Personal income tax is a tax that is present in the life of every person who receives at least some income. What are his bets? How to calculate personal income tax correctly? Read about it in the article.
What is personal income tax?
This tax is also called income tax. Despite the fact that the name has long been outdated, it conveys the essence correctly - all material goods (including things, products) that individuals receive in the territory of the Russian Federation are subject to mandatory payments to the budget.
All issues related to personal income tax are regulated by chapter 23 of the Tax Code. It concerns everyone, therefore it will be extremely useful to spend some time carefully studying it. After all, as you know, ignorance of something does not exempt from responsibility.
This chapter, in addition to sad information about obligations, rates and due dates, contains a pleasant part about deductions and benefits, and there are a lot of them.
Despite the fact that the essence of the tax is simple (you need to separate part of the benefits and give it to the state), many nuances and subtleties are hidden in its calculation. We will talk about all this in detail.
Personal Income Rates
In total there are 5 options: 13%, 35%, 30%, 15%, 9%. The most common is 13%. It is at this rate that most incomes of citizens of the Russian Federation are taxed.
If you received a lottery prize or a prize for participating in the competition - this, of course, is joyful. But the euphoria will not last long, because the state will need to give 35% of the profits. After such news, I no longer want to envy those who win in the “Field of Miracles” cars and apartments.
Income of persons who have not received status tax resident taxed at a rate of 30%. Who are non-residents? These are people who are citizens of one country, but receive money in another. An example is the beloved Tajiks and Uzbeks who work on construction sites. They are obliged to give the state almost a third of their salaries. This will continue until they confirm the status of a tax resident. To do this, you need to be in Russia at least 183 days a year, and also receive a corresponding document from the IFTS.
Rates of 9% and 15% are rarely used. They are used to tax income in the form of dividends, interest on securities, etc.
Standard deductions
The amount to be charged is called the tax base. This may be a remuneration for labor, then we will talk about how to calculate personal income tax from the salary. The legislation provides legal ways to reduce the taxable amount, they are called deductions.
The most popular is the standard for a child, which is 1,400 rubles for the first and second babies, 3,000 rubles for the third. Deductions are also provided for children with disabilities, for persons affected by the Chernobyl accident, and others.
To take advantage of the privilege, you need to write a statement at the place of work and provide papers confirming the right to it (for example, a document on the birth of a child).
Social deductions
This is the following group: the amounts that were given in the form of donations, tuition (for oneself or children), medical services (both for themselves and for family members), pension contributions to non-state funds.
To exercise the right, you must comply with the requirements, which for each type of benefits are different. To familiarize yourself with the details, you will have to study Chapter 23 of the Tax Code. You also need to collect documents confirming the expenses incurred, fill out a declaration and submit it to the tax office.
Property deduction
It can be of two types: in case of sale of housing and in case of purchase. In the first option, this is the right to reduce the tax base by 1 million rubles. How to calculate personal income tax when selling an apartment? Let's say housing was sold for 1.8 million rubles. We consider: (1 800 000 - 1 000 000) x 13% = 104 000 rubles.This is the amount to be transferred to the budget.
If the cost of the apartment is a million or less, then the tax will not be required to pay. You also do not need to give personal income tax if the property has been owned for more than 3 years (for properties purchased before 2016) or more than 5 years (for real estate purchased in 2016 and later).
When selling shares, the deduction is divided proportionally. How to calculate personal income tax in this situation? Suppose the cost of an apartment is 1.8 million rubles. A citizen owns a 25% stake and decides to sell it for 450,000 rubles. In this case, he has the right to apply only 25% of the deduction, that is, 250,000 rubles. We consider: (450,000 - 250,000) x 13% = 26,000 rubles. Exactly so much you need to pay to the budget.
In the case of acquiring housing, you can once use the right to deduction and reimburse 13% of the amount spent on the purchase, but not more than 2 million rubles. This will also require documents and a completed tax return. How to calculate personal income tax for compensation in this case?
Suppose a citizen, whose salary under an employment contract is 10,000 rubles per month, purchased an apartment worth 1.8 million. For the year he was charged 120,000 wages. Personal income tax from this amount is 15 600 rubles. This money can be returned by law. This will require purchase documents and a completed tax return. In total, from this apartment you can reimburse 1,800,000 x 13% = 234,000 rubles. If the citizen’s income does not change, then he will be able to receive the deduction for 15 years until he selects the amount in full.
You can familiarize yourself with the procedure for providing benefits in more detail in the Tax Code.
Investment Deductions
This is a relatively new phenomenon. Its goal is to stimulate investment activity of people. The deduction can be obtained in the form of a positive financial result, in the form of the amount that was deposited to the individual account, or in the form of income.
Each of the options has its own periodicity and special order, information on which contains Article 219.1 of the Tax Code. To receive the deduction, you will also need to fill out a declaration in the form of 3-personal income tax.
Calculation Examples
How to calculate personal income tax? Very simple. Suppose you work in an organization under an employment contract. The salary, according to the documents, is 10,000 rubles per month. On hand you will receive only 8,700, since 1300 rubles. - This is 13% of the income that will be withheld and transferred to the budget.
Now consider the option with benefits. How to calculate personal income tax? Example: a salary under an employment contract is 10,000 rubles, there is a right to a standard deduction, since there are three children in a family.
The tax base will be:
10 000 - (1400 + 1400 + 3000) = 4200.
Further: 4200 x 13% = 546 rubles payable.
Let's sketch out how to calculate personal income tax. The formula is as follows:
NB x NS, where NB is the tax base, and NS is the tax rate.
Individuals themselves, as a rule, are not involved in the retention and transfer of personal income tax. For them, it does the accounting of the employer. The organization that is responsible for withholding and transferring payments to the budget for another person is called a tax agent.
What income do you need to pay taxes from?
Pensions, allowances, state compensation, the amount of material assistance are not taxed. Also, personal income tax is not withheld from alimony, from uniforms that are issued to employees.
But with a temporary disability benefit, you have to pay tax.
Summarize. How to calculate personal income tax on the amount? The formula in general will look like this:
- (Total income - non-taxable income - standard deductions) x 13%.
And the last important question is the timing. Individuals are required to submit a declaration and pay for the past year until April 30. Tax agents must transfer to the personal income tax budget no later than the next day after the payment of income. In case of violation of the terms of payment or reporting, penalties are provided for the perpetrators.
