Personal income tax. Personal income tax rate and deadlines for filing a declaration What taxes do individuals need to pay?

Personal income tax (NDFL)— federal tax in Russia, which is levied on the income of individuals.

Until 2002, this tax was called "Income Tax". Many people still call him that.

The name after the first letters of the name of the tax is also used - personal income tax.

A comment

Personal income tax is regulated by Chapter 23 of the Tax Code of the Russian Federation (TC RF).

Taxpayers

The following are recognized as taxpayers of personal income tax (clause 1 of Article 207 of the Tax Code of the Russian Federation):

Individuals who are tax residents of the Russian Federation,

As well as individuals who receive income from sources in the Russian Federation who are not tax residents of the Russian Federation.

Tax residents individuals are recognized who are actually in the Russian Federation for at least 183 calendar days over the next 12 consecutive months.

The period of stay of an individual in the Russian Federation is not interrupted by periods of his departure outside the territory of the Russian Federation (Clause 2 of Article 207 of the Tax Code of the Russian Federation):

For short-term (less than six months) treatment or training,

And also for the performance of labor or other duties related to the performance of work (provision of services) in offshore hydrocarbon fields.

Object of taxation

The object of taxation is income received by taxpayers (Article 209 of the Tax Code of the Russian Federation):

1) from sources in the Russian Federation and (or) from sources outside the Russian Federation - for individuals who are tax residents of the Russian Federation;

2) from sources in the Russian Federation - for individuals who are not tax residents of the Russian Federation.

The tax base

When determining the tax base, all income of the taxpayer received by him, both in cash and in kind, or the right to dispose of which he has acquired, is taken into account, as well as income in the form of material benefits, determined in accordance with Article 212 of the Tax Code of the Russian Federation (Article 210 Tax Code of the Russian Federation).

If any deductions are made from the taxpayer’s income by order, by decision of a court or other authorities, such deductions do not reduce the tax base (paragraph 2, paragraph 1, article 210 of the Tax Code of the Russian Federation).

Example

The employee received an income of 100 rubles. From this income, by court decision, 25 rubles of alimony are withheld.

Personal income tax is assessed on the amount of income of 100 rubles (personal income tax is withheld at a rate of 13%) and alimony is withheld from the amount minus tax.

Basic rules for calculating the tax base for personal income tax:

The tax base is determined separately for each type of income for which different tax rates are established (Clause 2 of Article 210 of the Tax Code of the Russian Federation). Personal income tax rates are determined by Article 224 of the Tax Code of the Russian Federation.

The tax base for income from equity participation is determined separately from other income, in respect of which the tax rate provided for in paragraph 1 of Article 224 of the Tax Code of the Russian Federation is applied (personal income tax rate is 13%). The specifics of calculating tax on income from equity participation are established by Article 275 of the Tax Code of the Russian Federation (clause 2 of Article 210 of the Tax Code of the Russian Federation).

The tax base for income from the sale of real estate is determined taking into account the specifics established by Article 217.1 of the Tax Code of the Russian Federation (clause 6 of Article 210 of the Tax Code of the Russian Federation).

The taxpayer's income (expenses) expressed (nominated) in foreign currency are recalculated into rubles at the official exchange rate of the Central Bank of the Russian Federation established on the date of actual receipt of said income (date of actual expenses) (clause 5 of Article 210 of the Tax Code of the Russian Federation).

Taxable period

The tax period is a calendar year (Article 216 of the Tax Code of the Russian Federation).

Tax rates

Tax rates are determined in Art. 224 Tax Code of the Russian Federation.

Basic personal income tax rate - 13%(Clause 1 of Article 224 of the Tax Code of the Russian Federation).

But some types of income have higher tax rates.

Tax rate 35% is established in relation to the following income (clause 2 of Article 224 of the Tax Code of the Russian Federation):

The cost of any winnings and prizes received in competitions, games and other events for the purpose of advertising goods, works and services, in terms of exceeding the amounts specified in paragraph 28 of Article 217 of the Tax Code of the Russian Federation (4,000 rubles per year);

Interest income on deposits in banks to the extent that they exceed the amounts specified in Article 214.2 of the Tax Code of the Russian Federation (for deposits in Russian banks in rubles - the refinancing rate of the Central Bank of the Russian Federation, increased by 5 percentage points, and for deposits in foreign currency - 9% per annum);

Amounts of savings on interest when taxpayers receive borrowed (credit) funds in terms of exceeding the amounts specified in paragraph 2 of Article 212 of the Tax Code of the Russian Federation (when receiving borrowed funds, cheaper than 2/3 of the refinancing rate of the Central Bank of the Russian Federation in rubles or 9% in foreign currency) ;

In the form of payment for the use of funds of members of a consumer credit cooperative (shareholders), as well as interest for the use by an agricultural credit consumer cooperative of funds raised in the form of loans from members of an agricultural credit consumer cooperative or associated members of an agricultural credit consumer cooperative, insofar as they exceed the amounts specified in Article 214.2.1 of the Tax Code of the Russian Federation.

Tax rate 30% is established in relation to all income received by individuals who are not tax residents of the Russian Federation, with the exception of income received (clause 3 of Article 224 of the Tax Code of the Russian Federation):

In the form of dividends from equity participation in the activities of Russian organizations, in respect of which the tax rate is set at 15 percent;

From carrying out labor activities specified in Article 227.1 of the Tax Code of the Russian Federation, in respect of which the tax rate is set at 13 percent;

From carrying out labor activities as a highly qualified specialist in accordance with Federal Law of July 25, 2002 N 115-FZ “On the Legal Status of Foreign Citizens in the Russian Federation”, in respect of which the tax rate is set at 13 percent;

From the implementation of labor activities by participants in the State Program for Assistance to the Voluntary Resettlement to the Russian Federation of compatriots living abroad, as well as members of their families who jointly moved to a permanent place of residence in the Russian Federation, in respect of which the tax rate is set at 13 percent;

From the performance of labor duties by crew members of ships flying the State Flag of the Russian Federation, in respect of which the tax rate is set at 13 percent;

From carrying out labor activities by foreign citizens or stateless persons recognized as refugees or granted temporary asylum on the territory of the Russian Federation in accordance with the Federal Law “On Refugees”, in respect of which the tax rate is set at 13 percent.

Tax rate 30% is also established in relation to income from securities (except for income in the form of dividends) issued by Russian organizations, the rights to which are recorded in the securities account of a foreign nominee holder, the securities account of a foreign authorized holder and (or) the securities account of depository programs paid to persons, information about which was not provided to the tax agent in accordance with the requirements of Article 214.6 of the Tax Code of the Russian Federation (clause 6 of Article 224 of the Tax Code of the Russian Federation).

Tax calculation procedure

The procedure for calculating tax is regulated by Art. 225 Tax Code of the Russian Federation.

1) Calculation of personal income tax taxed at a rate of 13%

The amount of income taxed at the personal income tax rate of 13% is determined. The amount of income is reduced by tax deductions - standard, social, property, professional deductions, which are provided to the employee in accordance with Art. 218, paragraphs. 4, 5 p. 1 tbsp. 219, paragraphs. 3, 4 p. 1 art. 220, art. 221 Tax Code of the Russian Federation.

Tax base = D(13%) - B

D(13%) - Income taxed at the rate of 13%

B - standard, social, property, professional deductions that are provided to the employee in accordance with Art. 218, paragraphs. 4, 5 p. 1 tbsp. 219, paragraphs. 3, 4 p. 1 art. 220, art. 221 Tax Code of the Russian Federation.

Tax deductions provided for in Articles 218 - 221 of the Tax Code do not apply to income from equity participation in an organization (clause 2 of Article 210 of the Tax Code).

Personal income tax = Tax base * 13%

2) Calculation of personal income tax taxed at other tax rates

The income taxed at other personal income tax rates is determined.

Personal income tax = Tax base * 30%

Personal income tax = Tax base * 35%

Date of actual receipt of income

The date of actual receipt of income determines when income arises for tax purposes and is regulated by Article 223 of the Tax Code of the Russian Federation.

Example

When receiving income in cash, the day the income is paid, including the transfer of income to the taxpayer’s bank accounts or, on his behalf, to the accounts of third parties (clause 1, clause 1, article 223 of the Tax Code of the Russian Federation).

When receiving income in kind - the day of transfer of income in kind (clause 2, clause 1, article 223 of the Tax Code of the Russian Federation).

When receiving income in the form of material benefits - the day of purchase of goods (work, services), purchase of securities.

If payment for purchased securities is made after the transfer of ownership of these securities to the taxpayer, the date of actual receipt of income is determined as the day the corresponding payment is made to pay for the cost of the purchased securities (clause 3, clause 1, article 223 of the Tax Code of the Russian Federation).

Day of offset of counter homogeneous claims (clause 4, clause 1, article 223 of the Tax Code of the Russian Federation).

The day when a bad debt is written off in the prescribed manner from the organization’s balance sheet (clause 5, clause 1, article 223 of the Tax Code of the Russian Federation).

For the income of a business traveler (for example, in the form of daily allowance), the date of recognition of income is the last day of the month in which the advance report is approved after the employee returns from a business trip (clause 6, clause 1, article 223 of the Tax Code of the Russian Federation).

When receiving income in the form of material benefits obtained from savings on interest when receiving borrowed (credit) funds - the last day of each month during the period for which the borrowed (credit) funds were provided (clause 7, clause 1, article 223 of the Tax Code of the Russian Federation ).

When receiving income in the form of wages, the date of actual receipt by the taxpayer of such income is the last day of the month for which he was accrued income for work duties performed in accordance with the employment agreement (contract) (clause 2 of Article 223 of the Tax Code of the Russian Federation).

If the employment relationship is terminated before the end of the calendar month, the date of actual receipt by the taxpayer of income in the form of wages is considered to be the last day of work for which the income was accrued to him (clause 2 of Article 223 of the Tax Code of the Russian Federation).

Procedure and deadlines for tax payment

The procedure and deadlines for paying taxes are determined in the articles of the Tax Code of the Russian Federation:

Article 226. Peculiarities of tax calculation by tax agents. Procedure and deadlines for tax payment by tax agents

Article 226.1. Peculiarities of calculation and payment of tax by tax agents when carrying out transactions with securities, operations with financial instruments of futures transactions, as well as when making payments on securities of Russian issuers

Article 227. Peculiarities of calculating tax amounts by certain categories of individuals. The procedure and terms for paying taxes, the procedure and terms for making advance payments by specified persons

Individual entrepreneurs and self-employed citizens pay personal income tax no later than July 15 of the year following the expired tax period (clause 6 of Article 227 of the Tax Code).

Individuals who are required to submit a tax return (specified in Article 228 of the Tax Code of the Russian Federation) pay personal income tax no later than July 15 of the year following the expired tax period (clause 4 of Article 228 of the Tax Code of the Russian Federation).

Article 227.1. Peculiarities of calculating the amount of tax and filing a tax return by certain categories of foreign citizens engaged in paid labor activities in the Russian Federation. Tax payment procedure

Benefits and deductions

Personal income tax benefits are established in Art. 217 Tax Code of the Russian Federation. For example, personal income tax is not assessed:

State benefits, with the exception of temporary disability benefits (including benefits for caring for a sick child), as well as other payments and compensation paid in accordance with current legislation. At the same time, benefits that are not subject to taxation include unemployment benefits, maternity benefits; (clause 1 of article 217 of the Tax Code of the Russian Federation)

Pensions for state pension provision (clause 2 of article 217 of the Tax Code of the Russian Federation)

Rewards to donors for donated blood, breast milk and other assistance; (clause 4 of article 217 of the Tax Code of the Russian Federation)

Alimony received by taxpayers; (clause 5 of article 217 of the Tax Code of the Russian Federation)

Amounts of one-time payments (including in the form of financial assistance) made (clause 8 of Article 217 of the Tax Code of the Russian Federation):

employers to family members of a deceased employee, a retired former employee, or an employee, a retired former employee, in connection with the death of his family member(s);

employers to employees (parents, adoptive parents, guardians) at the birth (adoption) of a child, paid during the first year after birth (adoption), but not more than 50 thousand rubles for each child;

Amounts paid by employers for the provision of medical services to their employees, their spouses, parents, children (including adopted children), wards under the age of 18, as well as their former employees who resigned due to retirement due to disability or old age, and remaining at the disposal of employers after payment of corporate income tax; (Clause 10, Article 217 of the Tax Code of the Russian Federation)

Income received by individuals who are tax residents of the Russian Federation for the corresponding tax period (Clause 17.1, Article 217 of the Tax Code of the Russian Federation):

from the sale of real estate objects, as well as shares in the said property, taking into account the specifics established by Article 217.1 of this Code;

from the sale of other property that was owned by the taxpayer for three years or more.

Income in cash and in kind received from individuals by way of donation, with the exception of cases of donation of real estate, vehicles, shares, shares, shares, unless otherwise provided by this paragraph (clause 18.1 of the Tax Code of the Russian Federation).

Income received as a gift is exempt from taxation if the donor and recipient are family members and (or) close relatives in accordance with the Family Code of the Russian Federation (spouses, parents and children, including adoptive parents and adopted children, grandparents and grandchildren, full and half (having a common father or mother) brothers and sisters);

Income not exceeding 4,000 rubles received on each of the following grounds for the tax period (clause 28 of article 217 of the Tax Code of the Russian Federation):

the value of gifts received by taxpayers from organizations or individual entrepreneurs;

the cost of prizes in cash and in kind received by taxpayers at competitions and competitions held in accordance with decisions of the Government of the Russian Federation, legislative (representative) bodies of state power or representative bodies of local self-government;

the amount of financial assistance provided by employers to their employees, as well as to their former employees who resigned due to retirement due to disability or age;

reimbursement (payment) by employers to their employees, their spouses, parents, children (including adopted children), wards (under the age of 18), their former employees (age pensioners), as well as disabled people for the cost of medicines purchased by them (for them) medications for medical use prescribed by their attending physician. Exemption from taxation is provided upon presentation of documents confirming actual expenses for the purchase of these drugs for medical use;

the cost of any winnings and prizes received in competitions, games and other events for the purpose of advertising goods (works, services);

the amount of financial assistance provided to disabled people by public organizations of disabled people;

Income in cash or in kind in the form of payment of the cost of travel to the place of study and back to persons under 18 years of age studying in Russian preschool and general educational institutions that have the appropriate license; (clause 45 of article 217 of the Tax Code of the Russian Federation)

Deductions are defined in Art. 218 - 221 Tax Code of the Russian Federation.

The following types of personal income tax deductions are provided:

Tax deductions when carrying forward losses from participation in an investment partnership (Article 220.2 of the Tax Code of the Russian Federation)

Rules for applying tax deductions:

For income for which the tax rate established by paragraph 1 of Article 224 of the Tax Code of the Russian Federation is provided (personal income tax rate is 13%), the tax base is reduced by the amount of tax deductions provided for in Articles 218 - 221 of the Tax Code of the Russian Federation (clause 3 of Article 210 of the Tax Code of the Russian Federation).

If the amount of tax deductions in a tax period turns out to be greater than the amount of income in respect of which the tax rate established by paragraph 1 of Article 224 of the Tax Code of the Russian Federation is subject to taxation for the same tax period, then in relation to this tax period the tax base is assumed to be zero. To the next tax period, the difference between the amount of tax deductions in this tax period and the amount of income in respect of which the tax rate established by paragraph 1 of Article 224 of the Tax Code of the Russian Federation, subject to taxation, is not carried forward (with the exception of pensioners) (clause 3 of Article 210 of the Tax Code RF).

For taxpayers receiving pensions in accordance with the legislation of the Russian Federation, if in the tax period there is no income taxed at the tax rate established by paragraph 1 of Article 224 of the Tax Code of the Russian Federation, the difference between the amount of tax deductions and the amount of income in respect of which the tax rate established by paragraph 1 of Article 224 of the Tax Code of the Russian Federation, can be carried over to previous tax periods (clause 3 of Article 210 of the Tax Code of the Russian Federation).

For income for which tax rates are different (than paragraph 1 of Article 224 of the Tax Code of the Russian Federation - 13%), the tax base is determined as the monetary value of such income subject to taxation. In this case, tax deductions provided for in Articles 218 - 221 of the Tax Code of the Russian Federation are not applied (clause 4 of Article 210 of the Tax Code of the Russian Federation).

Tax deductions provided for in Articles 218 - 221 of the Tax Code of the Russian Federation do not apply to income from equity participation in an organization (clause 3 of Article 210 of the Tax Code of the Russian Federation).

Tax return

A personal income tax return is submitted to the tax authority by individual entrepreneurs and self-employed citizens (applying the general taxation system), individuals who received income for which tax was not withheld at source. The tax return is submitted no later than April 30 of the year following the expired tax period (Article 227, Article 227.1., paragraph 1 of Article 228, Article 229 of the Tax Code of the Russian Federation).

A tax return can also be submitted by individuals who claim tax deductions (purchase of housing, education, treatment, etc.).

Example

Individuals who are required to independently calculate tax and submit a tax return are indicated in Art. 228 Tax Code of the Russian Federation.

Features of individual entrepreneurs (IP)

Individual entrepreneurs using the general taxation system calculate and pay personal income tax. The income of individual entrepreneurs is determined in the general manner (discussed above).

IP expenses are determined by Art. 221 Tax Code of the Russian Federation - . Thus, it is indicated that the composition of expenses accepted for deduction is determined by the taxpayer independently in a manner similar to the procedure for determining expenses for tax purposes established by the chapter “Organizational Income Tax.”

That is, an individual entrepreneur recognizes the same expenses as organizations. For example, if an individual entrepreneur acquired fixed assets (for example, premises) or intangible assets (for example, rights to a trademark), then he can write them off as expenses through depreciation according to the same rules as organizations.

Sections:

This material will help you understand the main issues that taxpayers have.

Personal income tax(NDFL) is one of the types of direct taxes in Russia. It is calculated as a percentage of the total income of individuals without including tax deductions and amounts exempt from taxation into the tax base. Personal income tax is paid on all types of income received in a calendar year, both in cash and in kind. These are, for example, wages and bonus payments, income from the sale of property, royalties for intellectual activity, gifts and winnings, sick leave payments to a number of taxpayers (including when paying temporary disability benefits to notaries, the notary chamber is recognized as the tax agent, and to lawyers - law office, bar association or legal consultation. They are required to calculate, withhold and contribute personal income tax to the budget ().

Personal income tax rate and deadlines for filing a declaration

The basic personal income tax rate in Russia is 13%. For certain types of income, established. The tax amount is calculated in full rubles, and the tax amount is rounded up to the nearest full ruble if it is 50 kopecks. and more ().

The main part of personal income tax (primarily from wages) is calculated, withheld and transferred to the budget by the employer (tax agent).

Income from the sale of property is declared by the individual independently. In this case, at the end of the year, a declaration is filled out and the amount of tax that the individual must transfer to the budget is calculated. The declaration must be submitted to the tax office at the place of permanent residence (tax registration) before the end of April of the year following the year in which the income was received.

Please note that individuals must submit a declaration of income received in 2019; in this case, they can only use the new declaration form. The tax must be paid no later than July 15.

At the same time, you can submit a personal income tax return only for the purpose of obtaining tax deductions at any time during the year. The deadline for filing a declaration does not apply to this case.

Let us remind you that taxpayers who received income from which tax agents did not withhold the calculated amount of tax and transmitted information about them to the tax authorities, pay tax no later than December 1 of the year following the expired tax period, on the basis of a tax payment notice sent by the tax authority ( And , ). This rule was introduced in 2016, which means that starting from 2017, it is not necessary to submit declarations in form 3-NDFL in the above cases.

Who needs to submit a declaration?

Personal income tax payers are individuals:

• tax residents of the Russian Federation;
• who are not tax residents of the Russian Federation, in case of receiving income on the territory of Russia ().

Let us remind you that tax residents are individuals who are actually in the Russian Federation for at least 183 calendar days over the next 12 consecutive months ().

Individuals who have received:

• remuneration from individuals and organizations that are not tax agents, including income from rental agreements or lease agreements for any property;
• income from the sale of own property owned for less than three years () or five years, and property rights;
• income from sources located outside of Russia (with the exception of certain categories of citizens, in particular military personnel);
• income from which tax was not withheld by tax agents;
• winnings from lotteries, sweepstakes, slot machines, etc.;
• income in the form of remuneration paid to them as heirs (legal successors) of the authors of works of science, literature, art, as well as authors of inventions, utility models and industrial designs;
• as a gift real estate, vehicles, shares, shares, shares from individuals (not close relatives) who are not individual entrepreneurs.

In addition, the income tax return must be submitted by:

• individuals applying for a full or partial refund of previously paid personal income tax;
• notaries engaged in private practice, lawyers who have established law offices and other persons engaged in private practice;

Please note that on behalf of a minor child under the age of 18 who has received income subject to personal income tax, the tax is paid by his parent as a legal representative ().

Let's look at examples of when to file a declaration and when not.

The declaration MUST be submitted if:

• you are renting out an apartment. In many cities, a “hunt” has been launched for landlords who do not declare their income. However, many citizens still ignore this responsibility;
• you sold a car that you owned for less than three years. Even if the amount of income you receive is fully covered by the deduction (for example, if the car was sold for less than 250 thousand rubles) (). A declaration is needed in this case to apply the deduction. If your income from the sale was less than 250 thousand rubles, then the fine for failure to file a return will be minimal - 1 thousand rubles, since in this case there is no unpaid tax amount. If the taxpayer's income exceeded this amount and he did not file a tax return, he will be charged a fine in the amount of 5% of the amount of tax not paid on time, payable on the basis of the declaration, for each full or partial month from the day established for its submission, but in the amount of no more than 30% of the tax payable ().
• you want a tax refund. For example, you bought an apartment or you paid tuition fees and want to claim a deduction;
• your devoted admirer, who is not your relative, gave you a car;
• the organization gave you a car. The fact is that gifts from organizations are taxed if their value exceeds 4 thousand rubles. ().

The declaration DOES NOT NEED to be submitted if:

• you sold a car (or other property) that you have owned for more than three years;
• you work part-time in several places, as well as under civil contracts, you receive remuneration from organizations from which they have already withheld tax. You can find out whether tax was withheld from you by looking at the documents that accompanied the payment or request a 2-NDFL certificate. Employers and any sources of payments must withhold tax - this is their responsibility, violation of which is fraught with fines;
• your brother gave you a car (). Let us remind you that gifts from close relatives are exempt from taxation.

Let us make a reservation that in the examples with gifts we are talking specifically about things you received under a gift agreement.

One individual gave a car to another free of charge. Both individuals are tax residents of the Russian Federation and are not recognized as family members or close relatives. At what rate will personal income tax be calculated when receiving property free of charge?

Income arising from the recipient upon receipt of a car as a gift is subject to personal income tax at a tax rate of 13%.

Thus, personal income tax taxpayers are individuals who are tax residents of the Russian Federation, as well as individuals who receive income from sources in the Russian Federation but are not tax residents of the Russian Federation (). According to the object of taxation for individuals who are tax residents, income received from sources in Russia and (or) from sources outside Russia is recognized. In this case, income for the purposes of calculating personal income tax is recognized as economic benefit in monetary or in-kind form, taken into account if it is possible to evaluate it and to the extent that such benefit can be assessed, and determined in accordance with (). According to, when determining the tax base, all income received by the taxpayer, both in cash and in kind, or the right to dispose of which he has acquired, is taken into account, as well as income in the form of material benefits, determined in accordance with. Thus, in the case under consideration, the recipient individual has income in the form of a car received free of charge.

The list of income not subject to personal income tax (exempt from taxation) has been established. According to this, income in cash and in kind received from individuals as a gift is not subject to personal income tax (personal income tax) (exempt from taxation), with the exception of cases of donation of real estate, vehicles, shares, interests, shares, unless otherwise provided.

Income received as a gift is exempt from taxation if the donor and donee are family members and (or) close relatives in accordance with (spouses, parents and children, including adoptive and adopted parents, grandparents and grandchildren, full-born and half-brothers and sisters (having a common father or mother) (). Since the donor and donee in the situation under consideration are not recognized as family members and (or) close relatives in accordance with, the case in question does not fall under the exemption stipulated by. Consequently, income received in kind in the form of a car as a gift is subject to personal income tax on a general basis. In this case, the donee must independently calculate and pay personal income tax ().

A straightforward reading of this norm can lead to the conclusion that it is applicable only in cases where the donor is an organization or an individual with the status of an individual entrepreneur. At the same time, no special rules have been established for determining the tax base for personal income tax for income in kind received as a gift from individuals (who are not individual entrepreneurs). In addition, tax legislation does not clarify what documents must be used to confirm the value of the gift. At the same time, the regulatory authorities explain that the tax base in relation to the case under consideration is calculated by the taxpayer based on the prices existing on the date of donation for the same or similar property and property rights. If the price of a car under a gift agreement corresponds to the above prices, to calculate the tax base for personal income tax, the value of the gift specified in the gift agreement ( , ; , ; ) can be accepted. Let us note that, in the opinion of the tax authorities, revision of the results of the taxpayer’s declaration of income in the form of property received as a gift is unacceptable ().

In addition, the donee must, no later than April 30, 2019 (for income received in 2018), submit a tax return to the tax authority at the place of his registration (,). In accordance with this, the total amount of tax calculated on the basis of the tax return is paid at the taxpayer’s place of residence no later than July 15 of the year following the expired tax period.

Close relatives entered into a gift agreement among themselves. At the time of certifying the transaction, the notary did not request from the parties any additional documents confirming close kinship (for example, birth certificates, marriage certificates, etc.). Are the parties to the agreement or one of the parties obligated to submit documents confirming a close relationship to any government authorities so that the recipient does not pay personal income tax?

Powers to monitor compliance with the legislation on taxes and fees, the correctness of calculation, completeness and timeliness of payment (transfer) of taxes to the budget system of the Russian Federation, including the right to conduct tax audits, demand elimination of identified violations of the legislation on taxes and fees and monitor compliance with these requirements, to collect tax arrears, as well as corresponding penalties, interest and fines, are within the competence of the tax authorities (Law of the Russian Federation of March 21, 1991 No. 943-I "").

In such situations, some representatives of regulatory authorities recommend submitting to the tax authority documents (information) confirming the relationship between the donor and the donee, however, such submission is not mandatory, the legislation does not establish sanctions for failure to submit to the tax authority by a taxpayer who received income in the form of an apartment under a gift agreement or other real estate, documents that confirm his close relationship with the donor.

Additionally, we note that, as follows from, individuals who have received income that is exempt from personal income tax in accordance with are not required to submit a personal income tax return to the tax authority in connection with the receipt of such income.

Thus, an individual who has received property (an apartment) as a gift from a close relative is not required to submit to the tax authority (as well as to other government bodies, organizations or their officials) documents that confirm a close relationship with the donor in order to exempt the received property. income from personal income tax. At the same time, it has the right to submit such documents (copies thereof) on its own initiative (a copy of the birth certificate, a copy of the marriage certificate, etc., depending on the relationship). The tax authority has the right to request explanations (documents) from the taxpayer in connection with the receipt by such a taxpayer of income in the form of property received as a gift and the lack of payment of personal income tax on this income (,).

Two citizens want to draw up an equivalent agreement for the exchange of apartments (without additional payments). The first citizen has been the owner of a two-room apartment for less than three years and received a property deduction for this apartment in full. The second citizen has been the owner of a three-room apartment for more than three years and has not received a property deduction. Both citizens indicate in the exchange agreement the same price for both a two-room and a three-room apartment - 2 million rubles. Will each of them have to pay personal income tax and in what amount?

Under an exchange agreement, each party undertakes to transfer one product into the ownership of the other party in exchange for another (). In accordance with the barter agreement, the rules on purchase and sale are applied if this does not contradict the rules and essence of the barter. In this case, each of the parties is recognized as the seller of the goods, which it undertakes to transfer, and the buyer of the goods, which it undertakes to accept in exchange. In accordance with, unless otherwise follows from the exchange agreement, the goods to be exchanged are assumed to be of equal value.

Thus, under an agreement for the exchange of apartments, each of the parties is recognized as the seller of its property and at the same time as the buyer of the property received in exchange.

Accordingly, for the purposes of personal income tax taxation, barter should be considered as two counter transactions for the sale of property within the framework of one transaction with payment in kind, to which the general rules for taxation of personal income tax apply, including the procedure for using property tax deductions (). Therefore, when making an exchange, the tax base is determined by each party to the exchange agreement (,). The amount of personal income tax taxable income received under an apartment exchange agreement is in this case determined based on the cost of the apartments specified in the agreement.

Taking into account the period of stay of the exchanged objects, one of the parties to the exchange agreement, who has owned the apartment for more than three years, is exempt from paying personal income tax on income from the sale of a three-room apartment when carrying out an exchange transaction.

The second party to the exchange agreement has the right, at his choice, to take advantage of a property tax deduction when selling a two-room apartment, the amount of which is no more than 1 million rubles. in relation to income received from the sale of an apartment, or reduce income from the sale of this apartment by the amount of expenses associated with its acquisition, provided that these expenses are documented. At the same time, apply for a property tax deduction in connection with the purchase of an apartment under an exchange agreement in the amount of actual expenses incurred, but not more than 2 million rubles. can only be an individual who has not used this right.

My parents had 2 dorm rooms. One room belonged to them 1/2 each, and the second belonged to my minor son (he is 6 years old). They sold these rooms and bought an apartment, so the child now has a 1/3 share in the apartment. I have a question: is it necessary to submit a declaration for the sale of shares to minors?

Thus, on behalf of a minor child who received taxable income from the sale of real estate (if this property was owned by him for less than three years), a tax return is filled out and signed by his parent as the legal representative of his minor child.

When declaring the specified income, a minor child has the right to receive property tax deductions in connection with the sale and acquisition (provided that the share of the apartment was purchased in the same year and this tax deduction was not previously provided).

An application for a deduction for the costs of purchasing a 1/3 share of an apartment is also filled out and signed by the parent of a minor child.

The obligation to pay this tax must be fulfilled within the period established by tax legislation. A payment document for tax payment is issued in the name of a minor child and signed by the child’s legal representative. Tax payment on behalf of the child is also carried out by his legal representative at the expense of personal funds.

I want to receive a property deduction when buying an apartment, in addition to my main place of work, I am an individual entrepreneur. Do I need to submit two income declarations (as an individual to receive a property deduction and as an individual entrepreneur), or can all income be indicated in one declaration?

A person recognized as a taxpayer for one or more taxes, who does not carry out transactions that result in the movement of funds in his bank accounts (at the organization’s cash desk), and who does not have objects of taxation for these taxes, represents. The unified tax return is submitted to the tax authority at the place of residence of the individual no later than the 20th day of the month following the elapsed quarter, half-year, 9 months, calendar year ().

The tax return is submitted indicating the TIN. The taxpayer signs the tax return, confirming the accuracy and completeness of the information specified in the tax return ().

For the purpose of a uniform approach to the procedure for providing the most popular social and property tax deductions, as well as the return of overpaid personal income tax, the Federal Tax Service of Russia sent lists and samples of filling out documents attached by taxpayers to tax returns for personal income tax ().

Property tax deduction can be provided:

• at the end of the corresponding tax period after the taxpayer has filed a personal income tax return (in this case, the funds are transferred to the taxpayer directly by the tax authority) ();
• before the end of the corresponding tax period (in this case, the deduction is provided by the tax agent) ().

Moreover, if in a tax period the property tax deduction cannot be used in full, its balance can be transferred to subsequent tax periods until it is fully used.

The basic personal income tax rate in Russia is 13%.

The tax rate is set at 35% in relation to:

• the cost of any winnings and prizes received in competitions, games and other events for the purpose of advertising goods, works and services, to the extent that they exceed 4 thousand rubles;
• interest income on deposits in banks to the extent that they exceed the amounts specified in (for example, for ruble deposits - refinancing rate + 5%);
• the amount of savings on interest when taxpayers receive borrowed (credit) funds in excess of the amounts specified in (for example, for interest expressed in rubles - 2/3 of the refinancing rate over the amount of interest calculated based on the terms of the agreement);
• in the form of a fee for the use of funds of members of a credit consumer cooperative (shareholders), as well as interest for the use by an agricultural credit consumer cooperative of funds raised in the form of loans from members of an agricultural credit consumer cooperative or associated members of an agricultural credit consumer cooperative, to the extent that the amount of the specified fee exceeds , interest accrued over the amount of the fee, interest calculated based on the refinancing rate + 5%.

The tax rate is set at 30% in relation to all income received by individuals who are not tax residents of the Russian Federation, with the exception of income received:

• in the form of dividends from equity participation in the activities of Russian organizations, in respect of which the tax rate is set at 15%;
• from carrying out labor activities, in respect of which the tax rate is set at 13%;
• from carrying out labor activities as a highly qualified specialist, in respect of which the tax rate is set at 13%;
• from the implementation of labor activities by participants in the state program to assist the voluntary resettlement to the Russian Federation of compatriots living abroad, as well as members of their families who jointly moved to permanent residence in Russia, in respect of whom the tax rate is set at 13%;
• from the performance of labor duties by crew members of ships flying the State Flag of the Russian Federation, in respect of which the tax rate is set at 13%;
• from carrying out labor activities by foreign citizens or stateless persons, recognized refugees or who have received temporary asylum in the territory of the Russian Federation, in respect of whom the tax rate is set at 13 percent;
• in the form of dividends on shares (stakes) of international holding companies that are public companies on the day such a company makes a decision to pay dividends, in respect of which the tax rate is set at 5%.

The tax rate is set at 9% on income in the form of interest on mortgage-backed bonds issued before January 1, 2007, as well as on the income of the founders of trust management of mortgage coverage received on the basis of the acquisition of mortgage participation certificates issued by mortgage coverage managers before 1 January 2007.

Income exempt from taxation

Typically, whether a payment is taxable or not is determined by the source of the payment. However, if this source is not an organization, then it is necessary to know which income is exempt from taxation.

In particular, the following types of income of individuals are not subject to taxes:

• state benefits, with the exception of benefits for temporary disability (including benefits for caring for a sick child);
• state pensions and insurance pensions, fixed payment to the insurance pension (taking into account the increase in the fixed payment to the insurance pension) and funded pension;
• amounts of one-time payments (including in the form of financial assistance) made, for example:
  • employers to family members of a deceased employee, a retired former employee, or an employee, a retired former employee, in connection with the death of his family member(s);
  • employers to employees (parents, adoptive parents, guardians) at the birth (adoption) of a child, paid during the first year after birth (adoption), but not more than 50 thousand rubles for each child.
• scholarships;
• taxpayer income received from the sale of livestock, rabbits, nutria, poultry, wild animals and birds grown on private farms located on the territory of the Russian Federation, livestock products, crop production, floriculture and beekeeping, both in natural and processed forms;
• income of members of a peasant (farm) household;
• income received by individual residents of the Russian Federation from the sale of real estate, as well as shares in this property that were owned by the taxpayer for three years or more (or five years), as well as from the sale of other property that was owned by the taxpayer for three years or more (this does not apply to the sale of securities);
• income in cash and in kind received from individuals through inheritance, with the exception of remuneration paid to the heirs (legal successors) of the authors of works of science, literature, art, as well as discoveries, inventions and industrial designs;
• income in cash and in kind received from individuals as a gift, except for cases of donation of real estate, vehicles, shares, shares, shares. Any gifts (including apartments and cars) are exempt from taxation if the donor and recipient are members of the same family and (or) close relatives (spouses, parents and children, including adoptive and adopted parents, grandparents and grandchildren, full and half (having a common father or mother) brothers and sisters);
• prizes in cash and (or) in kind received by athletes;
• the amount of the taxpayer's tuition fees;
• income not exceeding 4 thousand rubles received on each of the following grounds for the tax period:
  • the value of gifts received by taxpayers from organizations or individual entrepreneurs;
  • the cost of prizes in cash and in kind received by taxpayers at competitions and competitions;
  • the amount of financial assistance provided by employers to their employees, as well as to their former employees who resigned due to retirement due to disability or age;
  • reimbursement (payment) by employers to their employees, their spouses, parents and children, their former employees (age pensioners), as well as disabled people for the cost of medications purchased by them (for them), prescribed to them by their attending physician. Exemption from taxation is provided upon presentation of documents confirming the costs of purchasing these medicines;
  • the cost of any winnings and prizes received in competitions, games and other events for the purpose of advertising goods (works, services);
  • the amount of financial assistance provided to disabled people by public organizations of disabled people;
• maternal (family) capital funds;
• income of soldiers, sailors, sergeants and foremen undergoing conscription military service, as well as persons called up for military training, in the form of allowances, daily allowances and other amounts received at the place of service or at the place of military training;
• the amount of partial payment from federal budget funds for the cost of a new vehicle as part of an experiment to stimulate the purchase of new vehicles to replace those that are out of service and handed over for recycling;
• employer contributions to the funded part of the labor pension, in the amount of paid contributions, but not more than 12 thousand rubles. per year per each employee in whose favor contributions were paid by the employer.

A complete list of income exempt from taxation is contained in.

Personal income tax is a tax that is levied on wages and other income of individuals, as well as on the income of individual entrepreneurs under the general taxation system (the outdated name is “income tax”). In most cases the tax rate is 13%. Today we are publishing an article devoted to Chapter 23 of the Tax Code of the Russian Federation “Tax on personal income”. It describes in an accessible, simple language the procedure for calculating and paying personal income tax, tax rates, tax deductions for personal income tax and deadlines for submitting reports. This material is part of the “Tax Code for Dummies” series. Please note that the articles in this series provide a general understanding of taxes only; for practical activities it is necessary to refer to the primary source - the Tax Code of the Russian Federation

• individuals who are tax residents of the Russian Federation (that is, individuals who are actually in Russia for at least 183 calendar days over the next 12 consecutive months). Residents are subject to taxation on income received both in the Russian Federation and abroad.
• individuals who are not tax residents of the Russian Federation (that is, individuals who are actually in Russia for less than 183 calendar days within 12 consecutive months). For non-residents, only income received from sources in Russia is subject to taxation.

Tax base for personal income tax (what the tax is calculated on)

Personal income tax is assessed on income, which is divided into two categories: received from sources in the Russian Federation and received from sources outside of Russia. “Russian” income under personal income tax includes wages, remuneration for work and services performed in our country, dividends and interest issued by Russian companies, proceeds from the sale or rental of property located in the Russian Federation, and some other types of payments.

The list is open, and it contains such an item as “other income received by the taxpayer as a result of his activities in the Russian Federation.”

The list of income from foreign sources resembles the list of “domestic” income. It is also open and contains a clause on “other income”.

What income is not subject to personal income tax?

Chapter 23 of the Tax Code, dedicated to personal income tax, lists income exempt from personal income tax. These include state benefits (excluding sick leave) and statutory compensation payments.

In particular, compensation related to dismissal (with the exception of compensation for unused vacation) and reimbursement of travel expenses are not subject to personal income tax. At the same time, some types of business trips are not subject to personal income tax in full (for example, travel to the destination and back), others - within a certain limit. Thus, daily allowances are exempt from personal income tax to a limited extent. For Russian business trips no more than 700 rubles. per day, for foreign ones - no more than 2,500 rubles. in a day.

The list also mentions other types of non-taxable income. We would like to add that the list is closed.

Personal income tax rates

The basic personal income tax rate is 13%. It is this that applies to income in the form of wages and in the form of revenue from business activities received by individual entrepreneurs. Since 2015, the same rate has been applied to dividends paid to residents of the Russian Federation.

For some types of income, different values ​​have been introduced. For example, for winnings and prizes in the amount of over 4,000 rubles. per year - rate 35%.

Personal income tax calculation

To calculate personal income tax, you need to determine the tax base (that is, the amount of taxable income) and multiply it by the appropriate tax rate. As a result, you will receive the personal income tax amount. For income subject to different rates, the bases are determined separately. Please note: the tax base for dividends must be determined separately from other income. That is, when calculating personal income tax on dividends and personal income tax on wages, two different tax bases should be calculated (despite the fact that the rate for these payments has been the same since 2015).

The tax base is calculated on an accrual basis from the beginning of the tax period, which is equal to one calendar year. In other words, the base is determined during the period from January 1 to December 31 of the current year, then the calculation of the tax base begins from scratch.

For payments taxed at a rate of 13%, the base is reduced by so-called tax deductions. In this case, you need to sum up all taxable income, subtract tax deductions, and multiply the resulting figure by 13%. If it turns out that there is less income than deductions, then the base is taken equal to zero. In this case, the negative difference between income and deductions in the general case is not carried forward to the next year, and losses from previous years do not reduce the tax base of the current period.

For payments taxed at other rates, tax deductions are not applied. Here, the amount of personal income tax is determined by direct multiplication of taxable income and rate. Tax deductions also cannot be applied to income from equity participation in an organization (that is, dividends received by tax residents of the Russian Federation) (although the rate on them is 13%).

Tax deductions for personal income tax

There are five types of personal income tax deductions: standard, professional, and investment.

Standard deductions are listed in the article Tax Code. According to it, all individuals with children have the right to receive a monthly deduction in the amount of 1,400 rubles. for the first child, 1,400 rubles. for the second child and 3,000 rubles. for the third and each subsequent child. “Children’s” deductions are provided up to the month in which the employee’s salary at a given employer, calculated on an accrual basis from the beginning of the year, exceeded 350,000 rubles.

Standard personal income tax deductions apply only to income received from one of the employers of the taxpayer's choice. In other words, if a person works two or more jobs, he can only take the standard deduction for one of them.

Professional deductions are available to individual entrepreneurs and those engaged in private practice. Also, the right to this type of deduction is given to persons performing work or services under contract agreements, and those who receive royalties (Art. Tax Code of the Russian Federation).

Professional deductions are equal in amount to documented expenses associated with the relevant activity. In fact, the determination of such deductions for individual entrepreneurs is similar to the determination of expenses for. If there are no documents confirming expenses, deductions are provided according to the standards (for entrepreneurs this is 20% of income received).

Social and property deductions for personal income tax will be of interest to those who have heard about the return or reimbursement of personal income tax - for example, about the return of personal income tax for training. On Persons who have spent money on education, treatment, charity, non-state pension insurance, voluntary life insurance and additional contributions to the funded part of a labor pension can apply (Article of the Tax Code of the Russian Federation).

Submit declarations for individual clients with a 50 percent discount

Property deductions are provided to those who incurred costs in connection with the sale, purchase or construction of real estate (Article of the Tax Code of the Russian Federation).

From January 1, 2015, the Code was supplemented by the article of the Tax Code of the Russian Federation “Investment tax deductions”. An investment deduction is possible, in particular, in the amount of a positive financial result obtained from the sale (redemption) of securities traded on the organized market if they were owned by an individual for more than three years.

When a taxpayer independently calculates personal income tax

Individual entrepreneurs and persons engaged in private practice (notaries, lawyers, etc.) themselves account for income from their activities, calculate personal income tax and pay it to the budget.

In general, those who receive income from the sale and rental of property, income in the form of winnings in the lottery or other gambling games, as well as income from any foreign sources (the latter applies only to residents) also calculate the tax themselves.

In addition, the following persons must calculate and transfer the tax to the budget with their own hands: those who received gifts from individuals who are not registered as individual entrepreneurs (with the exception of property, cars and shares donated by relatives); heirs of copyrights to works of art, scientific discoveries, etc.

Finally, individuals who received money from an employer (or other tax agent) who, for one reason or another, failed to withhold tax, are required to pay personal income tax. In 2015 and earlier, individuals were required to independently calculate the amount of tax and submit a return. Starting from 2016, tax authorities make calculations. They record the received amount in a notification that is sent to the individual. The latter can only transfer the money based on the notification received. There is no need to submit a declaration.

When a tax agent is involved in calculating personal income tax

Organizations and entrepreneurs paying wages to their employees are tax agents for personal income tax in relation to them. This means that it is employers (and not the employees themselves) who must charge personal income tax on the amount of wages, withhold the tax and transfer it to the budget. The same rule applies to dividends that the company pays to its founders - individuals.

In practice, the calculation, as well as the withholding of personal income tax and its payment are usually handled by the accounting department.

Let's give an example. Let’s say that Fedorov’s employee’s remuneration for the month worked was 40,000 rubles. Accounting calculated that the tax on Fedorov’s salary is 5,200 rubles. (RUB 40,000 x 13%*). The accountants transferred this amount to the budget, and Fedorov was given 34,800 rubles. (40,000 - 5,200).

When calculating personal income tax, the accounting department of an organization - tax agent (or individual entrepreneur - tax agent) does not take into account the amounts paid to the employee by other organizations or entrepreneurs. At the same time, in relation to your own payments, you must comply with the following condition: the amount of tax withheld should not exceed 50% of the amount of payment to the employee. Agents are required to keep records of income, deductions and withholding tax for each individual in specially designed tax registers. As a rule, form 1-NDFL is taken as the basis for such a register and information about the dates of withholding and transfer of tax to the budget is added to it.

In addition, agents must, at the request of individuals, issue them.

Agents do not have the right to transfer tax on the income of individuals at their own expense. It is also not allowed to stipulate in contracts that the agent undertakes the obligation to pay personal income tax. If for some reason the agent was unable to withhold tax from the income of an individual, then no later than March 1 of the following year, the accountant must notify both the individual and his tax office in writing (for this, a regular income certificate is used) .

If the agent has withheld an excess amount of tax, he must notify the employee within 10 days. He, in turn, has the right to write a return application, and the agent is obliged to return the money within three months. The refund is possible due to upcoming personal income tax payments, not only for this employee, but also for other employees of the company. In the event that this money is not enough to return, the agent can submit an application to his Federal Tax Service, and it will transfer the missing amount from the budget.

Payment of personal income tax by an entrepreneur who hired employees

An individual entrepreneur who pays wages to employees acts in two capacities. He must independently calculate tax on his income, as well as withhold personal income tax from staff salaries. Thus, an individual entrepreneur is simultaneously both a taxpayer and a tax agent. Accordingly, he needs to fulfill the duties related to the calculation of “his” tax (calculate, pay to the budget and report to the inspectorate), as well as fully fulfill the duties of an agent.

Some individuals not only receive a salary, but also have other sources of income (for example, they run a business, rent out property, etc.). In this case, it is necessary to distinguish between income on which tax must be calculated independently, and income from which tax is withheld by the employing agent. For “independent” income, it is necessary to accrue personal income tax, pay it to the budget and report to the tax office.

When and where to transfer personal income tax

Now we’ll tell you what determines the timing of transferring personal income tax to the budget. In general, tax agents transfer personal income tax monthly no later than the day following the day the income was paid. An exception is made for vacation pay and temporary disability benefits (including for caring for a sick child). The tax withheld from these payments should be transferred to the budget no later than the last day of the month in which they were paid.

Income tax must be paid to the budget at the place of registration of the tax agent. If the employing organization has, then the tax from the salaries of its employees must be transferred to the budget at the location of the unit. In the event that a separate division has entered into a civil contract, personal income tax on remuneration should be transferred to the budget at the location of the division. Entrepreneurs on PSN and “imputation” must transfer tax from the salaries of their employees to the place of business (and not to their place of residence).

When paying personal income tax, agents must comply with the following rule. The tax amount exceeding 100 rubles should be transferred in the usual manner, and the amount less than 100 rubles. pay later, along with next month's tax.

Entrepreneurs and those engaged in private practice make advance payments for personal income tax three times a year. The first time - for January-March no later than April 25 of the current year, the second time - for January-June no later than July 25 of the current year and the third time - for January-September no later than October 25 of the current year. The basis for transferring personal income tax is a tax notice sent by the inspectorate. The tax authorities themselves calculate the amount of advance payments based on the declaration submitted by the entrepreneur. The total amount of personal income tax for the tax period must be transferred to the place of registration of the individual entrepreneur no later than July 15 of the following year.

Persons who independently calculate personal income tax, but are not engaged in business or private practice (landlords, heirs of copyright, etc.), do not make advance payments. They transfer money once (no later than July 15 of the following year) to their place of residence.

Fines and penalties for personal income tax

If the tax agent transferred the tax late, he is obliged to pay a personal income tax penalty for each calendar day of delay. The first day of delay is considered to be the date following the day when the employer was supposed to transfer (but did not transfer) income tax. The last day of delay is the date of tax payment.

The amount of penalties depends on the current refinancing rate of the Central Bank. Tax agents - individuals (including entrepreneurs) must pay penalties for each day of delay in the amount of one three hundredth of the refinancing rate multiplied by the amount of arrears for personal income tax.

The following rules are established for tax agents-organizations. If the delay does not exceed 30 calendar days, the amount of penalties for each calendar day of delay is one three-hundredth of the refinancing rate multiplied by the amount of arrears under personal income tax. If the delay exceeds 30 calendar days, the fines are made up of two parts. The first part is equal to one three hundredth of the refinancing rate, multiplied by the amount of arrears on personal income tax, for each calendar day of delay, starting from the 1st and ending with the 30th (inclusive). The second part is equal to one hundred and fiftieth of the refinancing rate, multiplied by the amount of arrears on personal income tax, for each day of delay, starting from the 31st.

Let us add that penalties in the amount of one three hundredth of the refinancing rate for each calendar day of delay must also be paid by those individuals who themselves transfer personal income tax from their income.

In addition, tax agents who fail to withhold tax from employee salaries and/or fail to transfer it to the budget on time will be fined by inspectors under personal income tax. The same thing will happen if income tax is withheld and (or) not transferred in full. This fine is provided for in article Tax Code of the Russian Federation and amounts to 20% of the amount of tax subject to withholding and (or) transfer.

It is possible that a tax agent who did not withhold personal income tax from employees’ salaries and transferred it to the budget from his own funds (except for the situation when the arrears were revealed during an audit) will also have to pay a fine under an article of the Tax Code of the Russian Federation. The same applies to employers who transferred income taxes before paying out wages. Although this is not directly stated in the Tax Code, this is exactly what inspectors think. Judicial practice is contradictory. There are decisions made in favor of the Federal Tax Service (see “”), but there are also decisions made in favor of employers (see “”).

For entrepreneurs and individuals engaged in private practice, there is also a fine for non-payment or incomplete payment of personal income tax. The fine is 20% of the unpaid tax amount. If inspectors believe that the tax was not paid intentionally, then the amount of the sanction will be 40% of the unpaid tax amount (Article of the Tax Code of the Russian Federation).

Personal income tax declaration and reporting deadlines

The most important issue for a taxpayer or accountant is the deadline for submitting personal income tax reports. Let's look at who, how and when reports personal income tax.

Entrepreneurs and individuals engaged in private practice are required to submit tax returns. At the end of the year, individual entrepreneurs and private owners submit a declaration no later than April 30 of the following year. If the activity ceased in the middle of the year, the declaration must be submitted within five days from the date of termination (the tax accrued on such a declaration must be transferred no later than 15 calendar days from the date of filing the declaration).

Persons who independently calculate personal income tax, but are not engaged in business or private practice, are required to submit a declaration based on the results of the tax period no later than April 30 of the following year. In addition, those who claim social or property deductions submit an annual declaration.

Tax agents must once a year, no later than March 1, submit to the inspectorate certificates of income for the past tax period. In general, they are filled out for each individual who has received income from a given company or entrepreneur. In addition, starting from 2016, tax agents are required to submit quarterly calculations. It includes generalized information on all individuals who received income from a tax agent. The calculation is submitted within the month following the first quarter, half year and nine months. At the end of the year, 6-NDFL is submitted no later than March 1 of the year following the reporting year.

If a company has a separate division, then personal income tax reporting should generally be submitted at the place of registration of such divisions. Entrepreneurs who use PSN or “imputation” submit reports to the inspectorate, where they are registered at the place of business.

A tax agent who has paid income to 11 or more people is required to submit certificates and calculations under Article 126 of the Tax Code of the Russian Federation. Its size is 1,000 rubles. for each full or partial month from the date established for submitting the calculation.

If a tax agent, obliged to report personal income tax electronically, submits certificates or calculations on paper, he will be charged a fine under an article of the Tax Code of the Russian Federation. The fine amount is 200 rubles. for each certificate and each payment.

Personal income tax payers who independently submit reports for this tax will also be held accountable for late submission of a declaration in Form 3-NDFL. The amount of the fine is equal to 5% of the unpaid amount of income tax payable on the basis of this declaration, for each full or partial month from the day set for submitting the declaration. In this case, the amount of the sanction cannot exceed 30% of this amount, and should not be less than 1,000 rubles. (Clause 1 of Art. Tax Code of the Russian Federation).

* For simplicity, we considered the situation when the employee is not provided with tax deductions.

Tax obligations have long become an integral part of modern man. Information on how individuals are taxed and types of taxes is contained in the Tax Code of the Russian Federation. Today we will try to more succinctly cover the main taxes that Russian citizens pay.

Types of taxes and fees from individuals

Important! Please keep in mind that:

• Each case is unique and individual.
• A thorough study of the issue does not always guarantee a positive outcome. It depends on many factors.

To get the most detailed advice on your issue, you just need to choose any of the options offered:

Russian legislation defines the following types of taxes and fees from individuals:

• transport obligation of individuals;
• personal income tax;
• property tax;
• land tax;
• State duty is a fee, the size of which varies depending on the characteristics of the government services provided.

Let us consider the types of taxes paid by individuals in more detail.

Income taxes

9% on dividends received by residents of the Russian Federation

13% is the generally applicable rate

35% - regarding deposit interest, winnings from gambling events

30% on the profits of foreigners who are not residents of Russia

15% on dividends received by foreigners

Persons whose income (earnings) are subject to a thirteen percent tax have the right to take advantage of the tax, which allows them to return the paid income tax.

• professional;
• standard;
• property;
• social.

The procedure for implementing the above rule and the specifics of its application are regulated by current legislation.

Transport tax

Transport tax is included in the types of taxes levied on individuals annually.

• cars;
• by bus;
• scooters;
• motorcycles;
• snowmobiles;
• water, air transport;
• other self-propelled mechanism that has passed state registration.

The tax rate is calculated in rubles and depends on the number of horsepower of the engine. Municipal bodies of federal subjects have the right to set taxes independently, but not more than ten times the amount determined.

Property tax

A popular type of tax levied on individuals is property tax. It is paid by all Russians and foreigners who own real estate. The final amount of the tax and the categories of persons who are exempt from paying it are determined by the local government agencies of each federal subject.

• 0.1% for private residential buildings, unfinished houses, garages, parking spaces, outbuildings;
• 2% for objects with a cadastral value of more than three hundred million rubles;
• 0.5% relative to other buildings.

If there is no property price in the cadastral register, inventory estimates are used to calculate the tax liability, which are multiplied by deflator coefficients. A more detailed procedure for determining the types of tax payments of individuals is regulated by Chapter 36 of the Tax Code of the Russian Federation.
When taxpayers own part of an object (a share in a home), the tax is calculated in proportion to their share. The property liability for the heir is accrued from the moment of state registration of his right to property, and not from receipt of paper confirming the right to receive the inheritance.

Land tax for individuals

• own the land;
• use the land by right of lifelong ownership;
• Permanent use rights were issued for the plots.

For individuals, land tax obligations are set at 0.3%. However, the legislation provides for the establishment of other rates linked to the categories of land plots and their area.

The obligation for the previous year is paid before the beginning of December of the current year. In the Russian Federation, individuals pay taxes and types of fees related to land, according to tax notices.

What income of individuals is subject to personal income tax and what is not?

Types of income that are subject to personal income tax

• from the sale of property that was owned for less than 3 years;
• from leasing property;
• income received outside the Russian Federation;
• income from winnings;
• other income.

Types of income that are NOT subject to personal income tax

• income from the sale of property that has been owned for more than three years;
• income received as an inheritance;
• income received under a gift agreement from a family member and (or) close relative in accordance with the Family Code of the Russian Federation (from a spouse, parents and children, including adoptive and adopted parents, grandparents and grandchildren, full and half-blooded (having a common father) or mother) brothers and sisters);
• other income.

Tax is a mandatory contribution of the payer to the budget and extra-budgetary funds in the amounts specified by law and within the established time frame. It expresses the monetary relations that the state has with legal entities and individuals in connection with the redistribution of national income and the mobilization of financial resources into budgetary and extra-budgetary funds of the state. Contributions are made by the main participants in the production of gross domestic product:

O workers who, through their labor, create material and intangible benefits and receive a certain income;

O economic entities, owners of capital.

Tax contributions generate the state's financial resources, accumulated in its budget and extra-budgetary funds. The economic content of taxes is thus expressed by the relationship between business entities and citizens, on the one hand, and the state, on the other, regarding the formation of public finances.

But taxes are not only an economic category, but also a financial category at the same time. As a financial category, taxes express the general properties inherent in all financial relations, and their distinctive features and characteristics, their own form of movement, that is, functions that distinguish them from the entire set of financial relations. The functions of taxes reveal their socio-economic essence and internal content. What exactly is the role of taxes on the population in a market economy, what functions do they perform in the economic mechanism? There are several points of view on this problem, but I would highlight three functions of taxes:

O distribution;

O fiscal;

O test.

Moreover, the distribution function can be divided into regulatory and stimulating, etc.

The most consistently implemented function is fiscal. The fiscal function is the main one, initially characteristic of all states. With its help, state monetary funds are formed, that is, material conditions for the functioning of the state.

Through the fiscal (budget) function, part of the income of citizens is withdrawn for the maintenance of the state apparatus, the defense of the country and that part of the non-productive sphere that does not have its own sources of income (many cultural institutions - libraries, archives, etc.), or they are insufficient to ensure the required level development - fundamental science, theaters, museums and many educational institutions, etc. It is this function that provides a real opportunity to redistribute part of the value of national income in favor of the least affluent social strata of society.

The importance of the fiscal function increases with the increase in the economic level of development of society. The twentieth century is characterized by a huge increase in state revenues from taxes, which is associated with the expansion of its functions and certain policies of social groups in power. The state is spending more and more financial resources on economic and social activities and on the administrative apparatus.

Another function of the personal tax as an economic category is that it becomes possible to quantitatively reflect tax revenues and compare them with the state’s needs for financial resources. Thanks to the control function, the effectiveness of each tax channel and the tax “press” as a whole is assessed, and the need to make changes to the tax system and budget policy is identified. The control function of tax-financial relations manifests itself only under the conditions of the distribution function.

Initially, the distribution function of taxes was purely fiscal in nature: to fill the state treasury in order to support the army, the administrative apparatus, and the social sphere. But since the state considered it necessary to actively participate in the organization of economic life in the country, it acquired regulatory functions that were carried out through the tax mechanism. In the tax regulation of personal income, stimulating and restraining (disincentive) subfunctions have appeared. But most of the taxes currently levied in the Russian Federation have only a fiscal purpose, and only some have a regulatory function.

The regulatory function means that taxes, as an active participant in redistribution processes, have a serious impact on reproduction, stimulating or restraining its pace, strengthening or weakening capital accumulation, expanding or reducing the effective demand of the population. This function is inseparable from the fiscal function and is closely related to it. The expansion of the tax method in mobilizing national income for the state causes constant contact of taxes with participants in the production process, which provides it with real opportunities to influence the country’s economy, at all stages of reproduction.

The stimulating subfunction of taxes is implemented through a system of benefits, exceptions, preferences, linked to the benefit-generating features of the taxable object. It manifests itself in a change in the object of taxation, a decrease in the tax base, and a decrease in the tax rate.

Division of taxes levied on individuals

In the Russian tax system there are 3 groups of taxes, depending on the body that collects the tax and uses it:

1. Federal taxes.

2. Regional taxes.

3. Local taxes and fees.

I will highlight the main types of taxes on the population in Russia.

Main types of taxes paid by the population.

u State duty

u Land tax

u Taxes on property of individuals

u Tax on the purchase of foreign banknotes

u Tax on vehicle owners

u Personal income tax

u Registration fee for individual entrepreneurs

u Vehicle parking fee

u Border clearance fee

u Fee for cleaning the territories of populated areas

u Insurance contributions to the Pension Fund of the Russian Federation

u Customs payments

Personal income tax

General provisions

Personal income tax is the main tax that individuals pay on almost all types of income received during the year.

The tax is paid within the time limits established by law, on an accrual basis from the beginning of the year, offsetting previously paid amounts.

Payroll taxes are withheld by employers. Citizens who during the year had income not only from performing labor and equivalent duties at the place of their main job (service, study) are required to submit an income declaration to the tax authorities.

If international treaties of the Russian Federation or the former USSR establish other rules for taxation of certain categories of citizens, then the rules of the international treaty apply.

Individual entrepreneurs who have switched to a simplified system of taxation, accounting and reporting pay income tax in the form of payment of the annual cost of the patent.

Payers

Citizens of the Russian Federation, foreign citizens, stateless persons:

located in the Russian Federation no less 183 days in a calendar year - based on income from sources in the Russian Federation and abroad

located in the Russian Federation less 183 days in a calendar year - only for income from sources in the Russian Federation

Object of taxation

The total taxable income received in a calendar year, both in cash and in kind, including in the form of material benefits.

The date of receipt of income is the date of payment of income (including advance payment), or transfer of income, or the date of transfer of income in kind.

Total taxable income

Material benefit

When an employee receives an interest-free or low-interest loan from an organization, the total taxable income includes the material benefit in the form of savings on interest.

The benefit is the difference between the amount calculated based on 2/3 of the refinancing rate of the Central Bank of the Russian Federation for funds in rubles (or 10% per annum for funds in foreign currency), and the amount of interest actually paid. The tax on material benefits is withheld by the organization.

Sale of property

When selling property owned by a citizen who is not registered as a tax payer, the total taxable income may be reduced by an amount not exceeding 5,000 times the MMOT amount when selling housing, dachas, garden houses, land plots, land shares (shares) , or for an amount not exceeding 1000 times the size of the MMOT - when selling other property. (At the request of the payer, this deduction can be replaced by a deduction of actually incurred and documented expenses.)

Receiving income from sources outside the Russian Federation

When receiving income from sources outside the Russian Federation by citizens with permanent residence in the Russian Federation, the amounts of taxes paid outside the Russian Federation are accepted for deduction, but not more than the amounts due under the legislation of the Russian Federation, i.e. using the Russian income tax scale.

Income not subject to taxation

· Interest and winnings on government securities and local government securities

· Insurance payments (indemnities) for compulsory insurance, under contracts of voluntary long-term (for a period of at least five years) life insurance, property insurance and liability insurance in connection with the occurrence of an insured event, in compensation for harm to life, health and medical expenses

· Interest and winnings on deposits in banks located in the Russian Federation, open:

q in rubles - if the interest is paid within the refinancing rate established by the Central Bank of the Russian Federation

q in foreign currency - if interest is paid within 15% per annum

· State benefits, pensions, student scholarships

Income taxed at a fixed rate

Interest and winnings on deposits in banks located on the territory of the Russian Federation in an amount exceeding the refinancing rate established by the Central Bank of the Russian Federation, which was in effect during the period of existence of the deposit (15% per annum - on deposits in foreign currency), and some types of insurance payments are taxed separately from other types of income at source of income at a rate of 15%.

The tax base

Standard deductions.

Standard deductions are made at the place of main work, and in the absence of one, by any other source of income at the request of the taxpayer, or by the taxpayer himself at the end of the year.

They do not apply in the presence of 3- and 5-fold benefits and benefits within the limits of income taxed at the minimum rate.

Pension deductions

Amounts withheld from the employee’s earnings and subject to payment to the Pension Fund of the Russian Federation (1% of the employee’s income). Deductible only from main source of income; other sources withhold contributions to the Pension Fund, but do not make a deduction when calculating income tax.

Deductions for child and dependent support

Produced for each child or dependent

Produced by the main source of income or by the taxpayer himself at the end of the year.

Deductions for charitable purposes

Amounts within the limits of income transferred by the taxpayer for charitable purposes to enterprises, organizations and cultural, educational, health and social welfare institutions, partially or fully financed from the budget.

Deducted by the main source of income or by the taxpayer himself at the end of the year.

Deductions for developers

Amounts allocated from the income of citizens - developers and buyers - for the purchase or construction (completion) of residential buildings, apartments, dachas and garden houses on the territory of the Russian Federation, including amounts allocated to repay bank loans and interest on them.

Amounts within the limits of 5,000 monthly wages taken into account over a three-year period, but not more than the amount of total annual income, are subject to deduction.

Deductions are made only for one object for 3 calendar years, starting from the year the application is submitted to the accounting department of the main source of income or to the tax authority.

Tax rates

Tax rates on total income received in 1999

The amount of total taxable income received in a calendar year	Tax rate to the federal budget	Tax rate to the budgets of the constituent entities of the Russian Federation	Total tax amount
Up to 30,000 rub.
From 30,001 to 60,000 rub.		RUR 2,700 + 12%	RUR 3,600 + 15% from an amount exceeding RUB 30,000.
From 60,001 to 90,000 rub.		6,300 rub. + 17%	RUB 8,100 + 20% from an amount exceeding 60,000 rubles.
From 90 001 to 150,000 rub.	3%	RUB 11,400 + 22%	1RUR 4,100+ 25% from an amount exceeding 90,000 rubles.
From RUB 150,001 And higher		RUR 24,600 + 32%	RUB 29,100. + 35% from an amount exceeding RUB 150,000.

Tax rates based on total income received in 2000

Tax withholding responsibilities of employers and other organizations

Procedure for calculating and withholding tax

When paying wages and other types of remuneration to employees, tax is calculated and withheld by the enterprise on a monthly basis from the amount of total taxable income on an accrual basis, taking into account the amount of tax withheld in previous months.

Tax deductions are made by the main source of income (from the main place of work) and can be made by another source of income only in the absence of a main place of work.

Taxes that are not withheld or not fully withheld are collected by the enterprise from individuals until the debt is fully repaid in compliance with the guarantees established by law (no more than 50% of monthly income).

When paying a citizen income from the sale of property, income tax is withheld by the organization - the source of income, if the income exceeds the non-taxable minimum (5000- or 1000-fold MMOT), and if the citizen has not informed the tax authority that he is registered with the tax authorities (received an identification card). taxpayer number - INN) and will pay the tax independently. Otherwise, the organization paying the income reports its amount to the tax authority at its location.

Enterprises transfer to the budget the amounts of tax calculated and withheld from individuals no later than the day of actual receipt of funds from the bank for wages or no later than the day of transfer of wages from bank accounts on behalf of employees.

Enterprises that do not have bank accounts or pay salaries from proceeds from the sale of products (works, services) transfer tax amounts to banks no later than the day following the day the salary is paid.

If individuals receive income from employers not for the performance of work duties (for example, vacation pay, payments for sick leave, or income received in the form of material and social benefits), the income tax calculated and withheld from such income must be transferred no later than the fifth day of the month , following the month in which the income was received or the specified payments were made.

Tax transfers for branches and other separate divisions that do not have bank accounts are made by the parent organization to the regional budget at the location of the branch or division.

Reporting to tax authorities

Enterprises are required to submit to the tax authority:

· report on the final amounts of income and withheld amounts of tax, on income paid to individuals other than their main place of work - quarterly, no later than the 1st day of the second month following the reporting quarter (after the end of the year - no later than April 1 of the year following for reporting)

· report on income paid to individuals at the place of their main job - annually, no later than April 1 of the following year

· information on payments made to individuals to fulfill obligations on securities (including bills of exchange), as well as on other transactions for the purchase and sale of securities

· Reports must be submitted on magnetic media or using telecommunications (does not apply to enterprises with up to 10 people, except for banks, insurance organizations and professional participants in the securities market).

Organizations that are tax agents bear the responsibility provided for in Part One of the Tax Code for tax agents.

Responsibility of citizens to submit tax returns and pay income taxes

A tax return must be submitted by individuals who received income from other organizations and individual entrepreneurs, except for income from the main place of work (service, study), if the total income in the past year exceeds the amount of income taxed at the minimum rate

The declaration is submitted to the tax authority no later than April 30 of the year following the reporting year. Individuals have the right, within a month after its submission, to clarify the data they declared in the declaration.

The declaration indicates each source of payment of income and the amount of accrued and paid tax (separately by income from the main job and from other sources).

Features of taxation of foreign citizens and stateless persons

Foreign citizens and stateless persons permanently residing in the Russian Federation (more than 183 days in a calendar year)

Foreign citizens and stateless persons permanently residing in the Russian Federation (more than 183 days in a calendar year) pay income tax in Russia on their worldwide income. The taxable income of these citizens is determined in the same way as the income of citizens of the Russian Federation, with the following features:

Included in income:

· the amount of allowances paid in connection with residence in the Russian Federation

· amounts of compensation for expenses for children’s education at school, food, trips of the payer’s family members on vacation and for similar purposes

· additional payments from the employer for each day of stay in the Russian Federation.

Excluded from income:

· amounts transferred to state social insurance and pension funds

· the amount of compensation for the costs of renting residential premises and maintaining a car for business purposes

· the amount of travel expenses associated with movement within the territory of the Russian Federation and beyond its borders within the norms.

Income declarations

The income declaration is submitted to the tax authority at the place of activity (or residence) in the Russian Federation:

· about the expected income in the calendar year - within a month from the date of arrival in the Russian Federation (for further stay in the Russian Federation in the next calendar year - until April 30 of the following year)

When terminating activities on the territory of the Russian Federation during a calendar year and leaving the Russian Federation, a declaration of income actually received during the period of stay must be submitted no later than a month before departure.

Procedure for calculating and paying tax

Tax is calculated on the basis of income declarations by the tax authority. Advance payments are made before May 15, August 15, November 15 in equal shares of the amount calculated at 75% of tax liabilities (determined based on the submitted declaration).

Additional payment for recalculation for the reporting year is made within a month from the date of receipt of the payment notice sent by the tax authority to the payer.

Offset of tax amounts paid outside the Russian Federation

Taxes paid outside the Russian Federation are accepted for offset only within the limits established by the legislation of the Russian Federation, i.e. using the Russian income tax scale.

Foreign citizens and stateless persons living in the Russian Federation for less than 183 days in a calendar year

Foreign citizens and stateless persons who do not have permanent residence in the Russian Federation pay, in the general manner, income tax on income received from sources in the Russian Federation for performing labor duties at the place of their main and non-principal work.

For other income from sources in the Russian Federation, tax is withheld at the rate of 20% at the source of payment, unless otherwise provided by international treaties of the Russian Federation, the former USSR or decisions taken on the basis of the principle of reciprocity.

Double taxation agreements

The collection of income tax from foreign individuals and stateless persons may be terminated or limited in accordance with international treaties of the Russian Federation and the former USSR, when in the relevant foreign state the same measures are carried out in relation to citizens of the Russian Federation, which must be officially confirmed by the central tax authority of this foreign state. In the latter case, tax exemption is carried out on the basis of instructions from the Ministry of Finance of the Russian Federation.

Citizens' property tax

Object of taxation

Residential buildings, apartments, cottages, garages, any other buildings (sheds, workshops, sheds), motor boats, helicopters, airplanes and other vehicles (except cars, motorcycles, etc.).

Calculation and payment procedure

Tax paid once a year based on the assessment data of the technical inventory bureau and relevant inspections. Building tax is calculated at a rate of 0.1 percent of the inventory value, and if such an assessment was not made, then at the cost determined when calculating the amount of compulsory state insurance. Payment is made in equal parts in two stages: before September 15 and before November 15.

Privileges

From tax on movable and immovable property fully are released

· citizens who have special merits to the state, disabled people of groups 1 and 2, as well as persons affected by radiation accidents

· Heroes of the Soviet Union and Heroes of the Russian Federation, as well as persons awarded the Order of Glory of three degrees

· disabled people of the first and second groups, disabled since childhood, from among both civilians and civilians, who served or held regular positions in military units, headquarters and institutions that are part of the active army,

· military personnel, as well as citizens discharged from military service upon reaching the age limit, military service, health status, or in connection with organizational and staffing events, having a total duration of military service of 20 years or more.

· family members of military personnel who have lost their breadwinner.

In addition to the categories of citizens listed above Real estate tax benefits are available to:

· all categories of pensioners, citizens discharged from military service or called up for military training, performing international duty in Afghanistan and other countries where hostilities took place.

· parents, spouses of military personnel and government employees who died in the line of duty,

· cultural figures, artists, folk craftsmen - owners of buildings, premises, including housing, for the period of organizing workshops in them.

From payment vehicle tax Owners of motor boats with an engine power of no more than 10 horsepower are exempt.

Vehicle owner tax

Subject of taxation

Payers of this tax are owners of cars, motorcycles, buses and other self-propelled vehicles shod with tires.

Tax calculation

The tax is calculated by the taxpayer independently based on engine power as a percentage of the minimum wage per unit of power (1 hp). Power, if it is not indicated in the car’s passport, is calculated depending on the engine size. Tax paid annually before passing the state technical inspection.

Privileges

Disabled people do not pay tax on vehicle owners for specially equipped cars and wheelchairs.

Gift tax

Object of taxation

Property transferred by inheritance or gift. When inheriting, tax is paid on property whose value exceeds 850 MMOT, and when donating - if the property is more than 80 MMOT. The tax is paid by the citizen receiving an inheritance or gift.

Land tax

Object of taxation

Agricultural land, land plots provided to citizens for running personal subsidiary plots, including plots in gardening cooperatives, land for the construction of housing, dachas, and garages. Depending on the main purpose, lands allocated to citizens are divided into agricultural and non-agricultural lands.

Calculation and payment of tax

Land tax is calculated based on the area of ​​the plot and the approved land tax rates. Land tax for plots within rural settlements and outside their boundaries provided to citizens for private farming, gardening, haymaking, grazing, gardening is levied on the entire area of ​​the land plot at the average tax rates for agricultural lands of the administrative region. Tax rate accepted by the local government in the amount of 0.1 to 2 percent of the cost. For land occupied by housing, the fee is calculated at 3 percent of the land tax rate, but not less than 60 rubles per square meter.

Tax is paid twice a year in equal parts - until September 15 and until November 15.

Privileges

Exempt from paying land tax

· citizens engaged in folk arts and crafts,

· participants of the Great Patriotic War, as well as citizens who are entitled to benefits established for participants of the Second World War.

· disabled people of groups 1 and 2,

· citizens exposed to radiation,

· military personnel and citizens transferred to the reserve before reaching the age limit for service, health reasons or organizational and staffing events, if the total duration of their service is 20 years or more.

· family members of military personnel, police departments, institutions of the criminal correctional system who lost their breadwinner while on duty,

· Heroes of the Soviet Union, Heroes of the Russian Federation, Socialist Labor, full holders of the Orders of Glory and Labor Glory, and for “Service to the Motherland in the Armed Forces of the USSR.”

· citizens organizing peasant (farm) enterprises for the first time, for the first five years after the provision of land.

· citizens who received disturbed lands (requiring reclamation) for agricultural purposes for the first 10 years of use.