Personal taxes: 8 taxes that everyone should know about, 2 ways to check debt + 6 convenient payment methods!

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iQ Review Independent journalism

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03/10/2017 at 00:45 9 min. 12109

The main type of direct taxes is income tax. In each country, it is established individually, applies to different groups of people, and has certain conditions and requirements for payments.

Information about such a fee will be useful not only to entrepreneurs, but also to individuals who are also required to pay it. Below IQReview will go into detail about all the intricacies regarding income taxes.

• What is income tax?
• Who is obliged to pay it?
• Who is exempt from payments?
• What is taxed and what is not taxed?
• When and where is it paid?
• Method of calculating personal income tax
• Income tax withholding
• Tax deduction: when and how can you get your tax refund?
• Tax regimes for enterprises General regime
• A single tax on imputed income
• Patent tax system
• Simplified taxation system
• More information about personal income tax and its return (video)

What is income tax?

Income tax is a fee paid by individuals and legal entities on total income minus calculations that have been documented. The amount of the fee is determined as a percentage.

The wording should be clarified separately: income tax in Russia (as well as in a number of other countries) is considered to be only fees from individuals. Income from organizations (legal entities) is subject to income tax. IQReview will consider both of these areas, with a primary focus on personal income tax.

To which budget is personal income tax credited?

The income tax levied on individuals has one interesting feature that distinguishes it from most other levies. Thus, it belongs to the category of federal taxes, that is, relevant for all residents of the country who receive money on its territory. However, contrary to all the usual norms, the money collected from it does not go to the Federation budget, but directly to the treasury:

• regional;
• local.

Even being a payment established at the Federal level, personal income tax subsequently goes to the budgets of regions and cities, as well as other localities

In this case, the appropriate proportions must be observed: 85% to the region, and the remaining amount to the municipality.

By the way, due to such an unconventional distribution, it is always difficult to say what taxpayers' money will be spent on. The funds received from this collection are used universally; they can be used for:

• renovation of educational institutions;
• meeting the needs of the healthcare system;
• restoration of damaged highways, etc.

Pay attention to another interesting fact: when distributing the funds received to the city budget, the payment from a particular Russian will not go to the city where he lives, but to the city where he works, that is, he receives his income.

Personal income tax is the most famous of all payments to the treasury, since it is levied on absolutely every person

Who is obliged to pay it?

Personal income tax is charged on:

• individuals who are residents of the Russian Federation (staying in the country for at least 183 calendar days over 12 months);
• individuals who are not residents of the Russian Federation (staying less than 183 calendar days per year), but receiving income in the country.

The following are required to independently notify the tax office about their income:

1. Individual entrepreneurs.
2. Citizens engaged in private practice (lawyers, notaries).
3. Individuals who are residents of the Russian Federation and receive income outside of Russia.
4. Individuals who received gifts from non-tax agents (a tax agent is a person who pays taxes not for himself, but for another taxpayer).
5. Individuals who received income from the sale of property.
6. Individuals who received income from which tax agents did not collect tax.
7. Individuals who have won some property or money in games based on risk.
8. Individuals receiving payments as heirs of authors (inventions, literary works, works of art, science).
9. Individuals who receive property or money from other individuals as a gift.

Profit tax is required to be paid by:

1. All types of legal entities provided for in Russia (LLC, OJSC, CJSC, and so on).
2. Foreign legal entities operating in the Russian Federation through a representative office, or receiving profit in the Russian Federation in any other way.
3. Foreign legal entities that are recognized as tax residents of the Russian Federation.
4. Foreign legal entities that are actually managed from the Russian Federation, unless another option is provided for by an international tax treaty.

What income is subject to personal income tax?

Unfortunately, residents of our country have a false understanding of what an individual's income actually constitutes. Therefore, the overwhelming majority of Russian residents actually violate the law by not transferring part of the funds received to them, bypassing the tax agent, to the state budget.

There is a list of income on which you are required to pay this tax fee, which you may not have previously been aware of. We advise you to study it carefully so as not to face legal consequences later.

Income is the total amount of funds received by a person, coming from certain sources. So, we are talking about money earned:

• when selling real estate that was owned by a citizen for less than 5 years from the date of its acquisition from the previous owner;
• on leasing any property, not necessarily real estate;
• from income whose sources are located outside the borders of our country;
• subsequently participating in any drawings (except for those cases when the organization raffling off the funds assumes the responsibilities of a tax agent);
• in the form of payment for work performed (also if the organization that provided the work did not assume the functions of a tax agent);
• Other income.

For the income indicated above, the same rate applies as for wages - 13% for residents and 30% for non-residents.

Of course, many will be outraged when they hear that they must contribute funds to the treasury even from cash prizes won. However, this is the law, and we, as law-abiding citizens, are obliged to follow it. In the end, the funds transferred to the state will subsequently go directly to the improvement of our country.

Tax payments are made in an official manner by entering the correct budget classification codes in the relevant documentation

Who is exempt from payments?

are exempt from taxes :

Tax return

1. Organizations operating under special taxation systems.
2. Organizations paying gambling fees.
3. Organizations that participate in the Skolkovo Innovation Project.

What is taxed and what is not taxed?

By law, individuals are required to pay personal income tax on the following income:

1. From wages.
2. From renting out real estate.
3. From any sources of income located in other countries.
4. From winnings in games associated with risk (lotteries, drawings).

The following are not subject to personal income tax:

1. State benefits, except for temporary disability payments.
2. Pensions.
3. Free living space provided.
4. Allowances for utility bills.
5. Cash payments for food or in-kind allowances.
6. Compensation received for personal injury.
7. Payments upon dismissal.
8. Payments to family members in the event of the death of civil servants on duty.
9. Funds that compensate for the performance of work tasks (business trips, relocation for duty).
10. All compensation payments established by the legislation of the Russian Federation and local governments.
11. Donor (for donating blood, breast milk).
12. Alimony.
13. Grants that are allocated to support science, education, culture and art. The donor of the grant can be either a Russian or foreign organization, which must be approved by the Government of the Russian Federation.
14. Prizes for achievements in the field of science, education, culture, literature, art. The list of awards must be approved by the Government of the Russian Federation.
15. All types of one-time material assistance (humanitarian assistance, payments to victims of natural disasters or terrorist attacks on Russian territory, payments to the poor, and so on).
16. Funds from the sale of real estate that has been owned by the owner for more than 5 years.
17. Funds and property that a citizen received by inheritance.
18. Funds and property that a citizen received as a gift from a family member or close relative.
19. Funds received from the sale of products that were grown on personal plots or farms (both live and processed). Farms are exempt from payments for 5 years starting from the year of registration.
20. Funds received from the sale or as wages for collecting medicinal plants, berries, nuts, mushrooms or any other wild products. Only those incomes that are received from organizations that have a license for the industrial procurement of certain types of plants are exempt from personal income tax payments.
21. Funds received by participants in family (tribal) communities of small peoples of the North. They are exempt from personal income tax only if they are engaged in traditional industries for their people.
22. Funds received by hunters for the delivery of harvested furs, fur, leather, meat - if the hunt was carried out under a license.
23. Individual entrepreneurs who pay a single tax on imputed income. Such a tax on the income of an individual entrepreneur is possible if the enterprise is engaged in a certain type of activity for which such a taxation option is provided.
24. Salaries of soldiers, sailors, foremen and sergeants who serve on conscription.
25. All types of assistance that are provided to veterans and disabled people of the Second World War, as well as widows of military personnel who died in hostilities with Finland, Japan, and the Second World War.
26. Funds that are transferred to orphans under the age of 24 and are used for education in licensed educational institutions.

Income not subject to personal income tax

Income not subject to income tax

The list of income not subject to personal income tax is closed. This means that if the taxpayer had any income that was not directly mentioned in Art. 215 and 217 of the Tax Code of the Russian Federation, they must be taxed.

Classification of income that is not subject to personal income tax, according to Art. 215 and 217 of the Tax Code of Russia:

1. State benefits with the exception of temporary disability benefits (including benefits for caring for a sick child), unemployment benefits, maternity benefits, as well as other payments and compensations;
2. State pensions, insurance and funded pensions, as well as social supplements to pensions;
3. Compensation payments within the limits of the norms: compensation for harm to health, free provision of residential premises and housing and communal services, allowance in kind, payment of the cost of food (equipment, sports and dress uniform equipment), dismissal (with the exception of compensation for unused vacation, severance pay, death of military personnel or civil servants , reimbursement of other expenses, including travel expenses, subject to restrictions);
4. Donor rewards;
5. Alimony;
6. Grants;
7. Awards for outstanding achievements in selected areas;
8. Some types of one-time payments (including financial assistance): to family members of a deceased employee, a former employee who has retired; targeted assistance to the poor; charitable assistance, etc.;
9. Full or partial compensation of vouchers by employers to their employees (in connection with retirement due to disability or old age);
10. Medical assistance at the expense of employers to their employees (their spouses, parents, children, wards);
11. Scholarships;
12. Income from the sale of livestock and crop products grown on private farms;
13. Income of members of a peasant (farm) enterprise (for 5 years, starting from the year of registration);
14. Sale by individuals of wild fruits, berries, nuts, mushrooms, etc.;
15. Income of tribal, family communities, small peoples of the North;
16. Income from the sale of furs, meat and other products (by individuals when carrying out amateur and sport hunting);
17. Income from the sale of real estate and shares in it (taking into account the provisions of Article 217.1 of the Tax Code of the Russian Federation);
18. Income from the sale of other property that was owned by an individual for 3 years or more (except for income from the sale of securities and property directly used in business activities);
19. Inheritance (except for remuneration to the heirs of authors of works, science, literature, art, etc.);
20. Donation (except for the gift of real estate, vehicles, stocks, shares, shares), as well as donation between family members and close relatives;
21. Income from joint stock companies and other organizations (as a result of revaluation, reorganization, etc.);
22. Prizes for athletes received at the Olympic and other games, championships, world cups from official organizers or on the basis of decisions of government bodies;
23. Vocational training and retraining;
24. Rewards for transferring treasures;
25. Interest on government obligations, bonds of the former USSR;
26. Charitable assistance to orphans, etc. (in certain amounts);
27. Income from conscript military service;
28. Payments to trade union members from membership fees;
29. Winnings on government bonds;
30. Income from additional family support measures;
31. One-time compensation payments to health workers;
32. Contributions to the formation of pension savings;
33. Reimbursement by employers of employees’ expenses for paying interest and loans for the purchase of residential premises;
34. Payment of travel costs to the place of study for persons under 18 years of age;
35. Reimbursement of legal expenses and others, in accordance with Art. 215 and 217 of the Tax Code of the Russian Federation

When and where is it paid?

The tax return must be submitted to the regulatory authority at the place of registration. The deadline for submitting the report is April 30 each year.

Payroll taxes are not paid by individuals personally - the company (which in this case is the tax agent) does it for them. The declaration can be submitted either in paper form or remotely - electronically.

Tax rate

In other cases, personal income tax is paid no later than July 15 of the year following the period in which the declaration was filed.

Renting out real estate

Any rental of real estate by an individual is his income. Therefore, it must be subject to personal income tax. Moreover, if an individual leases property to a legal entity, then the legal entity-tenant will withhold and pay personal income tax (Article 226 of the Tax Code of the Russian Federation). And if the tenant is an individual, then the lessor must submit a personal income tax return and pay tax on the income received by April 30 of the year following the one in which the property was leased.

A similar position is shared by the Ministry of Finance in letter No. 03-05-01-05/247 dated November 10, 2006, and by some judges, for example, in the resolution of the Moscow District Federal Antimonopoly Service dated March 7, 2012 in case No. A40-40718/11140-184.

To be fair, we note that there are also opposite solutions. Thus, in the resolution of the Federal Antimonopoly Service of the West Siberian District dated August 20, 2010 in case No. A27-25154/2009, the court stated the conclusions that the organization is not a tax agent and is not obliged to withhold personal income tax if this is not specified in the lease agreement.

Method of calculating personal income tax

Personal income tax is calculated using the following formula:

Tax rate * Tax base.

The Tax Code of the Russian Federation provides for the following rates:

1. 13% - suitable for most residents of the Russian Federation. This includes salaries, income from the sale of property, and remuneration.
2. 15% - suitable for individuals who are not residents of the Russian Federation who receive income from Russian enterprises.
3. 30% - applies to all income of individuals who are not residents of the Russian Federation.
4. 35% is the maximum rate that applies to any winnings and prizes, income from deposits in banks (if they exceed the established amounts), as well as to a number of other cases provided for by the Tax Code of the Russian Federation.

The tax base is established individually for each type of income.

Who should pay personal income tax

According to the Tax Code of the Russian Federation, personal income tax, payers of this tax are both citizens of the Russian Federation and foreigners receiving income in Russia. If a citizen of any state receiving income is in our country for more than 183 days within 12 consecutive months, he automatically becomes a tax resident who is obliged to pay personal income tax. Separately, it is worth pointing out that under the described temporary conditions, stateless persons must also pay this tax.

When do you need to pay income tax?

The deadline for paying personal income tax directly depends on the entity that makes deductions and submits reports to the tax authorities. This can be either an individual who directly received the income or an employer who is responsible for withholding and remitting this tax from employee salaries. If we are talking about employees, then the tax must be paid within the next day following the day of payment. The deadline for self-filing of a declaration for the past tax period is until May 2. An individual can pay personal income tax for himself or herself until July 15 of the current year. You can pay this tax online on the official website of the Federal Tax Service of Russia.

How is personal income tax calculated?

According to Article 224 of the Tax Code of the Russian Federation, personal income tax of working persons is calculated at a rate of 13%, which is deducted from the basic income (wages). A separate rate of 35% has been introduced for the following types of income of citizens:

• lottery winnings (winning bets at bookmakers) over 4,000 rubles per calendar year;
• accrual of bank interest on personal deposits;
• profit received through the temporary use of cooperative funds;
• indirect income resulting from lower mortgage interest rates;
• income of the founder (shareholder, shareholder) of any societies and companies

Personal income tax is not charged for the following transactions:

• sale of real estate that has been owned for more than 3 years;
• inheritance or gift transactions;
• sale of a car owned for more than three years;
• when selling property whose sales value is equal to or less than the amount received from the sale (documentary evidence)

Personal income tax for foreign citizens selling any real estate in Russia is 30% of the estimated value of the property.

Deductions from personal income tax

A property deduction from personal income tax can be applied in the case of the sale of real estate worth up to 1 million rubles, if it has been owned for less than 3 years. The period is calculated from the date of state registration of the immovable object indicated in the certificate. When selling other property owned for less than 3 years, a tax deduction of 250,000 rubles is applied. Individuals also have the right to apply so-called “children’s” deductions for citizens with children, professional and social deductions.

According to the latest changes in the Tax Code of the Russian Federation, personal income tax in 2021 will be calculated in the same way as in previous periods. But the deadline for paying personal income tax has changed in favor of taxpayers - starting from 2021, individuals can notify the tax authority about their income until May 2.

Income tax withholding

According to the law, the employer is obliged to withhold personal income tax from the salaries of its employees. Income tax is withheld as follows:

1. All items that form the final salary are summed up: rate, allowances, bonuses, incentives, and so on.
2. If available, items related to tax benefits (financial assistance, benefits, etc.) are removed.
3. 13% is subtracted from the resulting number (the amount of personal income tax accepted in the Russian Federation).

The only exceptions are individual entrepreneurs with whom the company works under a cooperation agreement.

Tax deduction: when and how can you get your tax refund?

From the 13% mentioned above, you can request a deduction - a refund of part of the funds paid earlier.

According to the current Tax Code of the Russian Federation, the following types of deductions are provided:

1. Standard. Applies to Chernobyl survivors, disabled children, parents and spouses of military personnel killed in the line of duty. The full list of persons is indicated in paragraphs 1, 2 and 4 of Art. 218 Tax Code of the Russian Federation. In this case, any person has the right to receive only 1 deduction. If a citizen falls under several points at once, the maximum refund amount is selected.
2. Social. Includes expenses for training, charity, treatment and purchase of medicines, voluntary life insurance, expenses for the funded part of the labor pension.
3. Property. Persons who sold or bought real estate, built a house or bought a plot of land are eligible to receive.
4. Professional.
5. Deduction for carrying forward losses to future periods. It can be obtained by persons conducting transactions with securities and financial instruments of futures transactions. In this field of activity, expenses can often exceed income. In case of such a negative result, the resulting loss can be carried forward to the next period (year).

To return part of the funds paid, you must submit an application to the employer (tax agent) or to the tax authority at the place of registration. The amount of the refunded amount is determined for each group separately.

Citizens who are exempt from paying personal income tax cannot claim deductions:

1. Unemployed people are people who have no source of income other than government benefits.
2. Individual entrepreneurs working under special taxation systems.

How to pay personal income tax to the state

You can pay the fee due to the treasury in a single payment according to the current budget classification code (BCC). These codes need to be known to every employer, entrepreneur or ordinary citizen who contributes funds to the country’s treasury.

So, further in the table we reflect the current encodings.

Table 1. BCC for payment of income tax

Literacy regarding issues related to taxation is necessary not only for tax agents, but also for ordinary citizens, therefore, carefully read the article and study in more detail the information that interests you in it

A tax deduction is an obligation of the state to a citizen to partially compensate him for taxes paid or to allow him not to pay them on part of the income received. But this opportunity is not provided for all variations of taxes, but only in strictly limited cases. And, by the way, now you can apply for a tax deduction through Gosuslugi, literally without leaving your home. How to do this, read the special article.

Tax regimes for enterprises

Separately, we should dwell on the rules of taxation of enterprises related to small businesses.

For individual entrepreneurs, there are several options for paying income tax, and each of them has its own characteristics. Most often, an individual entrepreneur can independently choose which type of taxation will apply to him.

Below we will look at the existing options.

General mode

“Standard” and the most unpopular option. Provides for the following fees on the organization's income:

1. Personal income tax is paid on all income of an entrepreneur.
2. VAT.
3. Tax on real estate that is used in business activities.

Types of taxes for individuals
In this case, the disadvantage is, at a minimum, that the reporting process itself becomes more complicated. As an individual entrepreneur, a citizen pays VAT, and as an individual - personal income tax, that is, you need to pay 2 fees.

A single tax on imputed income

UTII (single tax on imputed income) is an option that can be used for the following areas of activity:

1. Transport services for passenger transportation and cargo transportation (if they are carried out by motor transport).
2. Temporary accommodation services (receiving funds from renting out housing).
3. Advertising activities (placement).
4. Public catering.
5. Retail industry.
6. Providing veterinary services.
7. Providing household services in various areas.
8. Car repair, maintenance and washing services.
9. Renting out retail space and land.

Choosing UTII allows an entrepreneur to collect several taxes in one collection.

For individual entrepreneurs, the single tax on imputed income replaces:

1. Personal income tax.
2. Property tax for individuals, which is applied when doing business.
3. VAT.

For legal entities, UTII replaces:

1. Corporate income tax.
2. Organizational property tax.
3. VAT.

This taxation scheme is convenient and beneficial for successful and stable organizations. But at the initial stage of the company’s activities, when there is still no financial stability, UTII can, on the contrary, cause difficulties.

The amount of payments is calculated using the formula:

(Tax base * Tax rate) – Insurance premiums.

Patent tax system

A patent is a taxation system suitable for citizens who work for themselves, but for some reason do not want to register an individual entrepreneur. This includes working as a nanny at home - the salary and responsibilities of a nanny, and tutors, and home owners who rent it out. In total, the regulations of the Russian Federation provide for 63 types of activities that may be subject to taxes under the patent system. In regions, local authorities may supplement this list. Basically all types of activities belong to the service sector.

This type of taxation appeared relatively recently (in 2014) and has not yet gained popularity. The reason is that most of the citizens who would benefit from using a patent work “in the gray”, without paying taxes on their activities at all.

The principle of collection is to purchase a patent (permission) to conduct a certain activity.

Simplified taxation system

A simplified tax system is the most common option among small businesses. Can be paid in two amounts:

1. From income. In this case, the fee is a fixed 6% of all revenue received in the reporting period.
2. From income minus expenses (only those expenses that are provided for by the Tax Code of the Russian Federation can be considered expenses). In this case, the fee is a fixed 15%.