Choosing a tax system for rent

Personal income tax for rent

simplified tax system for renting premises

Tax on rental premises

Tax lawyer Gordon Andrey Eduardovich

Moscow

In Russia, a tax has been established on the rental of apartments, garages, parking spaces, offices and any other real estate. Tax is levied on the amount of income received.

Since the owners of the listed real estate in the Russian Federation can be both individuals and organizations, paying taxes on rent in organizations is the concern of management and accounting. Individuals who receive income from renting out their real estate must take care of paying taxes themselves, or the state will take care of it.

Taking care of your taxes means more than just counting and paying. Russian legislation allows a citizen to choose a convenient method (system) for paying taxes. Depending on the chosen system, the amount of tax on renting apartments (or other real estate) and the procedure for taxing income will be different, so a citizen can actually save on taxes.

Citizens, that is, individuals who receive rental income, do not have to bother and simply pay the Personal Income Tax (NDFL) in accordance with Chapter 23 of the Tax Code of the Russian Federation. It is 13% of the income. But no one is hiding the upcoming tax increase; first of all, personal income tax will be raised. Therefore, it is now advisable to compare the main methods of taxation.

It is believed that the landlord will pay less taxes if he registers as an Individual Entrepreneur (IP) and applies the Simplified Taxation System (Chapter 26.2 of the Tax Code of the Russian Federation) or buys a Patent (Patent Taxation System - Chapter 26.5 of the Tax Code of the Russian Federation).

Propaganda for paying taxes on rental apartments encourages people to declare their rental income and pay the 13% personal income tax. But such awareness may in the future play a role with such taxpayers cruel joke. The point is this:

• Systematic receipt of income from the rental of apartments, garages, houses, offices and other real estate, according to the legislation of the Russian Federation, is a business activity. And business activities in Russia should be carried out only in accordance with the established procedure - that is, registration of entrepreneurship in one form or another is required. Otherwise, the question of illegal business may arise, and this is a type of criminal offense. And paying taxes in itself is not enough.
• Moreover, a particularly cynical situation is created: payment of taxes will be used against you as evidence of systematic receipt of income!

Citizens who rent out real estate need to know a number of important provisions of tax legislation that significantly affect the amount of taxes paid and take these provisions into account in their lives.

Personal income tax is important tax status of an individual. In Russia, real estate can be owned by both Russian citizens and foreigners. And each of these owners has the right to rent out their property. At the same time, tax legislation does not use such concepts as Russian citizen and foreigner.

But there is a concept of tax residents of the Russian Federation - individuals legally staying in Russia for 183 days over the next 12 consecutive months. (Part 2 of Article 208 of the Tax Code of the Russian Federation).

As seen, tax resident of the Russian Federation and a citizen of Russia are not the same thing. From which the conclusion follows: a foreigner (not a citizen) can become a tax resident of Russia.

Tax status is very important, since the procedure for taxing income for a tax resident and a non-resident is different.

Personal income tax for rent

1. Situation: An individual receives income from renting an apartment, and has not formalized his entrepreneurial activity in any way.

In this case, without being a registered entrepreneur (IP), individuals cannot apply any methods of taxation other than paying the Personal Income Tax, abbreviated as personal income tax. The rules for calculating personal income tax are established in Chapter 23 of the Tax Code of the Russian Federation.

General rule of Russian tax legislation: All individuals - both tax residents of the Russian Federation and individuals who are not tax residents of Russia, and receiving income in Russia are payers of the Personal Income Tax (NDFL).

The general rule for calculating personal income tax: the tax is taken from the amount of all income of the taxpayer for the tax period.

The types of income from which personal income tax is taken are listed in Article 208 of the Tax Code of the Russian Federation, in particular, the article directly states income from rental property located in the Russian Federation. That is, the income of individuals from renting out apartments, parking spaces, country houses, offices, shops, etc. located on the territory of Russia are subject to personal income tax.

Personal income tax rate:

The tax status of the lessor (recipient of rental income) mentioned above is of significant importance here:

For landlords who are tax residents of the Russian Federation, the tax rate is 13%.

For non-residents – 30%.

What amount is personal income tax charged when renting out an apartment?

Personal income tax is taken from the tax base - the amount of income received during the tax period.

Tax period for personal income tax: calendar year. Starts on January 1st and ends on December 31st.

Conclusion: Personal income tax is levied on the total amount of income received during the calendar year.

Example 1:

A citizen of Moldova, permanently residing in Moscow, rents out an apartment he owns for 20,000 rubles. per month throughout 2016.

Solution:

Tax base for personal income tax from rent: 20,000 x 12 = 240,000 rubles.

The lessor permanently resides in Russia, that is, more than 183 calendar days over a consecutive 12 month period; according to the rules of Article 208 of the Tax Code of the Russian Federation, such a citizen of Moldova is recognized as a tax resident of the Russian Federation; a tax rate of 13% is applied to rental income.

Personal income tax = 240,000 x 13% = 31,200 rubles.

Example 2:

A Russian citizen permanently residing in Munich rents out an apartment he owns in Moscow for 20,000 rubles. per month during 2016

The personal income tax tax period is a calendar year – 12 months.

Tax base for rent: 20,000 x 12 = 240,000 rubles.

The lessor permanently resides in Munich, NOT in Russia; according to the rules of Article 208 of the Tax Code of the Russian Federation, the lessor is NOT recognized as a tax resident of the Russian Federation; a tax rate of 30% is applied to rental income.

Personal income tax = 240,000 x 30% = 72,200 rubles.

Conclusion: if you travel outside the territory of the Russian Federation for a period of more than 183 days, you may lose your tax status as a Tax Resident of Russia, and personal income tax will be paid at an increased rate.

Important: When determining tax status, the period of stay in Russia is calculated for 12 consecutive months, and not during the calendar year.

How to pay personal income tax:

Paying personal income tax requires the taxpayer to perform several operations:

1) The taxpayer must register with the Tax Inspectorate and receive a TIN - individual tax number. (It is not necessary to register as an individual entrepreneur. In this case, when calculating personal income tax, the taxpayer cannot reduce his income by expenses incurred, for example, by the amount of property tax paid, and soon this tax will amount to an impressive amount).

2) At the end of the tax period during which rental income was received (calendar year), before April 30 of the following year, the taxpayer fills out and submits a personal income tax return to the tax office.

3) Actually, pay the tax amount.

The declaration indicates the amount of rental income received during the tax period (if no other income was received).

The difference in filling out the tax return for tax residents of the Russian Federation and non-residents of the Russian Federation:

On Sheet “A” “Income from sources in the Russian Federation”, in column 010 (Tax rate), tax residents of Russia put the figure 13%, individuals NOT tax residents of Russia in column 010 put the figure 30%.

When calculating personal income tax from renting apartments, houses, offices and other real estate, the income received may be reduced by standard and social tax deductions.

Standard deductions:

According to the rules of Article 218 of the Tax Code of the Russian Federation, personal income tax taxpayers have the right to reduce taxable income in connection with the presence of a minor child and an adult student under 24 years of age:

1,400 rubles - for the first child;

1,400 rubles - for the second child;

3,000 rubles - for the third and each subsequent child;

6,000 rubles - for each child if a child under the age of 18 is a disabled child, or a full-time student, graduate student, resident, intern, student under the age of 24, if he is a disabled person of group I or II.

A tax deduction is made for each child under the age of 18, as well as for each full-time student, graduate student, resident, intern, student, cadet under the age of 24.

The single parent is provided with double the tax deductions. Deductions are also provided to foster parents, adoptive parents, guardians, and trustees. The tax deduction is provided on the basis of a written application of the parents (parent's spouse, adoptive parents, guardians, trustees, foster parents, spouse of the adoptive parent on the basis of their written statements and documents confirming the right to this tax deduction.

Applications and documents must be attached to the personal income tax return.

IMPORTANT: For individuals whose child is outside the Russian Federation, a tax deduction is provided on the basis of documents certified by the competent authorities of the state in which the child lives.

The specified tax deduction is provided up to a month, following the results of which the taxpayer’s income, calculated on an accrual basis from the beginning of the tax period, does not exceed 350,000 rubles.

Social deductions:

According to the rules of Article 219 of the Tax Code of the Russian Federation, taxpayers have the right to reduce taxable income by amounts spent on:

• Own education or education of your children in educational institutions
• Your own treatment or treatment of your children in medical institutions

Standard and social tax deductions are indicated in sheets E1 and E2 of the personal income tax return.

How to submit a personal income tax return:

A tax return in paper form can be submitted to the inspectorate of the Federal Tax Service of Russia independently by the taxpayer, through a representative under a notarized power of attorney); by mail - in the form of a registered item with a list of attachments.

In electronic form, the tax return is sent via telecommunication channels with an electronic digital signature.

If a tax return is not filed within the prescribed period, the taxpayer is subject to tax liability - a fine for failure to file a return, and if the tax is not paid, also for non-payment of tax.

The amount of the fine for failure to file a tax return is 5% of the amount calculated on the return for each month of delay, but not more than 30%.

HOW TO PAY NDFL:

According to the deadline, the total amount of tax on all income for the expired tax period must be paid by the TAXPAYER to the budget before July 15 of the year following the expired tax period.

IMPORTANT:

Tax payment should only be made ourselves taxpayer, since the bank enters information about the payer into the payment details. Thus, if a spouse paid tax for his spouse, then in the Federal Tax Service Inspectorate this payment can be seen as a tax payment of the spouse who made the payment at the bank. As a result, the taxpayer – the spouse – will be in debt! And penalties will be charged on it.

Example:

Personal income tax on rental income for 2015 must be paid by July 15, 2016. The owner of the office is the husband Ivanov, and he is the lessor.

If Ivanov entrusts the payment of taxes to his wife, he may develop a debt (arrears).

At this point, the tax obligations of an individual who received income from renting out an apartment are considered fulfilled.

CHOOSE: TAXATION OF RENTAL INCOME FROM AN INDIVIDUAL ENTREPRENEUR

General system (OSNO), Simplified system (USN), Patent

Individual entrepreneur (IP) is an individual registered as an entrepreneur. Registration is carried out by the tax office.

To legally receive income from business activities for leasing real estate - apartments, offices, etc., the information about the individual entrepreneur must indicate the corresponding type of activity - services for providing real estate for rent.

A significant issue for individual entrepreneurs will be the method of taxation. An individual entrepreneur can choose a general taxation system (OSNO), a simplified taxation system (STS), or a patent system.

IP on OSNO– a taxation system that requires accounting and tax accounting. Requires appropriate qualifications and costs for organizing and maintaining records, preparing current (during the year) reporting. But the main thing is paying VAT. The lessor at OSNO is a VAT payer. For this tax, quarterly filing of tax returns and payment of tax are mandatory. The system is suitable for use when leasing space on an “industrial scale”: workshops, large exhibition halls, office centers, etc. Enterprise tenants are interested in taking into account the “input” VAT and expenses; they benefit from an individual landlord on OSNO. For the property owner-lessor, when applying OSNO, the total amount of taxes will also increase significantly. For obvious reasons, we do not consider the payment of taxes by individual entrepreneurs on OSNO within the framework of this material.

simplified taxation system for rent

Individuals registered as individual entrepreneurs have the right to use the Simplified Taxation System to calculate rental tax. It is believed that the simplified tax system is significantly different from OSNO and allows you to reduce the cost of accounting. First of all, since taxpayers using the simplified tax system are not required to pay VAT. Accounting is also not required. At the same time, it is necessary to keep records of income or income and expenses.

The fact is that the simplified taxation system allows the use of two forms: simplified taxation system “income”, or simplified taxation system “income minus expenses”. From the names of the systems it is clear how they differ.

Using the simplified tax system, taxpayers pay the Unified Tax in connection with the application of the simplified tax system.

Tax rates of the simplified tax system depend on the calculation method used:

For the “Revenue” system – 6% of income.

For the “Income minus expenses” system – 15% of the difference between income and expenses.

A significant difference between these methods of applying the simplified tax system may appear if the lessor has systematic significant expenses on the property that is leased.

As a rule, when renting out apartments, garages and other real estate, the landlord does not have systematic expenses; therefore, for renting out, the simplified tax system “income” is “economically more efficient”, in which only 6% tax is levied on the rent. And the tax inspectorate asks fewer questions in these cases.

A significant addition to the tax burden are contributions: To the Pension Fund and the Federal Compulsory Medical Insurance Fund.

Insurance contribution to the Pension Fund for the year = minimum wage x tariff x 12 months + 1% of the amount of income exceeding 300,000 rubles.

For 2016, contribution to the Pension Fund = 19,356.48 rubles (6,204 rubles × 26% × 12 months)

Insurance contribution to the FFOMS for the year = minimum wage x tariff x 12 months

For 2016, the contribution to the FFOMS for the year = 3,796.85 rubles (6,204 rubles × 5.1% × 12 months), where 6,204 is the minimum wage (minimum wage).

That is, the tax burden of an entrepreneur under the simplified tax system in 2016 increases by more than 23,000 rubles. And if the annual income exceeds 300,000 rubles. contributions to the pension fund will increase by 1% of the amount exceeding RUB 300,000.

For example, rent for expensive apartments in Moscow can exceed 100,000 rubles. per month, and the annual income is, accordingly, 1,200,000 rubles. then the additional payment to the Pension Fund will be 1% x (1,200,000 - 300,000) = 9,000 rubles.

Tax return according to the simplified tax system

The tax return is submitted once a year. An individual entrepreneur using the simplified tax system submits a tax return no later than April 30 of the year following the expired tax period. This coincides with the conditions for applying personal income tax to individuals.

Tax period, reporting periods of the simplified tax system

The tax period of the single tax when applying the simplified tax system is a calendar year, from January 1 to December 31. Tax period is the period of time for which the taxpayer calculates and pays tax.

Reporting period – 1st quarter, half-year, 9 months of the calendar year. These are periods at the end of which taxpayers are required to calculate and pay the amount of the advance tax payment based on the income actually received, or income reduced by the amount of expenses.

Conclusion: the single tax under the simplified tax system is paid by individual entrepreneurs in three payments after each quarter of the calendar year and the last payment, at the end of the year - until April 30

Payment of tax. Advance payments.

The amount of the single tax when applying the simplified tax system is paid at the end of the tax period BEFORE the deadline for filing a tax return. For individual entrepreneurs, this is until April 30 of the year following the tax period.

Advance payments for the single tax of individual entrepreneurs under the simplified tax system are paid no later than the 25th day of the month following the expired reporting period, respectively, for the 1st quarter - before April 25, for half a year - before July 25, for 9 months - before October 25.

Individual entrepreneurs using the “simplified tax” have the right to reduce the income received by the insurance premiums paid for “themselves” in full and by 50% if the individual entrepreneur pays contributions for hired employees.

Example:

Individual entrepreneur Ivanov uses the simplified tax system “income” to lease non-residential premises - offices for 800,000 rubles. per month.

Expenses for premises amount to 100,000 rubles. per month.

Question: which system of taxation of rental income is more profitable: simplified taxation system for income, simplified taxation system for income minus expenses or personal income tax, all other things being equal?

Solution:

The income of the individual entrepreneur will be 9,600,000 rubles. per year, Expenses – 1,200,000 rub. in year.

The amount of single tax under the simplified tax system for income will be: 576,000 rubles. (9,600,000 x 6%)

The amount of the single tax under the simplified tax system, income minus expenses, will be: 1,260,000 rubles. (9,600,000 – 1,200,000) x 15%

Personal income tax will be 1,092,000 rubles. (9,600,000 – 1,200,000) x 13% if the individual entrepreneur takes into account expenses as professional tax deductions when taxing.

Conclusion: in the case considered, despite the amount of expenses exceeding 10% of income, it is much more profitable to apply the simplified tax system for income at a rate of 6%.

Patent for apartment rental 2016

IP may be used when leasing residential and non-residential premises, if this is permitted by the relevant law of the constituent entity of the Russian Federation. For example, in Moscow this is allowed by Moscow law.

The patent is issued by the tax authority at the place of registration of the taxpayer (place of entrepreneurial activity of the individual entrepreneur).

WITH potential income a tax (patent fee) of 6% is payable.

The amount of potential income is established by the law of the relevant subject of the Federation. For example, the amount of potential income in Moscow is established by Law No. 53 of October 31, 2012. According to this law, the potential income from renting out an apartment in Moscow ranges from 210 thousand rubles. up to 10 million rubles per year depends on the location of the rental property.

Patent fee amount:

Based on Moscow Law No. 53, in which the potential income for renting out premises is established for different areas and geographical locations.

For example, non-residential premises with an area of ​​280 sq.m. are for rent. in Moscow. In accordance with the specified law of Moscow, for the rental of non-residential premises with an area of ​​100 to 300 sq.m. potential income is set at RUB 3,000,000. in year.

A patent for renting non-residential premises for a calendar year will cost:

180,000 rub. (3,000,000 (potential income) x 6%)

Term The period for which a patent is issued ranges from 1 month to 1 year.

Patent payment procedure: A patent issued for a period of less than six months must be paid before its expiration. Issued for a period of more than 6 months, a patent is subject to payment in two payments: 1/3 within three months from the date of receipt, and the remaining 2/3 until the expiration of the patent.

Let us remind you: for individual entrepreneurs, when applying personal income tax, and the simplified tax system and when using a Patent, it is necessary to pay mandatory contributions in the amount of 23,000 rubles. (mandatory insurance contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund)

Tax on rental premises

When receiving income from renting non-residential premises - office, retail. warehouse and other commercial premises, as well as when renting out more than one residential premises (apartment, country house), it is necessary to consider the form of business activity and the taxation system - individual entrepreneur or organization (LLC), simplified tax system, OSNO.

The fact is that leasing premises in these cases is a business activity. As was said at the beginning of the article, in such cases, in the absence of registration of business activity, the tax office will have questions about the legality of receiving income, which threatens to initiate a criminal case.

When choosing a taxation system, the analysis of the tax burden on rental income is carried out in a manner similar to the above.

From the above, the following conclusions are obvious:

The most profitable way to rent out residential premises located in the “peripheral” parts of Moscow would be to acquire a patent for the corresponding type of activity.

At the same time, it is worth noting that for the patent system, imputed income directly depends on the location of the rental property, and if, for example, the apartment is located in the Central Administrative District (CAO) of Moscow, then the tax will increase many times over. Therefore, each option requires an individual calculation.

In addition, do not forget about mandatory payments to the Pension Fund and the Compulsory Medical Insurance Fund. In total about 23,000 rubles. and their increase by 1% of the amount of annual income exceeding 300,000 rubles.

Under the patent system, they do not reduce the amount of potential income.

We are ready to help you analyze your situation and carry out the necessary calculations.

Renting out living space is not as profitable as it might seem at first glance. The average income is 4-7% per annum of the cost of housing itself, belonging to the economy and comfort class segment. You can calculate the annual return as follows. The monthly cost of hiring must be multiplied by 12-13% of personal income tax, the resulting result multiplied by one hundred and divided by the sum of the purchase price and additional investments.

To estimate the profitability of renting an apartment after purchasing it, you need to proceed as follows:
For example, you purchased a two-room apartment near the station for six million seven hundred thousand rubles, which does not require renovation.

When renting out housing, there are certain risks of unplanned expenses and expenses. Unforeseen expenses, as practice shows, arise due to the dishonesty of guests. The owners suffer the biggest losses when their guests sell their apartment to third parties using false documents. Unscrupulous guests can also sublet the living space without notifying the apartment owners, or allow additional residents into the apartment. There are often situations when tenants simply do not pay not only rent, but also utility bills, leave telephone bills, and then unexpectedly move out.

To avoid this kind of trouble, everything must be clearly stated in the lease agreement. Based on this document, you can prove your rights in court.

How to properly evaluate an apartment rental

To estimate the cost of renting an apartment, let's look at the parameters that influence the determination of the price. There are four in total:

1. Location, infrastructure development, proximity to metro stations: the closer to the city center, the higher the rent.

2. Road traffic situation. Undoubtedly, apartments are more expensive near the main transport arteries of the city.

3. Technical characteristics of both the apartment itself and the house in which it is located. The presence of renovations and the relative “youth” of the house significantly increase the cost of rent. The layout of the apartment also matters. High demand for one- and two-room premises led to high rental prices. For example, two-room apartments

4. Home improvement. Apartments with minimal equipment belong to the economy class and are much cheaper than luxury ones.

Student housing is considered the cheapest. Its cost varies between 20-25 thousand rubles; Two-room economy class apartments can be rented from 35,000, business class - from 50,000, premium class - from 70,000. One-room housing located within the Moscow Ring Road is rented on average for 23-32, and two-room apartments - for 30-40 thousand. In the Moscow region Zheleznodorozhny, Balashikha, Mytishchi you can rent a one-room apartment for 13,000 - 15,000, in Odintsovo and Krasnogorsk - for 17,000 -19,000.

Seasons also affect rental prices. By autumn, when activity begins in the city after the summer holidays and arriving students, housing becomes more expensive.

Go to the section for renting an apartment in Moscow - we will guide you on the price and also help you find tenants.

A vacant apartment can be rented out; taxes must be paid on the rental of the apartment. How to properly pay taxes on renting out an apartment, and how to save money on it? Such questions interest every owner.

What are the taxes on rental housing?

The owner of an apartment can be either an individual or a legal entity. But, in any case, rent is additional income. Therefore, taxes must be paid on it.
If the tenant of the apartment is an individual, then he must pay income tax on the rent. Its rate is 13% for residents of our country, and 30% for non-residents.

If the tenant is a legal entity, then there are several options:

• If an enterprise applies the “simplified tax”, then the rent is considered income, and the tax is paid depending on the tax base;
• If an enterprise applies a general taxation system, then rent is income that increases the tax base for calculating income tax.

If the tenant is an individual

If the tenant of the property is an individual, then he (the owner-tenant) must pay income tax on the rent for the apartment. As an option - registering an individual entrepreneur and paying a single tax on a simplified basis, or purchasing a patent for renting out your apartment.

The apartment owner must conclude an apartment rental agreement with the tenants. Those owners who do not want to do this should keep in mind that for law enforcement agencies this is tax evasion.

On the part of the tax authorities, the system for tracking non-payers is not yet fully debugged. But they are taking all possible measures to ensure that there are fewer and fewer “deviators” every year.
Of course, no one wants to part with their money. And pay taxes to the state. But, there are several ways to save on taxes.

Income tax

The percentage tax rate is 13% for residents of our country, and 30% for non-residents - persons living in our state for less than 183 days a year.
You must report to the tax authorities every year. Until April 30 of the year following the year in which rent was received. The owner of the apartment must submit a tax return.

If the owner does not pay the tax on time for reasons beyond his control, then he will have to pay a fine in the amount of 20% of the unpaid tax amount (clause 1 of Article 122 of the Tax Code of the Russian Federation). If the owner deliberately does not pay income tax from renting out an apartment, then the fine will be 40% of the unpaid amount (clause 3 of Article 122 of the Tax Code of the Russian Federation). Over several years of non-payment, the amount of fines and taxes payable can be quite large.

Simplified taxation system as a way to save your own funds

To save money, the apartment owner can register an individual entrepreneur. This is not at all difficult to do. Choose “simplified” as the taxation system, and the tax base is the income of individual entrepreneurs.

Thus, the savings in personal funds are significant. But, income tax must be paid once a year, and when applying the simplified tax system, it is necessary to make advance tax payments every quarter. The declaration is also due by April 30.

Advance payments are calculated on an accrual basis from the beginning of the year for the quarter, then for half a year, then for 9 months. If an individual entrepreneur makes contributions to the Pension Fund and the Social Insurance Fund, then he has the right to reduce taxable income by the amount of such payments made in the current period. The amount to be reduced is equal to 100% of all payments.

The amount of the advance payment is equal to the product of the entire rent for the quarter and the interest rate. If advance payments are correctly calculated and paid, the annual declaration should reflect the amount that has already been actually paid by the owner.

In order for the tax base to be correctly calculated, the individual entrepreneur, who is also the owner of the apartment, must keep a book of income and expenses. This is necessary for tax accounting purposes.

Purchasing a patent as a tax on renting an apartment

There is another way to save. This is a patent tax system. To do this, you also need to register an individual entrepreneur.

To use such a system, it is necessary to purchase a patent for rental housing. The amount of tax payable is calculated as 6% of the estimated annual income from a specific type of activity. In this case - renting out housing.

Don't know your rights?

The income expected by the head from this or that activity is established at the legislative level. For example, in Moscow, in 2014, the annual estimated income for calculating tax under the patent tax system for rental housing is 1 million rubles. This is stated in the Moscow Law of November 20, 2013 No. 62 “On Amendments to Art. 1 Moscow dated 10/31/2012 No. 53 “On the patent taxation system.”

Consequently, the amount of tax payable will be equal to 60,000 rubles per year (1 million * 6%) for one independent property. If you own 2 or more apartments, then the tax amount increases several times.

A patent is purchased for a maximum of one year. This is stated in paragraph 5 of Art. 346.45 Tax Code of the Russian Federation. The amount of tax to be paid depends on this. If a patent is purchased for a period of less than a year, then the amount of tax payable will be equal to the product of the tax for the month and the number of months for which the patent was purchased. For clarity, we can give an example.

The patent was purchased for 7 months. Then the amount of tax payable will be equal to (60,000 / 12 months) * 7 = 35,000 rubles.

The period for which the patent was purchased also determines the period for its payment. This is stated in Art. 346.51 Tax Code of the Russian Federation. If a patent is purchased for a period of less than six months, then the entire tax amount must be paid within 25 days after purchasing the patent.

If a patent is purchased for a period of six months to a year, then the tax is paid in 2 stages:

• Within 25 days after purchase you must pay 1/3 of the total tax amount:
• And one month before the end of the tax period, pay 2/3 of the total tax amount.

There is no need to submit a tax return under this taxation system.

If the owner of the apartment is a legal entity

If a legal entity decides to rent out an apartment, then a lease agreement must be concluded. It must indicate how rental payments will be received by the owner - monthly, quarterly, in equal amounts or in parts. This is necessary to correctly reflect the income received for calculating income tax.

If an enterprise applies the simplified tax system, then the provisions for paying tax are the same as for individual entrepreneurs. You just need to submit a tax return to the inspectorate before March 31 of the next year.
When applying the general taxation regime, the enterprise pays income tax.

If the rental of residential premises is the main activity of a legal entity, then rental income is income from sales (Article 249 of the Tax Code of the Russian Federation). In this case, for tax purposes it is important to correctly account for income, that is, rent.

For the correct taxation of organizations when calculating income tax, income is recognized in the reporting period in which it should be, regardless of when the actual receipt of funds for rent occurred. If the agreement states that rent is paid once a month until the 20th day, then it will be recognized as income every month.
If renting out an apartment is not the main activity, then the rent will be recognized as non-operating income (clause 4 of Article 250 of the Tax Code of the Russian Federation).

All expenses that the tenant incurs for the maintenance of the apartment are non-operating expenses, according to paragraphs. 1 clause 1 art. 265 Tax Code of the Russian Federation. The same expenses include depreciation of the apartment. They reduce the tax base for calculating income tax.

The income tax rate is 20% of the actual profit. At the same time, 2% is allocated to the federal budget, and the remaining 18% to the budget of the subject of the federation where the enterprise conducts its main activities.

Do not forget that you must also submit your income tax return every quarter. This must be done within 4 weeks after the end of the quarter. The annual declaration must be submitted no later than March 28 of the following year (clause 3 and clause 4 of Article 289 of the Tax Code of the Russian Federation).

At the end of each quarter, the declaration is submitted to the inspectorate at its location.

Don't forget about VAT. It is paid from each rent in the amount of 20%.

Last updated March 2019

The real estate market is currently experiencing a downturn. Despite this, many owners continue to rent out their own apartments, wanting to generate additional income.

What documents need to be drawn up when renting out housing, what taxes to pay, what liability is provided for violators - you will find answers to these and other questions in our article.

How to register a property for rent

If you own an apartment (or other residential premises) that you plan to rent out, then you need to know what documents are drawn up, as well as what the tax is when renting out an apartment.

Conclusion of an agreement

The relationship of renting out housing is called either hiring or renting.

The agreement between you (the landlord) and the tenant must be recorded in writing in the form of an agreement. There is no strict standard form for the contract, but the text must indicate:

• the subject of the contract, that is, the home itself. The contract indicates the full address of the property, characteristics (area, floor, number of rooms, etc.), cadastral number;
• rental amount and payment procedure. Describe the amount of payment and the frequency of its payment. As a rule, the employer makes payments every month in a certain fixed amount. It is also possible that the rent is determined monthly by calculations (for example, taking into account the inflation index, dollar exchange rate, cost of utilities, etc.). When concluding an agreement, the owner has the right to fix the possibility of increasing the rental price, but subject to certain restrictions (for example, no more than once a year, and no more than 10%).
• details of the parties (passport details, registration addresses, TIN).
• date and place of conclusion of the contract.

You can supplement the contract with other information that, in your opinion, is essential.

Payment guarantees

It is a good idea to specify the conditions for receiving and returning the deposit and its amount. When renting out housing to tenants, you can request a so-called guarantee payment - payment for the last month of residence (in advance). This money will be a kind of safety net for you in case the employer decides to move out ahead of time and refuses to pay. The guarantee payment is also used as compensation for damaged furniture, plumbing fixtures and other property. All these details must be taken into account in the contract.

Contract time

It is important to indicate in the agreement the duration of its validity. Such contracts are concluded for a period from 1 month to 5 years, and unless you indicate otherwise, it is considered valid for a maximum period (5 years). It is advisable to highlight a separate point - how long you are renting the apartment and how you can terminate the agreement.

This usually indicates the time in which each party is obliged to notify the other of the planned termination of the agreement. You can also indicate the conditions when you have the right to terminate the contractual relationship yourself (systematic violation of payment terms, deterioration of the condition of the housing, residence of strangers who are not tenants, etc.).

After drawing up an agreement with all the conditions, the agreement is sealed with the personal signatures of the parties. Registration of the agreement with a notary is not required.

When concluding an agreement for a period of 12 months or more, it must be registered with Rosreestr. But many owners do not apply to the Unified State Register authorities for registration. then there is a risk of claims from regulatory authorities. In order to reduce risk, you can enter into an agreement for a period of 11 months. Or for an indefinite period (but then such an agreement can in any case be valid for no more than 5 years).

Transfer and Acceptance Certificate

The transfer of housing for use to the tenant is formalized by a transfer and acceptance certificate. It dates from the day the tenant moved in. Scrupulous owners usually indicate in the deed the condition of the housing, as well as all valuable property that is located in the apartment and is transferred to the tenant for use. If you come across an unscrupulous tenant, then if you have an act with a detailed list, it will be easier for you to prove the fact of loss of property. This means it is easier to return it or compensate for its cost.

Proof of payment

Having signed the agreement and transferred the housing for use to the tenant, you have the right to demand payment from him according to the agreed conditions. It is important to record in writing all the facts of the transfer of money - this will help to avoid possible disagreements. Payment under the agreement can be made in two ways:

• The employer gives you the money in cash. Each transfer must be formalized with a receipt indicating the amount, date and purpose (for rent). Then seal the document with the signatures of the parties. This confirms payment (for the tenant) and receipt of money (for you);
• Funds are transferred to your current account in non-cash form. This method has a number of advantages: firstly, it is convenient, since there is no need to waste time on a personal meeting, and secondly, payment documents (receipt, payment order, bank statement) are certified by the bank, therefore, they are a much more reliable confirmation of payment.

Despite the undoubted advantage of non-cash payments, tenants prefer to meet with tenants in person and, as a rule, in a rented apartment. Under the pretext of receiving money, the owner evaluates the condition of the property and the reliability of the tenants.

If, in addition to rental payments, you charge the cost of utilities from tenants, then their amount should be indicated separately in the receipt (for bank payments, require payment with a separate receipt). This will help you avoid possible inaccuracies and confusion.

Taxes when renting out an apartment: documents, calculations, payment terms

When you rent out your own apartment, such activity is subject to taxation. There are several ways to pay tax on apartment rentals. Let's look at each of them and use examples to determine how to make the payment minimal.

Personal income tax payment

This method of fulfilling obligations is the simplest, as it does not require registration or additional documents from the lessor. All you need to do is draw up a declaration in form 3-NDFL and submit it to the fiscal authority. You can receive the declaration form in one of the ways convenient for you:

• personally apply for the document to the Federal Tax Service at your place of residence and fill it out on the spot according to the sample;
• download the form on the official tax website and fill it out at home yourself (3NDFL Declaration for 2018), indicate the income code 1400 ;
• register on the Federal Tax Service website using the “Personal Account”, fill out the form in the program and send it by email.

Drawing up a declaration is not a complicated procedure. In the form you need to fill in your personal data (full name, tax identification number, registration address, etc.), indicate the income received from renting out housing at the end of the year, as well as the amount of the fee, which is 13% of income.

News: apartments will be offered to renters! This is the so-called self-employed tax. The law is being tested in Moscow, the Moscow region, the Republic of Tatarstan, and the Kaluga region. If the experiment succeeds, the tax rate will be 4%!

When renting out an apartment, it is important not to delay filing a declaration and paying taxes.

• The completed declaration in form 3-NDFL for 2018 must be submitted to the Federal Tax Service by April 30, 2019 (for 2019 – by 04/30/2020),
• And transfer the tax to the budget before July 15, 2019 (for 2019 – until July 15, 2020).

Example 1

Resident of Tula Sergeev S.L. rents out his own room. According to the agreement, employers pay Sergeev 7,320 rubles. per month. For 2018, Sergeev received an income of 87,840 rubles, which he reported to the tax office by filing a declaration. Sergeev must pay a fee of 11,419 rubles. (RUB 87,840 * 13%) until 07/15/2019.

IP on the simplified tax system

Another way to legally rent out housing is to register an individual entrepreneur using the simplified taxation system (STS). This method has both pros and cons. On the one hand, when registering an individual entrepreneur, the amount of rental tax is not 13%, but 6%, plus a fixed annual contribution to the Pension Fund in the amount of 29,354 rubles. (from 2019 Unified Social Tax). In addition, you will need to go through the registration procedure:

• collect documents (passport, application);
• pay the state fee of 800 rubles;
• submit documents to the INFS at the place of registration (in person, by mail or using the electronic resource on the Federal Tax Service website);
• make advance payments of 6% of the rent amount every quarter.

If all documents are filled out correctly and provided in full, then after 3 days you will receive a registration certificate and an entry sheet in the State Register.

• for the 1st quarter of 2019 – until 04/25/2019.
• for the 2nd quarter of 2019 - until July 25, 2019
• for the 3rd quarter of 2019 - until 10/25/2019
• for 2019 - until March 30, 2019

It is important to know that in addition to tax, you, as an individual entrepreneur, need to pay contributions to extra-budgetary funds. If you rent out housing yourself and do not have registered employees, then in 2019 you will have to pay a fixed amount of 29,354 rubles. All contributions to the funds for 2019 are transferred until December 31, 2019. The amount of contributions reduces the tax amount at a rate of 6%. And if contributions are paid quarterly, then they will reduce the tax within a year. And if once a year, then the reduction will occur at the time when their actual payment is due. The deduction procedure is simple:

• You pay your dues quarterly;
• at the end of the year, you submit a declaration in which you indicate payments to extra-budgetary funds;
• calculate tax at a rate of 6%;
• subtract the amount of transferred insurance premiums from the tax amount;
• the difference is payable by the due date of the advance payment.

Taking into account the additional costs and registration, this method looks unattractive for the landlord. In order to understand whether there are real savings here compared to paying personal income tax, let’s consider an example with the conditions described above.

Example 2

Resident of Tula Sergeev S.L. I registered an individual entrepreneur on the simplified tax system and rent out my own apartment. According to the agreement, employers pay Sergeev 7,320 rubles. per month. For 2018 Sergeev:

• received an income of 87,840 rubles. (7.320 * 12 months);
• transferred insurance premiums of 26,545 rubles. (this amount was in 2018, respectively, for each quarter - 6,636);
• calculated the tax according to the simplified tax system, which must be paid quarterly (87.840 * 6% / 4 = 1.318).

Since the amount of insurance premiums that Sergeev transfers every quarter (6.636) is more than the simplified tax system fee of 6% (1.318), then there is no need to pay tax - the deduction covers it in full.

Let's compare the results obtained with an example of calculating personal income tax: under the same conditions, the total expenses of the landlord-individual entrepreneur amounted to 26,545 rubles, the owner for personal income tax - only 11,419.

Landlord on patent

Another way to legally rent out housing is to apply for a patent. Its essence is that when purchasing a patent, you pay the fee “in advance” based on the average possible annual income that you can potentially receive at the end of the year. This indicator is fixed by law. Its size is determined by regional authorities. You have the opportunity to buy a patent for a certain type of activity (in this case, rental housing) for a period of 6 or 12 months.

You can buy a patent only after registering an individual entrepreneur. Having in hand a certificate of registration of an individual entrepreneur and an application for the use of the PSN (patent tax system), go to the tax office at the place of registration. The patent will be issued to you within 5 days, its validity begins from the moment of issue.

The PSN, like the simplified tax system, is beneficial for owners who rent out not one, but several expensive apartments. That is, they have high incomes. This is because the tax base (potential income) tends to be above average. And although the tax law limited the base to 1,000,000 rubles, regional legislators have the right to increase it up to 10 times for individual landlords. For example, owning a home up to 75 sq. m in Moscow, you will have to pay 36,000 rubles.

Responsibility for non-payment of tax

Above, we described the procedure for officially registering a lease and analyzed how it is more profitable to pay income tax. But few owners resort to such transparent relationships with the state. Many owners rent out an apartment without paying taxes, without declaring the income received. What then awaits the violators? We'll talk about this below.

How to identify the violator

If you rent out an apartment and do not pay taxes, then information about such activities may be available to the authorities. Neighbors often talk about this. If there is noise, guests disturbing the residents of the house, or disorder on the floor, you can be sure:

• one of the conscientious neighbors will definitely inform the district police officer about this;
• Also, similar information can be obtained from public law enforcement organizations, if they exist in your city.

As soon as the district police officer receives information about possible illegal activity, he conducts a walk-through, interviews residents, and obtains information about residents and possible illegal tenants. Then you, as the owner, are interviewed, including checking personal documents and confirmation of ownership of the property. All information is documented in the form of statements and written explanations. This data is sufficient to confirm the fact of illegal rental. Then the information is transferred to the Federal Tax Service.

Another way to identify the violator is the Rosreestr database, where lease agreements for a period of 1 year or longer are registered. But, as we said earlier, the owner can sign a contract for a period of 11 months. In addition, the laws do not contain a direct requirement to register contracts for up to 12 months.

Arbitrage practice

If the Federal Tax Service has sufficient documentary grounds and evidence of a violation, then the case is sent to court. Although the tax office can, through its own inspection, hold you accountable (charge taxes, fines and penalties).

If the tax authority does not have a lease agreement

• When there are no supporting documents in the form of an agreement, it will be very problematic to prove the fact of the lease.
• The basis for the accusation in this case is the testimony of neighbors who state that people living in the apartment are not registered there, and the guests often change.
• But “resourceful” owners prove in court that relatives live in the apartment for free, because this is not prohibited by law.
• In this case, the tenant should understand that the court may require confirmation of relationship. In addition, by deceiving the court, the owner may be punished for giving false testimony.
• However, judicial practice shows that it is almost impossible to prove the fact of a lease based on “denunciations” from neighbors alone.

If the Federal Tax Service has a lease agreement

The situation is more complicated if the Federal Tax Service has received the executed lease agreement. But even here, options are possible, because you still need to prove the fact of transfer of money. This can be done if payments are made through bank payments, and if you receive money “in hand” without receipts, then there is no confirmation of payment in this case. One of the tricks of violating landlords is to draw up an agreement for free use, that is, in principle, there can be no payment under this agreement. In fact, the owner receives money from employers in cash without documents.

Fines, penalties, criminal liability

Although it is difficult to prove the fact of receiving income from the illegal rental of housing, such cases still occur. What awaits the violator?

The main government complaint is that the owner, having received income, did not give his “share” to the budget in the form of taxes. Therefore, the first thing that the Federal Tax Service Inspectorate, having received confirmation of the lease from the Ministry of Internal Affairs, will require is to pay off the debt on budget fees. To this amount you need to add:

• Penalty for non-payment of tax. The amount is 20% of the arrears. If the court proves that evasion of payment was committed intentionally (and in most cases this is exactly what happens), then the fine increases to 40%;
• The fine for failure to submit a declaration is 5% for each month of delay. The declaration must be submitted by April 30. If on 09/01/2019 you paid off your tax debt for 2018 in the amount of 3,420 rubles, then you need to pay an additional fine of 684 rubles. (3.420 * 5% * 4 months). In this case, the amount of the fine is limited to 30% of the debt amount, but cannot be less than 1000 rubles.
• Penalty for late tax payment. The indicator is calculated for each day from the last day of payment (established by the Tax Code) until the day of actual payment. The penalty is determined by the formula: P = 7.75% / 300, where 7.75 is the Central Bank refinancing rate. That is, when paying off a tax debt in the amount of 3,420 rubles, you will need to pay an additional 0.9 rubles. (3.420 * 7.75% / 300) for each day of delay.

For those who have violated the law not for the first time, the responsibility becomes stricter: the violator will have to pay a fine twice as much as required.

Criminal liability

• If the total collection debt turns out to be more than 900,000 rubles, then you will need to pay tax. The court will also impose a fine of 100,000 - 300,000 rubles, or the owner may be imprisoned for up to 1 year.
• A violator whose debt to the budget is more than 4 million rubles can also go to prison. If the fact of guilt is proven, the lessor can be imprisoned for up to 3 years.
• In addition, if several apartments are rented and the owner has not registered an individual entrepreneur, then he may be recognized as an illegal entrepreneur. The annual income of such an owner must be more than 2 million. The punishment is also severe - a fine (from 100 thousand to 300 thousand rubles) or imprisonment for up to 2 years.

As you can see, it can sometimes be very difficult to prove the owner’s guilt. But if the court nevertheless proves that you rented out the apartment without taxes, then liability for violations can be very serious.

Example 3

In 2017 Savelyev K.D. rented out his own room unofficially. Savelyev did not file a declaration by 04/30/2018 and did not pay tax in the amount of 4,630 by 07/15/2018. The court proved Savelyev’s offense, he paid the fee on 09/30/2018. In addition, Savelyev was charged a fine for non-payment, a penalty for late payment, and a fine for failure to submit a declaration. Let's calculate each amount:

• The penalty for non-payment is 926 (4.630 * 20%).
• The penalty for each day of delay is 1.62 (4.630 * 10.5% / 300). For 77 days (from 07/16/2018 to 09/30/2018) Savelyev will pay 124 (77 * 1.62).
• The fine for failure to submit a declaration is 231 for each month (4.630 * 5%). Savelyev was 5 months overdue, so he will pay 1.155 (231 * 5 months).

Thus, Savelyev will pay 6.835 (4.630 + 926 + 124 + 1.155) to the budget.

Question answer

Question:
If the landlord has registered an individual entrepreneur using the simplified tax system, should he keep records of expenses?

Answer: No, if he applies a rate of 6% of income. If an individual entrepreneur operates at a rate of 15%, then records must be kept. This is due to the fact that the calculation of the tax base is determined using the formula “income minus expenses”. Practice shows that most landlords register individual entrepreneurs at a rate of 6%. This is beneficial since the owner does not have employees and does not incur significant costs for services and materials that must be taken into account.

Question:
The landlord has rental income in excess of 300,000 per year. Does the tax rate change for him?

Answer: No, the rate remains the same. But if at the end of the year you managed to receive an income of more than 300,000, then you additionally need to transfer 1% of the income to the Pension Fund.

If you have questions about the topic of the article, please do not hesitate to ask them in the comments. We will definitely answer all your questions within a few days. However, carefully read all the questions and answers to the article; if there is a detailed answer to such a question, then your question will not be published.

111 comments

Renting or renting out housing is considered a business activity that entails receiving benefits. This means that the lessor, as an entrepreneur or individual, is obliged to pay tax on the profit received.

The owner of the property, who intends to rent out the space, and the tenant (tenant) are obliged legitimize the transaction by signing an agreement. If the premises will be used by an individual, a lease agreement is drawn up. When renting housing, a company signs a lease agreement.

The employment contract does not require registration with government agencies, as opposed to a lease agreement. The document specifies all the terms of the transaction: terms, responsibilities, payment. Taxes must subsequently be paid from the payments received.

There are several options for paying tax on rental income. A person who is not an entrepreneur, but rents out housing and receives profit from it, is obliged to file it with the tax service once a year declaration in form 3-NDFL. It displays the amount of all payments received to the homeowner over the past year. After this it is paid tax at a rate of 13% of total income. In this case, the owner of the property is responsible for paying taxes.

The homeowner has a responsibility declare your income by April 30, and pay tax on income received by July 15.

Tax return 3-NDFL will be submitted by you at your place of residence (registration). It must be accompanied by a lease agreement and documents confirming income (receipts, as a rule).

The tax return can be submitted in person, through a representative, or sent by mail.

When renting out an apartment, you need to take into account two important nuances.

The income received from renting out an apartment also includes the cost of expenses for utilities and operating services, the amount of which does not depend on their actual consumption, that is, minus electricity, water, gas, telephone calls (subscription fee is included).

It is possible that the lease agreement may end before the end of the year, or you will rent out the apartment for several months, in which case the declaration must be submitted no later than five days from the date of termination of the lease agreement.

In such a situation, the tax on income received from the rental of residential premises is paid no later than 15 days from the date of filing the declaration (clause 3 of Article 229 of the Tax Code of the Russian Federation).

If the housing will be rented by an organization or company, then the amount of tax must be taken into account in the total cost of rent, since according to the law the tenant is responsible for paying the tax. Therefore, the payment of 13% of the tax fee falls on the shoulders of the legal entity.

If a homeowner is going to enter into a long-term deal to rent out space, he can register as an entrepreneur and choose other methods of paying taxes. This could be a simplified tax system with a 6 percent rate of income excluding expenses. The tax rate for this type of registration remains unchanged.

Before deciding on a tax payment method, you need to evaluate their similarities, disadvantages and advantages.

Both an individual and an entrepreneur are required to draw up an agreement when renting (accepting) housing. Each of them has an obligation to pay taxes and liability for failure to comply with laws in this area. In both cases, reporting must be submitted to the tax authorities, the only difference is in the types of declaration. For an individual to pay tax, an assigned TIN is sufficient, while an entrepreneur must register and register with the tax office at his place of residence.

There are also differences in the documents provided when drawing up a rental agreement. An individual only needs to present a passport and documents confirming ownership of housing. The entrepreneur should attach certificates from state registration authorities and the tax service to these documents.

An individual, unlike an entrepreneur, does not have the right to choose the method of taxation and is not obliged to pay mandatory insurance contributions.

Having studied all the pros and cons of methods of paying taxes when renting out housing (renting), you can choose an acceptable and convenient method.