Today we will be interested in the tax on renting an apartment of an individual. Do I have to pay it? When is it necessary to do this? How many percent of the profit should a citizen renting out to the state give? Is it mandatory to do this? Answers to all these questions will be given below. In fact, the situation with rental housing is mixed. The legislation dictates certain rules, but in practice there are completely different cases. So what should a law-abiding taxpayer of the Russian Federation know about renting out housing?
Necessity or own desire
First you’ll have to understand how legitimate the tax on renting an apartment is. Do I need to make this payment? Is it required? Or is it the personal desire of the property owner?
Taxes for the rental of housing need to pay - this is a fact. The law states that any income (with the exception of state security in the form of pensions, benefits and other payments) is subject to income tax. Therefore, no one withdraws obligations from citizens.
In other words, the owner of an apartment, when renting it, must deduct taxes annually. But in reality a different picture is obtained.
Reality of Russia
Which one? Do citizens pay rent tax on an individual’s apartment? Russia is a country where many strive to rid themselves of tax obligations. Especially if the amount of income is not too big. Therefore, sometimes the law says one thing, and people do another.
Rental housing is just such a case. The thing is that some citizens do not pay taxes after the conclusion of the relevant contract. Sometimes the rental takes place by personal verbal agreement. Tracking such transactions is very problematic. And detect the "extra" cash flows, too. Therefore, landlords do not always pay tax on renting an apartment of an individual.
Ways to legalize income
What should a law-abiding citizen do when renting an apartment? Here, the owners of residential premises are offered a variety of scenarios. Everyone chooses how to act.
Was the apartment rented by an individual? In this case, taxes may be paid:
- In the form of personal income. In this case, you will have to file a tax return once a year and report to the state. The disadvantage of this method is that the repeated receipt of income from the surrender of property can be interpreted as illegal entrepreneurial activity. This fact will have to be taken into account.
- After registration of individual entrepreneurs with a special tax regime. In this case, you will have to pay additional fixed contributions to the FIU. But such a technique allows you to fully legalize the income of a citizen.
- With the help of a patent. This is a fairly new way of income legalization for many self-employed citizens. He appeared in Russia since 2016.
There are no more options for the development of events. Citizens, as already mentioned, can independently choose how they act. Next, we will talk in more detail about all methods of paying tax.
Personal income tax
First of all, consider the most familiar situation. It is about paying personal income tax. It is necessary to pay similar taxes for renting an apartment of an individual. 11 months a citizen rented property or 1 month - it does not matter. The main thing is that any income received from the rental of property should be reflected in tax reporting and taxed by personal income tax.
How much should I pay? Today, income tax is 13%.That is how much a citizen should give with annual income.
The tax return is filed before April 30 of the year that follows the reporting one. And tax is paid until July 15th. There is nothing difficult to remember.
This option is suitable for those who rent property once. Otherwise, as was emphasized earlier, activity can be regarded as illegal business.
Open IP
To avoid this, some prefer to register as an individual entrepreneur and pay taxes on the chosen taxation system. In our case, it is recommended to use the "simplification".
Then renting an apartment by an individual taxes provides in the form of a single payment. When registering an IP for the sale of property, it is necessary to choose the method of paying taxes “6% of all profits”. Then, with an annual income, a citizen will have to transfer in the form of taxes 6% of the amount received from the rental of housing.
Among the shortcomings can be identified paperwork (annual reporting) and the need to pay fixed contributions to the FIU.
About contributions for individual entrepreneurs
Tax on renting an apartment of an individual is not the sole obligation of an entrepreneur after registration. It is necessary to annually make contributions to extrabudgetary funds. This is a mandatory item for IP.
Today, an entrepreneur will have to transfer almost 28 thousand rubles (more precisely, 27 990 rubles) a year to the FIU annually. For this amount, an individual entrepreneur can reduce property tax. Sometimes deductions to extrabudgetary funds completely cover taxes. Accordingly, only fixed payments will have to be paid.
If a citizen receives more than 300,000 rubles per year in the form of profit, then another 1% of income received in excess of the established limit must be transferred to the Pension Fund. But additional taxes in this case are not provided.
Patents
Was an apartment rental agreement concluded between individuals? The taxes that have to be paid in one case or another are already known. But there is another rather interesting trick - buying a patent.
This opportunity came to Russia with the law "On the self-employment of the population." Now, citizens can not pay tax on income derived from the surrender of property. Instead, they need to register an IP with PSN and buy the appropriate patent.
Thus, citizens pay tax in advance. The cost of a patent is all the expenses that the owner of the premises will face. In some cases, PSN really eliminates unnecessary expenses.
The cost of a patent directly depends on the region of residence of the citizen, as well as on the cadastral price of real estate. How much will be taxes on renting an apartment of an individual? Moscow, for example, requires 75 "squares" for the payment of 36,000 rubles for an apartment.
Who benefits from a patent? Citizens renting out several expensive apartments for rent. This is due to the fact that the price of a document is usually higher than average. Therefore, at low incomes PNS does not live up to expectations.
Arbitrage practice
The tax on renting an apartment of an individual in Russia is not always paid. The Federal Tax Service may go to court if the authority has reason to suspect a person of concealing income. How will events develop further? Does a citizen have a chance to win?
In fact, it all depends on the circumstances. FTS is necessary:
- get a lease;
- to prove the transfer of funds for rented housing.
If the tax authorities do not have a lease, in most cases one can hope for victory. But neighbors will be invited to consider the case. They can talk about rental housing.
Often, in the absence of a lease agreement from the Federal Tax Service, homeowners assure that relatives live in real estate for free. In this situation, the court may demand any evidence of kinship.
In addition, it is problematic to prove the fact of transferring money if it was transferred in cash and without receipts.In order not to pay taxes, landlords enter into a contract for the gratuitous use of property. In this case, money is transferred without receipts. To prove the fact of renting real estate becomes almost impossible.
About liability
Not paid tax on renting an apartment of an individual? The Supreme Court or the Federal Tax Service can deliver a lot of trouble to an unscrupulous taxpayer. Tax evasion is a criminal offense. Nevertheless, it is far from always possible to be afraid of such a scenario.
What awaits a citizen who hides income from renting out property? To date, you may encounter the following penalties:
- payment of a fine of 20% of the debt;
- intentional tax evasion is punishable by a fine of 40% of the debt;
- penalty for each day of delay - 1.2 rubles;
- a fine from 100 to 300 thousand rubles (for debts in especially large amounts);
- imprisonment up to 12 months (if the debt is more than 300 thousand);
- imprisonment for 3 years, if the profit from the rental of property exceeds 2 million rubles per year.
As a rule, proving a citizen’s guilt is rather difficult. But if the judiciary does this, then the liability of the owner can be very serious.
Summary
From now on, it is clear what tax on renting an apartment of an individual needs to be paid in Russia in one case or another. Legalization of income obtained in this way is the decision of every law-abiding citizen. How to act, everyone decides independently.
Hide the money received from the rental housing is not worth it. As a rule, this is how people act, whose profit remains low. In practice, a small income is usually ignored by the Federal Tax Service. But this does not mean at all that profits should not be taxed. In order to lease property and not be afraid of problems, it is recommended to open an IP with USN and deduct 6% of profit annually.