Land tax for pensioners in 2021 - do they pay it?

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

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

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

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

Benefits for pre-retirees

In the Russian Federation last year, there were lengthy consultations on the issue of supporting people whose retirement age has been raised. As a result, from 2021, Federal Law No. 378-FZ dated October 30, 2018 supplemented paragraph 5 of Article 391 of the Tax Code of the Russian Federation with an important provision that secured tax benefits for the “pre-retirement” category.

Who belongs to the category

The group under consideration includes only those who have 5 years or less left until the period when they will be assigned an old-age insurance pension. This category also includes persons for whom an old-age insurance pension is established on an early basis. In accordance with the new provisions of the law, men retire at 65 years old, women at 60 years old. This means that upon completion of the reform of the pension system, pre-retirees will include men over the age of 60 and women over 55 (if there are grounds for benefits upon retirement, the previously designated age). Thus, people who have less than five years left until retirement are eligible to claim new tax preferences.

In the coming period, while the transition stage continues, the age of the pre-retirement person will constantly change. In the period from 01/01/2019 to 12/31/2023, the pension threshold will be increased by one additional year, which means that the age of inclusion in the group of pre-retirees and the right to receive tax breaks will be adjusted.

Personal income tax

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

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

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

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

Personal income tax

This fee is the main source of income for local budgets, therefore no benefits are provided at the federal level.

However, pension payments are not included in the tax base and, accordingly, are not subject to personal income tax. These are:

• pensions, social benefits;
• the amount of financial assistance from the employer to former employees who went on vacation, for sanatorium treatment, medical care, medications, but in the amount of no more than 4,000 rubles per year

In addition, by purchasing real estate, you can receive a personal income tax deduction. The conditions are the purchase at the expense of the senior citizen and the transfer of the object into his ownership.

Support measures of this type do not apply to real estate properties worth more than 300 million rubles.

You need to understand that if the property is used for profit (for example, renting out an apartment), the person will not receive any relief.

Transport tax

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

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

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

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

How to apply?

As already stated, preferential benefits are prescribed in acts adopted at the regional level. To receive benefits, persons receiving pensions must take the following actions:

• contact the tax authority or the municipal administration and find out about the availability of benefits;
• when it becomes known that benefits are provided, it is necessary to collect the required documentation and contact the tax office.

It is worth keeping in mind that the situation regarding benefits is unstable. If benefits were not established last year, it is not guaranteed that they are not currently available.

Local authorities set the amount, period and validity period of preferential tax payments. Lands that are not included in cadastral registers are not subject to taxes. Payment is made after the corresponding notification arrives at the registration address of the owner of the plot.

This document contains all the necessary details for depositing funds. It is also possible to pay taxes online, for this you can choose any convenient method. You can pay through your personal account created in the tax system, through Internet banking, etc.

If the owner of the plot finds out that there are tax benefits for the categories to which he belongs, then he needs to write an application and submit it to the tax authority. You must apply at the place where the land is registered. The application must indicate the following information:

• applicant details;
• the address at which it is registered;
• information about the document by which his identity is verified;
• TIN;
• tax office address;
• signature and date.

When the application is drawn up by hand, the format of the document must be standard. It is indicated in the upper right corner to whom and from whom the paper is being sent, then in the middle of the sheet the name of the document is written, then the request is indicated. At the end, put the date of compilation and the signature of the applicant.

Sample application for benefits

In some cases, it is necessary to indicate the period during which the benefits are valid. After preparation, the paper is sent to the tax office, where employees study it and make a decision. The required documents are attached to the application.

All rules established by local authorities regarding the preparation of the document must be followed so that it is not returned for revision. A certain period of time is allotted for consideration of the application. When a pensioner delays filing an application, the recalculation of the fee may take up to two years.

The list of documents that must be attached to the application varies depending on the region in which the application is submitted.

You need to check the list of papers with your local authority. Mandatory documents include:

• an act by which the identity of a pensioner is verified;
• a certificate confirming your pension status;
• documentation regarding the allotment;
• statement.

After considering the application, the tax authority issues approval or a reasoned refusal. Any decision can be appealed if the applicant does not agree with the decision taken on it. The appeal is made in writing. Local authorities consider the submitted complaint, after which a reasoned decision is made.

The person who owns the land has the right to appeal.

Is online registration possible?

You can submit your application via postal services, in person, or online. In the latter case, the applicant is required to go through the registration process on the official website of the tax authority.

A retired person will need to contact the Federal Tax Service and fill out a registration application and receive a login and password to log in. A form is also filled out at the branch and an electronic signature is placed.

The application process goes like this:

• go through the authorization process on the site by entering your login and password;

  
  Authorization form on the Federal Tax Service website

• go to the “Objects of Taxation” section;

  
  Section “Objects of taxation” in the user’s personal account

• click on the line “Statement about...”;

  
  Go to the section “Application for benefits”

• fill out the form that opens;

  
  Application form for property tax relief

• send an application.

The application must be accompanied by the documentation indicated above. Within a certain period of time, you will need to submit the original documents to the tax office.

Property tax for individuals

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

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

Personal property tax for pensioners: what are the benefits?

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

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

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

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

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

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

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

Types of existing benefits by region of the state

All types of tax benefits can be divided:

• 100.0% tax exemption on a plot of land;
• Discount of 10,000.00 rubles;
• Local discounts on land tax.

There are no approved tax benefits in the tax legislation; there are only social categories of the population recommended for regional authorities, which may, by their decision, have discounts when paying for land:

• Regions give tax breaks to their elderly permanent residents;
• Some regions and municipalities have made tax relief on land for pensioners who have their own real estate and live in it in a given territory and for which they already pay a property tax;
• The region gives relief to non-profit partnerships of gardeners and vegetable gardeners, where the members are pensioners, although according to the law, these members of the partnerships must pay for the collective land in use.

Many regions of the Russian Federation are expanding the list of beneficiaries and also providing a larger discount than the authorities of the Moscow region.

Taxation based on regional fees depends on the work of the authorities, as well as on the economic state of the region and on the receipt of taxes in its budget.

Land tax

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

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

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

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

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

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

Tax rate in the Moscow region

Land tax in the Moscow Region (hereinafter - MO) is calculated according to 3 types of fiscal rates:

The Moscow Region is divided into 35 districts - each has its own tariff. Land tax for pensioners in the Moscow region - table of interest rates:

Complete list of taxes paid by pensioners

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

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

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

about the author

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

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Comments: 6

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Author of the article: Klavdiya Treskova

Consultant, author Popovich Anna

Financial author Olga Pikhotskaya

1. Irina Ivanovna
   10/01/2021 at 02:06 Hello! I live in Sochi, but I have been renting out non-residential premises of 30.6 m2 in Yekaterinburg for a pharmacy to a legal entity for more than 20 years. I am registered as an individual entrepreneur “Income”, I pay the 6% tax on Income on time. OKVED is registered for this type of activity. Do I have to pay property taxes on this property? As far as I knew, a 6% tax replaces all taxes (personal income tax, income tax, property tax, etc..).

   For 2021 A tax notice has arrived and property tax must be paid on this non-residential premises. Why were there any changes in the Legislation? I'm already a pensioner and it's hard for me to figure this out.

   Sincerely, Irina I.

   Reply ↓
   Anna Popovich
   10/02/2021 at 00:10

   Dear Irina Ivanovna, in connection with the application of the simplified tax system, taxpayers are exempt from paying taxes paid in connection with the application of the general taxation system.

   Reply ↓