Income tax obligation< /b> which is realized by alienating real estate (most often by sale) is regulated by the provisions of the Income Tax Act. In this case, it is about income from property and property rights based on the alienation of real estate.
Income from property and property rights is also considered to be the income that the taxpayer receives from
alienation of real estate and property rights. As a rule, we are talking about alienation of: one real estate or
three or more properties.
Sale, exchange and other transfer are considered alienation. Income is the difference between the receipt determined according to the market value of the real estate or property right that is alienated and the purchase value increased by the increase in producer prices of industrial products.
Disposal costs can be deducted as expenses. Income from the alienation of real estate is not taxed if the real estate was used as a residence for the taxpayer or dependent members of his immediate family, and also in the case if the real estate or property right was alienated after two years from the date of acquisition.
When is income from the sale of real estate and property rights taxed?
Income from alienation of real estate and property rights is taxed if more than three real estates of the same type or more than three property rights of the same type are alienated (sale, exchange and other transfer) in a period of five years, unless the real estate is expropriated on on the basis of a special law and if land is alienated, the individual area of which is up to 250m², and the total area is up to 1000m².
If a
building with several apartments or business premises or construction land or several land parcels is sold, each apartment is considered one real estate,
poslovnih space, building site or plot of land. The income is the difference between the total amount of receipt determined
according to the market value of real estate or property rights that are alienated in a period of five years and their purchase value increased by the increase in producer prices of industrial products, and for investment costs for which the taxpayer has authentic documents.
What is the tax rate?
Tax payers pay the advance tax on income from alienation of real estate and property rights according to the decision of the Tax Administration in a one-time payment on individually realized receipts, within 15 days from the date of receipt of the Tax Administration's decision on the determined income tax.
The advance is determined from the tax base (the income is the difference between the receipt determined according to the market value of the real estate or property right that is alienated and the purchase value increased by the increase in the producer prices of industrial products) applying a rate of 24%.
The income tax surcharge is calculated on the determined amount of income tax.
Who pays the advance?
Income tax advance from the alienation of more than three properties of the same type or more than three property rights of the same type in a period of five years is paid by taxpayers according to the decision of the Tax Administration once within 15 days from the date of receipt of the decision of the Tax Administration of the administration on established income tax, on the total realized receipt from the disposal of real estate of the same type or property rights of the same type in that period, which is brought after the disposal of the fourth property of the same type or the fourth property right of the same type.
For each further alienation of real estate of the same type or property rights of the same type in a period of five years in which the income from the alienation of real estate of the same type and property rights of the same type was determined, a new decision is issued for that real estate or property right that is alienated.
The advance is determined from the tax base by applying a rate of 24%. An income tax surcharge is calculated on the determined amount of income tax.
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