrastructure, utilities, and also involved in housing construction. In turn, if the object of taxation – land for the garden, personal services, farming, the marginal rate is higher at 1.5%. The authority of the municipality may differentiate the corresponding figure depending on the specific category owned by citizens or organizations of the land.
Rates for property
As for the property tax, the scheme is more complicated. The fact that in relation to property of physical persons taxes, local charges in the Russian Federation is now part of the transition models due to some reforms in the legislation. For a long time, the payment was calculated on the basis of the inventory value of the property. According to the amendments to the tax code of the Russian Federation 2020, the basis of determining the taxable base will be the cadastral already rates that are generally close to the market. However, the amendments to the tax code to allow for the transition of some Russian regions to a new model now. What are, therefore, particularly possible scenarios of calculation of property tax?
The first option – the region still has not taken practical steps to transition to the new tax regime. In this case, when calculating the appropriate tax will be used by the old rules that were laid down in the tax code. If the estate is not more than 300 thousand rubles, then the limit can not be greater than 0.1%. If from 300 to 500 thousand then the minimum rate is 0.1%, max – 0,3%. If the property is worth more than 500 thousand rbl. the minimum rate is 0.3%, maximum – 2%. The corresponding values in the framework are fixed in the tax code intervals has the right to establish a municipality.
The second option – the region have adopted regulations that allows you to proceed to the practical implementation of new innovations are marked with the amendments to the tax code. In this case up to 2020 will operate a transitional formula property of the collection.
First define the General size of the tax base is the cadastral value of housing. Is calculated corresponding figure of bodies of Federal registration service and entered into the database, access to which is possible through the Internet.
Later, the figures reflect cadastral value of the property, applies the statutory deduction based on the square of the object. For apartments it is a 20 sq m, bathroom 10 sq. m. Next, calculate the base amount to be paid according to the bet, which is also approved by the municipality. Its the interval of 0.1-0.3%. However, it is possible to note the fact that the region has the right to cancel the bet. The next step applies a reduction factor that is used to relieve the tax burden for citizens in the transition period until 2020. It is multiplied by the number equal to the difference between the fee calculated under the new formula, and tax, which is determined on the basis of previous formulas that we presented in the first scenario. The result of the calculation is added to the number that you get when you calculate the tax under the old scheme. This will be the amount payable to the local budget.
The value of the coefficient in 2015 and 0.2 in 2016- 0,4. But in 2019 he will not be used. By 2020, all regions of the Russian Federation will adopt a model for the calculation of the tax base of real estate based on its cadastral value.
Such scheme of calculation of property charges under the Russian taxation system. It is more complicated than the mechanism adopted, for example, in Belarus: there is a fixed rate – 0,1%. However, according to some experts, determining the value of the object of taxation is in the Republic of Belarus for several other, a number of features more difficult, than in Russia, schemes. In principle, it is possible to note that local taxes and duties of Belarus do not coincide with those established in the Russian Federation. For example, such payments in accordance with the Tax Code of Belarus, form a tax on the possession of domestic dogs, and fees resort and purveyors.
Crediting to the budget
What will charge the local taxes of the Russian Federation, as well as how they are installed and calculated, we have learned. Consider the aspect of practical use by the municipality appropriate financial source. In accordance with article 61.1 of the Budget code of the Russian Federation in local budgets shall be credited 100% of the sums received as taxes on land and property tax. In turn, the Treasury settlements that are part of the district can be replenished on the basis of the decisions of the authorities of the municipality.
We determined the types of local taxes and fees fixed in the tax code that form the basis for the coffers of the municipalities. However, cities and regions, forming a local government level in the political system of the Russian Federation, also have other resources to Supplement their budgets. Some scholars associate the concept of local taxes and duties not only with specific language in the laws, but with the actual mechanisms that are provided at the appropriate level of political control.
Thus, the subject term, experts say, in some cases, it is permissible to interpret wider than it is provided in particular in Federal legislation. In this sense, local taxes include not only land and property, but also any who in one way or another is able to replenish the coffers of the municipality. Let's consider them.
Regional taxes - to the municipal treasury
The Tax Code of the Russian Federation provides for the collection of payments that are classified as regional. There are relatively few of them. These include taxes:
– on the property of legal entities
Strictly speaking, the municipality has nothing to do with the level of payment collection. However, in practice, often there is a redistribution of the financial resource between different levels of state budget system. The reason for this is certain relevant laws regulations. Thus, the Budget code of Russia determines that a Russian Federation constituent regions may set appropriate standards for settlements and municipalities, calculated on the basis of regional taxes and fees. Similarly, in the cities of Federal subordination.
The appropriate type of intergovernmental cooperation, within which part of a regional payments transferred to local budgets are regulated by laws adopted at the level of authorities of subjects of the Russian Federation. The norms of deductions, as noted by some experts, are typically characterized by stability.
Scheme of intergovernmental interaction can be different. For example, in some cases, the subjects of the Russian Federation have the right to set standards, involving contributions to the municipal budgets subsidies instead of the respective territorial units, used for the purpose of equalizing the level of financial security of settlements. In this case the law of the Russian Federation is the wording according to which such initiative of the regional government should negotiate with the local.
Federal taxes for municipalities
Interesting is the fact that the Treasury MO can be replenished also at the expense of Federal payments. This is despite the fact that the city or the district, as in the case of regional taxes, from the point of view of the wording of the tax code are irrelevant to this level of taxation. But they are eligible for a substantial cash receipts due to Federal taxes in your budget.
Thus, the list of local taxes and fees in the aspect of a broader understanding of these phenomena is complemented by other financial resources accessed by cities and areas. In particular, the Budget code of the Russian Federation captures a single for municipalities regulations, under which a portion of certain types of Federal taxes must be deposited in the local Treasury.
Payments in question form the following list:
- tax on business profits;
- tax on the extraction of minerals;
- fees charged for the use of biological resources and objects of wildlife.
Also at the Federal level may apply to payments reflecting the special modes. What is the size of standards, in which part of the relevant taxes may be credited to the Treasury of the municipalities? Much depends on the specific territorial unit. For example, if we are talking about settlements in respect of them from the standard personal income tax – 10%. In turn, if we are talking about municipal district, from Federal personal income tax they deducted 20%. Pretty decent rate established for the imputed income. From this tax to the Treasury areas shall be transferred 90% of the payments. It can be noted that at the rate of 100% to budget urban settlements are fees for notary services and the issuance of permits to transport certain types of cargo.
What can the city district in terms of receiving part of Federal taxes? In relation to this type of municipal territories laws also contain a number of privileges. So, from personal income tax urban settlement can get 15%. In turn, the standard established in respect of imputed income and agricultural tax, – 100%. Also, if the owner uses the patent system of taxation, 100% of the taxes paid by them go to town. This type of municipal formation also can get in your budget money in accordance with the additional regulations, in particular, this applies to personal income tax if the authorities of the region will take the appropriate decision.
Taxes are diverse
Thus, we capture the fact that local taxes is sufficiently multifactorial phenomenon, which, according to some experts, acceptable to fix two basic mechanisms operating in the tax system of the Russian Federation. First, it is classified on the level of Federal legislation payments – land and property tax collection for individuals. secondly, it is of regional and Federal taxes, by which the local budget somehow gets the funding.