Do I Need To Register An Apartment Rental Agreement With The Tax Office?

Нужно Ли Регистрировать Договор Найма Квартиры В Налоговой Инспекции?

“Employment contracts can be short—term — for up to one year and long—term – for a year or more,” notes the associate professor of the Financial University under the Government of the Russian Federation Peter Shcherbachenko. — Only long-term contracts need to be registered in the Federal Register, for contracts for a period of less than a year registration is not necessary, but they have full legal force.”

The owners, according to him, usually insist on concluding a contract for a period of 11 months or 364 days in order not to register it.

The most common option for renting out housing is with a short—term contract with the possibility of further prolongation. Such an agreement is not subject to mandatory registration with the Federal Register, accordingly, information about it is not transmitted to the tax service, and landlords often evade tax.

Renting out housing is called renting, although by law it is a rental of residential premises. Rent is income that is taxable. Some apartment owners do not pay taxes, risking being discovered. In case of violations, the owner of residential or non-residential premises, in case of non-payment of taxes, faces not only a personal income tax of 13%, but also fines and penalties.

Therefore, honest declaration of income to the state can avoid trouble, especially if there is a lawsuit with the tenant. If the landlord is an individual, it is necessary to fill out and submit a 3-personal income tax declaration for the previous year by April 30, indicating the amount of income received in it. You can submit a declaration in the taxpayer’s personal account on the FTS website.

It is necessary to attach to the declaration a property lease agreement, a receipt for receiving money or a bank statement confirming their receipt. After a desk check, the tax inspectorate charges a tax, the amount of which is 13%. It is possible to pay the tax immediately online or in the taxpayer’s personal account no later than July 15.


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