The State Tax Service explained when privatized rooms in dormitories are subject to real estate tax

The State Tax Service has clarified the procedure for taxation of privatized rooms in dormitories. Despite the fact that dormitories themselves are not objects of taxation by real estate tax, after privatization the room passes into private ownership and is subject to taxation.

When the obligation to pay tax arises

The State Tax Service reminded that citizens have the right to privatize residential premises in dormitories owned by territorial communities.

After privatization, the room becomes the private property of an individual. The owner can freely dispose of it – sell, donate, bequeath or use it in another legal way.

At the same time, such a room is considered an object of taxation by real estate tax, other than a land plot. For taxation purposes, it is equated to an apartment, since it is an isolated residential premises in an apartment building.

How is the tax base determined

The tax base is the total area of ​​the residential premises or its share.

For individuals, the law provides a benefit: the tax base for apartments, regardless of their number, is reduced by 60 square meters.

When the benefit does not apply

The Tax Service drew attention to the fact that the benefit does not apply if the privatized room is used to generate income.

In particular, this applies to cases when the housing is rented out, leased or loaned or used by the owner in entrepreneurial activities.

In such situations, the owner will pay real estate tax without applying the corresponding benefit.