All income of volunteers and volunteers can be exempt from personal income tax

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The state is regulating volunteer activities in more and more detail, intending to make them more effective and socially significant.
One of the ways of such regulation is the introduction of various tax benefits, allowing volunteer organizations to direct the maximum of their funds received not as a result of entrepreneurial activities for the intended purposes, and for individual individuals - volunteers - to avoid tax payments on funds issued to them by these organizations.

In this regard, further amendments have been made to the legislation: Federal Law No. 98-FZ dated April 23, 2018 was adopted.

Any form of compensation to a volunteer is now permitted.

According to the version of the Tax Code that was in force until now, the income of volunteers indicated in clauses 3.1 and 3.2 of Art. 217 Tax Code of the Russian Federation.

In the first case, we were talking about payments that, as indicated, are made within the framework of civil contracts, the subject of which is the gratuitous performance of work and the provision of services. These payments must be sent to:

• to reimburse the expenses of volunteers associated with the execution of such contracts;
• for renting residential premises;
• for travel to and from the place of charitable activities;
• for food (except for food expenses in an amount exceeding the daily allowance provided for in paragraph 3 of Article 217 of the Tax Code of the Russian Federation);
• to pay for personal protective equipment;
• to pay contributions for voluntary medical insurance associated with risks to the health of volunteers when they carry out volunteer activities.

In the second case, it was stated that income in kind in the form of uniforms and clothing received by volunteers under civil law contracts, the subject of which is the gratuitous performance of work or provision of services in accordance with the Federal Law of August 11, is exempt from personal income tax. 1995 No. 135-FZ “On charitable activities and charitable organizations” and Federal Law dated December 4, 2007 No. 329-FZ “On physical culture and sports in the Russian Federation”.

Please note that the mentioned Federal Law No. 135-FZ, effective May 1, 2018, has a different name: “On charitable activities and volunteering (volunteering).” It now appears in paragraph 3.1 of Art. 217 of the Tax Code of the Russian Federation, which includes provisions from clause 3.2 of this article (it will lose force) with significant amendments. These amendments have been in effect since May 1, 2018 (Clause 2, Article 2 of the Federal Law No. 98-FZ under consideration).

As you can see, until now several types of income have been exempt from taxation, but some only if they were paid in kind, and some only if they were paid in cash (see Letter of the Federal Tax Service of Russia dated 05/07/2013 No. ND-17- 3/55). Now all income, which in this case is exempt from personal income tax, can be paid in the form of cash or in kind - and this will not affect the possibility of exemption.

Thus, a volunteer will be able to purchase uniform or special clothing at his own expense, and compensation for his expenses is not subject to personal income tax. It was added that he can purchase the necessary equipment under the same conditions.

In addition, it is now possible to provide a volunteer with personal protective equipment, food (with the same restriction provided for in paragraph 3 of Article 217 of the Tax Code of the Russian Federation), provide (or pay for it instead) premises for temporary use, travel to the place of charitable, volunteer ( volunteer) activities and vice versa. The cost of these issues and payments will be exempt from personal income tax in the same way as if they were simply compensated to a volunteer.

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We would like to add that this exemption will be extended to the payment of contributions not only for voluntary medical insurance associated with risks to the health of volunteers during their volunteer activities, but also for insurance of their life and health associated with such risks.

But the main condition is indicated. All these incomes are exempt from personal income tax if they are received by volunteers within the framework of civil contracts, the subject of which is the gratuitous performance of work, the provision of services in accordance with Federal Law No. 135-FZ and other federal laws that establish the specifics of attracting volunteers (volunteers) .

Payments subject to personal income tax

The Tax Code of the Russian Federation contains a fairly wide list of income of individuals that are subject to personal income tax.
There is no income tax if the payment amount is less than 4,000 per year. Applies to such payments (both at the federal and regional levels): for reimbursement of expenses for utility bills, for compensation for damage caused at the place of work or received in connection with with dismissal (compensation for unused vacation is not taken into account) Within the Russian Federation - no more than 700 rubles for a business trip per day. For foreign business trips - no more than 2,500 rubles per day. If you have any questions, you can chat for free with a lawyer at the bottom of the screen or call by phone (consultation is free), we work around the clock.

Reimbursement for medical expenses This includes payments not only to current, but also to former employees who have retired. Payment for treatment of an employee or his family from the employer's income Applies to employees dismissed due to retirement.

• the constituent income of a mortgage-backed trust that was received under certificates issued before 2007.

Rate 13%

This rate is slightly higher than the previous one and its size is only 13 percent for individuals who are tax residents of the Russian Federation. Taxable income includes:

• various dividends;
• official salary of a citizen;
• any monetary rewards under contracts;
• all profits received from the disposal or sale of one's personal property.

There are no tax deductions for income received as a result of a citizen’s share participation.
If the taxpayer is still not a citizen of the Russian Federation, but receives income on its territory, then the NFDL also applies to him. Income not subject to personal income tax is listed in Art. 217 of the Tax Code, and in Art. 215 of the Tax Code of the Russian Federation indicates the income of foreigners, which is not subject to personal income tax. For some income, the exemption is available if certain conditions are met. Let us consider the features of non-taxable income further. What income is not subject to personal income tax: general provisions List of income not subject to personal income tax If you have any questions, you can chat for free with a lawyer at the bottom of the screen or call by phone (consultation is free), we work around the clock.

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The conditions for volunteer activities have been clarified.

Federal Law No. 135-FZ, effective May 1, 2018, has been significantly amended precisely in terms of provisions on voluntary (volunteer) activities.

It has been established that participants in such activities are volunteers (volunteers), organizers of such activities and voluntary (volunteer) organizations (Article 5 of this law).

The organizer of voluntary (volunteer) activities will need to be understood as non-profit organizations and individuals who involve volunteers (volunteers) in relevant activities on a permanent or temporary basis and manage their activities.

A voluntary (volunteer) organization can be created as an NPO in the form of a public organization, social movement, public institution, religious organization, association (union), foundation or autonomous NPO.

The concept of “volunteer” has also been adjusted. Until now, such an individual was considered to be an individual who carries out any charitable activity in the form of gratuitous work or provision of services (volunteer activities). Now this is an individual carrying out voluntary (volunteer) activities for the purposes specified in paragraph 1 of Art. 2 of Federal Law No. 135-FZ, or for other socially beneficial purposes.

For your information:

In paragraph 3.1 of Art. 2 of the Federal Law of December 4, 2007 No. 329-FZ “On Physical Culture and Sports in the Russian Federation” in the new edition, the same definition is stated slightly differently. For the purposes of this law, volunteers (volunteers) are citizens of the Russian Federation and foreign citizens participating, on the basis of civil contracts, in organizing and (or) conducting physical education events, sporting events without providing these citizens with monetary remuneration for the activities they carry out.

All forms of support now listed in clause 3.1 of Art. 217 of the Tax Code of the Russian Federation, a volunteer can receive in accordance with paragraph 1 of Art. 17.1 of Federal Law No. 135-FZ as amended. In addition, as stated in that paragraph, he has the right to psychological assistance, assistance in psychological rehabilitation, compensation for harm to life and health incurred during the implementation of voluntary (volunteer) activities.

Incentives and rewards may be paid for voluntary work. But these incentives and rewards, as well as the specified services, are not exempt from personal income tax, since this is not stated in clause 3.1 of Art. 217 Tax Code of the Russian Federation.

As before, the conditions for a volunteer’s participation in the activities of the organizer of volunteer (volunteer) activity, volunteer (volunteer) organization can be enshrined in a civil law agreement concluded between them and the volunteer. The subject of such an agreement is the gratuitous performance by a volunteer of work and (or) the provision of services within the framework of the activities of the named organizer or organization to achieve socially beneficial goals (Clause 5, Article 17.1 of Federal Law No. 135-FZ).

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But until now, the contract was required to be concluded in writing if it provided for reimbursement of volunteers’ expenses associated with its implementation (clause 3 of Article 7.1 of the said law, which has now become invalid). Accordingly, only if there was such an agreement in writing, such compensation could be exempt from personal income tax (see Letter of the Ministry of Finance of Russia dated June 26, 2013 No. 03-04-06/24302).

Now there is no obligation to have a written contract. This means that even an oral agreement to reimburse these expenses or provide them in kind will allow you to receive the benefit provided for in clause 3.1 of Art. 217 Tax Code of the Russian Federation.

The procedure for providing such compensation to volunteers who organize physical education or sports events does not require written documentation either (Article 20 of Federal Law No. 329-FZ).

Who doesn't pay personal income tax: all the secrets in 2019

Who doesn't pay personal income tax: all the secrets in 2021. The abbreviation personal income tax is used to refer to the personal income tax - the main instrument of taxation of the population in the Russian Federation. This tax is calculated for each citizen of the country and, accordingly, is paid by each citizen of Russia. Also, persons with foreign citizenship who live on the territory of the Russian Federation for at least 183 days a year (they are called tax residents) fall under the articles of the Tax Code regarding personal income tax.

Citizens are required to pay tax, which is legally set at thirteen percent, on any of their income, be it salary, inheritance, or profit under a contract. Nevertheless, there are still exceptions in the tax code of the Russian Federation, and in a number of cases the standard personal income tax rate is reduced or not applied at all.

Financial income related to work activities, exempt from personal income tax

It should be noted that the list of works, participation in which exempts the taxpayer from paying, is clearly stated in the code in Article 217.

It must be said right away that the abolition of personal income tax on wages is not provided for at all. However, this does not apply to some types of government benefits, such as unemployment benefits, maternity benefits, maternity benefits, etc. True, sick leave benefits are still subject to tax.

State pensions and supplements to them are also not subject to personal income tax. There are also additional benefits for pensioners, prescribed in paragraph 2 of Article 217 of the Tax Code.

State, and not only, compensations are not taxed only in certain cases prescribed in the same Article 217: in connection with compensation for harm to health at work, preferential provision of housing and other services, payment for uniforms, meals, accommodation for athletes representing the honor of the country , the death of military family members in service, the process of fulfilling work duties (for example, business trips).

There is also no need to pay personal income tax to civil servants for official travel abroad and transactions related to foreign currency. Small household services provided to citizens, such as cleaning, tutoring, babysitting for minors, etc., are not subject to personal income tax.

Personal income tax in agriculture

Agriculture is one of the priority areas of state domestic policy, and this is not surprising: after all, Russia still does not fully satisfy the population’s demand for agricultural products. Therefore, entire categories of household income in the field of agriculture and horticulture are not subject to the thirteen percent tax. These include:

• special targeted state subsidy for the development of farming;
• income of farm holders and their families during the first five years from the start of official activities;
• budget grants for the development of peasant farming;
• income from the sale of crop and livestock products grown on their own subsidiary farms. Didn't find the answer to your question? Find out how to solve exactly your problem - call right now (Regions of the Russian Federation) +7 (495) 317-12-91 (Moscow) +7 (St. Petersburg) It's fast and free!

The State Duma adopted a law exempting volunteers and presidential grants from personal income tax

MOSCOW, April 12. /TASS/. The State Duma adopted in the third and final reading a government law on the exemption of volunteers from personal income tax (NDFL); grants from the President of the Russian Federation in any areas are also exempt from personal income tax.

The purpose of the document is to exclude from the tax base the income of volunteers and volunteers associated with their charitable activities and received from organizations in kind (in the form of renting living quarters, organizing travel, meals, and providing equipment), the explanatory note says.

The income of volunteers and volunteers in the form of payments to reimburse expenses incurred within the framework of the relevant activity or in kind is also exempt from personal income tax.

By the second reading of the document, amendments were approved that also exempt grants from the President of the Russian Federation from personal income tax, regardless of the areas for which funds are allocated. The list of income not subject to personal income tax includes income in the form of grants, bonuses and prizes in cash or in kind, received by the taxpayer as a result of participation in competitions, competitions, and other events at the expense of grants from the President of the Russian Federation in accordance with the terms of agreements on the provision of grants to non-profit organizations .

Also exempt from personal income tax are income in the form of payment for the cost of travel to and from the venue of competitions, competitions, other events, meals (except for the cost of food in an amount exceeding the daily allowance) and rental of living quarters for persons under 18 years of age, made by non-profit organizations at the expense of grants from the President of the Russian Federation. In addition, presidential grants are included in the list of income not taken into account for corporate income tax. These rules will apply to legal relations arising from January 1, 2021.

Current personal income tax rates

Tax authorities collect personal income tax from the entire working population of the country, levying this tax on wages, dividends, deposits and winnings. The only exceptions are those types of income that are received in the form of social payments from the state - they, according to Russian legislation, are exempt from paying personal income tax. In 2021, personal income tax indicators for different types of income are expressed as follows:

• citizens of the Russian Federation who receive a salary pay personal income tax in the amount of 13% of its amount;
• individuals who received income in the form of dividends also pay 13% of the fee to the budget;
• citizens of Belarus, Kyrgyzstan, Kazakhstan and Armenia - countries that are part of the EAEU, officially working in Russia, pay a fee of 13%;
• the same rate (13%) must be paid by individuals belonging to the categories of refugees and immigrants;
• residents of the country who received winnings or made an investment must deduct 35% of this income;
• Non-residents carrying out labor or business activities in Russia pay a tax of 30% on income.

Thus, today in Russian tax practice a flat scale of taxation of income of Russians is used. At the same time, according to specialists from Rosstat, the average nominal salary in the country is 38,590 rubles, i.e. a person receiving such an amount pays a monthly contribution of just over 5,000 rubles. It is easy to calculate that in annual terms this will be approximately 60,000 - an amount that for Russians with the income mentioned above is very significant.

At the same time, experts who insist on the need to introduce a progressive tax scale say that today an increase in the amount of taxes collected is most often carried out at the expense of the least affluent categories of people. This practice leads to the fact that the gap between the richest and poorest Russians is growing at a catastrophic pace.

In 2021, personal income tax may be raised by 2%

In Russia, the income of volunteers exempt from personal income tax will be clarified

A bill has been introduced to the State Duma to clarify the types of income of volunteers and volunteers exempt from personal income tax. This is reported on the website of the Cabinet of Ministers.

How can the government help volunteers?

This will ensure equalization of taxation conditions for the income they receive. The adoption of the bill will create additional conditions for the development of charitable activities.

Earlier, Russian President Vladimir Putin signed a law regulating volunteer activities in the country. The law establishes the legal status of volunteer activities and forms a unified approach to regulating relations in this area. The document also ensures interaction in the relationships that develop between volunteers and the organizers of their activities, beneficiaries and authorities.

In addition, the concepts of “volunteering” and “volunteering” are equalized, the status of voluntary (volunteer) organizations, organizers of voluntary (volunteer) activities and volunteers (volunteers) is determined. The law also regulates the rights and obligations of volunteers and the legal basis for their activities. For example, it is provided that a volunteer has the right to carry out his activities both individually and under the guidance of an organizer, as well as as part of a volunteer organization.

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According to the Ministry of Economic Development, 22.1 percent of young people aged 14 to 30 take part in volunteer activities in Russia. By 2021, the Russian Government plans to increase this figure to 31.1 percent. According to information from Anna Kuznetsova, Commissioner for Children’s Rights under the President of the Russian Federation, “from 17 to 26 percent of the country’s citizens are already involved in volunteer activities, and even more are ready to unite for good deeds - from 47 to 58 percent.”

What's happened?

A single portal for posting draft regulations has published draft amendments to the Tax Code of the Russian Federation, which will improve the procedure for taxing the income of volunteers and volunteers attracted by organizations. The authors of the document, representatives of the Ministry of Finance, propose to indicate in paragraph 3.1 of Art. 217 of the Tax Code of the Russian Federation, that income received by volunteers, volunteers within the framework of civil contracts, the subject of which is the gratuitous performance of work, provision of services in accordance with the Federal Law of August 11, 1995 No. 135-FZ “On Charitable activities and charitable organizations" and the Federal Law of December 4, 2007 No. 329-FZ "On Physical Culture and Sports in the Russian Federation". The new norm will apply to payments for reimbursement of expenses and income in kind made for:

• purchase of uniforms and clothing;
• rental of residential premises;
• travel to and from the place of charitable activities;
• food (except for food expenses in an amount exceeding the daily allowance provided for in paragraph 3 of Article 217 of the Tax Code of the Russian Federation);
• payment for personal protective equipment;
• payment of insurance premiums for voluntary medical insurance associated with risks to the health of volunteers during their volunteer activities.

Personal income tax in 2021

Personal income tax is one of the sources through which the state replenishes the budget and provides expenditure items for the country’s main financial document. Naturally, in times of crisis, when every ruble earned by an ordinary Russian is in his account, rumors about an increase in this fee cause serious concern.

Residents of the country do not want to pay even more in conditions when food, housing and communal services, travel and clothing are becoming more expensive with enviable regularity. Today, experts in the field of politics and economics are reassuring citizens of the Russian Federation. Allegedly, until the presidential elections scheduled for 2021 are held, there will be no talk about revising tax policy - such a measure is too unpopular for the ruling circles that want to remain in power.

Raising the personal income tax rate is an unpopular but necessary measure for the budget

However, by the end of 2021, Russians may begin to be charged an increased personal income tax rate. According to representatives of the Ministry of Finance, a 2% rate increase could provide revenues of 0.5 trillion rubles per year. Now this fee provides the budget with about 3.4 trillion in national currency. Let's look at the question of what personal income tax rates Russians pay now, and also find out the government's plans for the future.