Support for commercial property owners due to Covid-19

Individuals are required to pay taxes to the state treasury for all their real estate, be it an apartment, a garage, a house, or a plot of land. It’s good that they haven’t come up with an air tax yet, although they say a bill is already being prepared.

2020 turned out to be a difficult year for most Russians. Property tax benefits are at least some relief in these difficult times. What exactly are the benefits and how has the coronavirus affected property tax benefits in 2021?

What taxes do pensioners pay and what benefits do they have?

In accordance with paragraph 2 of Art. 217 of the Tax Code of the Russian Federation, state pension provision does not fall under the group of taxable income. No tax is paid on the pension and is not deducted when calculating its amount.

The current tax legislation distinguishes between several main categories of taxes paid by individuals: federal, regional, local. These categories include all obligations that individuals, including pensioners, are required to comply with.

For convenience, each of these categories will be considered separately. It will also be determined whether pensioners are required to pay this type of tax, or have the right to receive benefits or a complete exemption.

Personal income tax

In terms of income received by pensioners, with the exception of the state pension, no benefits are provided. For working pensioners, employers pay personal income tax in the same manner as for other employees.

If a pensioner is engaged in any income-generating activity, then he is obliged to pay personal income tax on time in the amount of 13% of income. The tax is classified as federal, so regional and local authorities cannot in any way influence the fulfillment of this obligation.

This obligation applies to all other types of income, including lottery winnings. Therefore, any income must be taxed. Here, pensioners are treated the same as all other citizens of the Russian Federation. Summary: pensioners pay income tax on income not specified in Art. 217 Tax Code of the Russian Federation.

There are no benefits for individuals, including pensioners. This rule most affects working pensioners, whose taxes are actually paid by the employer. Pensioners pay all federal taxes that apply to individual entrepreneurs and individuals, and specified in Article 13 of the Tax Code of the Russian Federation.

Can pension payments be stopped due to rental housing?

There are several types of pensions and social benefits that are intended only for non-working people. This is, first of all, a social old-age pension (which is assigned in the absence of work experience 5 years later) and a social supplement to the pension up to the subsistence level.

The Pension Fund controls their payment in the same way as in the first case: it identifies a working pensioner by the insurance premiums that go to his personal account. Therefore, payment of rental tax will lead to the termination of these payments only if the pensioner registers as an individual entrepreneur.

Transport tax

This type of tax is included in the regional category. That is, there is no single tax rate, as is the case with income tax. The final rate is set at the regional level, so this indicator may differ in two different regions of the Federation.

Therefore, the transport tax does not fall under federal incentive programs. If benefits are provided, then only at the regional level. As practice shows, in a number of regions of the Russian Federation, concessions on this tax are provided for WWII veterans, labor veterans, heroes of the USSR (Russian Federation), and disabled people of certain groups.

For example, in Moscow, ordinary pensioners who are not included in the list of beneficiaries pay transport tax on the same basis as other categories of citizens. Therefore, to clarify this information, the pensioner needs to contact the territorial tax authorities at the place of residence (permanent registration).

The remaining regional taxes are the gambling business tax and the corporate property tax. They apply to legal entities and do not affect pensioners in any way. As a result: pensioners pay only transport tax among regional taxes. If a pensioner can count on a benefit, then for this he needs to submit an application to the tax authorities: these preferences are of a purely declarative nature.

Which entrepreneurs are entitled to benefits?

The amount of property tax for individual entrepreneurs depends on the benefits that the owner is entitled to. They are provided to pensioners, disabled people, and summer residents with a plot of land up to a certain size. Each region itself supplements the federal list of beneficiaries, so it can be many times longer. For example, it may include single-parent or large families. But, in general, the state list of categories of citizens who are entitled to benefits for paying real estate taxes looks like this:

If an individual entrepreneur falls under one of the preferential categories, then he can submit documents to the Federal Tax Service if the amount was incorrectly calculated for him.

The basis for recalculating the amount of property tax may be:

• incorrect information about the owner;
• the billed tax amount, which does not take into account benefits.

When an entrepreneur justifies a mistake, the tax inspectorate:

• will reset the amount and penalties that contained the error;
• will generate a new notification and place it in the taxpayer’s personal account.

If the individual entrepreneur does not use the taxpayer’s personal account as an individual, then he will receive a new notification by mail. According to the legislation, the Federal Tax Service can issue an invoice for payment of property tax to individual taxpayers, if for some reason the payer has not been involved in it earlier, within 3 years. In addition, the tax for the same tax period can be recalculated both downward and upward according to the Tax Code of the Russian Federation.

Property tax for individuals

This type is included in the category of local taxes. Taxpayers here are individuals who have ownership rights to property recognized as an object of taxation. Despite the fact that the tax is recognized as local, tax benefits introduced by Federal Law dated October 4, 2014 N 284-FZ are common to all.

Pensioners who have the right to receive a state pension, regardless of the circumstances, as well as persons who have reached 55 and 60 years of age (men and women). In addition to pensioners, federal legislation provides for a number of preferential categories (Article 407 of the Tax Code of the Russian Federation).

Personal property tax for pensioners: what are the benefits?

The benefit for pensioners is not expressed in a reduction in the tax rate or any other components of this tax. Federal legislation exempts pensioners from paying personal property taxes in respect of only one item of each type of property subject to taxation.

In accordance with paragraph 4 of Art. 407 of the Tax Code of the Russian Federation, the following types of taxable objects are recognized:

• Apartment, part of an apartment (share), room.
• Private house or part of a house.
• Premises used for professional creative activities - ateliers, workshops, studios, libraries, open thematic museums.
• Garage, parking space, parking space.
• Outbuildings whose area does not exceed 50 square meters. meters, and which are used for personal farming, individual housing construction, summer cottage farming, and gardening.

The bottom line is that one object from each category of property is exempt from tax. That is, this is one apartment, one residential building, one garage, and then on the same principle. If a pensioner has one house and one garage, then in both these areas he is completely exempt from paying taxes.

If there are two apartments and several parking spaces, then the pensioner chooses one apartment and one space for which he will not pay tax. The tax base will be calculated for the other apartment and other parking spaces. The same applies to all other categories: a pensioner can choose only one object from each category. For the rest you will have to pay tax in accordance with local regulations.

A benefit is provided only if the object is not used by the taxpayer for business purposes. The use of benefits is of a declarative nature. The pensioner must submit an application in the prescribed form to receive the benefit to the territorial tax authorities.

If a pensioner has not notified the tax authorities of his right to receive a benefit, the Federal Tax Service, upon receiving relevant information from other sources, receives grounds to apply the benefit unilaterally, without the knowledge of the taxpayer. In this case, the benefit applies to the object in respect of which the maximum tax amount is calculated. And such a mechanism is provided for all categories of taxable objects.

What does the tax amount depend on?

Regions independently set the property tax rate, since the payment applies to local ones. The tax amount is affected by the price of the property; the higher it is, the greater the payment amount. The highest rate in Russia is 2%. On the tax website you can find out what percentage is set for a particular object. You will need to enter the tax type, region and year for which you plan to pay real estate taxes.

From the beginning of 2021, property taxes are calculated based on cadastral value. This price is determined not by the owner himself or the market, but by a government agency. But the cost is not much different from the market price. Recalculation of the cadastral valuation of real estate takes place every 5 years. The obtained data is published on the Rosreestr website.

Until the end of 2021, in some areas and regions, the tax was based not on the cadastral value, but on the inventory value; it was calculated according to the degree of depreciation of the object. Now there is no such thing, and all real estate taxes in the Russian Federation are calculated in a single way - at the price indicated in the cadastre.

The tax rate for individual entrepreneurs or individuals will depend on the type of object, cadastral value and location. For example, for the Yaroslavl region for 2021:

No one needs to calculate how much they need to pay into the budget. The tax office sends a letter indicating both the deadline and the amount. The Federal Tax Service sends out notifications once a year, and payment must also be made in one payment before December 1 of the next year. That is, upon receipt of a letter on January 1, 2021 to pay tax for 2021, it must be paid no later than December 1, 2020. There is no need to report with a separate declaration or write a report.

Land tax

Land tax is included in the group of local taxes. Federal legislation establishes a list of benefits that reduce the tax base or completely exempt subjects from paying land tax.

Pensioners are entitled to receive such benefits. The mechanism for providing it is to reduce the tax base, based on a decrease in the area of ​​the land plot by 600 square meters. meters. Land tax for individuals is calculated based on the area of ​​the plot, therefore, if the total area is, for example, 1000 sq. meters, then the tax base will be calculated only on 400 square meters. meters (4 acres). Consequently, here we are talking, rather, not about complete exemption, but only about a reduction in the tax base.

Full exemption is due only if the tax base is 0, ― if the area of ​​the plot is equal to or less than 600 square meters. meters. These amendments apply to areas located:

• Owned by the taxpayer.
• In lifelong inheritable ownership.
• For permanent (indefinite) use.

Regardless of the number of plots that a taxpayer owns or uses, the reduction in the tax base applies to only one of them. The pensioner independently sends a notification to the tax authorities, which marks one of the areas for which the benefit will be applied.

If the notification is not received, the Federal Tax Service has the right to obtain such information independently. If a pensioner owns several objects, the tax authorities apply the benefit to the one in respect of which the maximum tax amount is calculated.

Complete list of taxes paid by pensioners

These are the main taxes that pensioners are required to pay on an equal basis with other citizens. For each of the regional and local taxes, benefits may be provided. Where and exactly what benefits apply should be clarified locally. At the same time, a non-exhaustive list of mandatory taxes is as follows:

• Income tax - on all sources of income not expressly specified in Art. 217 Tax Code of the Russian Federation.
• Property tax for individuals.
• Transport tax.
• Land tax.

In addition to these payments, there is payment for utilities, which are commonly called taxes. Still, this is not an entirely correct point of view: utilities should be considered separately from taxes.

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about the author

Klavdiya Treskova - higher education with qualification “Economist”, with specializations “Economics and Management” and “Computer Technologies” at PSU. She worked in a bank in positions from operator to acting. Head of the Department for servicing private and corporate clients. Every year she successfully passed certifications, education and training in banking services. Total work experience in the bank is more than 15 years. [email protected]

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Comments: 13

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Author of the article: Klavdiya Treskova

Consultant, author Popovich Anna

Financial author Olga Pikhotskaya

1. Irina
   12/21/2021 at 10:33 pm My husband has a plot of 22 acres, he is a pensioner, the tax came from Chelyabinsk and the land is located in Chelyabinsk
   Reply ↓
2. Lyubov Gradova 72 years old
   12/17/2021 at 18:53

   I have a garden plot in the Leningrad region of 6 acres, when I bought it they told me that I didn’t need to register it with the tax office. And now they started withdrawing money without notice. Land tax?

   Reply ↓
   Anna Popovich
   12/21/2021 at 5:52 pm

   Dear Lyubov, Russian pensioners and citizens of pre-retirement age are exempt from paying tax on land plots of up to 6 acres.

   Reply ↓

Tax benefit in action

Most tax benefits are provided upon direct application by the pensioner. Until the citizen himself notifies the relevant authorities of his rights, the taxation of his property will be in the same regime as before the reasons for granting him various kinds of privileges arose. In order to save money in the family budget, an advisable solution would be to submit documents on time and correctly to apply for relief to the tax authority.

How to get a tax deduction for a pensioner?

Under the new legislation, the pensioner retains the right to receive a tax deduction, which reduces the tax area. The amount of tax deduction varies depending on the type of property owned. Room – 10 m2. Apartment – ​​20 m2. Private house – 50 m2. It does not matter for what reason a citizen receives a pension. This deduction applies to only one property. Example! Fedchenko Lidiya Ivanovna, pensioner. The property has an apartment of 45 m2 and a private house of 100 m2. I received a personal property tax exemption for an apartment and a tax deduction for a dacha. By reducing the tax base to 50 m2. In 2021, pensioners will receive a tax refund on the purchase and sale of residential property. To receive a deduction when purchasing a home, you must meet one of the following conditions: the pensioner is still officially working; less than three years have passed since retirement; there is a systematic receipt of additional income. Additional income can come from renting out owned property. No matter what changes occur in the legislation of the Russian Federation, the priority problem of society will always be the welfare of the most vulnerable part of our society - pensioners. To reduce the cost of paying various taxes and fees, a number of benefits are provided that are provided to citizens upon reaching a certain age or status. Privileges, concessions, deductions and benefits are how the state really helps its citizens. A serious approach when applying for one or another state social assistance is very important, since errors in filling out applications and submitting an incomplete package of documents can delay the process of obtaining the necessary subsidy. The payment of property taxes by pensioners is greatly facilitated if all rules and legal requirements are followed. In 2021, social security for people of retirement age is preserved even in times of crisis.