Estate Tax Research Articles

문화재주택에 대한 과세문제와 개선방안

Cultural heritage houses hold significant historical, cultural, and architectural value, which leads to their designation as cultural assets by the state or local governments. These designated houses are officially registered and subject to preservation and management regulations. Consequently, owners or caretakers of cultural heritage houses bear legal responsibilities for their preservation and maintenance, which often results in restrictions on their property rights. To address these challenges, governments provide financial support and tax benefits, such as reductions or exemptions in property tax, capital gains tax, inheritance tax, gift tax and acquisition tax, to reduce economic burdens and promote cultural preservation. However, there have been cases where cultural heritage houses were classified as luxury properties and subjected to higher acquisition taxes. This raises questions about the fairness of such taxation, as the designation of cultural heritage inherently limits owners' property rights. Imposing higher taxes on such properties conflicts with the intent to preserve cultural heritage and discourages owners from maintaining these buildings. In some instances, owners have preemptively demolished historically significant buildings to avoid the economic losses associated with cultural heritage designation, leading to irreversible cultural loss. To ensure the sustainable preservation and utilization of buildings with high cultural value, it is essential to provide adequate economic compensation to their owners, primarily through tax incentives. In particular, residential properties designated as cultural heritage should be exempt from acquisition taxes typically imposed on luxury houses. Additionally, property taxes and comprehensive real estate taxes should be waived to recognize their public and cultural value. In conclusion, cultural heritage houses should not be treated as luxury assets but as cultural resources that serve a public purpose. Therefore, the government and local authorities must actively provide benefits and support to ensure the preservation of these invaluable cultural properties.

RELATIONS BETWEEN LAND AND BUILDING RECORDS AND ENTRIES IN THE LAND AND MORTGAGE REGISTER, IN THE CONTEXT OF REAL ESTATE TAXATION (AGRICULTURAL AND FORESTRY TAX)

Pursuant to Art. 21 of the Geodetic and Cartographic Law the basis for tax assessment is the data contained in the land and building register. These data concern e.g. area and land classification, character of buildings (premises), usable areas of buildings (premises), as well as the entity liable to pay real estate tax (agricultural, forestry). Undermining the probative value of the land and building register is possible only in particularly justified cases, such as when data from the records are in contradiction with data from other official documents or public registers. An excerpt from the register of land and buildings is evidence from an official document, therefore, as counter evidence allowing the tax authorities to determine the real estate tax (agricultural, forestry) based on data other than those resulting from this record, there should also be a document. This document may be a copy, excerpt or certificate from the land and mortgage register. However, evidence from the land and mortgage register will not be recognized by the tax authority in every tax case, because the information placed in specific sections of the ledger has different binding powers for the tax authorities. The aim of the article is to present the relationship between data contained in land and mortgage registers and land and building records in the determination of real estate tax (agricultural, forestry), identifying problems in this area and indicating possible directions of change.

Engagement of eco-industrial parks in the circular economy: state support for enterprises processing construction waste products

The relevance of this study lies in the need to solve the economic, environmental and energy crises in Ukraine, which threaten the stability of its economy. Eco-industrial parks offer an innovative approach to solving economic and environmental problems. The purpose of the article is to study the role of eco-industrial parks and study the expediency of the operation of construction waste processing enterprises in Ukraine in the context of the implementation of the principles of circular economy and their state support. The subject of the research is eco-industrial parks, in particular enterprises for the processing of construction waste. Common scientific methods of systematic and comparative analysis, statistical calculations, and the method of generalizations were used. Among the obtained results, the following should be noted: the advantages of EIP regarding the creation of new jobs in high-tech sectors of the economy were determined; attraction of investments, as they allow to reduce production costs and increase the competitiveness of enterprises; strengthening the technological base through the development of new technologies and innovations in the field of environmentally friendly production; improvement of the ecological situation through reduction of emissions of harmful substances into the atmosphere, purification of water resources and preservation of biodiversity; increasing energy efficiency through the use of renewable energy sources and other energy-efficient technologies, which allows for reducing dependence on traditional energy resources. It has been proven that one of the priority directions for the reconstruction of Ukraine in accordance with the best global standards and practices of the circular economy should be the processing of a large amount of construction waste, which requires the development of an appropriate strategy. The analysis of practical examples of construction waste recycling projects with the use of international experience provided grounds for asserting that each hryvnia invested in the processing of construction waste can increase the GDP of Ukraine by 6.25 hryvnias due to the multiplier effect (direct and indirect). Conclusions were made regarding the need for the development of eco-industrial parks in Ukraine, for which the government of Ukraine introduced measures such as exempting park participants of income tax, import duties and value added tax on importing equipment for production in such parks, granting land and real estate tax relief, provision of funds on an irrevocable basis for arrangement and/or construction of objects of adjacent infrastructure for industrial parks, compensation of interest rate on credits (loans) for facility planning, etc.

Utilizing Deep Learning for Field-Level Information Extraction from German Real Estate Tax Notices

ABSTRACT Document processing and related tasks such as information extraction represent a large portion of business workloads and therefore offer high potential for efficiency improvements and process automation. Although semistructured documents such as invoices and receipts have been extensively studied, tax notices represent a largely unexplored area due to their information richness and layout complexity. This article presents a study investigating the potential of deep learning-based information extraction for German real estate tax notices. We propose a hybrid approach based on the LayoutLM transformer model that uses textual, positional, and visual information as well as a rule-based information extraction. We show how such a system can be developed and integrated into the business workflow of organizations on the example of a German tax consulting firm. We also discuss the implications and key challenges that organizations face when planning to adopt such technologies. Data Availability: Custom data and code are not publicly available. Relevant public source code is cited in the text. JEL Classifications: M15; M40; M41.

Local Municipal Market Concentration: The Case of Puerto Rico and the Federal Estate Tax

Local Municipal Market Concentration: The Case of Puerto Rico and the Federal Estate Tax

Discussion on Inheritance Valuation Methods When Listed Company Stocks Experience Drastic Price Changes under Estate Tax (II)

Discussion on Inheritance Valuation Methods When Listed Company Stocks Experience Drastic Price Changes under Estate Tax (II)

The Current State Of Personal Property Taxation

A significant portion of local budget revenues is generated from tax revenues derived from individuals' property tax payments. Thus, the property tax levied on individuals is an important factor influencing the development level of the regions in our country. This article highlights the factors affecting property tax volumes and the tax incentives related to its payment. The theoretical and methodological foundations of taxing individuals on property are examined. The components of the property tax are analysed: the tax on real estate, excluding land plots, transport tax, and land use fees. The mechanism for collecting property tax from individuals is discussed under the Tax Code of Ukraine. The fiscal effectiveness of the existing system of property taxation for individuals in Ukraine is analysed, along with the peculiarities caused by the imposition of martial law. In the context of armed aggression against Ukraine, government budget expenditures have significantly increased. Therefore, studying the fiscal function of the property tax on individuals is a pressing issue. The article presents data on the payment of real estate tax by individuals, excluding land plots, transport tax, and land fees, before and after the onset of military actions in Ukraine. The research has established that the volumes of tax revenues from individuals' property taxes are increasing yearly. The research results confirm that the property tax on individuals, under martial law, is a substantial source of funding for local budgets in Ukraine. This underscores the importance and necessity of further enhancing the fiscal function of this tax. It has also been established that the fiscal potential of the property tax on individuals is not fully utilized due to the deficiencies in the existing taxation system. Brief examples of property taxation for individuals, based on the assessed value of such property in foreign countries, are provided. The prospects for reforming the property taxation system for individuals in Ukraine are discussed. Recommendations for reforming the property tax for individuals are formulated to increase its fiscal function.

An Analysis of the Factors Affecting Real Estate Taxes Literacy in Türkiye

This research aims to determine taxpayers’ literacy level about the financial obligations related to real estate, an important investment instrument in Türkiye, and the factors determining literacy. In this context, primary data were collected through surveys administered to 500 people who resided in Istanbul, Ankara, and Izmir. Primary data analysis was carried out using two methods. First, the real estate tax (RET) literacy was calculated through percentage analysis. Second, using discrete selection models, variables likely to affect the literacy of real estate taxes collected could be estimated. As a result, the primary data show that RET in Türkiye is 30%. According to the estimation results, the gender, age, and income variables are effective regarding fiscal rights related to property in Türkiye.

A Critical Analysis of Selected Aspects of Real Estate Taxation in the Context of Recent Legislative Amendments in the Czech Republic

The real estate tax is the sole property tax in the Czech Republic and has been part of its tax system since its establishment, i.e. since January 1, 1993. The Czech Republic has long been recommended by the Organisation for Economic Co-operation and Development (OECD) to increase the collection of this tax because its yield as a share of gross domestic product (GDP) is one of the lowest among all OECD and EU countries. The lower yield is in part attributable to the manner in which the tax base is determined. The Czech Republic, with the exception of a few minor instances, continues to employ the assessment-based rather than the value-based method of determining the tax base. Furthermore, the Czech Republic is encouraged to use the correction elements at the disposal of municipalities to influence the amount of property tax. This article examines the revenue aspect of real estate tax in the Czech Republic, including the determination of the tax base and the use of correction mechanisms. In light of these considerations, it is evident that the development of the Czech real estate tax system has been influenced by a number of factors, including the introduction of one of the most significant amendments to the Real Estate Tax Act in the country’s history. This amendment, known as the consolidation package, was implemented on January 1, 2024 and has had a profound impact on the current legislation.

The intentionally defective grantor trust: a strategy for Swiss resident US persons engaging in US gift tax exemption planning

Abstract US Persons (including foreign residents) should prepare for the reduction in the US estate and gift tax lifetime exemption scheduled for 2026. A common planning strategy is to set up irrevocable trusts to divest themselves of part of their wealth. However, for US Persons living abroad, a transfer into trust can result in double taxation of income with no treaty relief. An intentionally defective trust can thread this needle, constituting a completed gift for US lifetime exemption purposes while allowing the application of mechanisms to prevent double taxation of income.

A Case for the Need to Improve the Unilateral Double Taxation Relief for Estate Duty in South Africa

This article aims to address a specific problem statement, namely how the unilateral relief under the Estate Duty Act can be enhanced to alleviate the potential hardship of double estate taxation on cross-border estates. Double taxation is a common occurrence when a person owns properties in more than one country, which become part of their estate at the time of death and liable for estate tax. The limited estate tax treaty network causes countries to reconsider their unilateral relief provisions under their domestic legislation. South Africa faces the same challenge under the Estate Duty Act. This article highlights the areas where clarity is needed in relation to the type of foreign death duty that may qualify for tax relief, such as the scope of qualifying foreign property, the exchange rate applicable and the date on which the conversion should be done, as well as the limitations and conditions of the unilateral relief available under the Estate Duty Act. Insights are provided that could be considered for possible amendments to the Estate Duty Act to provide greater clarity and certainty in calculating the estate duty liability payable in South Africa.

Розвиток майнового оподаткування в окремих постсоціалістичних країнах Центральної та Східної Європи

Introduction. According to the National Revenue Strategy until 2030, the development of property taxation in Ukraine should be carried out by switching from property taxation based on the area of real estate to taxation based on its market value in order to increase local budget revenues and improve taxation fairness. Problem Statement. The introduction of taxation of real estate in Ukraine based on its value, which is a difficult task involving painstaking preparatory work and significant financial resources, requires an analysis of the experience of implementing similar transformations in other countries. At the same time, the development of property taxation in the post-socialist countries of Central and Eastern Europe (hereinafter CEE), some of which still tax real estate by area, while others immediately introduced a tax by value, is of greatest interest. The purpose of the article is to determine, based on the analysis of property taxation experience in selected CEE countries, the prerequisites and ways of transition from a tax based on area to a tax based on value. The methods of systemic, structural-functional, comparative analysis, analogies and theoretical generalization are used. Results. The article analyzes the development of property taxation in two CEE countries (Poland and Slovakia), where, like in Ukraine, the basis for recurrent taxes on real estate is its area, and three Baltic countries where ad valorem real estate taxes have been introduced. The author focuses on the prerequisites and features of their introduction, the design of taxes in individual countries, peculiarities of their administration and prospects for reform. The author draws conclusions about the common and specific reasons for delaying the introduction of ad valorem tax in countries where it is based on real estate area. The author identifies the necessary measures and reveals the problems on the way to introduction of the ad valorem real estate tax related to the creation of a sufficiently complete and reliable database on real estate and its market value and keeping it up to date, gradual introduction of mass assessment of land and property, limited administrative capacity, little experience and insufficient resources of local authorities to entrust them with the function of property tax administration.

Analysis on Cases of Gifts Within Two Years before Death in Estate Tax

Analysis on Cases of Gifts Within Two Years before Death in Estate Tax

Discussion on Inheritance Valuation Methods When Listed Company Stocks Experience Drastic Price Changes under Estate Tax (I)

Discussion on Inheritance Valuation Methods When Listed Company Stocks Experience Drastic Price Changes under Estate Tax (I)

Discussion on the Application of Trust Assets in Estate Tax Payment According to the Latest Interpretation from the Ministry of Finance-Starting from the Ministry of Finance's Directive No. 11300533430 dated June 14, 2024

Discussion on the Application of Trust Assets in Estate Tax Payment According to the Latest Interpretation from the Ministry of Finance-Starting from the Ministry of Finance's Directive No. 11300533430 dated June 14, 2024

Will the new definition of a building structure as a subjectof real estate tax put an end to interpretation disputes?

Cascading terminological connections with the provisions of construction law have led to a pathological mechanismof amending the real estate tax without changing the tax act, but through changes to a large group of normativeacts that, prima facie, have nothing to do with taxes. As a result of the Constitutional Tribunal’s judgmentin case SK 14/21, the Ministry of Finance prepared an amendment to the Act on local taxes and fees, which is intendedto cut off connections with the provisions of construction law.

Legal and administrative elements of the construction of tax exemptions and allowances in the context of granting public support

Among the forms of public assistance of a passive nature are tax concessions and exemptions. A given form of aid can be of liquidity support, rescue and restructuring and pro-development nature for the enterprise. This form of assistance is reflected in the reduction of revenues to the state and local government budgets. Tax credits, used as investment incentives for entrepreneurs, can affect the growth of production, and in the case of new investments, the creation of new jobs or the retention of existing ones. The article presents the provisions of the tax law on real estate tax in correlation with the law on state aid, in the context of an assessment of - to what extent on the grounds of real estate tax it is possible to operate reliefs and exemptions that constitute state aid for entrepreneurs. The legal problems of providing state aid and the issues of tax procedures in the field of tax reliefs and exemptions and the calculation of the net value of state aid are presented.

Real Estate Price Prediction Using Spatial Artificial Neural Networks: An Alternative to Market Value for Taxation of Urban Real Estate

Real Estate Price Prediction Using Spatial Artificial Neural Networks: An Alternative to Market Value for Taxation of Urban Real Estate

ANALISIS HUKUM MENGENAI TATA KELOLA PAJAK BUMI DAN BANGUNAN PERKOTAAN DAN PERDESAAN DALAM RANGKA PEMBANGUNAN DAN KESEJAHTERAAN MASYARAKAT DESA

This study aims to learn about and analyze legal studies on rural and urban land governance and building tax in the context of development and well-being of rural communities and to know the role of information technology in the management of rural and urban areas of the United Nations in order to improve community obedience and discipline of the tax system. The method used is to make the field of legal science the foundation of its mother science, so the research used is normative legal research. The results showed that the Rural and Urban Property and Construction Tax (PBB-P2) should be collected on the basis of laws and regulations from the top to the implementing regulations, namely village regulations and information technology optimization, as it plays an important role in the management of the Rural and Urban Property and Real Estate Tax (PBB-P2). In terms of increased public obedience, information technology can be used to facilitate and speed up the tax payment process. For this reason, it is important to guide UN-P2 governance to village governments on the basis of fair and transparent legal principles, in order to foster the development and well-being of rural communities.

WAYS OF IMPROVING THE METHODOLOGICAL FRAMEWORK OF MASSIVE EVALUATION OF REAL ESTATE IN THE REPUBLIC OF MOLDOVA

This article focuses on researching the methodological development of real estate assessment in the Republic of Moldova, addressing the significant financial losses incurred by local public administrations due to the absence of an updated, appropriate, and transparent assessment system for taxation purposes. The fundamental hypothesis posits that enhancing the methodological and institutional framework of mass appraisal will lead to a progressive evolution of the real estate market relations and the stable development of efficient and equitable tax systems in Moldova. The study aims to identify and propose solutions to current issues in the national mass appraisal system, primarily related to the unavailability of market data and the use of outdated methodologies. Employing scientific techniques such as analysis, deduction, induction, grouping, comparison, analogy, scientific abstraction, synthesis, and statistical methods, the author assess the effectiveness of proposed methodological developments by comparing quality indicators of old assessment models with those developed based on the proposed methodologies. The results obtained support the idea of creating, implementing, and sustaining a mass appraisal system as a foundational element for a fair real estate taxation system, fostering regional development, and supporting economic activities related to the real estate market in the Republic of Moldova.