Taxation for pensioners selling on the street. What taxes are pensioners exempted from
In this article we will find out what taxes a working pensioner pays. Consider what taxes do not pay. We will deal with tax benefits for working pensioners in 2018.
The percentage of people who continue to work after retirement is growing. Some attribute this to the fact that pensioners prefer to stay longer “in the ranks”, while others - that pensioners want to have a higher income, since pension in Russia does not provide the majority of people with adequate financial support. In this article we will cover the topic of paying taxes to pensioners who work after retirement.
General Tax Rules
Do people continue to pay taxes after they retire? Of course they continue. However, working pensioners are entitled to the following benefits:
- do not pay property tax (in respect of only one non-commercial property, for example, an apartment);
- receive deductions for personal income tax;
- enjoy benefits for pensioners established at the regional and local levels;
- do not pay income tax that is accrued from a pension, as well as from material assistance and compensation payments;
- do not pay land tax (in Leningrad, Samarka, Novosibirsk and some other regions of Russia);
- do not pay transport tax (in the Leningrad, Perm, Sverdlovsk, Samara regions and Krasnoyarsk Territory).
Pensioners with federal benefits
Working retirees who are federal beneficiaries pay taxes differently. Who belongs to this category? This is first of all:
- wWII veterans;
- disabled people;
- former military;
- people who have been affected by radiation.
Benefits for this category of people vary by region. Therefore, if you fall under one of the subcategories of federal beneficiaries, we advise you to contact the Federal Tax Service in your city in order to learn more about the list of benefits. More often than not, privileges for federal beneficiaries are exemption from the payment of land, transport and property taxes.
State and non-state pension
As you know, a pension can be both state and non-state. What is the difference in paying taxes at each form? The main difference is that the state pension is completely exempt from taxation. This applies to both the cumulative and its main part. Moreover, income tax will not be levied from it even if its funded part was in a non-state pension fund.
Unfortunately, a non-state pension is subject to income tax and a late payment of a fine would result in fines or penalties.
How pensioners can pay taxes
The methods of paying contributions for pensioners are no different from the methods of paying contributions for ordinary individuals. So, consider the most common of them.
Payment method | Features |
Cash through the bank | In order to pay a fee by this method, a receipt is required. It arrives to the taxpayer by mail, or if the pensioner uses the taxpayer’s personal account, then the receipt will be available for download and print closer to the end of the calendar year. |
Through a barcode in a credit institution | For this, the pensioner will also need a receipt received either by post from the Federal Tax Service or downloaded from the personal account of the taxpayer. Just bring the receipt to the barcode reader and pay the fee with a credit card or cash. |
Through the personal account of the taxpayer | To do this, you must wait for a notification in your account, and then click on the link "Pay tax". Payment will be made with your credit card. |
Using a mobile phone | When choosing a bank when paying tax from a taxpayer’s personal account, select the Tauride method. Before you open the payment payment menu using the balance of your mobile phone. |
Through the Sberbank Online service | To pay a fee using this service, go to the “Payments and Transfers” tab and select the IFTS. Then indicate the necessary details and make a payment. |
Third Party Services | In some cities, it is possible to pay fees using services such as City or Pay Taxes. The "City" system is available only when visiting some branches of credit organizations, and "Pay taxes" is a service that is available only online. |
Attention: If you pay tax using a mobile balance, then your balance should be positive and there should be enough funds on it to pay. Otherwise, the operation will not be completed properly.
Responsibility for non-payment of contributions
There are two types of liability for non-payment:
- Tax liability. A fine or fine that is payable by a taxpayer in order to compensate for the damage caused by non-payment of a certain contribution.
- Criminal liability. It arises only when an individual has harmed not only the country's budget, but also society. Criminal liability occurs only by court order.
Attention: in 99% of cases, an individual is subject to tax rather than criminal liability.
Responsibility depending on the type of tax
Let's look at the most common contributions, namely land, transport and property, and the amount and type of fines applied to working pensioners if each of them is not paid.
Tax | Features | Fine |
Land | Payment must be made on time. Criminal liability arises only if a person intentionally concealed his income. | |
Transport | The process of paying a transport fee is one of the easiest. The fee is paid by all persons on whom the vehicles are registered. | The penalty for tax liability is up to 20% of the amount of the outstanding contribution. The fine upon confirmation by the court of criminal liability is up to 40% of the amount of the unpaid fee. |
Property | The contribution amount varies by region. | In case of untimely payment of the property contribution, the tax may charge arrears or a fine (calculated on the basis of the refinancing rate), or repay the debt at the expense of other property that the individual has. |
So, as you probably already understood, if you do not pay any tax on time, even as a pensioner, then you will face a fine, penalty, or even criminal liability.
Attention: The tax inspectorate can present all claims to you only within 3 years from the date of non-payment of contributions.
Let's try to calculate the penalty that is due to you if you did not pay the land fee on time. Suppose you didn’t manage to pay a fee and expired for 1 month. The amount of land tax paid was 9,345 rubles. The tax inspectorate decided to apply the most severe punishment to you and you escaped with a fine of only 5% of the amount of the contribution:
Amount payable \u003d 9,345 rubles. + 9 345 rub. x 5% \u003d 9,812 rubles. 25 kopecks
Tax incentives for working retirees
Old-age pensioners who have decided to continue their seniority are entitled to some benefits that can significantly reduce the tax burden on them. So, for example, they can recalculate a pension. Recalculation is carried out every year, while pension points are taken into account. As a result, the pension of a working pensioner becomes a little more every year.
Pensioners who continue to work, are entitled to all the same benefits that rely on ordinary citizens. For instance:
- drawing up a tax deduction for children under the age of 18 years, as well as for children studying in higher educational institutions;
- social deductions (if, for example, a pensioner takes part in optional insurance programs, makes deductions for the funded part of the pension, or his children go to higher education institutions);
- property deduction for a contribution on personal income (the right to property deduction arises when a person acquires or builds his first real estate property).
How to get tax benefits
It is not strange, however, when the moment of transition to retirement arrives, tax benefits intended for a pensioner do not start working on their own. In order to exercise your right to a benefit, you must contact the tax office and provide the necessary documents, as well as fill out an application.
So, if you want to receive benefits for property tax, as well as for land tax, then you should contact the tax at the location of the land or real estate. If you want to receive benefits for other types of tax, then the appeal from the Federal Tax Service at the location of the pensioner will be enough.
The deadlines for providing documents for benefits are quite strict and are constantly changing. So, for example, back in 2015, a letter of the Government was published, which stated that in order to take advantage of the intended benefits, the documents had to be submitted before November 1, 2015.
The following list of documents for obtaining benefits is approximate and in order to find out which package of documents you need, we advise you to contact the necessary tax office.
So, the necessary package of documents:
Be sure to find out exactly what documents will be required before you bring the full package to the tax office. Depending on the conditions under which you apply for a privilege, as well as on the region of your location, the documents may vary slightly.
What taxes a working pensioner pays: rating of 5 frequently asked questions
Question number 1.Will the tax property deduction return the working pensioner one amount?
Answer: Yes, it will return if the amount of up to 260 thousand rubles has accumulated for the last three years for deduction.
Question number 2. Why do they take the full amount of contributions to the Pension Fund from me, a working pensioner and a disabled person? Why aren’t there any benefits?
Answer: Because there is income, that’s why you must transfer the full amount of insurance premiums to the FIU.
Question number 3. I am a pensioner, I live only on retirement, I do not work. Can I get a tax deduction?
Answer: No, only pensioners who deduct income tax can receive a tax deduction.
Question number 4. I am a pensioner. I work as a janitor. I own an apartment and rent a room. Do I need to pay income tax or not?
Answer: Yes, you must pay income tax on income from renting a room, regardless of whether you are a senior citizen or not, and whether you work or not.
Question number 5. Do non-working pensioners pay tax on a privatized apartment.
Answer: No, they do not pay, regardless of whether the pensioner works or not.
The number of people of retirement age is quite large. This category makes up a significant part of the country's population, and elderly people are considered socially vulnerable citizens. Therefore, many are interested in - should pensioners pay taxes? In fact, Russian law provides for a number of benefits for older people.
Who are pensioners
Not everyone knows whether retirees need to pay taxes. The retired person is a Russian citizen and he must pay taxes. Citizens in this category are required to pay almost the same taxes as other people. But most of them worked for many years for the good of the country and earned some benefits. In our country, pensioners include such citizens:
- People who have reached the age of old-age pension. For women it is 55 years old, for men - 60 years old.
- Persons who were in the public service and have a length of service.
- People recognized as disabled as a result of a medical and social examination.
- Citizens who have lost their livelihood after the death of a breadwinner.
- There are also persons who have the status of “federal beneficiary”. Among them are people who have state awards and titles. In addition, these include veterans and invalids of hostilities, some other categories. Their taxation is different from the rest.
What taxes are pensioners exempted from paying
It should be understood from what taxes pensioners are exempted. According to the current law, all people receiving a state pension do not have to pay income tax on it. In addition, this tax is not taken from compensations that the state pays to citizens belonging to this category.
Some retirees have additional tax benefits.
For example, they may not pay property tax for one of the types of real estate that they are listed.
The following persons are entitled to such relief:
- People whose age has reached retirement.
- Disabled people of I and II groups or disabled children.
- Retired soldiers or members of their families who have lost their breadwinner.
- People on the list of federal beneficiaries.
This is the whole list of benefits that pensioners are entitled to. They are required to pay the remaining taxes in full, like all other people. There is an exception - if the regional authorities introduced local tax benefits.
In addition, pensioners are often entitled to rely on other preferences in the form of:
- Payment of transportation costs. This relief was granted to the inhabitants of the northern regions, who went on vacation to the more southern regions.
- Overtime Payments. This relief is granted to people of retirement age who continue to work.
It should be understood that receiving benefits is declarative nature. In other words, before you get the benefit, you need to write a statement. Tax officers themselves will not come.
Property tax for senior citizens
Relatively recently, retirees were completely exempted from the obligation to pay property tax. But the law has been changed and today the benefit applies only to one type of property owned by a citizen belonging to this category. Payments are not made for the following types of property:
- Individual house.
- Apartment.
- Garage.
- Construction in progress.
- Outbuildings, provided that their total area is not more than 50 square meters. m., some other objects.
If a person owns other real estate, he will be required to pay property tax for him. The value of the latter is set in accordance with the established percentage of the value of the object.
That is, property tax payments for pensioners will be reset to zero for each type of property (in a single copy).
For example, if an elderly person owns a city apartment, a small summer house and a garage with his car, he will not have to pay property tax.
If the city apartments in his property are not one, but two, then the second will have to pay in full. After all, it turns out duplication of the type of property. For this apartment you will have to pay the amount in accordance with its cadastral value.
A tax benefit is granted to all categories of people receiving a pension. To use it, you must come to the territorial tax inspectorate and show its employees a pension certificate, which will become the basis for receiving tax relief.
If a person has already performed a similar procedure before 2015 and enjoyed benefits, he does not need to come to the tax service again.
If a person about to retire has more than one object of the same type, he should write to the tax office a statement about which of the objects he prefers to exempt from tax. If the future pensioner does not do this within the prescribed period, the inspection staff will decide for themselves.
Transport tax for seniors
This type of tax is considered local, its size is determined by the regional authorities. The amount of tax is determined by the capacity and type of transport. It must be paid, it must be done by a person who is considered the official owner of this vehicle. The following vehicles are subject to taxation:
- Motor vehicles;
- Motorcycles;
- Scooters, etc.
In 2017 and 2018, the transport tax has the right not to pay several categories of pensioners, among them:
- People with disabilities who use specially equipped vehicles to move.
- Citizens to whom transport is issued under the social protection program by social security agencies.
Transport tax in our country, regardless of the region of residence, is not paid by disabled people of groups I and II, as well as WWII veterans and heroes of the Russian Federation.
The specific amount of vehicle tax is determined by the amount of horsepower of the vehicle’s motor. That is, whether an elderly person will need to pay transport tax or not, is entirely in the hands of the authorities in the region. Employees of the tax inspectorate can advise on this issue. If the benefit is granted, you will need to write a statement.
Land tax for seniors
Pay land tax is due to people who have land allotments in the property or unlimited use. If the land has been transferred for free use or is on lease, no fee is required.
Land tax also belongs to the regional group. In accordance with the tax code, a list of beneficiaries exempted from such payments is provided. Wherein
citizens who are considered to be pensioners upon reaching their old age have no benefits and are required to pay land tax.
But local authorities have the right to establish their own rules in a particular region. They can adopt relevant regulations regarding benefits for retirees. Find out if older people will have to pay land tax in a particular region, should be in the nearest tax office. If payments are reset, you need to write a statement with a pension certificate.
Income tax
Not all older people retire, many of them continue to work. The last category of citizens, in addition to the above taxes, must pay income tax on the following amounts.
The amendments to the Tax Code, adopted in 2014, caused misunderstanding and outrage among many pensioners. The essence of the main question was whether citizens of retirement age now need to pay tax on their property, because before the amendments were introduced, these persons were completely exempt from taxation, and the number of property objects and their characteristics did not interest anyone.
The answer to the above question is as follows: even after the adoption of the bill, pensioners retained the property tax benefits laid down by them, i.e. such penalties are not applied to representatives of this category of citizens, which is confirmed by Article 407. the current Tax Code, namely its 1st paragraph, 10th subparagraph. The main innovation concerns the fact that after the adoption of the amendments, the tax calculation began to be carried out taking into account the cadastral ownership of the property, significantly exceeding the previously used inventory price.
Article 407 of the Tax Code. Tax incentives (tax on property of individuals). Download text
The list of property of pensioners exempted from tax collection is given in the following table.
Table. Tax-exempt property
Other property not included in the above list is subject to standard taxation of property taxes. Also, property with a cadastral price in excess of 300 million rubles is not subject to preferential treatment.
In order for a pensioner's property to be exempt from taxation, 2 basic conditions must be met, namely:
- the property must belong to the taxpayer;
- property should not be involved in all sorts of entrepreneurial activities.
Only one property item is subject to preferential treatment. The right to choose property that will be tax-free belongs directly to the owner. The number of grounds allowing a citizen to use the benefits is not taken into account.
Thus, if a pensioner has an apartment, a summer residence and other property, he can receive a benefit exclusively in favor of one of these objects. Taxes on other property will be recoverable on a common basis.
However, the pensioner retains the possibility of additional savings, as according to the law, he can use not only privileges, but also tax deductions. Those are used in relation to objects belonging to some approved categories, regardless of the use of tax benefits.
For example, in the case of an apartment, the amount of tax recovery will decrease by the cadastral price of 20 m2 of housing. For a residential building, this figure increases to 50 m2, and for a room decreases to 10 m2.
Thus, persons of retirement age have the right to use two legal benefits: tax benefits and deductions.
In order to save property from taxation, a pensioner must contact the tax office at the place of residence or at the location of the facility subject to preferential treatment, and submit to the authorized employee an application requesting benefits and other required documents, namely:
- passport;
- taxpayer code a (if any);
- pensioner's ID;
- documents evidencing the applicant's ownership of preferential property.
If necessary, a tax inspector may request other documents and certificates. This moment is specified individually.
The listed documents (with the exception of the application) are submitted to the tax officer in the original, as well as in the form of a copy. If originals are available, an authorized employee will independently certify copies, so the applicant should not worry about this point.
For each tax you need to prepare an individual set of documents. Moreover, the requirements regarding the composition of the package of documents may vary depending on the provisions established by the authorities of a particular region or municipality.
In order to avoid difficulties in obtaining documents, in accordance with which the procedure for preferential treatment is determined according to local and regional provisions, it is better to immediately contact the primary sources, which include:
The latter option is most preferred and accurate.
If the pensioner is entitled to benefits on other grounds, the “discounts” will not be added up. The applicant will need to decide on his own what benefit is most beneficial to him.
In case of untimely appeal of a citizen to representative offices of the tax inspection, i.e. after receiving a notification of taxation with unregistered benefits, the pensioner must apply to the tax office with an application for exemption and / or a statement covering the requirements for the return of overpaid tax.
In accordance with the return application, the tax office will recalculate and return the excess. Articles 78-79 of the Tax Code establish that the surplus paid by the taxpayer during the last 3 years is subject to return.
If a citizen received pensioner status not from the beginning of the current calendar year, the tax for him (in case of applying with the corresponding application) will also be recounted.
If the pensioner's possession has a part of any shared property, the other owners of which do not have the status of a pensioner or other benefits, a citizen can receive a benefit exclusively on his part of the property. Other taxpayers will have to transfer funds without “discounts”.
Submission and consideration of the application
The law allows the taxpayer to file an application and related documents in the following ways:
Upon receipt of the application and documents, the authorized tax inspector will make a decision on the existence of grounds for granting pensioners tax benefits. After the beginning of the benefits, tax officers will recalculate, the grounds for the implementation of which were considered earlier.
Thus, pensioners have the opportunity to exempt their property from property tax. It is only necessary to correctly and timely contact the representative offices of the tax service with a request for this "discount".
Sample application for benefits. Download for free
Video - Pensioners exempt from property tax
Each citizen has an obligation to pay transport, land and property taxes. Fortunately, retirement serves as the basis for certain tax benefits, including property. Since 2014, property tax is calculated from the cadastral value of housing, and not from the inventory (as it was before). This change worried many retirees, as they did not need to pay tax before.
How is property tax calculated for retirees? What property are the benefits? How and where to get tax benefits? You will find answers to many questions about real estate tax in our article.
What facilities does the benefit apply to?
Recent changes in legislation from 2016 left for pensioners the right to full exemption from payments. But this right has a significant nuance - only one residential object in each category of property gets rid of the property tax.
In simple words, if a pensioner has several apartments or country houses, then the benefit will apply only to one apartment or house, for other objects the tax will have to be paid on a common basis. The pensioner chooses the specific object that the benefit will operate on his own. By the way, the room in the apartment and the apartment as a whole is one type of property, and a country house is already another.
What types of property are discounted in 2016?
- Apartment in a multi-storey building or a room in it;
- Studios, galleries and other premises for creative professional activity;
- Household summer buildings with an area of \u200b\u200bup to 50 square meters. meters that are on any plot of land;
- Garage or other place to store the vehicle.
For other real estate objects, persons of retirement age are required to pay the full tax. They are paid on common rights and for the indicated types of real estate, if their cadastral value is more than 300 million rubles. Getting benefits is possible only for objects that are directly owned. They should also not be used for commercial purposes.
Along with benefits, people of retirement age are also entitled to special tax deductions - a reduction in tax payments by a certain amount of the cadastral value of housing. Each room is given a tax deduction of 10 square meters. meters of cadastral price, per apartment - 20 square meters. meters, per house - 50 square meters. meters. The amount of deductions in some regions is increasing by local authorities. So, in the Yamal-Nenets A.O. the deduction for the house is not 50, but 75 square meters. meters.
Who is exempt from taxation?
The tax on real estate, land or transport is set at the state level, however, local authorities have the right to make changes to the taxation procedure, expand the list of preferential categories, increase the amount of deductions and reduce tax rates.
We offer a list of certain categories of persons of retirement age who are exempt from taxes:
- participants in the Second World War, including prisoners of concentration camps and partisans;
- persons who participated in nuclear weapons tests;
- disabled from childhood and the first two groups;
- victims of radiation accidents (civilians and liquidators);
- heroes of the Soviet Union and Russia;
- knights of the Order of Glory;
- military retirees upon leaving service for years of service and their closest relatives (if they are assigned a pension for the loss of the breadwinner - a military pensioner);
- veterans of Afghanistan.
These persons are exempted from payments for one property from each group. If a pensioner approaches several categories at once, then the benefits do not add up. In some regions, the list may be expanded by local authorities. To find out your category, you should contact the nearest branch of the Federal Tax Service.
Privileges for military retirees
Real estate tax is not paid by military retirees who have served in the Russian Armed Forces, the ATS, the Ministry of Emergencies and other state military bodies. The privilege is valid from the moment of:
- disability during service;
- reaching the maximum age for the position;
- achievement of twenty years of military experience and dismissal due to staff reductions or due to poor health.
Privileges for military pensioners are guaranteed at the federal level (pensioners are completely free of property tax). To apply for benefits, you must apply to the local branch of the Federal Tax Service. This can be done retroactively, requiring recalculation for a period of not more than 3 years. Documents for obtaining tax benefits are sent to the department of the Federal Tax Service of the Russian Federation independently, through a representative, by mail or through electronic form.
What documents will be required to apply for benefits?
- Identification;
- Statement;
- Certificate of TIN assignment;
- The power of attorney and the passport of the authorized person (including relatives), when applying for benefits to another person.
Property tax - procedure for obtaining benefits
The tax exemption is accrued only after applying to the local branch of the Federal Tax Service. An application form and a sample of its completion will be provided there. You can fill out an application before going to the tax office, just download it on the Internet and print it.
The application details the personal data of the pensioner and data on the property, in respect of which the benefit will apply. An illiterate application, including those with spelling and grammatical errors, will be returned for elimination of defects.
Together with the application, a passport, a pension certificate, TIN and a certificate of ownership of the property (including the contract of sale, certificate of inheritance, etc.) are submitted. After submitting the documents, the employee of the Federal Tax Service will issue a certificate of acceptance of the application for consideration.
If the documents along with the application are sent by mail, then they must first be certified by a notary or independently, having written “Verily” on each of them and putting down the date next to it, signing its decoding. If defects are found in the documents, they will be returned back by mail explaining the reasons for the return. After eliminating errors, the documents are re-sent to the tax office.
Documents are allowed to be sent by e-mail, but you have to go through pre-registration in the tax system. The first step is to contact the local branch of the Federal Tax Service with a passport and TIN. An employee of the service will register the pensioner, issue a document with information for entering your personal account on the website of the Federal Tax Service and a registration card.
If a pensioner has several real estate objects, then you need to choose one of them to receive benefits before November 1 of each year. If this is not done, then in the next tax period the tax service will choose a specific object for the exemption on its own. The selection criterion will be the maximum amount of taxes paid. Property tax is deducted from the object for which there were most tax deductions.