Post by asadul1717 on Feb 11, 2024 4:57:05 GMT -5
As planned, on January 1, 2022, the new market reference values (VRM) have been published by the Cadastre that must be taken into consideration to establish the basis on which the Transfer Taxes will be paid. Patrimonial, and Inheritance and Donations, when their purpose is real estate transfers. Let's briefly look at some of the keys to this new system for determining the value of the property on which taxes will be paid: To which properties is the Cadastre reference value applied? to. Residential properties: Collective housing and single-family housing b. Individual garage, collective garage and storage room c. Rustic land without buildings The rest of the properties that are not in these categories will be valued for tax purposes at their price or value given in the public deed. And if the Treasury does not agree because it considers that its real value is higher, it must issue a justified complementary settlement. Where is the reference value published and who can obtain it? The consultation is public.
The values are published in the Cadastre office and can be consulted on its website or by telephone, by anyone who identifies themselves with their ID or digital signature and has the cadastral reference at hand. However, to obtain a detailed report on the calculation method, only the cadastral owner can request it. Careful. because there may still be properties that Bahrain Email List do not have a reference value assigned and, then, the Cadastre certificate will be negative. In this case, the tax will be settled or self-assessed at the deed price, but the Treasury can verify it through a complementary settlement if it does not agree. Does the reference value of the Cadastre affect the purchase price? Absolutely. The new reference value does not affect the price of the operation, which will continue to be the one agreed between the parties and which will be stated in the deed, but it may have an impact on the tax payable. Therefore, it is important to always calculate it to specify the fiscal cost of the operation. What value must be taxed on: the real price agreed in deed or the reference value of the Cadastre? You must pay tax on the higher of the two values.
That is, if the sale price is lower than the cadastral reference value, it is written for the agreed real value, but the tax is paid on the cadastral reference value. And, on the contrary, if the deed price is higher than the cadastral reference value, the actual price will be taxed. In principle, notaries are not obliged to attach the reference value certificate to the deed, but in practice it will be attached for tax information of the parties. If a taxpayer decides not to pay taxes on the reference value of the Cadastre because he considers that it is unfair as it is higher than the real agreed price, he will be breaking the law and the Treasury will foreseeably initiate a regularization procedure - probably with a penalty - and will force him to pay taxes on the Cadastre reference value. Therefore, it is advisable to pay taxes at the reference value and then appeal the assessment or, where appropriate, request rectification of the self-assessment submitted, with the return of undue income. But you have to be very careful because in these cases it is the taxpayer who must demonstrate and prove that the Cadastre reference value does not correspond to the real market value. Therefore, if you want to appeal, it is advisable to take photographs of the state of the property on the day of the transfer, order a private appraisal report, provide a notarial certificate on the state of the home, etc.).