Features of real estate tax calculation by organizations when renting property from individuals (including individual entrepreneurs)

For capital structures (buildings, constructions), their parts, located on the territory of the Republic of Belarus and leased by organizations from individuals, including those registered as individual entrepreneurs, the lessee organization is recognized as the taxpayer of the real estate tax (sub-paragraph 3 of paragraph 1 of Article 226 of the Tax Code of the Republic of Belarus (hereinafter referred to as the Tax Code).

Thus, if an organization has leased a capital structure from an individual (including an individual entrepreneur), it is obliged to calculate and pay the real estate tax for this object.

For the calculation of the real estate tax, the tax base for capital structures leased (used) from individuals is determined based on their value indicated in the lease agreements, but not less than the value of these objects determined based on their appraisal (paragraph 2 of Article 229 of the Tax Code):

- based on the appraised value of capital structures determined by territorial organizations for state registration of real estate, rights to it and transactions with it upon the request of owners as of January 1 of the current year;

- indicated in the appraisal report (market value) of capital structures as of January 1 of the current year, compiled by a legal entity or individual entrepreneur engaged in appraisal activities;

- determined in the manner established by paragraphs 2-4 of Article 229 of the Tax Code.

For example, if there is no value in the lease agreement, as well as appraised or market value in 2023, the tax base for the real estate tax is determined based on the calculated cost of one square meter of a typical capital structure (building, construction) and the total area (for parking spaces - the area) of the taxable object.

The calculated cost of one square meter (one meter) of a typical capital structure (building, construction) as of January 1, 2023, is established in Appendix 32 to the Tax Code.

The annual real estate tax rate for organizations-taxpayers is set at one (1) percent for capital structures (buildings, constructions), their parts.

The real estate tax is calculated at a rate increased (decreased) in accordance with the decision of the local Council of Deputies at the location of the taxable objects.

Furthermore, please note that the tenant organization is obliged to submit a copy of the acceptance-transfer certificate, attached to the lease agreement concluded with an individual (including an individual entrepreneur), as well as a copy of the addendum to such agreement to the Ministry of Taxes and Levies inspectorate at its place of registration within 30 calendar days from the date of preparation of such documents (sub-clauses 3, 5 of clause 18 of Article 232 of the Tax Code).