Land tax declaration
According to the tax code of the Russian Federation, land assets are subject to land tax. The tax period for land tax is one year. At the end of the tax period, a company must report a land tax declaration.
The land tax declaration should be submitted to the tax authority where the land is located. In this case, code 270 should be entered for the at place of attribute. However, the greatest taxpayers can submit declarations to the tax authority where the organization is registered as a greatest taxpayer. In this case, code 213 should be entered for the at place of attribute.
The tax base for the calculation of land tax is the cadastral cost of the land asset. The cadastral cost is defined by cadastral authorities and should be specified by the user on the fixed asset card.
This article explains how to perform the following tasks:
Set up land tax
Here is an overview of the steps for setting up land tax:
Optional: Set up company divisions, their registration reason codes (KPP), and their OKTMO codes
Set up the organization's locations and assign them to company divisions
Set up land tax codes and rates
Go to Tax > Indirect taxes > Sales tax > Sales tax codes.
Create a sales tax code.
In the Type of tax field, select Land tax.
Specify the settlement period and the ledger posting group.
On the Action Pane, on the Sales tax code tab, in the Sales tax code group, select Values to open the Sales tax code values page.
In the Value field, specify the tax rate for the assessed tax.
Set up budget revenue codes for land tax
Go to Cash and bank management > Setup > Payment order setup > Budget revenue classification.
Create a budget revenue code for land tax.
Assign a budget revenue code to a sales tax code
Go to Fixed assets (Russia) > Setup > Tax reporting > Sales tax relations.
Create a record.
In the Type of tax field, select Land tax.
In the Code field, select the sales tax code for the land tax.
In the Budget revenue code field, select the budget revenue code that corresponds to the selected sales tax code.
Set up tax allowances
Go to Fixed assets (Russia) > Setup > Tax reporting > Tax allowances.
Create a record.
Set the following values for the tax allowance.
Field Description Privilege Enter the tax allowance code. Type of tax Select Land tax. Benefit type Select the type of tax allowance. The following values are applicable to land tax allowances: Exemption from tax, Tax base reduction, Reduction of tax rate, Reduction of tax amount, and Non-taxable area share. Name Enter the name of the tax allowance. Allowance value Define the tax allowance value, depending on type of tax allowance that you selected in the Benefit type field: Exemption from tax: Don't define the allowance value, because exemption from tax is always considered 100 percent, and the tax amount is 0 (zero).
Tax base reduction: Define the amount, in the local currency, that is reducing the tax base amount for each asset.
Reduction of tax rate: Define the percentage of the tax rate reduction. For example, if the tax rate is 10 percent, and the allowance value is 2 percent, the reduced tax rate is 8 percent.
Reduction of tax amount: Define the amount, in the local currency, that is reducing the calculated tax amount for each asset.
Non-taxable area share: A value will be defined for each land asset in the fixed asset record.
Assign tax allowances to a sales tax code as a reduction of the tax rate, a reduction of the tax amount, and a tax base reduction
Go to Fixed assets (Russia) > Setup > Tax reporting > Sales tax relations.
Select the record for the sales tax code.
In the Allowance by reduction of rate, Allowance by reduction of tax, and Tax base reduction (p.2 art.387) fields, select the appropriate tax allowances, if they are applicable to the sales tax code.
Set up the territory code (OKTMO code) for the legal entity
Go to Organization administration > Organizations > Legal entities.
On the Addresses FastTab, select More options > Advanced.
On the Manage addresses page, on the Registration ID FastTab, create a line.
In the Registration type field, select the registration type for OKATO/OKTMO.
If the required registration type isn't listed, follow these steps to add it:
On the Registration types page (Organization administration > Global address book > Registration types > Registration types), create a registration type.
On the Registration categories page (Organization administration > Global address book > Registration types > Registration categories), assign the new registration type to the RCOAD registration category.
In the Registration number field, enter the OKTMO code for the legal entity's location.
Set up tax authorities and related OKTMO codes
You must create the tax authorities that you're required to report assessed tax declarations to.
Go to Tax > Indirect taxes > Sales tax > Sales tax authorities.
Create a tax authority.
Set the Authority and Name fields.
In the STI code field, enter the four-digit code for the tax authority.
In the Vendor account field, select the vendor account party that is associated with the tax authority.
Define the main OKTMO code for the tax authority on the vendor account:
In the record for the vendor account, on the Addresses FastTab, select More options > Advanced.
On the Registration ID FastTab, add a line.
In the Registration type field, select the registration type for OKATO/OKTMO.
In the Registration number field, enter the OKTMO code.
Note
For realty objects that are located at the organization's main location, the tax authority that assessed tax is reported to is defined as the tax authority that has the same OKTMO code as the legal entity.
Optional: Set up company divisions, their registration reason codes (KPP), and their OKTMO codes
If the organization has land assets that are located in territories that differ from the organization's main location, or if the organization has separate subdivisions, you should set up company divisions.
Go to Organization administration > Setup > Separate divisions.
Create a company division.
In the Separate division ID field, enter the identification code for the division.
In the Name field, enter the name of the division.
In the Vendor account field, select the vendor account number that is associated with the division. If there is no vendor account for the company division, create one.
Define the OKTMO code for the company division on the vendor account:
In the vendor account record, on the Addresses FastTab, select More options > Advanced.
On the Registration ID FastTab, add a line.
In the Registration type field, select the registration type for OKATO/OKTMO.
In the Registration number field, enter the OKTMO code.
Repeat step 6 to define the KPP code for the separate division on the vendor account. In the Registration type field, select the registration type that is associated with the KPP registration category.
Set up the organization's locations and assign them to company divisions
If the organization has land assets that are located in territories that differ from the organization's main location, or if the organization has separate subdivisions, you should set up organization locations and assign them to company divisions.
Go to Fixed assets (Russia) > Setup > Location.
Select an existing location, or create a new location.
On the General FastTab, in the Separate division ID field, select the company division that you created in the previous procedure.
If the Separate division ID field is left blank, the location is the same as the location of the organization's head office.
Note
For land assets that are located in territories that differ from the organization's main location, the tax authority that land tax is reported to is defined as the tax authority that has the same OKTMO code as the separate division that is associated with the land location.
For information about how to associate a fixed asset with a location, see the Specify the location of the land section later in this article.
Set up territories for distributed land assets
If a land asset is distributed among several territories, it should be reported under the appropriate OKTMO code. You should set up distribution territories, assign an OKTMO code to each territory, and associate the OKTMO codes with tax authorities.
Go to Fixed assets (Russia) > Setup > Tax reporting > Distribution.
Create a territory.
Set the Territory and Name fields.
Select the sales tax code that is applied in the territory.
In the RCOAD field, select the OKTMO code for the territory. Only OKTMO codes that are associated with the tax authority of the sales tax code are available for selection. If no OKTMO code is available, follow these steps:
Select the link for the sales tax code to open the Sales tax codes page.
Select the link for the settlement period code to open the Sales tax settlement periods page.
Select the link for the authority code to open the Sales tax authorities page.
On the Action Pane, select RCOAD codes.
Create lines for the OKTMO codes that are related to the tax authority.
Note
Alternatively, create all the OKTMO codes, and then assign a code to the tax authority on the RCOAD codes page (Tax > Setup > Sales tax > RCOAD codes).
Set up Fixed assets parameters for posting land tax
Go to Fixed assets (Russia) > Setup > Parameters.
On the Number sequences tab, for the Assessed tax registers journal number reference, select a number sequence for the tax register.
On the Tax reporting tab, in the Land tax section, in the Sales tax code field, select the default sales tax code for land tax.
In the Compression field, select the level of compression for land tax transactions:
Tax – A detailed ledger journal for land tax transactions will be created for each sales tax code.
Total – A ledger journal for land tax transactions will be created as one line that has the default sales tax code.
Close the page.
Set up the journal for posting land tax
If land tax transactions will be automatically created based on calculated tax registers, you should set up a journal.
Go to General ledger > Journal setup > Journal names.
Create a line.
Set the Name and Voucher series fields.
In the Journal type field, select Land tax.
Set up a posting group for land tax postings
If land tax transactions will be automatically created based on calculated tax registers, you should set up posting groups.
Go to Fixed assets (Russia) > Setup > Tax reporting > Group of posting of taxes.
Create a line.
In the Ledger posting group field, select a ledger posting group for land tax.
If no ledger posting group is listed, create one. In the Sales tax payable field, enter the ledger account code for posting land tax.
In the Account for FA taxes field, select a ledger account for the land tax expenses.
Make sure that the Sales tax payable field is set to the ledger account code that you entered for the ledger posting group in step 3.
Create a land asset and set up parameters for land tax calculation
Here is an overview of the steps for creating a land asset and setting up parameters for land tax calculation:
Create a land fixed asset and define parameters for land tax calculation
Specify the distribution for a land asset that is located in several territories
Change the cadastral cost of land and specify the tax allowance history
Create a land fixed asset and define parameters for land tax calculation
Go to Fixed assets (Russia) > Common > Fixed assets.
Select an existing fixed asset, or create a new fixed asset.
On the General FastTab, in the Type field, select Ground area.
In the Flag of ownership field, select whether the fixed asset is owned, under operational management, leased, or owned by someone who is outside Russia.
On the Technical information FastTab, set the Category and Cadastral number fields for the land asset.
Set the Start date of building field if the land was acquired for housing construction. Special coefficients that depend on the building period will be applied to land assets of this type when land tax is calculated. If the construction period exceeded three years during the tax period, the land tax declaration will include two occurrences of Section 3: one occurrence for land tax before three years passed and one occurrence for land tax after three years passed.
On the Tax reporting FastTab, in the Land tax section, in the Tax base field, enter the cadastral cost of the land.
In the Sales tax code field, select the sales tax code for the assessed tax calculation.
If you partially own the fixed asset, in the Owned share numerator and Owned share denominator fields, define your ownership share as a simple fraction.
Specify the location of the land
By default, the assumption is that land assets are located at the organization's location and reported to the tax authority in the legal entity's territory. (The OKTMO code of the tax authority matches the OKTMO code of the legal entity, and land assets are reported under the same OKTMO code.)
If the organization has land assets that are located in different territories and registered in different tax authorities, you must specify the location of the land asset.
Go to Fixed assets (Russia) > Common > Fixed assets.
Select the line for the land asset.
On the Action Pane, on the Fixed asset tab, in the History group, select Transfer.
Create a line.
Set the Date and New location fields.
Specify the distribution for a land asset that is located in several territories
Go to Fixed assets (Russia) > Common > Fixed assets.
Select the line for the land asset.
On the Action Pane, on the Fixed asset tab, in the Distribution group, select Distribution.
Create a line.
In the Location field, select a territory.
Review the values in the RCOAD and Sales tax code fields. These values are automatically entered from the territory location record.
In the Tax base field, specify the cadastral cost of the land in the specified territory.
If you partially own the fixed asset, in the Owned share numerator and Owned share denominator fields, define your ownership share in the specified territory as a simple fraction.
Note
When the line for the change in cadastral value is created, the Tax base and Sales tax fields in the fixed asset record can no longer be edited.
Change the cadastral cost of land and specify the tax allowance history
The cadastral cost of a land asset might change because of a change in qualitative and quantitative characteristics. Follow these steps to record a change in cadastral value.
Go to Fixed assets (Russia) > Common > Fixed assets.
Select the line for the land asset.
On the Action Pane, on the Fixed asset tab, in the History group, select Tax reporting data.
Create a line.
In the Period field, specify the month when the cadastral value is changing.
In the Tax base field, specify the new cadastral value of the land. Also specify any other values that have changed: Category, Cadastral number, Owned share numerator, or Owned share denominator.
Note
If this change is the first change in cadastral value, you must also create a line for the previous values that were originally entered in the fixed asset record.
When the line for the change in cadastral value is created, corresponding fields in the fixed asset record can no longer be edited. They show the actual values from the tax reporting data history record.
Use the History of tax reporting data page to define the history of tax allowance changes.
In the Land tax exemption (art 387) field, specify the code for the tax allowance as an exemption from tax in accordance with federal law. Alternatively, in the Land tax exemption (art 395) field, specify the code for the tax allowance as an exemption from tax in accordance with regional law.
Set the Land tax allowance as non-taxable share field, if it's applicable.
When the values for tax allowances are added, corresponding fields in the fixed asset record show the actual values from the tax reporting data history record.
Change the cadastral cost of a distributed land asset
If the cadastral cost of a land asset that is located in several territories changes, follow these steps to specify the new cadastral cost in each territory.
Go to Fixed assets (Russia) > Common > Fixed assets.
Select the line for the land asset.
On the Action Pane, on the Fixed asset tab, in the Distribution group, select Distribution.
Select the line for the distribution, and then, on the Action Pane, select History.
Create a line.
In the Period field, specify the month when the cadastral value is changing.
In the Tax base field, specify the new cadastral value of the land. Also specify any other values that have changed: Owned share numerator or Owned share denominator.
Note
If this change is the first change in cadastral value, you must also create a line for the previous values that were originally entered in the distribution record.
When the line for the change in cadastral value is created, corresponding fields in the distribution record can no longer be edited. They show the actual values from the history record.
Calculate land tax registers
After you've finished the setup, registered the acquisition of land assets, and set up all land asset parameters for land tax calculation, you must calculate land tax registers. The following tax registers are available:
Land tax – ground areas – This tax register calculates land tax for each land asset. For each land asset that is located in a territory that is specified by an OKTMO code, the register shows the following information:
- The land category and cadastral number.
Design and building period – The possible values are 3 years and More than 3 years.
The cadastral cost, and the owned share as a simple fraction.
Tax allowance codes and amounts.
The tax base in the specified territory and the tax rate.
The ownership period and factor, if the land was acquired or sold during the period, or if the housing building period exceeded three years during the period.
The cost change period and factor, if the cadastral cost changed during the period.
Calculated advance payment/Tax – If the tax register is calculated for the first quarter, second quarter, or third quarter, the tax advance amount before tax allowances are applied as a reduction of the tax rate or a reduction of tax amount. If the tax register is calculated for the year, the land tax amount before tax allowances are applied as a reduction of the tax rate or a reduction of the tax amount.
Advance payment amount/Tax amount – If the tax register is calculated for the first quarter, second quarter, or third quarter, the final tax advance amount. If the tax register is calculated for the year, the final land tax amount.
Land tax – This tax register calculates total land tax amounts for each sales tax code and OKTMO code.
To calculate and approve land tax registers, follow these steps.
Go to Fixed assets (Russia) > Journals > Tax register journal.
Select New.
In the Type of tax field, either select Land tax to create a journal only for land tax registers, or leave the field blank to create a journal for all the asset's taxes (assessed tax, land tax, and transport tax).
In the Period types field, select one of the following values:
Quarter – Generate a journal for the calculation of land tax advance payments.
Years – Generate a journal for the annual land tax calculation.
In the Period number field, if you selected Quarter in the Period types field, enter the number of the quarter. If you selected Years, enter 1.
In the Years fields, enter the reporting year in YYYY format.
Select OK to create the journal.
Select Lines to create lines in the periodic register journal.
You receive a message that states, "Register journal has not been created yet. Do you want create it?" Select Yes.
Review the tax registers that are created. For land tax, the following registers are created: Land tax – ground areas and Land tax.
To calculate a specific tax register in the journal, select the register, and then select Calculate current. To calculate all tax registers in the journal, select Calculate all.
Select OK.
Select a tax register, and then select Register lines to review the calculated lines.
Select Print to print the tax register lines in Microsoft Excel.
Select Reset status to reset the status of the calculated register to Not calculated.
After you've finished reviewing the data in the tax registers, select the Approved check box to approve each register.
In the Worker field, view or change the code for the employee who approved the register.
Create and calculate corrective tax registers
If you've corrected any land asset data for the previous periods, you should create corrective tax registers to reflect the corrected land tax amounts.
To create corrective registers, follow these steps.
Go to Fixed assets (Russia) > Journals > Tax register journal.
Select the approved journal for the period that must be corrected.
Select Correction > Corrections to current journal.
Select New.
In the Type of tax field, either select Land tax if you must correct only land tax registers, or leave the field blank if you must correct all the asset's tax registers.
Make sure that the Period types, Period number, and Years fields are set to values that are appropriate for the period of the register that you're correcting.
Select OK.
Create tax register lines, and calculate and approve the tax registers as described in the previous procedure.
Generate a land tax declaration
Set up the system to generate a land tax declaration
In Microsoft Dynamics Lifecycle Services (LCS), in the Shared asset library, download the latest versions of the Electronic reporting (ER) configurations for the land tax declaration.
For example, to generate the land tax declaration for the year 2018 reporting period, download the latest version of the following configurations:
Assets declarations model
Land tax declaration model mapping
Land tax advance calculation format 5.06
For more information, see Download Electronic reporting configurations from Lifecycle Services.
You can upload Data management package settings to work with the assessed tax declaration. Follow these steps:
In the LCS Shared asset library, select Data package as the asset type.
Download the package that is named RU Land tax declaration v5.06 (2018). The file that is downloaded is named RU Land tax declaration v5.06 (2018).zip.
In the Data management workspace, select Import.
In the Job details section, set the following values:
Enter a name for the job.
In the Source data format field, select Package.
Select Upload next to the Upload data file field, and then select the RU Land tax declaration v5.06 (2018).zip file that you downloaded earlier.
After the data entities are uploaded, select Import.
Go to Tax > Setup > Electronic messages > Electronic message processing, and validate the electronic message processing that is imported. (Most of the data that is imported is presented in the Russian language.)
Processing Processing code Name Land tax declaration ЗемНалог 5.06 (2018) Декларация по земельному налогу (2018) Set up the ER format that is run when accounting reporting is generated in electronic format:
Go to Tax > Setup > Electronic messages > Message processing actions.
Select the Generate ZEMND 5.06 action, and then select Edit.
Set the Show dialog option to Yes.
In the Format mapping field, select the Land tax declaration format 5.06 ER configuration that you downloaded earlier.
Generate a land tax declaration
Before you can generate the land tax declaration for a tax year, you must calculate the land tax register for the same year, and for the first quarter, second quarter, and third quarter of the same year. The advance payment amount for land tax that is exported in the land tax declaration is taken from the tax registers that were calculated for the first quarter, second quarter, and third quarter.
Go to Tax > Inquiries and reports > Electronic messages > Electronic messages.
Select the report format to generate.
For example, to generate a land tax declaration in XML format for the year 2018, select ЗемНалог 5.06 (2018).
On the Messages FastTab, select New.
In the Run processing dialog box, select OK.
Select the message line that is created, and enter a description.
Enter a start date and end date for the report.
To generate a land tax declaration, enter the year period. For example, for the year 2019, enter 01.01.2019 in the From date field and 31.12.2019 in the To date field.
Optional: For a corrective declaration, on the Message additional fields FastTab, on the line for the CorrectionNumber field, in the Field value field, enter the number of the correction.
On the Messages FastTab, select Update status.
In the Run processing dialog box, select OK.
Validate that the message status has been changed to Ready to generate.
On the Messages FastTab, select Generate report.
In the Electronic reporting parameters dialog box, on the Parameter FastTab, set the following values.
Field Description At place of Select the place where the declaration is submitted: Ground location or Registration of the largest taxpayer. Correction number Enter the number of the correction if you didn't specify it in step 7. Signatory type Select the person who signs the accounting reporting: Taxpayer or Representative. Signatory first name, Signatory middle name, Signatory last name Enter the full name of the signatory. Representative company If you selected Representative as the signatory type, and if the representative is an organization, enter the name of the organization. Representative document If you selected Representative as the signatory type, enter the document that confirms the representative's authority. On the first Records to include FastTab, apply a filter for separate divisions, if this type of filter is applicable. In this case, declarations will be generated only for the selected separate divisions.
On the second Records to include FastTab, apply a filter for tax authorities, if this type of filter is applicable. In this case, declarations will be generated only for the selected tax authorities.
Select OK.
When the report is generated, the status of the message is changed to Generated. If an error occurs during generation, the status is changed to Technical error.
On the Action log FastTab, review all user actions for the current message.
To review the report that is generated, select the Attachments button (the paper clip symbol) in the upper-right corner of the page, and then select Open to view the file.
You must also manually upload the generated file to the special third-party software for data preview, data updates, and transfer of the land tax declaration files to the tax authorities through the communication channels.
Create and post land tax ledger transactions
After you've calculated and approved tax registers, and generated a land tax declaration, you can create transactions for land tax accruals. Following these steps.
Go to Fixed assets (Russia) > Journals > Tax register journal.
Select the journal, and then select Ledger journal > Land tax.
Select New.
In the Name field, select the name of the land tax journal.
Select Lines to view the journal lines that have land tax accrual transactions that were created based on the tax register data and the settings of Fixed assets parameters.
Validate and post the journal.