Legal news
and practices in Russia

There have been launched the 2017 Declaration Campaign. It is necessary to submit a declaration on income received in 2016 by individuals until 2 May 2017.

This year's Declaration Campaign 2017 has a number of features:

1. It is no longer necessary to submit a personal income tax declaration, when the tax was not withheld by the tax agent. Now the individual will pay the tax after receiving the tax notice and receipts sent to him / her by the tax authority. Payment documents are formed on the basis of information about the inability to withhold tax and tax amounts that are transferred by tax agents. It is necessary to pay such tax not later than 1 December of the year following the reporting year. The new rules apply to earnings received since 2016.

2. From this year, individuals who received income from the sale of real estate acquired after 1 January 2016, will calculate personal income tax under the new rules. If the income from the sale of a real estate object is significantly lower than its real value (lower than 70% of the cadastral value of this object as of 1 January of the year of sale), the personal income tax is calculated based on the sum of the cadastral value of this object multiplied by a coefficient of 0.7.

It is necessary to submit the 3-NDFL declaration if the taxpayer sold property owned less than the minimum time term in 2016, accepted expensive gifts, won the lottery, leased the property, or received income from foreign sources.

Individual entrepreneurs, notaries, engaged in private practice, lawyers who established law offices, and other persons engaged in private practice should also declare income received in 2016.

The tax calculated in the declaration must be paid not later than 17 July 2017.

In case of failure to submit a personal income tax declaration and non-payment of tax in time there are punishments. The penalty for failure to submit a declaration in time is 5% of the tax not paid on time for each month, but not more than 30% of the specified amount and at least 1,000 rubles. The penalty for non-payment of personal income tax is 20% of the amount of unpaid tax.

The deadline for filing a declaration on 2 May 2017 for tax deductions does not apply. In such cases, the declaration can be sent at any time during the year.

From the Consultant Plus newsletter, 01.02.2017