Appraisal for taxation purposes is conducted in order to determine a property value, which will be a base for paying taxes or other charges. For example, as a rule, legal entities’ property tax depends on the value of the property, which is specified in financial statements of a taxpayer. Thus, if tax authorities and a taxpayer have different views in respect of the value, there can dispute arise over taxation (payable tax). The issue can be solved by referring to an expert who can perform the appraisal procedure. During the appraisal process, our company considers each case individually by taking into account legal entity’s peculiarities, applicable legislation and national financial reporting standards.
For taxation purposes, movable and immovable property can be assessed. Appraisal for taxation purposes is carried out by following the principles of effective use, supply and demand and profitability and etc. The factors of labor and capital affect the value as well. Each factor affects the total value and is being a part of the value. The substitution principle provides that a value calculated for taxation purposes must not exceed a minimum value of similar objects at the real estate market. The principle of supply and demand displays the ratio of supply and demand for similar real estate.
It should also be noted that the main attribute for an expert while doing appraisal for taxation purposes is to expertise in full compliance with professional ethics:
TurkmenExpert approaches all issues consistently and presents an independent and objective judgment about the value, prepared in accordance with the applicable legislation of Turkmenistan and international valuation standards.