Personal Income Declaration

In Russia, any income received by citizens legally is declared. This is done for further taxation of the amount of income received. The amount of tax ranges from 13-35%. All individuals who sold their own property and made a profit, conducted business, provided one-time services, are accountable.

The essence of the income statement

The document by which persons living in the Russian Federation report to the tax authorities on the income received for the year is called a declaration. For individuals, in particular individual entrepreneurs, the income statement has the form 3-NDFL. According to information provided by the Federal Tax Service, individual income tax is levied.

All income that will be indicated in the declaration must be confirmed by documents. For employees of organizations, including civil servants, - reference 2-NDFL. For entrepreneurs, income is confirmed by receipt and expenditure cash documents and other credentials. Incomes that are received by individuals from performing one-time work, services, royalties are taken into account. The income statement of individuals contains information on all profits that are not declared tax agent.

Who is submitting the declaration?

If a citizen works officially, he does not report taxes independently: the tax agent - the employer - does it for him. But in some cases it will be necessary to report to the individual himself. The following categories of citizens submit a declaration:

• persons conducting individual economic activities (entrepreneurship) who are not registered in the status of a legal entity;
• landlords (individuals) who rent real estate, cars, buildings and so on;
• notaries, private detectives and other citizens engaged in private practice;
• Russian citizens permanently residing on its territory, but receiving income from abroad;
• other categories of individuals whose income is taxable.

Some citizens are exempted from submitting a declaration to the tax structure:

• individual, if the tax base (income) received during the year does not exceed 30 thousand rubles;
• employed citizens;
• non-residents - persons residing most of the time abroad - more than 183 days a year.

What is recognized as taxable income?

The declaration of 3-NDFL indicates income for the past year. It includes profits made in Russia and abroad. Filling out the income statement provides for entering profit information from all possible sources. Russian income, which includes a declaration of personal income, can be:

1. Interest on bank deposits, dividends. Moreover, both a domestic company and a foreign branch operating in Russia can act as a source of dividends.
2. Sale of shares, real estate or other property registered in the Russian Federation.
3. Rent, if an individual, on the rights of the owner, leases or rents property.
4. Fee, remuneration, including received under civil labor contracts.

In addition, income from the sale of property, a percentage of the value of property received as a gift, inheritance, lottery winnings are taxed.

Incomes outside the country can be considered:

1. Dividends and interest on the activities of foreign companies.
2. Rent for property that is geographically located in another country.
3. Sale of property (movable or immovable), securities, shares abroad.
4. Profit for services rendered, work performed in a foreign country.

The composition of the declaration

The document - income tax return - consists of two main sheets and appendices:

1. On the first sheet, the taxpayer fills out information about himself.
2. The second sheet contains information on the amount of profit and tax. Here the declarant makes tax calculations.
3. Appendix A lists income that is subject to 13 percent taxation. This is profit derived from sources abroad, tax agents, or in Russia.
4. Appendix B serves to account for profits made in foreign currency.
5. In Appendix B, income is indicated only by individual entrepreneurs, who are also individuals.
6. Appendix D is to be completed if there are tax deductions or some amounts of profit are tax deductible.
7. To fill in the amounts of income under copyright or civil law contracts, appendix D. is suitable.
8. Standard social tax deductions are shown in Appendix E.
9. In Appendix G, the calculation is made by months, plus each amount - cumulatively.
10. Appendix 3 shows the deduction for the construction or purchase of housing.
11. Appendix I is filled out by those persons whose income is taxed at 35 percent tax.
12. Appendix K serves to indicate dividends received.

How to fill out a declaration?

You can write data to a document by hand or type text on a computer, and then print to a printer. Good help for declarants are special computer programs, which simply enter information about income, and the calculation is done automatically. This greatly minimizes the risk of making a mistake when filling out. When the income statement is filled out, the form is used ready-made or self-printed on the printer.

The income statement is not printed on both sides of the sheet, you cannot make strikethroughs or corrections, fasten the sheets with a stapler. The color of ink or pen should be chosen black or blue. On each of the sheets above, it is necessary to indicate the surname, name and patronymic of the citizen, his TIN. At the bottom of each sheet you need to put a signature. Only those fields are needed that are needed in a particular case. Unnecessary cells remain empty.

Tax authorities they are not entitled to ask the declarant to indicate any additional data. It is advisable to use the income declaration, a sample of which was issued by the Federal Tax Service and complies with the standards. Revenues are documented. If an individual is officially employed, you must attach a salary certificate - 2-NDFL.

Tax deduction

Some income, for example from the sale of an apartment, is taxed, but individuals are entitled to tax deduction. This is a refund of a certain amount to an individual. In certain situations, this right is granted:

• if the real estate from the sale of which the income was received was the property of the declarant for more than three years;
• if the transaction has a total value of less than 1 million rubles.

When using a tax deduction, it is not the size of the payment itself that is reduced, but the base on which the payment is calculated. The social deduction can be used by those people who spent money on education in the reporting year. Property deduction used if the owner’s property is not more than three years old or the contract is drawn up for less than one million. Investment deductions are used by citizens who sell securities.

Where and in what time to file a declaration?

To submit a declaration, it is necessary to select the tax office located at the place of registration (registration) of an individual. In addition, there are several ways to submit information:

• independently;
• by proxy, most often through special offices;
• by mail
• if you have an electronic signature via the Internet.

The declaration shall be submitted within the time period established at the legislative level - until April 30 of the year following the reporting period.If the declarant has the right to deduction and wants to use it, the declaration must be submitted before the end of the reporting year.

Filing a declaration by a civil servant or an entrepreneur

As part of the anti-corruption program, civil servants are required to file income statements for the past year. To confirm the income, you need to take certificate of employment (2-PIT) for 12 months, certificates of income from other places of work, non-core profit - dividends, interest, income on shares. In addition, the Federal Tax Service provides information on personal property, transport, bank accounts and property obligations. The declaration of income of civil servants shall be submitted to the Federal Tax Service at the place of registration.

Individual entrepreneurs, being individuals, also report on income using 3-personal income tax. At the same time, an entrepreneur may have a main place of work, this is not prohibited by law. In this case, he presents a certificate of salary from his main job, a document confirming income from entrepreneurial activity. If the entrepreneur has employees, an additional 4-personal income tax return is submitted. The procedure and deadlines for reporting to civil servants and individual entrepreneurs is the same as for other individuals. The declaration of income of civil servants should be submitted before the end of April.

Responsibility for late submission of a declaration

Failure to submit reports to the Federal Tax Service is an offense for which liability may follow. In 2013, amendments to the law were adopted, which are valid today. Under the new rules, they can be fined not only an individual, but also a tax / non-tax agent. Business entities also submit a declaration of income IP, otherwise they face a fine. Responsibility comes on the very next day, which is the last one allowed for the submission of declarations. Even for an incomplete month of delay, a fine may be imposed.

Article 119 of the Tax Code states that if an individual returns the income statement late, a fine is imposed on him. Its amount is 5% of the tax amount that is payable. The maximum possible fine is 30% of the amount, the minimum is one thousand rubles. The penalty is payable only after a court decision. An interesting detail: the levied 5% is charged not only on tax debt on a specific declaration, but on the entire tax debt of a person, both physical and legal.

Electronic version of the declaration

On the official website of the tax service you can find a form for filling out a declaration. In the "Software" section, it is enough to choose exactly the reporting option that corresponds to the status of the person. Carefully fill out the pages. The title page is filled out by all taxpayers, without exception. Then, depending on the purpose of reporting, the necessary items are selected.

On the title page it is necessary to indicate the details - TIN, OKATO (for IP) and others. Enter the adjustment number. In the event that this declaration is the first in the reporting period, “0” is put. The code of the Federal Tax Service is indicated at the top. You can find it on the same official website or directly at the tax office at the place of registration.

Income statement - a mandatory reporting form. Do not neglect its delivery, so as not to find a receipt with a fine. If a person cannot submit reports independently, it is allowed to do so by a proxy.