According to the provisions of Article 7, paragraph 1. of the Law on Property Taxes, the basis of property tax for the immovable property of a taxpayer who keeps business books and whose value is reported in the business books according to the fair value method following international accounting standards (IAS), i.e. international financial reporting standards (IFRS) and adopted accounting policies is the fair value stated on the last day of the taxpayer’s business year in the current year.
According to the opinion of the Ministry of Finance, no. 011-00-00698/2021-04 from July 1, 2021. for the fair value of the real estate shown in the taxpayer’s business books on the last day of the taxpayer’s business year in the year preceding the year for which the property tax is determined and paid to form the basis of the property tax, all prescribed conditions must be met:
- that the specific obligee has the status of an obligee who keeps business books under the Law
- that the taxpayer reports the value of the real estate in the business books using the fair value method under international accounting standards (IAS), i.e. international financial reporting standards (IFRS) and adopted accounting policies, as well as
- that the value of the real estate in the business books of the taxpayer was stated following IAS, i.e. IFRS and adopted accounting policies on the last day of the business year of the taxpayer in the current year (i.e. the year preceding the year for which the tax liability is determined.