The transition to calculations based on the cadastre hit business in the capital hard. For many players, the amount of property tax and rental payments has increased tenfold in just a couple of years. To sweeten the pill, the authorities introduced relaxations for individual owners. Among the “lucky ones” are educational, medical and scientific organizations, as well as legal entities providing social services. Thanks to special benefits, such companies can save hundreds of thousands of rubles on real estate maintenance. What preferences are we talking about, and how to use them correctly, in the expert article by lawyer Oleg Sukhov (Legal Center of Lawyer Oleg Sukhov).
1. Tax reduction by 4-10 times for “socially important” businesses
It should be admitted: in their attempts to fill the treasury, capital officials do not forget about supporting industries important to the city. Thus, organizations that work in education, medicine and science, but are located in shopping and business centers taxed at cadastral value, can count on a 4-fold reduction in the fiscal burden (according to clause 2 of article 4.1 of the Law of the city). Moscow dated November 5, 2003 No. 64 “On the property tax of organizations”). Let me explain with an example. The medical clinic owns a premises with an area of 400 square meters. m in one of the office buildings of Maryina Roshcha. The cadastral value of the object is 54.4 million rubles. Under general conditions, payment of property tax at the current rate of 1.4% would amount to 761.6 thousand rubles per year for the company. However, taking into account the benefits, the medical center will have to pay only 25% of the initial amount to the budget - 190.4 thousand rubles.
Getting a “discount” from the authorities is quite simple: a company only needs to have a license for educational or medical activities and use real estate for these purposes. For scientists, the main condition will be to carry out R&D at the expense of the budget and special funds - subsidies must amount to at least 30% of the legal entity’s total income for the year.
By the way, private clinics that pay property tax the old fashioned way, that is, from the book value of the property, also received special privileges last year,” notes lawyer Oleg Sukhov. Now, if the building of the center has a medical purpose and was put into operation after January 1, 2013, the owner will have the rate reduced 10 times - from 2.2% to 0.22%.
2. Tax reduction by 4 times if the office area is less than 20%
Starting this year, Moscow has expanded the list of commercial real estate, payments for which are linked to the cadastre. The list includes all buildings located on plots with a retail and office type of permitted use, regardless of the footage. Previously, a threshold of 3,000 square meters was set for such objects. meters. In practice, this means that if the land under a non-state kindergarten was originally intended for the construction of a business center, the owner will be transferred to a new taxation system without regard to the nature of the company’s activities. However, social business was left with a loophole here too. Owners of premises where less than 20% of the area is actually allocated for offices, trade, consumer services and public catering are entitled to pay only a quarter of the assessed tax. To apply for a benefit in 2017, an organization must contact the State Real Estate Inspectorate, undergo an inspection and receive a certificate of actual use of the building by June 30.
3. Tax deduction for “kids”
Companies that are not only engaged in socially important areas, but also belong to small businesses, have an additional advantage - a tax deduction of 300 “square meters” for one of the properties of their choice. The benefit is provided to all small enterprises in Moscow that have been registered with the Federal Tax Service for more than three years and are actually working: the number of employees for the previous year must be at least 10 people, revenue for each - from 2 million rubles. Thus, if a private research center, lyceum or clinic employs from 10 to 100 people, and the turnover is from 20 to 800 million rubles, the corporate property tax base for such a company can be reduced by the cadastral value of 300 square meters. meters. Believe me, this is a lot,” says lawyer Oleg Sukhov. For example, for a room of 450 sq. m. and priced at 72 million rubles. the deduction will be equal to 48 million (72,000,000 / 450 x 300). The owner will only have to pay for 150 sq. m or for 24 million rubles according to the cadastre. At the same time, nothing will prevent him from additionally applying the benefit specified in paragraph #1.
To confirm the right to deduction, you will need a minimum of papers: constituent documents, accounting records, as well as information on the number of employees.
4. Land rent is 30-150 times cheaper
The base rental rate for land in Moscow has not changed for the sixth year and is 1.5% of the cadastral value. It is used in areas under retail and office buildings, restaurants and beauty salons. But for those who rent a plot for the construction of healthcare, education and social security facilities, a special tariff applies - 0.05%. Companies engaged in scientific research and experimental development can even obtain a plot for a symbolic 0.01%. In short, renting the same plot of land, valued at 400 million rubles, when placing an office on it will cost the owner 6 million, in the case of building a medical clinic - 200 thousand, when building a scientific center - 40 thousand rubles.
To maintain the preferential rate, the property owner must use the site strictly for its intended purpose, always pay the bill on time, comply with environmental laws and not sublease the land without permission.
5. Renting premises is 3 times cheaper
Another help for socially oriented businesses in the capital is preferential rent of premises from the city. For several years now, educational and medical organizations with the status of small businesses (SMBs) have been renting municipal real estate at a special rate. From January 1, 2017, it is 4,500 rubles per 1 sq. m. meter per year at normal prices of 12-15 thousand. True, newcomers will not be able to get into the program right now: they had to submit an application to the City Property Department before the end of last year. For those wishing to take advantage of the benefit in 2018, it is better not to delay and contact officials next fall, recommends lawyer Oleg Sukhov.
6. Rent for 1 ruble
For entrepreneurs working in the social sphere, the authorities developed the “Ruble per square meter” program back in 2012. In short: the company rents dilapidated premises from the city through an auction, restores it at its own expense and opens a private school, kindergarten or clinic in it. As soon as the institution begins to operate, the investor switches to a preferential rate of 1 ruble per 1 sq. m. m per year. The contract with medical organizations is concluded for 20 years, with educational organizations - for 49. In both cases, mandatory conditions are set. Thus, it is necessary to equip a free care office in the medical center; in the kindergarten, 80% of the pupils must be registered in Moscow.
In 2005 -
The Moscow Government adopted a resolution dated 30.11.2004 N 838-PP"On the calculation of rental rates for the use of non-residential facilities owned by the city of Moscow in 2005", which changes the calculation technology and determines the limits for the growth of rent.
In accordance with clauses 1 and 10 of the appendix to the resolution of the Moscow Government dated 06/29/2004 No. 443-PP"On approval of categories of tenants of non-residential facilities owned by the city of Moscow, for which the rental rate for 2005 is set in a special order", for small businesses included in the Register of Small Businesses of Moscow, retained
To make a recalculation at a preferential rate, you must submit an application to the territorial agency of the Moscow Property Department at the place where the lease agreement was executed, attaching a notarized copy of the Certificate of inclusion in the Register of Small Business Entities of Moscow.
In 2004 -
In accordance with paragraphs 1 and 10 of Appendix No. 1 to the resolution of the Moscow Government dated 01/27/2004 No. 27-PP"On approval of categories of tenants of non-residential facilities owned by the city of Moscow, for whom the rental rate is set in a special order", for small businesses included in the Register of Small Businesses of Moscow, established preferential adjustment factors used when calculating the rental rate:
Taking into account the experience of using the calculation of rent for rented non-residential premises according to the Methodology approved by the Moscow Government Resolution No. 68-PP dated January 22, 2002 “On the results of the work of the Complex for Property and Land Relations of the Moscow Government in 2001 to attract resources to the city budget and tasks of the Complex for 2002", a resolution of the Moscow Government was adopted from 10/14/2003 N 861-PP"On approval of the Methodology for calculating rent for the use of non-residential facilities owned by the city of Moscow."
In 2003 -
In accordance with clause 10 of Appendix No. 1 to the resolution of the Moscow Government dated September 24, 2002. No. 791-PP “On approval of categories of tenants for whom rent is set in a special order”, for small businesses included in the Moscow Register of Small Businesses, preferential adjustment coefficients are established that are used when calculating the rent rate:
Benefits do not apply to office premises.
In accordance with the resolution of the Moscow Government dated March 25, 2003. No. 193-PP "On the specifics of the application in 2003 of the Methodology for calculating rent for the use of non-residential facilities owned by the city of Moscow":
2.1. Calculate rent for newly leased non-residential premises according to the Methodology approved by Decree of the Moscow Government dated January 22, 2002 N 68-PP “On the results of the work of the Complex for Property and Land Relations of the Moscow Government in 2001 to attract resources to the city budget and the objectives of the Complex for 2002."
2.2. For lease agreements concluded before July 1, 2002 and the validity period of which has not expired, the rent for 2003 is calculated according to the Methodology (clause 2.1). At the same time, an increase in the amount of rent for 2003 is allowed no more than twice as compared to that established for 2002.
2.3. If there are sublease agreements for leased space (clause 2.2), issued at a preferential rental rate, the rent for the subleased space is calculated in accordance with the Methodology (clause 2.1) until the end of the sublease period.
2.4. When assessing the market value of rental objects, take into account the costs incurred by the tenant for major repairs of rented non-residential premises in cases where the major repairs were agreed upon by the owner in the prescribed manner.
This paragraph does not apply to lease agreements:
- the condition of the conclusion of which was the carrying out of major repairs at the expense of the tenant,
- if the tenant was exempt from paying for the rented premises during major repairs.
3. Establish that with the consent of the interested parties (owner, tenant and subtenant), the sublease agreement can be re-signed to a lease agreement in the prescribed manner.
For small and medium-sized businesses, renting real estate from the Moscow City Property Department is one of the best ways to save on rent and free up money to solve business problems. By participating in auctions, entrepreneurs can obtain premises at a rate below the market average, and subsequently buy them back on favorable terms. Smart Choice experts talk about how to rent premises from the city of Moscow and take part in special programs to support small and medium-sized businesses.
Step-by-step instructions on how to rent a room from the city
- Choose the right object. They are presented on the website mos.ru. Pay attention to the key lot information: date of auction, rental period, starting rental amount.
- View the property. An application for inspection can be submitted up to a few days before the deadline for accepting applications for participation in the auction. How to rent a room from the city and be sure that the property is ideal for you? Visit it yourself or have it examined by a specialist. A thorough examination, including checking the state of repairs, communications, assessment of transport accessibility, infrastructure, etc., will help avoid problems with the operation of real estate in the future.
- Register on the site that will conduct the auction. Today they are all produced in electronic format. To register, you will need to provide constituent documents and a digital signature, install several certificates and a data cryptographic protection system.
- Collect a package of documents. You will need an extract from the Unified State Register of Legal Entities or Unified State Register of Individual Entrepreneurs (it must be received no earlier than 6 weeks before the start of the auction), copies of the constituent papers, a decision to approve the transaction, and a document confirming the authority of the person submitting the application. You also need to attach a statement in which the entrepreneur confirms that no bankruptcy or liquidation case has been opened against the company, and its activities have not been suspended.
- Pay the deposit. Review the lot documentation to find out how to rent space from the city and how much you need to transfer to participate in the auction. As a rule, the deposit is 5% of the lot amount.
- On the day of the auction, go to the auction site and take part in the auction. You can study the rules for bidding on the website or in the documentation for the lot. If you are the only participant in the auction, you will automatically be recognized as the winner.
- Sign the protocol on the results of the auction. As a rule, it is published on the same day when the auction was held. Within 10-20 days after the auction, you must contact the DGI to conclude an agreement.
- Pay the initial amount and sign the contract. After this you will be able to use the premises.
Please note: the rental price for the year, which is indicated in the contract, will be revised after 12 months. The amount will be multiplied by the consumer price index (inflation rate). Keep this in mind when finding out how to get a space to rent from the city: the space will cost more in the future. However, the City Property Department does not have the right to change the rate unilaterally.
How to rent premises from the city of Moscow? Analyzing lot documentation
The best way to find out how to rent premises from the city is to study the lot documentation. All the key information for making a decision and planning actions at the auction will be indicated here. The document states:
- a detailed description of the non-residential property indicating the number in the Unified State Register, intended purpose, address, area, etc.;
- term of the contract;
- the initial price from which bets start;
- deposit for participation in the auction;
- the amount that the auction winner will have to pay and the timing of payment;
- minimum auction step;
- documents for participation;
- start and end dates for accepting applications, holding an auction and other information.
Also in the documentation for the lot you can study the lease agreement (pay special attention to the rights and obligations of the tenant), a sample application for participation in the auction and a power of attorney to represent interests by a third party.
Important: there are several programs to help entrepreneurs in Moscow. For example, property support is provided for small businesses that work in the field of healthcare, social nutrition, education, consumer services, etc. To understand whether your company can count on benefits, contact Smart Choice specialists: they are thoroughly familiar with the legislation on assistance programs for entrepreneurs and will take care of the correct execution of documents.
Pitfalls when renting municipal property
Before you learn how to lease a property from the city and bid on it, you need to make sure you are ready for the auction. There are several difficulties:
- New offers need to be monitored. In order not to miss out on a profitable lot, you need to regularly monitor DGI offers. In addition, you will have to spend time inspecting the property.
- The registration process at the auction site may take several days.. It is best to register before you decide to rent a specific premises from the city of Moscow in order to be sure to become a bidder before the start. It's especially important to start preparing early if your business doesn't yet have an electronic signature. In order not to deal with the rules of trading and not waste time on self-registration, you can use the help of Smart Choice lawyers.
- The winner must conclude an agreement within a short time and, most importantly, make payment. As a rule, the down payment is 25% of the minimum contract amount. Considering that the bidding is not for a monthly, but for an annual rental rate, the amount will be significant. The time frame for transferring it to the DGI account is short - up to 3 days. If the auction winner does not have time to collect the required amount or misses the deadline for concluding the contract, the results of the auction will be canceled, and the deposit will not be returned to the winner.
How to rent commercial real estate from the cityno problem?
Smart Choice offers services to entrepreneurs who want to obtain city real estate on attractive terms. We provide a wide range of services:
- Selection of an object according to the customer’s requirements among DGI proposals, monitoring of new proposals.
- Inspection of the property, assessment of the benefits of the proposal, calculation of the approximate market value of the property.
- Consultations on the possibility of participation in government programs.
- Registration of the client on the trading platform.
- Collecting a package of documents, making a deposit.
- Developing a strategy for participating in the auction, calculating the maximum amount that makes sense to pay for the premises.
- Participation in the auction on your behalf.
- Signing the protocol, transferring the initial amount to the DGI account, signing the agreement.
- Assessing the possibility of purchasing real estate, submitting documents to the State Property Inspectorate.
- Analysis of the contract for the purchase of real estate, conducting an independent assessment.
- Challenging the value of real estate in court.
- Concluding an agreement for the purchase of leased real estate.
Smart Choice employs lawyers with more than 5 years of experience who have repeatedly collaborated with DGI on various issues. We will help you rent ideal premises for your business from the city with the possibility of subsequent purchase in Moscow or the Moscow region, making sure that the conditions are the most favorable.
In accordance with the resolution of the Moscow Government dated July 01, 2013 No. 424-PP “On the creation of an Interdepartmental Commission for the provision of property support to small businesses and amendments to legal acts of the Moscow Government” (hereinafter referred to as the resolution) from January 1, 2014, the use of benefits when calculating rent for non-residential premises is carried out on the basis of a decision of the Interdepartmental Commission on providing property support to small businesses (hereinafter referred to as the Interdepartmental Commission).
Currently, the Moscow Government has decided to establish a minimum rental rate for 2019 4,500 rubles per sq. m per year to all small businesses renting non-residential properties area up to 300 sq. m, under contracts concluded without tendering.
IMPORTANT: the status of a small business entity must be promptly extended for a new term in the Department of Entrepreneurship and Innovative Development of the city of Moscow. The corresponding extract from the register of small businesses must be submitted to the Moscow City Property Department.
If you are a small business entity and rent non-residential premises located in the property treasury of the city of Moscow, area over 300 sq. m Before the end of the calendar year, you need to send an application to the Interdepartmental Commission to consider the issue of applying the minimum rent rate for the next year in accordance with the current regulatory documents of the Moscow Government, attaching a package of documents.
In accordance with paragraph 5.1.2.2 of the appendix to the resolution, it is necessary to submit documents confirming the use by a small business entity of the labor of disabled people, provided that the average number of disabled people among employees for the tax and (or) reporting period is at least 50 percent, and the share in the payment fund labor – at least 25 percent.
To confirm the average number of disabled people, you must submit:
– a copy of the staffing table with attached copies of medical and social examination certificates and orders for hiring disabled employees.
To confirm the share of disabled people in the wage fund, it is necessary to submit: – a copy of the RSV-1pfr form, a copy of the SZV-6-4 form, attaching a copy of the report on accrued and paid insurance premiums.
These reports are presented for the last two quarters.
- Documents are accepted at: Moscow, Bakhrushina street, building 20.
- Opening hours: Monday – Thursday from 8:00 to 17:00, Friday from 8:00 to 15:45.
- increasing the maximum area of real estate in the city of Moscow, which is subject to the preemptive right of redemption for small and medium-sized businesses, up to 1000 sq. m;
- provision of payment by installments for up to 3 years.
The Moscow government is beginning to take decisive measures to eliminate the shortage of kindergartens in Moscow. Along with the large construction of new state kindergartens, a special program has been launched to create places in preschool institutions with the help of private preschool institutions.
The program is implemented in accordance with Moscow Government Decree No. 145-PP dated March 11, 2013 “On the specifics of leasing non-residential facilities located in the capital’s treasury to private educational institutions implementing the main general education project of preschool education.”
The main goal of this program is to help private businesses and take on part of the costs associated with organizing private kindergartens. The city is interested in the creation and development of private preschool educational institutions, in the development of the private education sector and the creation of additional places in nurseries.
From the Moscow budget, private educational institutions are allocated subsidies for almost 17 thousand kindergarten students (35 thousand rubles per year each) and school students (63 thousand rubles per year). In total, private education covers 5,795 preschoolers and 16,698 schoolchildren.
Concession agreements will also be concluded with organizations renting premises from the city for private kindergartens. After their reconstruction, the rental rate will be 1 ruble per square meter per year.
But the requirements are different. For example, the city does not require a private kindergarten built on a plot of land to accept children from the city waiting list. A private kindergarten created under a concession agreement is obliged to provide 25% of the places to those on the waiting list.
Moreover, parents will pay the same amount for their stay as in a regular public kindergarten. The city will reimburse these expenses: for each child on the waiting list taken to a private kindergarten with which a concession agreement has been concluded, the budget will pay 170 thousand rubles per year.
Necessary conditions for a potential tenant - he must have a license to carry out educational activities, the premises after renovation, current or major, must meet all fire, sanitary, technical and other requirements, at least 80% of the children must be residents of Moscow.
The Moscow government has established preferential rent for non-state educational institutions - 1,800 rubles per square meter per year.
The program will be applied only to private schools and kindergartens that have a license. Already now, institutions renting premises from the city or from budgetary institutions of the Department of Education can provide a license and receive a benefit.
Otherwise, to recalculate at a reduced rate, you must obtain a license before June 1. If the receipts have already been paid, the overpayment will be applied toward future payments.
Participation in the competition is not difficult and consists of 6 stages:
– pick up and view an object,
Read the documentation
Transfer the deposit and submit an application,
– take part and win the competition,
– conclude a rental contract.
As part of this resolution, OJSC Bank of Moscow presented investors with loan programs on special terms, adapted for participants in the city project to organize private gardens.