Personal income tax in 2021 - what changes are expected, income tax rate

Individual entrepreneur sells an apartment or car

Let's start with the amendments dedicated to entrepreneurs on the main tax system who sell their residential house, apartment, room, cottage, garden house or shares in them, as well as a vehicle.
Starting from 2021, they will not have to pay personal income tax if the specified real estate was in their ownership for at least the minimum maximum period of ownership (in general, it is five years), and the car - for three years or more. This rule will apply even if the housing, garden house or car was used in business activities (subclause 17.1 of Article 217 of the Tax Code of the Russian Federation as amended by Federal Law No. 425-FZ dated November 27, 2018; see “Individual entrepreneurs will no longer pay Personal income tax on the sale of apartments and cars that were used in business activities”). If the individual entrepreneur owned the listed property for a shorter time, he, as before, will have to pay personal income tax. But in this case, the entrepreneur has the right to apply a property deduction. With the adoption of the commented Law No. 424-FZ, the procedure for calculating the deduction amount has changed. The innovations will affect the situation when the costs associated with the purchase of housing, a summer house or a car were taken into account within the framework of the simplified tax system, Unified Agricultural Tax, or as part of a professional deduction under the OSNO. Under such circumstances, it will be possible to include in the property deduction the actual costs of acquiring the specified object minus the previously taken into account costs of its purchase or the amount of the professional deduction (new edition of subclause 2, clause 2, article 220 of the Tax Code of the Russian Federation).

We would like to add that no changes are provided for individual entrepreneurs on the simplified taxation system. When selling real estate that was rented out, they must pay a single “simplified” tax in accordance with the conclusions made in the ruling of the RF Armed Forces dated December 2, 2014 No. 309-KG14-5023.

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Changes in insurance premium rates

The innovations are more technical, related to the correction of the rate from 18% to 20%. There will be similar changes in the sales book. The purchase ledger does not indicate tax rates, so these changes will not affect it.

Property tax reporting will change due to the exclusion of movable property from taxation. The Federal Tax Service has already approved a new form of declaration and advance payment (order dated 10/04/2018 No. ММВ-7-21/ [email protected] ). Electronic reporting formats have also changed. These forms must be used when submitting reports starting from the first quarter of 2021.

In both forms, in section 2.1, lines 010–030 were changed, in which the cadastral, conditional or inventory numbers were indicated. Since 2019, this number must be indicated in line 020. And in line 010, the code of this number must be given:

• 1 - cadastral;
• 2 - conditional;
• 3 - inventory for an object with an address. Line 030 gives this address;
• 4 - inventory for an object that does not have an address.

In addition, two coefficients will appear in section 3 - Kv and Ki. They need to be calculated by those who sold or bought real estate in the reporting year, for which the cadastral value changed during the year.

Starting from 2021, there will be two forms of 2-NDFL certificate - for the tax office and for employees. The Federal Tax Service approved them by order dated October 2, 2018 No. ММВ-7-11/ [email protected] New forms must be used when preparing data on an individual’s income for 2021.

The uniform for employees is no different from the one in force now. For inspection, the certificate is more like a declaration and consists of two pages. On the first data you need to indicate information about:

• individuals;
• income source companies;
• total amounts of income, deductions, taxes.

The second page is an application with a breakdown of all amounts by month.

Watch how to correctly fill out two new forms

Tax agents who have several separate divisions on the territory of one municipality are given the right to transfer withheld tax amounts to the budget at the location of one of such separate divisions.

It is possible for organizations to submit reports at the place of registration of one of its separate divisions in cases where there are several separate divisions of the organization on the territory of one municipality.

It is proposed to clarify the conditions for providing property tax deductions for the purchase of housing in the amount of expenses actually incurred by the taxpayer to repay interest on credits (loans) received not only from banks, but also from organizations, if such loans were issued in accordance with assistance programs for certain categories of mortgage borrowers housing loans (loans) who find themselves in a difficult financial situation, approved by the Government of the Russian Federation.

Reduction of administrative burden is ensured:

• individuals by canceling the obligation to declare income from the sale (exchange) of securities and introducing tax agency in these cases;
• lawyers by canceling the obligation to document the suspension of the status of a lawyer in order to be exempt from paying insurance premiums for the corresponding period.

• legal entities using the simplified tax system,
• entrepreneurs who work for PSN,
• pharmacies that pay UTII.

Now they must pay contributions at the general rates:

• for OPS - at a rate of 22%,
• for OSS for disability and maternity - at a rate of 2.9%,
• for compulsory medical insurance - 5.1%.

For remuneration to individuals for whom contributions will be accrued at general rates, a maximum limit applies, upon reaching which contributions to compulsory pension insurance are accrued at a reduced rate, and contributions to compulsory pension insurance are not accrued at all.

The Government of the Russian Federation annually increases the limit values. Read more about expected highs for 2021. see table 3.

Table 3. New contribution limits

• within the established maximum value of the base for calculating insurance premiums for this type of insurance - 22%
• above the established maximum base for calculating insurance premiums for this type of insurance - 10%.

Starting from January 1, 2021, the tax base will be determined for each land plot as its cadastral value, which is indicated in the Unified State Register of Real Estate as of January 1 of the year that is the tax period.

Please note that changes in the cadastral value of a land plot during a tax period are not taken into account when determining the tax base in this and previous tax periods, with the exception of the following cases:

• in the event of a change in the cadastral value of a land plot due to the correction of a technical error in the information of the Unified State Register of Real Estate on the value of the cadastral value, as well as in the case of a decrease in the cadastral value due to the correction of errors made in determining the cadastral value, revision of the cadastral value by decision of the dispute resolution commission on the results of determining the cadastral value or a court decision in the event of unreliability of the information used in determining the cadastral value, information on the changed cadastral value entered in the Unified State Register of Real Estate is taken into account when determining the tax base starting from the date of application for tax purposes of information on the changed cadastral value ;
• in the event of a change in the cadastral value of a land plot based on the establishment of its market value by decision of the commission for the consideration of disputes on the results of determining the cadastral value or a court decision, information on the cadastral value established by the decision of the said commission or a court decision, entered into the Unified State Register of Real Estate, is taken into account when determining tax base starting from the date of commencement of application for taxation purposes of the cadastral value that is the subject of the dispute.

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Dividends upon exit from the company or its liquidation

From January 1, 2021, the concept of dividends of an individual - participant (shareholder) of a Russian or foreign company will be expanded. From this date, dividends, among other things, will recognize the excess of income received by such a person upon leaving the organization or upon its liquidation over his contribution.

In other words, the size of dividends is the difference between two values. The first value is the amount of money or the value of property (property rights) transferred to a participant or shareholder at the time of leaving the organization or in the process of its liquidation. The second is the cost of purchasing shares or shares of a given company. If the first value is greater than the second, the participant (shareholder) receives taxable income in the form of dividends. If the first value is less than or equal to the second, taxable income is zero. This follows their new editions of subparagraph 1 of paragraph 1 and subparagraph 1 of paragraph 3 of Article 208 of the Tax Code of the Russian Federation.

If, upon leaving the company or upon its liquidation, a former participant (shareholder) receives property rights, their value should be determined at the market price in accordance with Article 105.3 of the Tax Code of the Russian Federation (new sub-clause 1.1, clause 2, Article 211 of the Tax Code of the Russian Federation).

Check the financial condition of your organization and its counterparties

Tax deductions for personal income tax in 2021

Dmitry Morozov recalled what deductions individuals can use to reduce the personal income tax base.

Standard deductions

Receive a standard deduction in the amount of:

• 500 rub. disabled children of groups II and I, WWII veterans, participants in the siege of Leningrad, heroes of the USSR and the Russian Federation, holders of the Order of Glory can;
• 1400 rub. parents of one or two children can (1,400 rubles for each child);
• 3 thousand rubles. disabled military personnel and persons injured in accidents at nuclear power plants, during testing of nuclear weapons, as well as parents for a third and subsequent child;
• 12 thousand rubles. Parents supporting a disabled child can.

Social deductions

It is allowed to reduce the amount of tax by 50-120 thousand rubles. when paying for medical and educational services, independent assessment of qualifications, transferring donations to charitable institutions, contributions to non-state pension funds.

Deduction upon receipt of dividends (withdrawal from the company or its liquidation)

As mentioned above, a participant (shareholder), to whom property (money, property rights) was transferred upon liquidation of the company or upon leaving it, receives taxable income. This income is exempt from personal income tax on the basis of subclause 17.2 of Article 217 of the Tax Code of the Russian Federation, provided that at the time the income was received, the individual owned these shares or interests for more than five years (for more details, see “How to calculate personal income tax when a participant leaves an LLC: dealing with complex issues”) .

If the founder received property (property rights) upon leaving the company or upon its liquidation before November 27, 2021 (the date of entry into force of the commented Law No. 424-FZ), then in order to be exempt from personal income tax, one more condition must be met. Namely: shares or shares of the company must be acquired after December 31, 2010. If income is received on November 27 or later, then it is not subject to personal income tax, regardless of the date of acquisition of shares and interests.

If the above conditions for exemption from personal income tax are not met, the former participant (shareholder) is obliged to pay personal income tax. At the same time, he has the right to apply a property deduction if he is a tax resident of the Russian Federation. The amount of the deduction is equal to the amount of expenses for the acquisition of shares and the acquired company.

How to determine the amount of such expenses is specified in the new edition of subclause 2 of clause 2 of Article 220 of the Tax Code of the Russian Federation. If an individual paid for shares or shares in cash, everything is simple: acquisition costs are equal to the amount transferred to the authorized capital or spent on the purchase of shares or shares.

If shares or shares were paid for with property (property rights), then expenses are determined as follows. If, at the time of transfer to the authorized capital or to third parties, the full value of the property was included in the taxable income of an individual, such property is taken into account as expenses at the market price. The same rule also applies in a situation where the specified income was exempt from taxation on the basis of Article 217 of the Tax Code of the Russian Federation.

If the cost of the property with which the shares or shares were paid was not included in the taxable income of an individual, or was only partially included, then the costs consist of three components. The first is the documented costs of purchasing this property. The second is a material benefit attributed to the taxable income of an individual as a result of the purchase of this property. The third is the partial value of the property, classified as taxable income when transferring it to the authorized capital or to third parties.

If a tax resident of the Russian Federation is unable to confirm expenses for the purchase of stocks and shares, for example, due to the loss of primary documents, he has the right to apply a deduction in the amount of 250,000 rubles. (Subclause 1, Clause 2, Article 220 of the Tax Code of the Russian Federation). As for tax non-residents, under no circumstances can they use the property deduction.

We would like to add that the commented amendments raised certain doubts among experts that they would be implemented.

Alexey Krainev, tax lawyer at Accounting Online:

— Taking into account the amendments, the following picture is obtained. A shareholder or participant who left the organization or received property in connection with its liquidation received income in the form of dividends. To find the amount of dividends, you need to subtract the costs of purchasing stocks, shares and shares from the amount of money received or the value of property. Then, if the specified income is not exempt from taxation under Article 217 of the Tax Code of the Russian Federation, a tax resident of the Russian Federation can apply a deduction. This deduction is equal to the costs of purchasing stocks, shares and shares.

It turns out that a resident has the right to reduce his income twice by the amount of the same expenses. The first time is at the time of determining the amount of dividends. The second time is at the time of applying the property deduction. However, such a “double” reduction in expenses looks dubious. It is possible that further amendments will soon appear that will correct this accounting algorithm.

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Are changes in the amount of personal income tax expected?

Proposals to increase the cost of income tax have been made repeatedly, but so far the rates remain at the same level. Most often, opinions were voiced that the cost of income tax should be increased by 2%, i.e. in this case, personal income tax for the employed population would be 15%. Fortunately for taxpayers, these changes were not adopted, so for now the rate remained at the same level - 13%. There are no plans to increase the rate in 2021.

Thus, the question of how much income tax is in 2021 cannot be answered unequivocally: its amount varies depending on the status of the taxpayer and the type of income.

To obtain advice on taxation issues, as well as to resolve disputes related to the payment of personal income tax, we recommend contacting specialists. Qualified assistance from a tax specialist makes it possible to understand all the nuances of calculating and paying taxes.

Sources:

Tax Code of the Russian Federation. Chapter 23. Personal income tax

Sale of property received upon exit from the company or its liquidation

What will be the tax base if a former participant (shareholder), who received property (property rights) upon leaving a Russian company or during its liquidation, sold it? The amendments introduced by the commented Law No. 424-FZ provide an answer to this question.

If we are talking about securities or derivative financial instruments, then upon their sale, disposal or redemption, income is reduced by their full value, which was subject to accounting when determining taxable income at the time of leaving the company or in connection with its liquidation (new clause 13.4 of Art. 214.1 Tax Code of the Russian Federation).

If a former participant (shareholder) sells other property or property rights, then he has the right to apply a tax deduction. Its size is equal to the documented full value of the sold property or property rights, which was subject to taxation at the time of their receipt upon leaving the company or upon its liquidation (new sub-clause 2.4, clause 2, article 220 of the Tax Code of the Russian Federation).

Sale of property by non-residents

The current version of subclause 17.1 of Article 217 of the Tax Code of the Russian Federation states that individuals who have sold their real estate or a share in it are exempt from personal income tax. But not always, but provided that the sold object was owned by the seller for the minimum maximum period of ownership or longer (Article 217.1 of the Tax Code of the Russian Federation). There is one more restriction: only tax residents of the Russian Federation are exempt from personal income tax when selling real estate. A person who is a tax non-resident of the Russian Federation (for example, lost his resident status because he was abroad for more than 183 days over the next 12 consecutive months) is required to pay tax when selling real estate, regardless of the period of ownership of the property.

Starting from 2021, this restriction for non-residents will be lifted. This means that a non-resident will be able not to pay personal income tax if the sold property was in his ownership for the minimum maximum period of ownership or longer (new editions of subclause 17.1 of article 217 and clause 1 of article 217.1 of the Tax Code of the Russian Federation).

Features of the 2021 declaration campaign

Dmitry Morozov said that the 2021 declaration campaign is being carried out similarly to 2021. The speaker only recalled that individuals are required to pay personal income tax on:

• Sales of real estate, vehicles, and other movable property, if the owner owned them for less than 3-5 years.
• Winnings from the lottery, casinos, bookmakers, if the remuneration exceeds 15 thousand rubles. (rate 35%).
• Profit received as a result of concluding civil agreements (contracting, leasing transactions, provision of services).

A representative of the Federal Tax Service of the Russian Federation reminds that the declaration must be submitted to the local inspectorate before April 30. The calculated tax must be paid by July 15.