Information on fixed assets insured by individual entrepreneurs should be submitted to tax authorities

According to the latest changes in the tax legislation, insurers are required to submit information to the tax authority on insured fixed assets belonging to legal entities as well as individual entrepreneurs.

Thus, according to the amendment to the Tax Code that came into effect on January 1, 2022, movable fixed assets on the balance sheet of individual entrepreneurs are subject to property tax. At the same time, if the fixed assets of an enterprise and individual entrepreneur are insured at a price higher than their residual value, the property tax is calculated by applying the property tax rate to the value determined in accordance with Article 14 of the Tax Code.

Whereas information on insured fixed assets belonging to legal entities, their branches and representative offices must be submitted to the State Tax Service by the 20th day of the month following the end of the quarter, as part of the harmonization, a provision was added to the Tax Code on the submission of information on insured fixed assets owned by individual entrepreneurs to the tax authority by insurers, along with legal entities.

In order to reduce the administrative burden of insurance companies, the amendment abolished the requirement for reinsurers to submit this form of information on reinsured assets.