Since 2017, automation of real estate tax returns using a notary
The contracts submitted by notaries have so far played a supervisory role, and now they will play the role of a tax return.
In the system of taxation of real estate turnover since 2017, in addition to the abolition of the exemption for the purchase of the first real estate and the reduction of the tax on real estate turnover from 5% to 4%, another new rule is introduced, which practically rewards the establishment of a contract of sale with a notary.
Namely, it is a simplification of the registration of real estate sales tax under the new Law on Real Estate Sales Tax only for purchase and sale contracts concluded with a notary. The contracts submitted by notaries have so far played a supervisory role, says auditor Dubravka Kopun, and from January 1, 2017 they will have the role of a real estate tax return.
“As a result, the need for notification by the acquirer ceases, which is the first case in our tax system that the processes are fully automated and the act of an activity such as the conclusion of a contract declares the occurrence of a tax liability from bodies with public law powers, and not from the taxpayer himself. The solution is certainly welcome because it accepts the already developed culture of concluding these contracts between natural persons with the help of notaries, while for commercial companies it is standard anyway,” says Kopun.
Tax experts believe that this is an important step in simplifying procedures, since until now there was an obligation for the acquirer to declare real estate sales tax regardless of the fact that notaries have declared all contracts concluded relating to real estate ex officio. But if the contract is not concluded with a notary, they warn that further the acquirer is obliged to submit a real estate tax return within 30 days. A similar example of automated tax returns is provided for by amendments to the Income Tax Code. That is, it provides for the calculation of capital income from the title of investments in shares through automated systems that will be provided by brokerage companies or SKDD.
In this case, it is new that all those who invest in the stock market for a short time no longer submit their tax return on their own, but can do it for them by brokerage companies or SKDD, and this solution includes the automation of the application in relation to the income of 2017, which means that it will be reflected in the declarations until February 28 in 2018. By the way, here too, as with other legislative interventions in tax regulations, a legal provision is included again, which obliges the Ministry of Finance to carry out a subsequent assessment of the legal effects within two years from the date of entry into force of the new law.
published on 21.03.2017 year