Car donation agreement (deed of gift) in 2021

Good afternoon, dear reader.

Currently, there are several ways to transfer ownership of a car. Most often, car owners sell a vehicle using a car purchase and sale agreement.

However, this option is not always the most profitable, because... When selling a car, its owner is forced to pay the appropriate tax.

In practice, there are situations in which you can completely avoid paying tax if you use a gift agreement or deed of gift. We are talking about the transaction of donating a vehicle , which will be discussed within the article.

Paying taxes when donating a car in 2021

To begin with, I would like to note that only a deed of gift for a car concluded between close relatives . This follows from Part 2 of the Tax Code of the Russian Federation (Article 217, paragraph 18):

Income received as a gift is exempt from taxation if the donor and recipient are family members and (or) close relatives in accordance with the Family Code of the Russian Federation (spouses, parents and children, including adoptive parents and adopted children, grandparents and grandchildren, full and half (having a common father or mother) brothers and sisters);

Thus, donating a car is not taxable if the parties to the transaction are:

husband wife;
father (mother) - son (daughter);
adoptive parent - adopted person;
grandfather (grandmother) - granddaughter (grandson);
brother (sister) - sister (brother) (having at least one common parent).

Please note that in all other cases, when donating a car, the recipient is required to pay a tax of 13 percent of the value of the car.

For example, when donating a car worth 500,000 rubles, the tax amount will be 65,000 rubles.

Note. When receiving a car as a gift, tax deductions are not provided (Part 2 of Article 220 of the Tax Code of the Russian Federation), i.e. Tax will have to be paid on the entire cost of the donated car.

Registration period

When a donation agreement for a vehicle is concluded, the recipient of the car has the right to dispose of it without additional restrictions. The deed of gift for the car does not have an expiration date. It confirms the fact of the conclusion of the transaction until its termination is carried out by mutual agreement or in court.

IMPORTANT

Having received a car as a gift, a citizen is obliged to re-register it. The procedure is carried out at the traffic police department. To complete the action, 10 days are allotted from the date of ownership. Re-registration does not take much time. Typically, a citizen will be able to receive the necessary papers on the day of application. In some cases, the procedure is delayed. The exact period depends on the correct preparation of the package of papers and the purity of the transaction. If a representative of the authorized body has additional questions, the procedure will extend for the period it takes to carry out the inspections.

Gifting a car between distant relatives

In practice, there are situations when you need to transfer a car between people who are actually relatives, but are not included in the list of close relatives.

For example, a few common situations:

mother-in-law (father-in-law) - daughter-in-law;
mother-in-law (father-in-law) - son-in-law;
ex-wife - ex-husband;
common-law wife - common-law husband.

There are several options for completing a transaction with minimal costs:

Use of a purchase and sale agreement.
Use of several gift agreements through intermediate close relatives.

For example, let’s say you need to give a car from your mother-in-law to your son-in-law. In this case, the mother-in-law first gives the car to her daughter (a close relative). After this, the daughter gives the car to her husband (also a close relative).

In this case you will have to:

Draw up 2 gift agreements.
Contact the traffic police once to register your car.

Options for canceling deed of gift

As a rule, it is almost impossible to challenge or mark a gift agreement, given that the transfer of a vehicle to another person occurs during his lifetime and close relatives cannot do anything.

However, in some cases, leveling the deed of gift is possible, and within the framework of the law. So, by virtue of Article 578 of the Civil Code of the Russian Federation, a deed of gift can be canceled in court if the following grounds exist:

causing bodily harm to the donor or an attempt on his life;
in case of improper handling of a donated item, which may irretrievably lose its intangible value, for example, if we are talking about a rare car;
in the event of the death of the previously donee donor, but only if this condition was initially included in the gift agreement when it was executed;
at the request of the relatives of the donor who died through the fault of the donee as a result of his intentional actions.

In other cases, due to the same serious illness, loss of previous income and other fairly compelling reasons, it is impossible to cancel the gift agreement.

Of course, gifting a close relative with his own car is a very profitable deal between the parties, given that you will have to spend no more than 15 thousand, which of course is incomparable with the pleasure of gratitude. But given the pragmatism of Russian citizens, what attracts them most is the favorable tax conditions, from which they are exempt and at the same time leave the car with their family.

Tax return when donating a car

The recipient must file a tax return only if he received the car as a gift from someone other than a close relative. This follows from Article 228 of the Tax Code of the Russian Federation:

1. The calculation and payment of tax in accordance with this article is carried out by the following categories of taxpayers: ... 7) individuals receiving from individuals who are not individual entrepreneurs income in cash and in kind by way of gift, except for the cases provided for in paragraph 18.1 of Article 217 of this Code, when such income is not subject to taxation;

So, when giving a car as a gift to a close relative, you do not need to file .

Obviously, the operation of donating a car makes sense only when it is carried out between close relatives. In all other cases, I recommend using the purchase and sale scheme.

Let me remind you that when buying or selling, the tax will be paid by the seller, but its amount may be significantly less than when making a gift, because You can take advantage of the tax deduction. Well, if you own a car for more than 3 years, no tax is paid at all.

In what case do you not need to pay income tax?

What is a deed of gift and in what cases is it recommended to draw it up?

The transfer of almost any property, including a vehicle, involves certain difficulties with re-registration of ownership rights, payment of taxes, and simply controversial situations with close relatives.

That is why, in order to minimize the above difficulties, some citizens prefer to take the easiest route and transfer the car as a gift to their close relatives during their lifetime for the following reasons:

exemption from payment of standard tax on income received under Article 217 of the Tax Code of the Russian Federation;
in order to avoid conflict situations during inheritance, given that even a will can be challenged, but a deed of gift is practically not possible;
in order to prevent the claim of the car during a divorce as jointly acquired property by the spouse of the recipient;
to prevent a cumbersome procedure for selling a car, burdened with many conditions prescribed by law;
to avoid confiscation of the debtor's property.

By virtue of Article 572 of the Civil Code of the Russian Federation, a deed of gift is an official document on the basis of which one person transfers to another a certain item as a gift free of charge, that is, without receiving anything in return.

Form of car donation agreement between relatives

Let's proceed directly to the execution of the car donation agreement . Deed of gift form in the form of images (click to enlarge):

You can also find a car donation agreement in the form of a pdf file here.

Car donation agreement form

Note. The deed of gift does not need to include information that the parties to the transaction are close relatives. Traffic police officers are not interested in this issue.

Normative base

The procedure for donating a car in 2021 is regulated by the Civil Code of the Russian Federation. It is recommended to pay attention to the following articles:

572 - reflects the features of the car donation agreement, regulates its actions, and also records the features of recognizing the agreement as void;
573 - establishes the possibility of the donee to refuse the proposed gift, and also regulates the procedure for action in this case;
574 - establishes the form of the car donation agreement and determines situations when state registration of the transaction will be required;
575 - records situations in which donations are prohibited in 2021;
576 - contains cases in which restrictions on donations are provided;
577 - prescribes the rights and obligations of the parties to the transaction in the event of refusal to fulfill the contract;
578 - reflects the peculiarities of transaction cancellation;
579 - records cases in which it is impossible to refuse to fulfill an agreement and cancel a transaction.

Sample car donation agreement

In principle, it is quite simple to issue a deed of gift for a car, even without special knowledge. However, I recommend using a sample car donation agreement so as not to miss or confuse anything:

Sample agreement for donating a car to a relative in pdf format:

Sample deed of gift

Can I donate a car?

Any citizen has the right to donate a car that belongs to him - this is not prohibited by law.

But it is important to consider several conditions:

The transaction is free of charge. If the cost of the gift exceeds 3,000 rubles. and the owner is a legal entity, a deed of gift is drawn up in writing.
The gift agreement (hereinafter referred to as DD) is signed by both parties. The donor’s signature confirms his intention to give the gift, and the recipient’s intention to accept it.
You can draw up a promise of gift agreement, indicating a specific date from which it will enter into legal force and the donee will become the full owner.
It is impossible to specify a condition on the transfer of a gift after the death of the donor, or on a gift under the condition of lifelong maintenance - such DDs are considered void. In the first case, you need to use the rules of inheritance (Chapters 61-65 of the Civil Code of the Russian Federation), in the second - the rules of Chapter. 33 Civil Code of the Russian Federation.

Note! In Art. 574 of the Civil Code of the Russian Federation states that a donation can be made orally, if it is not a gift from a legal entity or real estate. But a written contract must be drawn up regarding the car. Otherwise, the vehicle simply cannot be registered with the traffic police.

How to issue a deed of gift for a car in 2021?

Let's consider point by point how to issue a deed of gift for a car:

1. At the beginning of the gift agreement, you must indicate the city of the transaction, its date, as well as the full name of the donor and the full name of the donee (detailed details of the parties will be filled in a little later).

2. In paragraph 1.1. You must provide as complete information as possible about the vehicle.

3. In paragraph 2.1. The deed of gift should include the address of the place where the vehicle is transferred to the donee.

4. Clause 2.2. required to be filled with additional things and items that are donated along with the car.

For example, these could be documents for a car and a set of winter tires.

5. In Section 4 of the agreement, it is necessary to enter complete information about the parties to the transaction (their passport details).

6. After the car donation agreement has been drawn up in triplicate, each participant in the transaction must sign in the appropriate field.

7. After handing over the keys to the car, the recipient must also sign in the “received the car” column.

Do I need to deregister the car?

In 2021, the procedure for registering a car is regulated by Federal Law No. 283 of August 3, 2021 On the state registration of vehicles in the Russian Federation. The regulatory legal act allows a citizen not to deregister a car. The procedure will be performed automatically when the new owner contacts the authorized body. Data on the completion of the donation are transmitted to the Federal Tax Service. When contacting the traffic police, the new owner must provide the following documents:

application for re-registration;
PTS and STS;
deed of gift;
checks confirming payment of state duty.

IMPORTANT
It is necessary to have an issued MTPL policy for the new owner of the vehicle. Without it, registration is impossible. It is acceptable to save vehicle license plates. This must be noted in the application. Inspectors may refuse to take action in a situation where the numbers are damaged. However, the owner has the right to make a duplicate. This will allow you to keep the same number.

Is it necessary to indicate the cost of the car in the contract?

There is no need to indicate the cost of the car in the contract; this information is optional .

However, in practice the following cases sometimes occur. The traffic police officer, who did not find anything to complain about, tells the driver that the contract is invalid, because it does not indicate the cost of the car. In this case, there are 2 options:

Immediately file a complaint with a higher-ranking official at the traffic police.
Just add the cost of the car to clause 1.1 of the contract.

The case is extremely rare, but you also need to be prepared for it.

Transaction between a legal entity and an individual

The law abolished the imposition of any restrictions on legal relations between individuals and legal entities. In 2021, the company has the right to transfer property to its employee. The procedure is governed by the same rules that apply when concluding a transaction between individuals. Participants in the procedure must be legally competent, capable, and also draw up a gift agreement in writing.

The powers of the representative of the legal entity are taken into account. Donation of material assets is carried out in accordance with internal regulations. Sometimes permission from the owners of the organization or authorized bodies is required. A power of attorney must be issued to the company representative. The paper is signed by an authorized person.

How to determine the value of a gift and the amount of tax?

If the value of the gift is determined in the contract, it is used as the amount of income.

Example: In 2021 Dmitrov F.M. I received an apartment from my uncle under a gift agreement. At the same time, the gift agreement indicates the price of the apartment in the amount of 1.5 million rubles. At the end of 2021 (until April 30, 2021) Dmitrov F.M. must submit a 3-NDFL declaration to the tax authority, which will indicate income from the gift in the amount of 1.5 million rubles. Also, until July 15, 2021, Dmitrov will have to pay income tax in the amount of: 1,500,000 x 13% = 195,000 rubles.

If the value in the contract is too low, tax inspectors will be able to demand payment of personal income tax based on the market value of the property. This position is supported by letters from the Russian Ministry of Finance, which indicate that in relation to the gift of real estate between persons who are not close relatives, for tax purposes, the amount of income can be taken from the agreement only if it corresponds to the market value of the real estate (Letters of the Russian Ministry of Finance dated October 15, 2015 No. 03-04-05/59154, dated 05/08/2014 No. 03-04-05/21903, dated 04/30/2014 No. 03-04-05/20685).

Example: An uncle gave his nephew S.M. Kislov a gift. an apartment in the center of Moscow, indicating the cost of the apartment in the donation agreement is 100 thousand rubles. If Kislov S.M. submits a declaration indicating an income of 100 thousand rubles, then the tax inspectorate will most likely challenge the amount of income and ask to pay a tax of 13% of the market value of the apartment.

If the gift agreement does not indicate the value of the gift, the amount of income is determined by the market value of the gift received.

When determining the cost of housing, the tax office often requires that it be based on the cadastral value. Since the tax legislation does not define the procedure for determining the market value, and you, for example, do not agree with the cadastral value, you can declare a different amount for calculation, insisting that it is the market value of your home. However, in this case, be prepared to defend your position before the tax authorities.

You can find out the cadastral value of housing in the cadastral passport of the property, as well as by contacting Rosreestr or the Federal Service of Cadastre and Cartography (Cadastral Chamber).

Example: In 2021 Golubeva D.K. I received a room from my mother-in-law under a gift agreement. Since the mother-in-law, according to the Tax Code of the Russian Federation, is not a close relative, Golubeva D.K. must pay income tax in the amount of 13% of the cost of the room. By contacting Rosreestr Golubeva D.K. I found out the cadastral value of the room (350 thousand rubles). At the end of 2021 (until April 30, 2021) Golubeva D.K. must submit a declaration to the tax authority indicating her income from the gift of 350 thousand rubles. Pay income tax in the amount of 45,500 rubles. (RUB 350,000 x 13%) she will have until July 15, 2021.

Paying taxes - important points

If, based on the above factors, it becomes clear that you will still have to pay tax, it is worth familiarizing yourself with some important points regarding this process.

Tax payment can be made in different ways:

You can personally contact your local tax office.
It is possible to send your tax return by certified registered mail.
The declaration can be filled out and sent through the official website of the Federal Tax Service of the Russian Federation.

There is a special section on the official website of the tax service where you can visit the document to fill it out correctly.

If you decide to visit the tax office in person, you will need to take the following documents with you:

personal passport of a Russian citizen;
TIN;
technical passport of the vehicle;
completed declaration;
gift and sale agreement.

After the tax organization employee has examined all the submitted documents, he will issue a receipt for subsequent tax payment with the exact amount of tax.

The completed declaration indicates the property that was received as a gift, as well as its value. The price is usually specified in the gift deed, and if there is not, the tax will be calculated based on the market price.

It is strongly recommended not to underestimate the value, since the tax inspector is authorized to carry out an audit . If an understatement is discovered, you will have to pay not only tax, but an actual fine, penalties and arrears in the amount of the difference.

In order not to make a mistake in the process of filling out the declaration, so as not to accidentally enter all the necessary data, it is worth contacting tax service consultants with all questions or entrusting the process of filling out the document to a commercial organization that provides the relevant services.

If an individual received a car as a gift from a certain company or organization, he will not have to visit the tax office and file a return.

As an ordinary tax agent, the enterprise is obliged to independently determine the total tax base and withhold tax from the price of the donated vehicle.

The time for filing the declaration is April 30 of the year immediately following the year in which the car was transferred under a gift deed . After this, a receipt will be sent to the payer’s address, on the basis of which the tax will need to be paid by November 1.

Delay in this case is unacceptable. Literally the next day, the accrual of fines and penalties for non-payment will begin.

Price

You can draw up a gift deed either independently or at a notary office. In the first case, registration does not require costs. When registering a deed of gift through a notary, the parties to the transaction will have to pay a state fee, as well as notary services.

Based on Article 22.1 “Fundamentals of the legislation of the Russian Federation on notaries” (approved by the Supreme Court of the Russian Federation on February 11, 1993 No. 4462-1), the cost of certificate of deed of gift to a spouse is 0.3% of the contract amount, but not less than 200 rubles. The prices for a specialist’s work depend on various nuances, including the region of the transaction, and range from 2,000 to 7,000 rubles.

A gratuitous alienation transaction involves expenses for registering a car to the new owner. According to Article 333.33 of the Tax Code, issuing a new vehicle registration certificate costs 500 rubles, making changes to the vehicle passport costs 350 rubles.

When contacting a lawyer for help in drawing up a gift agreement, the parties to the transaction will also have to incur additional expenses.