The content of the article
- What are tax incentives for individuals
- Types of benefits
- Regulatory framework
- Who is eligible for tax credits in 2018?
- Veterans of military operations and the Second World War, heroes of Russia and the Soviet Union
- Disabled people
- Senior citizens
- Parents, guardians and adoptive children
- Large families
- Personal property tax benefits
- Who is exempt from payment
- Objects of preferential taxation
- Land tax
- Preferential taxation of vehicles
- Which vehicles are not taxed
- Regional and local preferences
- Income tax incentives for individuals
- Tax deduction for children
- Training costs
- Refund for treatment
- Property when buying an apartment
- Mortgage Interest Tax
- When selling an apartment
- How to apply for tax breaks in 2018
- List of required documents
The budgets of various countries, including Russia, are replenished by numerous taxes and fees. Individuals also deduct part of the money from their income to the treasury of all levels. Along with this, certain categories of citizens may have prerogatives in taxation – to pay partially or completely exempt from contributions. Obtaining such preferences is possible only if certain conditions and grounds exist..
What are tax incentives for individuals
Under the law, tax preferences can be divided into several groups:
- for individuals;
- for organizations and enterprises;
- social character;
- economic importance;
- aimed at stimulating exports.
The object of taxation of individuals is considered to be income, which are wages, dividends, gifts, etc., and property, both movable and immovable. The following are recognized as taxpayers having the right to receive tax benefits for individuals in 2018:
- Citizens of the Russian Federation, regardless of age, who are in the country for at least 183 days for 12 months.
- Non-residents – foreigners who conduct their activities in Russia.
Taxpayers may be exempted from the collection of certain tax fees in full or not fully paid. In order to receive legally stipulated tax benefits for individuals in 2018, documentary evidence is needed that a person really belongs to the category that has certain preferences.
Types of benefits
In Russia, all the benefits related to the taxation of individuals can be divided into three main levels in order of priority:
- Federal. They are fixed in the Tax Code and have legal force in the entire state and cannot be canceled at regional or local levels..
- Regional They have their effect on the territory of a certain region and can be established at the federal level and by regional authorities.
- Local. They are established by the leadership of the municipalities and operate on the territory of only that municipality where the property of the taxpayer is located.
All citizens of the country pay personal income tax to the state in the amount of 13%. Under the law, certain people, due to their social or professional status, are able to receive a tax deduction. This is the amount of money with which personal income tax is not taken. There are four main deductions, each of which is regulated by a separate article of the Tax Code.
The right to a standard deduction is available to certain categories of citizens, regardless of the amount of income they receive:
- Parents (guardians) raising native or adopted children. For the first and second children, the tax-free amount is 1,400 p. For the third and subsequent, it increases to 3000 p. If the child is disabled, then the parents have the right to receive a deduction in the amount of 12,000 rubles, and adoptive parents and guardians – 6,000 rubles.
- Participants and liquidators of industrial accidents, people with disabilities and participants in World War II, military invalids receive a tax deduction in the amount of 3000 r.
- Persons with the title of Hero, a disabled child and people with disabilities of groups 1, 2 are entitled to apply for a tax deduction in the amount of 500 r.
The social tax exemption for individuals in 2018 is valid for a certain amount that was spent by a person in certain life circumstances. This should not be associated with professional activities, therefore, this includes the costs of:
- retirement savings.
In 2018, the property deduction applies to all individuals who:
- profit from the sale of real estate;
- spent their own or borrowed money in the form of a bank loan to improve their living conditions.
Professional deductions have a fixed amount or depend on the profit made. Receive the right to:
- entrepreneurs working under civil law contracts;
- private lawyers;
- creative workers receiving copyright royalties.
In 2018, tax incentives for individuals are regulated by a whole list of regulatory and legal acts. They are published at different levels, from federal to local, and can cover entire groups of people, as well as people of chosen professions or social status. The main document that is addressed to all, without exception, is the Tax Code of the Russian Federation. In addition, other laws should be mentioned:
- Law No. 436-ФЗ dated 12.28.2017 (governs the amnesty for individuals on arrears to tax authorities).
- Law No. 3061-1 of 06/18/1992 (preference to the liquidators of the consequences of the explosion at the Chernobyl nuclear power plant).
- Law No. 175-ФЗ of 11/26/1998 (issues related to the liquidation of an accident at the Mayak production association).
- Law No. 2-FZ of January 10, 2002 (social guarantees for victims of nuclear tests in Semipalatinsk).
Who is eligible for tax credits in 2018?
Preferences in the form of canceling the tax or paying part of it depend on the social status or profession of a citizen:
- Persons who are awarded the title of Hero of the Soviet Union and / or Russia.
- Disabled since childhood.
- Disabled people 1 and 2 groups.
- Large families with three or more children.
- Citizens affected by nuclear and other technological disasters.
- Participants in wars and military operations that took place on the territory of the USSR and the Russian Federation.
- Knights of the Order of Glory.
- Military personnel with a length of service of more than 20 years and laid off in reserve due to reaching an age limit due to illness or due to organizational and staff events.
- Persons who participated in nuclear weapons tests.
- Senior citizens.
- Family members of military personnel (parents, children, spouses) due to loss of breadwinner.
- Participants in hostilities in the territory of foreign states, when sent to these zones for military service.
- Creative workers regarding studios, workshops and other facilities intended for work.
- Individuals in relation to their existing buildings with an area of up to 50 square meters. m intended for subsidiary plots, gardening, etc..
Veterans of military operations and the Second World War, heroes of Russia and the Soviet Union
For war veterans (Chechnya, Afghanistan, etc.), citizens who were awarded the title of Hero, a number of tax preferences are provided. The main ones are:
- A person who owns the same type of property does not pay property tax (one apartment, house, garage, country house).
- Providing a deduction if a person continues to work. For military personnel and war veterans it is 3,000 p., And for the Heroes of the USSR and the Russian Federation – 500 p..
- Land tax relief. Citizens are granted a benefit of 10,000 r. – the amount with which a tax charge is not levied. If according to the cadastral valuation the value of the plot is higher, the fee is charged only for an amount exceeding this value.
- Duty on vehicles. At the federal level, there are no legal acts that would exempt from paying duties. In some constituent entities of the Federation, local authorities adopted resolutions that make it possible not to pay the transport tax, but each region has its own limitations regarding the technical characteristics of the machine.
People who have received disabilities due to work, due to health reasons and for other reasons, and people with disabilities from childhood also have a number of tax benefits:
- Property. Citizens with disabilities are exempt from paying property tax, but only on condition that it is drawn up on them. This applies to apartments, houses, garages, rooms, villas.
- Land. They relate only to people with disabilities assigned 1 or 2 disability groups, and for the latter category disability must be established before 2003. The essence of the land tax benefit for individuals who are disabled is that they are exempted from the contribution if the cadastral value does not exceed 10 thousand p. Otherwise, the duty is only surplus.
- Transport. Disabled citizens of groups 1 and 2 can be exempted from the transport tax in whole or in part, but they receive such preferences only at the regional level, so this issue lies with the local authorities.
- Income. In 2018, individuals who have received disabilities and continue to work have the right to receive a deduction of 500 rubles. If the disability was obtained as a result of hostilities, man-made disasters or a person is disabled since childhood, the amount increases to 3,000.
People on a well-deserved vacation are especially vulnerable, since pension payments are small with few exceptions. The Tax Code clearly indicates what taxes pensioners were exempted in 2018. At the federal level, only a few areas are indicated according to which elderly citizens can count on benefits:
- Full exemption from payment of the fee to the Federal Tax Service if the cadastral value of the allotment does not exceed 10 thousand rubles.
- A deduction of 500 p. on all income from which it is necessary to pay personal income tax. If a pensioner is an invalid or a veteran of hostilities, a liquidator of technological disasters – the amount is 3,000 r.
- Real estate tax exemption if a pensioner owns only one equivalent property.
At the regional level, in addition to people who have reached retirement age, additional tax breaks may exist. One vivid example is the duty on vehicles, the value of which depends not only on the subject in which the citizen is registered, but also on the type of vehicle, its power and other characteristics.
Parents, guardians and adoptive children
Citizens who raise children and are their parents, guardians or adoptive parents have some concessions. They relate to the tax deduction:
- For the first and second children, the amount of HB is 1400 p., For 3 and subsequent children – 3000 p..
- For a disabled child – 12 000 r.
- If one or more disabled children were adopted or are under guardianship, the amount is reduced to 6,000 per child.
- With paid treatment of a minor, guardians, parents or adoptive parents have the right to return 13% of the amount paid.
- It is possible to return 13% of the amount spent on full-time education of the child, provided that these funds were not used from maternity capital.
- Double deduction for personal income tax is granted to the sole parent, if the second parent is not indicated in the birth certificate of the child, or he died or disappeared.
In 2018, tax benefits for individuals apply to families in which three or more minors are brought up. The most common option, which applies to everyone without exception, is a tax deduction. It depends on the number of children and amounts to:
- the first child – 1,400 p.;
- the second – 1,400 p .;
- the third – 3,000 p.;
- subsequent – 3 000 r .;
- adopted or own child with a disability – 12 000 p .;
- for a ward or adopted child of a disabled person – 6 000 r.
At the regional level, benefits (the amount of preferences is individual for each entity) can apply to taxes such as:
- transport, etc..
Personal property tax benefits
The resolution of the issue of granting privileges to certain categories of citizens applies exclusively to local authorities. Since 2015, the calculation of the contribution amount in some constituent entities of the Russian Federation is based on the cadastral value of the object, and it is planned to switch to such a methodology everywhere by 2018. According to this system, a certain tax deduction is provided depending on the area of the premises. The exceptions are Moscow, St. Petersburg and Sevastopol, where local authorities have the right to increase the size of HB. For all other regions, the calculation is as follows:
- rooms – based on the cost of 10 square meters. m;
- apartments – 20 square meters m .;
- houses – 50 square meters. m.
Who is exempt from payment
According to the Tax Code of the Russian Federation, certain categories of citizens have the right not to pay property tax. These include:
- disabled people from childhood and disabled citizens with 1 or 2 degree of disability;
- Heroes of the USSR and Russia;
- participants and war veterans;
- persons affected by radiation;
- the military, who have served in the bodies of the Ministry of Defense for more than 20 years;
- employees of the correctional system;
- parents, widows and widowers of persons liable for military service, who died during the performance of official duties;
- people who have buildings that are used for farming (cottages), if their area does not exceed 50 square meters. m .;
- citizens engaged in creative work, if the premises are necessary for work.
Objects of preferential taxation
Property tax benefits for individuals in 2018 apply, provided that only one property of the same type is owned. Another important condition is that it must be owned by a person who has the right to preference. The property itself is not used for business activities. The objects of preferential taxation include:
- room in the living room;
- detached house;
- buildings / premises, the use of which is intended for conducting creative activities;
- outbuildings, country houses and a similar type of structure, if their area does not exceed 50 square meters. m.
Issues related to taxation of land are the responsibility of federal and local authorities. Residents of small peoples who lead a traditional way of life on their lands are completely exempt from paying contributions to the treasury. Farm managers are exempt from paying contributions for the first 5 years from the date of registration of agricultural production.
For other citizens, a tax-free amount equal to 10 thousand rubles is established. This means that if the cadastral value of the plot is less than this amount, there is no need to make payments to the Federal Tax Service. Preferential categories of the population include:
- war veterans;
- liquidators and persons affected by technological disasters;
- disabled people of groups 1 and 2, if the disability was put before 2004;
- disabled since childhood;
- Heroes of Russia and the USSR.
Preferential taxation of vehicles
Some vehicle owners may not pay transport tax. Such a preference does not apply in all regions of Russia – local authorities decide for themselves who pays contributions and who is exempted from them. This is due to a shortage of funds in local budgets and cases where expensive vehicles are increasingly registered with pensioners in order to avoid taxation.
Which vehicles are not taxed
Vehicles of the following types are not subject to taxation regardless of the place of registration:
- Cars registered per person who is disabled, but provided that their power does not exceed 100 horsepower.
- Special machinery.
- Rowing boats.
- Vehicles listed as hijacked and authorized bodies confirm this.
- Motor boats, if their power is less than 5 horsepower.
- Sea and river vessels.
Regional and local preferences
Norms determining the amount of taxation are established at the federal and local levels. Federal preferences depend on the type of vehicle and its capacity. At the local level, the value of the transport tax exemption for individuals in 2018 depends on the category to which the citizen belongs. The list depends directly on each specific region, but, as a rule, the following are referred to beneficiaries:
- large families;
- low-income citizens;
- juvenile prisoners of concentration camps and other places of forced detention;
- disabled people, etc..
Income tax incentives for individuals
Citizens who are officially employed and whose personal income tax is deducted at a rate of 13% are entitled to a deduction if the circumstances specified by law correspond to their social status or position. There are 4 groups of deductions:
Individuals who work informally and do not pay personal income tax cannot claim this privilege. Pensioners who, having gone on a well-deserved rest, have stopped working, are entitled to receive only a property deduction with the possibility of transferring the balance on it for three years preceding the date of application. If they continue to work, then they have the right to apply for all types of deductions.
Tax deduction for children
In 2018, tax benefits for individuals are granted to citizens raising children under 18 years of age. This applies to the tax deduction (HB is not provided for child support). If the child receives full-time education, the age for providing relief is increased to 24 years. Not only blood parents, but also adoptive parents, trustees can apply for the privilege, provided that the child is in their full custody. The tax-free amount depends on several circumstances and is equal to
- 1 400 p. – for the first and second child;
- 3 000 p. – for the third and subsequent children;
- 12 000 p. – for a native or adopted child with a disability;
- 6 000 p. – for a disabled child, if he is in care.
With paid tuition, citizens are given preference in the form of a refund of part of the funds paid. Documents for return are submitted in the same year when payment was made and training at an educational institution was completed. If the study is long-term in nature, and payment is made annually, documents for return are submitted after each cash contribution. Only officially employed residents of the Russian Federation, who pay personal income tax at the rate of 13%, can apply for a refund. An additional requirement is that tuition fees must be paid for:
Refund for treatment
One of the types of social deduction is the refund of money spent on treatment, surgery or the purchase of medicines. The maximum that can be expected in 2018 is 15,600 rubles. To receive part of the spent funds, it is necessary that:
- The provided medical services or medicines were listed in the list approved in accordance with Resolution No. 201 of March 19, 2001.
- Payment was made for yourself personally or close relatives (children, parents, spouses).
- Treatment took place in a licensed medical facility.
Property when buying an apartment
Benefits for the purchase of housing (including shared) are provided if the citizen is officially employed and personal income deductions are derived from his earnings. You are entitled to submit income declarations to the State Tax Inspectorate only for the current or a maximum of three previous years. You can get a deduction for:
- Building your own home.
- Buying a house, apartment, room.
- Repair work, provided that all receipts are saved.
To calculate the amount of money to be refunded, the date of acquisition of your own square meters is considered an important condition. If the housing was purchased or built before 01.01.2014, then the deduction is provided once in the amount of 13% of the cost of housing. After this date, the deduction is set at 260,000 p. This means that every year a person can return the personal income tax paid by him until he has exhausted the amount due.
Mortgage Interest Tax
Tax privileges for individuals in 2018 are provided if the housing issue was resolved with borrowed funds. You can get a deduction on interest paid on a mortgage loan if the money was used to improve housing conditions. The maximum amount is calculated based on 3 million p. This means that the maximum you can count on is 390 thousand (3,000,000 x 13%). The amount is returned one-time or fractionally for several years, but not more than the money that was transferred to the Federal Tax Service.
Residents of the Russian Federation, who:
- Officially arranged.
- Pay monthly personal income tax in the amount of 13%.
When selling an apartment
It is permitted to receive a deduction for the sale of an apartment from each property sold, but not more than 1 time per year. Only those persons who work and pay personal income tax in the amount of 13% can take advantage of the prerogative. The amount of return depends on the amount of time during which the apartment was owned by a person. The countdown is from the moment of registration of ownership – receipt of a certificate of registration of the right to housing:
- If the property has been owned for less than 3 years, the maximum that its owner can claim for sale is a deduction from 1 million p. Of all the remaining amount, you will have to pay personal income tax.
- If a person has owned property for more than 3 years and sold it, you don’t have to pay contributions to the Federal Tax Service.
How to apply for tax breaks in 2018
To use or not the right to benefits, each citizen decides independently. This means that the recalculation and return of funds paid is carried out on a declarative basis, and not on a mandatory basis. You can get money:
- At the main place of work. The deduction will be applied monthly for payroll.
- At the inspection when filing an annual declaration (form 3-NDFL).
List of required documents
In 2018, you can get tax benefits for individuals after providing certain documents. The certificate in the form of 2-NDFL is submitted by the employer to the tax independently until April 1. Since 2018, legislation has been adjusted according to which it is not necessary to provide a package of securities regarding ownership. A citizen must provide only:
- A written statement with a personal signature, which will contain the grounds for exemption from payment or reduction of the contribution.
- Passport or birth certificate (if the issue of reducing the tax burden concerns minors).
- A document proving belonging to a certain group of the population (certificate of a pensioner, veteran, disabled person, etc.).