Rent of non-residential premises - OKVED 2019 for this type of activity should be found in the OK 029-2014 classifier. Which codes are for non-residential rentals and which for residential premises? Are there separate codes for subletting premises? We will look at the answers to these and other questions in the article.

Which OKVED contains the current codes for leasing property?

Until 2017, in relation to OKVED codes for renting premises, it was necessary to focus on the OK 029-2001 classifier, despite the existence of 2 more later classifiers: OK 029-2007 and OK 029-2014.

Since 2017, the use of the OK 029-2001 and OK 029-2007 classifiers has been discontinued. And the only document used to determine OKVED was the list of types of activities contained in the reference book OK 029-2014, according to which, already from 07/11/2016, when registering legal entities and individual entrepreneurs, codes began to be entered into the Unified State Register of Legal Entities and the Unified State Register of Individual Entrepreneurs (letter of the Federal Tax Service of Russia dated 06/24/2016 No. GD-4-14/11306@).

Thus, in 2019, the determination of OKVED related to the rental of premises is possible only according to the OK 029-2014 classifier.

Which OKVED codes correspond to residential rental activities?

According to the OK 029-2014 classifier, the OKVED codes for leasing property are as follows:

  • 68.2 (rent and management of own or leased real estate). This code has 2 varieties, corresponding to residential (68.20.1) and non-residential (68.20.2) premises.
  • 68.3 (transactions with real estate for a fee or on a contractual basis), which contains a code corresponding to the activities of real estate agencies (68.31), engaged, in particular, in intermediary activities in the rental of real estate (68.31.2). The last code is divided into 2 types, related to residential (68.31.21) and non-residential (68.31.22) premises.
  • 68.32 (management of real estate for a fee or on a contract basis), which includes rent collection activities.

According to the OK 029-2014 classifier, the division by type of activity has become more specific compared to the previously used classifier. But at the same time, the division into OKVED for leasing non-residential premises and OKVED for leasing residential real estate has been preserved.

Are there OKVED codes for subletting non-residential premises?

Special OKVED codes for leasing premises on sublease terms are not identified in the classifier. In such a situation, you will have to use the codes specified for rental. At the same time, the division of rental codes into those related to residential and non-residential premises is present in the directory.

Results

When conducting business in 2019 related to the provision of real estate for rent, it is necessary to use the OKVED code for leasing non-residential premises or residential real estate, specified in the OK 029-2014 classifier.

The organization leases its own non-residential real estate and applies a simplified taxation system. According to OKVED (NACE rev. 1), this type of activity is assigned code 70.20.2. Revenue from this type of activity is more than 70%. According to OKVED 2, this type of activity has code 68.20.2 “Rental and management of own or leased real estate.” In Art. 427 of the Tax Code of the Russian Federation, among the preferential types of activity, “Real estate management” is indicated without various nuances.
Does an enterprise have the right to use preferential rates for calculating insurance premiums?

On this issue we take the following position:
When carrying out activities to lease out its own non-residential real estate, an enterprise does not have the right to apply reduced rates of insurance premiums.

We recommend that you read the following materials:
- . Tariffs of insurance premiums for payers using the simplified taxation system (from January 1, 2017);
- . Benefits and reduced insurance premium rates from January 1, 2017.

Prepared answer:
Expert of the Legal Consulting Service GARANT
auditor, member of the Russian Union of Auditors Liliya Fedorova

Response quality control:
Reviewer of the Legal Consulting Service GARANT
professional accountant Rodyushkin Sergey

The material was prepared on the basis of individual written consultation provided as part of the Legal Consulting service.

The OKVED code for renting premises is determined according to the classifier OK 029-2014 (NACE Rev. 2), uniform for all business entities, which was approved by Rosstandart in order No. 14-st dated January 31, 2014. The separation of this type of activity into a separate area allows companies and individual entrepreneurs to designate the provision of services for the temporary provision of real estate assets for use as their business during state registration.

OKVED for renting non-residential premises may be the main one, in this case the majority of the income of a business entity should come from rental operations. If the OKVED code for leasing premises is indicated in the registration documents as an additional code, this means that the company (IP) specializes in other areas of business, but due to the fact that the company has free fixed assets, it uses them not in production activities, but temporarily transfers it for use to third parties for a fee.

OKVED - rental of non-residential premises 2019

In the classifier, manipulations with real estate are separated into a separate section, designated by the letter symbol “L”. It presents one generalized code - 68, under which the following areas are combined:

    purchase and sale of real estate;

    OKVED for renting non-residential premises;

    management of own or leased property;

    implementation of real estate transactions for a separate material remuneration (intermediary services).

OKVED 2019 rental of premises is codes of group 68.20. Code group 68.20 combines business transactions for leasing assets, operating real estate owned by right of ownership or available under a lease agreement. Renting premises of OKVED 2019 in the group of codes 68.20 implies the transfer for temporary use of both individual premises and buildings and plots ( we're talking about about warehouse buildings, exhibition halls, land plots, office complexes, etc.).

OKVED codes for renting premises include:

    Code 68.20.1 – transactions within the framework of the rental and management of own residential real estate, transactions related to the management of rented housing. OKVED for renting residential premises (68.20.1) is used only by those enterprises and individual entrepreneurs who, on a contractual basis, receive payment for the use of their residential real estate (apartment buildings, apartments, etc.) by third parties. The source of income can be both individuals and legal entities.

    Code 68.20.2 – leasing of real estate. OKVED is only suitable for renting premises that are not intended for housing.

When implementing intermediary property rental schemes, codes from group 68.3 are used. This code is typical only for real estate agents and real estate firms. This category of ciphers is relevant for the following operations:

    OKVED real estate leasing 68.31.2 implies the activities of intermediaries under an agreement or for a fee when executing a transaction for leasing assets, when selecting a suitable object on the real estate market. For residential properties, code 68.31.21 is used, for non-residential real estate - 68.31.22.

    Code 68.31.4 – provision of advisory support by intermediaries in the rental of real estate (including residential – 68.31.41, non-residential – 68.31.42).

    Code 68.31.5 – activities of appraisers (for residential real estate – 68.31.51, non-residential – 68.31.52);

    68.32 - code related to the management of property of third parties on a fee basis or under a contract. It can be used by institutions that collect rent (68.32.1 - residential stock, 68.32.2 - non-residential stock).

Entrepreneurs and firms that own real estate and independently provide objects for temporary use to counterparties should choose OKVED property rental as one of the areas of activity. Codes of this group can also be used by business entities that are not the owner of assets, but act as intermediaries in lease transactions of real estate. Leasing of property (OKVED from group 68) is also relevant for cases with sublease - when a company transfers leased property for temporary use to third parties. Transactions can be implemented in relation to a number of properties - apartments, houses, rooms, offices, dormitories, garages, equipped workplaces, etc.

From the very beginning of 2003, the so-called OKVED began to function in Russia - a public classifier of types of economic activities (including rental of premises), intended for coding and systematizing types of economic activities and the necessary information about them. According to this classifier, within the section of operations with real estate, rental and provision of services, the following codes are assigned to the procedures for leasing non-residential premises:

  • 1. 70.20 – rental of one’s own real estate (i.e., objects whose movement without disproportionate damage to their purpose is impossible);
  • 2. 70.20.1 – rental of own residential real estate (apartments, rooms, cottages, etc.);
  • 3. 70.20.2 – rental of own non-residential real estate (land plots, aircraft and sea vessels, space objects, etc.).

Any non-residential premises rented out do not belong to the means of individual entrepreneurship, as they are not used as a means of labor in the process of entrepreneurial activity.

Renting premises officially owned to an individual, is a standard legal act that confirms all the legal rights of the owner to dispose of personal property and does not include elements that characterize the concept of “economic activity.”

According to Art. 210 of the Civil Code of the Russian Federation, the owner bears full responsibility for the maintenance of any property belonging to him. The owner of the premises must pay for utilities and other services, regardless of whether he uses it personally or rents it out.

There is also the concept of “renting municipal non-residential premises”. All municipalities ensure the livelihoods of the urban population and develop local infrastructure using the so-called economic basis, consisting of property owned by the municipality.

Payments from the rental of municipal non-residential premises are one of the main sources of income for the city budget.

Since the goals of the city administration are aimed not only at increasing the budget, but also at supporting small and medium-sized businesses, the cost of renting one square meter of municipal non-residential premises is significantly lower than the market cost of rent (200 rubles excluding VAT and utilities).

Form of lease agreement for non-residential premises.

According to experts, most disputes between the parties (tenant and landlord) arise at the stage of concluding, registering and executing lease agreements. The main provisions devoted to the conclusion procedure itself are indicated in Chapter. 28 of the Criminal Code of the Russian Federation.

According to this chapter, a contract is considered concluded if two necessary conditions are met:

  • both parties must come to a mutual agreement regarding the form of the contract (in accordance with all requirements);
  • the mutual agreement must cover all the most important terms of the contract.

The “form”, in relation to an agreement, means the nature of the concluded transaction: written, oral, by fax, etc. Article 651 of the Criminal Code of the Russian Federation specifies the necessary requirements for the form of the above agreement and consists of the following:

  • the agreement must be concluded exclusively in writing, regardless of the terms of the agreement and the status of the persons who are participants in these relations (legal or physical);
  • The lease agreement must be drawn up as a single document. Its conclusion is impossible through a simple exchange of documents using postal, telegraphic, electronic and other types of communications;
  • the agreement must be signed by both parties in their own hands (with the rare exception of the need for the presence of an authorized person who has an appropriate document certified by a notary for this purpose).

Long-term lease agreement for non-residential premises

Today, this long-term lease creates enormous opportunities for organizing a business. Its main advantage is that it is completely affordable price You can equip any non-residential premises for warehouse, office or production needs. There are six types of long-term residential lease agreements:

  • target long-term with the right to buy;
  • target long-term without the right of redemption;
  • non-target long-term with the right of redemption;
  • non-target long-term without the right of redemption;
  • target perpetual with the right of redemption;
  • non-targeted perpetual with the right of redemption.

If the lease agreement is valid for more than one year, then this document is subject to mandatory state registration. Often, the parties, in order not to burden themselves with the above procedure, sign an agreement for a period of 360 days, indicating in the text of the agreement (preemptive right clause) the possibility of its extension on similar terms.

Commercial real estate accounts for material base for organizing various businesses. To do this, it is not necessary to buy expensive premises or entire objects, because they can be rented for any period by agreement with the customer. This opportunity is beneficial not only for the entrepreneurs themselves, but also for those who own property intended for rent. As practice shows, in Russia the commercial real estate rental market is extremely developed and every year brings very large sums to the state budget thanks to tax deductions. The All-Russian Classifier of Economic Activities helps track any financial flows in this environment. For example, in accordance with OKVED, both in 2016 and now, the rental of non-residential premises is placed in the section “L" in class 68. Here you can find all the codes necessary for organizing a business.

If you own your own real estate, it is worth knowing that in today's market it is the most valuable asset due to parity with the rate of inflation for many decades. For this reason, you can turn such property into real money without any problems. And you don't have to sell. It is enough to put the property up for short-term or long-term rental. However, in order to fully legalize your activities, you must go through the registration procedure with the relevant authorities to obtain the status of an entrepreneur or legal entity. Otherwise, any income received from rent will be illegal, and you will face administrative liability.

Other forms of work

But not only renting non-residential premises in OKVED in 2016 and currently on one’s own behalf is an accessible type of activity. There are also intermediaries who can act as:

  • Private individuals.
  • Consultants.
  • Subtenants.
  • Real estate agency.
  • Managers.

The activities of these entrepreneurs are also included in the OKVED list in this class. Moreover, the same realtors may have different functions, from searching for suitable commercial real estate to consulting services. If you want to open your own business in this profile, you should clearly know the codes that meet the requirements of the new classifier.

The second common option for professional employment is real estate management on a piecework basis or for a fee. That is, there are companies that can provide full control over all indicators of the building, carry out repair work and respond to any changes. Often this phenomenon is combined with leasing one’s own real estate; OKVED provides a separate set of codes for work.

There is also such a thing as sublease. The tenant is a kind of intermediary, but acts on his own behalf and at his own expense. The purpose of such events is to find a profitable rental offer, take advantage of it, and then find a client who agrees to rent at a higher cost. In fact, almost the entire market now operates according to this scheme, but the real estate agencies themselves act as subtenants. True, as a benefit, they include their percentage of income in the price.

Classifier codes

If your priority is rent, OKVED will help you select the necessary codes for registering or expanding your core business. Here you will find both employment related to the provision of services as consultants and intermediaries, as well as options for organizing a business based on your own property. In addition, the classifier also provides for such services as leasing of entire commercial buildings, shopping centers and other objects of serious scale. But there are no clear restrictions on the concept of non-residential real estate, so every entrepreneur can interpret it from its advantageous side.

However, if during registration you submit an incorrectly filled out form, no loopholes in the law will help you, so we strongly recommend that before visiting the Federal Tax Service, you carefully prepare for this event and memorize the following algorithm of actions:

  1. Select the required codes. If you are interested in renting out non-residential premises, OKVED has a whole selection for this case. Read the information presented on the official website of the Federal Tax Service on the classifier, find the current data there and record it for yourself separately. And don't forget to check if these codes refer to the second edition. If you provide outdated information, this will be considered a violation of the established registration procedure, and you will simply be refused to open a business entity.
  2. Fill out the appropriate application form correctly. For legal entities this is No. P11001, and for individual entrepreneurs - P21001. Here, making the slightest mistakes and shortcomings is also regarded as a reason for refusal.
  3. Submit your application within the established time frame and pick up the completed document at your place of registration on time.