The Russian Federation, as a social state, annually makes amendments to the current legislation aimed at improving the lives of its citizens. In this regard, the question of what taxes pensioners do not pay in 2021 is relevant. People living on state support due to age belong to socially unprotected sections of society. The increase in pension payments cannot keep up with taxes.
Therefore, tax fees are often quite significant for pensioners. The state is trying to reduce financial burden and establishes tax breaks for people receiving pensions.
General information
By reducing the tax burden, the state provides assistance to needy segments of the population, including pensioners. The amount of pension benefits paid does not correspond to the existing price level and does not keep pace with their dynamics of increase. Therefore, the provision of certain benefits is a mandatory measure.
Innovations in the tax sphere affected the following types of fees:
- land;
- transport;
- property.
If a person of retirement age does not have the preference of an absolute exemption from paying the fee, then, as a rule, there is a reduction in the amount of payment or a compensation payment is provided.
The number and type of benefits provided are influenced by the area in which the elderly person lives. A number of prerogatives are provided at the federal level.
Deduction when calculating property tax
In addition to basic benefits, an elderly person can take advantage of the right to deduct and refund from the tax amount. A deduction is a reduction in the main part of the tax on such items as:
- separate room - the amount of payments is reduced by 10 m2 from the total area;
- apartment - 20 m;
- household - 50 m.
Calculation of deduction
Residential property tax deduction = (cadastral value/total area)* deduction amount (10, 20 or 50 for houses).
Example: apartment with an area of 76.3 sq.m. cadastral value is 3,272,144 rubles. According to the above formula, it turns out: (3,272,144/76.3)*20=857,704.85 rubles.
The amount of the deduction is also determined by local authorities, therefore, the figures will be different in different regions of the country.
To apply for the corresponding deduction, you need to contact the tax authority with an application. In this case, the application for each period must be written separately. The application form is free.
In addition to the application, you will need passport details and a pension certificate of the elderly person.
What benefits can a pensioner count on, what are the requirements?
In 2021, recipients of pension payments have the right to count on the following relaxations:
- compensation when paying a fee for a vehicle (vehicle), if provided at the regional level;
- benefits for paying land tax;
- absolute exemption from payment of property tax, but only for one piece of real estate of the same type. So, if the grandfather is the owner of a dacha and two one-room apartments, then he will not have to pay a fee for the dacha and one of the apartments of his choice.
IMPORTANT !!! Elderly people can clarify information on compensation and prerogatives by contacting the nearest inspection department. The organization should write an application for consent and attach to it a list of necessary documentation to confirm the category of beneficiaries.
However, not all fees are subject to relaxation.
So the obligation to pay remains:
- Income tax if a retired individual continues to work.
- Fees on a general basis if the pensioner is engaged in individual entrepreneurship.
- Property taxes taking into account the compensation provided.
Vehicle tax
This type of collection is regional and, accordingly, is subject to local legislation. Analysis of the legal documentation of the regions allowed us to conclude that threshold maximum values for engine power are prevailingly established. As a rule, cars that do not exceed 100 hp are eligible for benefits.
Situation in the regions:
- in the Voronezh region, owners of old cars (more than 25 years old) with an engine power of up to 100 hp, as well as veterans, heroes of the Soviet Union and others are exempt from paying tax;
- in the Kaluga region, old-age pensioners do not have any relief in paying the vehicle fee;
- in the Krasnodar Territory, persons who have reached the age of pension payments are provided with a 50% discount on passenger cars with a capacity of up to 150 hp;
- Pensioners of the Belgorod region do not pay the tax in full;
- In the capital region, compensation and discounts for pensioners are not indicated.
Land
Any individual or legal entity undertakes to pay the fee for a land plot owned. In 2021, pensioners, as well as other federal beneficiaries, and the peoples of the northern regions of the country have the right to claim a reduction in the tax base for this type of collection.
According to clause 5 of Art. 391 of the Tax Code of the Russian Federation, the reduction is based on the cadastral value of 600 square meters of land area. Such a discount is provided exclusively in relation to one site at the payer’s choice.
A notice of the selected plot to which the benefit will be extended is submitted by the applicant to the inspectorate before November 1 of the current year. If information is not provided, tax is calculated according to general principles.
List of bills
The main bills for calculating property tax are:
- Chapter 32 of the Tax Code of the Russian Federation;
- Federal Law-284 dated October 24, 2014;
- Law 2003-1 of 09.12.1991;
- Regulations at the local level.
In 2021, pensioners will not pay property taxes. In addition, older people have the right to reduce the amount of tax payments and make a 13% tax refund. However, all of the above benefits begin to apply only after the documentation is properly completed, as discussed in this material.
Income
At the federal level, pension payments are not subject to personal income tax. However, the situation is completely different if the pension recipient is still working. State support payments are often not enough for a normal life and older people do not leave their jobs until they are very old. It is from salary payments that income tax deductions must be made.
At the same time, working pensioners have the right to apply for registration:
- Deductions for education. (when a pensioner independently undergoes paid training or pays for the education of close relatives from his own funds, he can receive compensation when providing expense documents).
- Refund of part of the funds when paying for medical services and purchasing a list of medications established by the Government (for example, inpatient treatment in a private clinic).
Property
Pensioners are 100% exempt from paying real estate taxes on one piece of property within each type - apartment, room, residential building, etc. The recipient of the benefit independently chooses in relation to which property he requires exemption from the tax burden.
ATTENTION !!! In accordance with paragraph 2 of Art. 407 of the Tax Code of the Russian Federation, preferences are granted exclusively to the owners of premises, provided that these premises are not used for profit. That is, if you live permanently with your son and are not the owner of the living space, the pensioner’s possible benefit will expire.
Discounts and benefits in general are not provided for objects whose value exceeds 300 million rubles.
Non-state pension provision
Article 217 of the Tax Code of the Russian Federation provides a list of income that is exempt from tax obligations. As for pension payments that are exempt from taxes, they are as follows:
- state pensions, insurance;
- insurance pensions plus fixed payments to them;
- funded pension;
- additional payments of a social nature, which are provided at the federal or regional level.
There are also non-state pensions that a citizen receives from a non-state pension fund upon the occurrence of insured circumstances (that is, the appropriate age, etc.).
Such pensions are financed either by the citizen himself or his employer. Contributions are transferred to the NPF, which are subsequently converted into a counter obligation to pay money in the form of a pension to the insured citizen.
Typically, large enterprises provide pensions of this type to their employees as part of internal social programs. The legislation even provides for the possibility of non-state pension provision as a replacement for early payments (for example, for work in hazardous working conditions): instead of paying to the Pension Fund, you can make contributions to a non-state pension fund.
However, the Ministry of Finance believes that non-state support is the income of a citizen, if not he himself, but his employer made contributions and provided the opportunity to receive an additional pension to the one paid from the state treasury.
The only exception for security for which contributions were made before 2005 is that they are exempt from personal income tax. Thus, income tax is withheld from non-state pensions when contributions were made by the employer after 2005.
A complete list of additional payments for pensioners in 2021. How much will your pension increase?
How to apply for a benefit
Registration of the required benefits is carried out by contacting the tax office at the place of registration. Preferences will not be provided to those people who are entitled to them but do not apply for them. That is, the provision of benefits is of a declarative nature.
To register, you will need to perform a number of steps:
- Select an object to apply compensation. If a tax exemption is issued for real estate, then it is economically feasible to choose the property whose market price is higher. For example, a pensioner and veteran Dedushkin owns two apartments - 2 and 3 rooms. Since the cost of the latter is higher, it will be more profitable to receive compensation for it.
- The choice of car to which the discount will apply is determined by the peculiarities of regional legislation. If in a region a pensioner has the right to take advantage of a benefit for only one object of each type (boat, motorcycle, car), then preference should be given to a device with high power. For example, a pensioner is the owner of two passenger cars with engine capacities of 75 and 120 hp. In his region, cars up to 150 hp are exempt from taxes. The smart choice would be the car that is more powerful.
- The same applies to land plots. You must choose the one whose cadastral value is higher.
- An important step is the collection of general documentation - the applicant’s identity card and an evidentiary document about the existence of the prerogative to receive relief. The second document can be individual for each applicant, since the grounds for all applicants are also different: for disabled citizens - a medical report from the commission, for veterans and those involved in military operations - a certificate, for award holders - a certificate and a badge of distinction, for pensioners - a pension document. An application of the established form is filled out at the institution itself.
- Drawing up a notice. In the document, the applicant should indicate: the selected object and its characteristics, personal information (full name, passport information, date and place of birth, contact details). After filling out the information, the applicant independently signs the paper. If the registration is entrusted to the principal, then information about him is indicated and the signature is affixed by him.
- Transfer of paper support to the Federal Tax Service. This can be done in the most convenient way. The applicant can personally hand over the documents and receive from the employee a receipt confirming their receipt indicating the list of attachments and the date. If you do not want to visit the institution, you can use postal services. A letter is sent with a description of the attachment and a simple notification of receipt. Having received the envelope, the specialist marks the date, which is the moment of registration of the appeal. If it is not possible to personally visit the inspection, then the services of a principal will come in handy. To approve his powers, a notarized power of attorney is drawn up. The simplest and most practical option is to contact the official tax website. To do this, you will need to register on the website and send everything you need through your personal account.
How to get a land tax deduction for pensioners
On December 21, 2021, the State Duma, at the suggestion of the Government of the Russian Federation, adopted another law that made many changes to the Tax Code of the Russian Federation (Federal Law No. 436-FZ dated December 28, 2017). Among them there is a new tax benefit for land tax for pensioners - this is the right to a tax deduction in the form of a reduction in the tax base.
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Will it be possible for pensioners to receive a complete exemption from land tax on 6 acres? Will it be necessary to collect and submit documents about the size of the land plot to the tax office? How will the tax be calculated if the plot is more than 6 acres?
First, let's look at the norms of the Tax Code of the Russian Federation regarding land tax benefits. Based on clause 5 of Art. 391 of the Tax Code of the Russian Federation in the previous edition, certain categories of individuals - payers of land tax had the right to a deduction from the tax base in the amount of 10,000 rubles within one municipal territory where the land owned by them by right of ownership, permanent (perpetual) use or inherited for life is located possessions.
That is, the deduction was provided in the form of a fixed amount. The tax inspectorates themselves took this benefit into account when calculating the land tax and generated consolidated tax notices after deducting this “benefits”.
However, this benefit applied only to 7 categories of payers:
1) Heroes of the USSR and the Russian Federation, full holders of the Order of Glory;
2) disabled people of groups I and II;
3) disabled people since childhood;
4) veterans and disabled people of the Second World War and other military operations;
5) Chernobyl victims who were affected by the accident on the Techa River and the events at the Semipalatinsk test site;
6) testers of nuclear and thermonuclear weapons, liquidators of accidents at nuclear installations at weapons and military facilities;
7) who received or suffered radiation sickness or became disabled as a result of nuclear tests and exercises.
This deduction did not depend in any way on the cadastral value of the land, as well as the financial situation of land tax payers. For example, pensioners are not on this list. Many noted this injustice, and they managed to reach the head of state.
On December 14, 2021, a large-scale press conference of Vladimir Putin took place. Among other things, the issue of land tax was raised.
“First of all, of course, this is the way it works all over the world, and this is natural: the owners of certain property maintain it and pay taxes. This goes without saying. And the cadastral value is the market value. And this is also quite natural and correct. But what's wrong? These levels of cadastral payment tariffs should, in general, be based on some realities. They should be based on real incomes of the population. This cannot be divorced from life. You cannot carry out shock therapy like in the 90s. This is simply unacceptable,” the President explained.
“We have preferential categories of citizens who receive a deduction from property worth 10 thousand rubles. But the land plots that you mentioned, these so-called six hundred square meters, in many regions of the country are more expensive than 10 thousand rubles, in the overwhelming majority,” Putin added. “For the Government, together with the deputies of the State Duma, to make a decision according to which all those preferential categories of citizens who received a cash deduction of 10,000 rubles received a benefit in kind and did not pay any taxes at all for all these six hundred square meters.”
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However, the head of state considered this too insufficient. Plus, it was decided to expand the list to include all old-age pensioners. Because, firstly, according to Putin, these people already have benefits associated with apartments and houses, and adding to this list with old-age pensioners will be logical and fair. The state will not suffer from this"
This position of the President of Russia gave immediate impetus to legislators to develop appropriate amendments to the norms of the Tax Code of the Russian Federation on land tax. And they didn’t have to wait long. Moreover, for the sake of a new deduction for land tax for pensioners, the bill was supplemented, which initially only concerned clarification of the rules for taxing the profits of controlled foreign companies. The deputies even changed its name to a more general one - “On Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation.”
According to the new edition of paragraph 5 of Art. 391 of the Tax Code of the Russian Federation, the tax base is subject to reduction not by the non-taxable amount of 10,000 rubles, but “by the cadastral value of 600 square meters of land area.”
As a result, starting from 2021, the tax deduction is not a fixed amount in rubles, but depends on the cadastral valuation of the plot of six hundred square meters of land.
The list of preferential categories remained the same, but was replenished with pensioners (new subclause 8, clause 5, article 391 of the Tax Code of the Russian Federation). And all categories:
- who receives pensions assigned under pension legislation;
- men over 60 years of age and women over 55 years of age, who are entitled by law to monthly maintenance for life.
Based on the wording of this norm of the Tax Code of the Russian Federation, survivors and early retirement pensioners (for example, teachers or doctors) are also entitled to a new deduction.
Note that the financial situation of pensioners does not play any role. Even working pensioners received the right to deduction.
What is 600 sq. meters? For reference: 100 sq. m is exactly 1 hundred square meters. This means that 600 square meters of land is 6 acres.
Thus, pensioners no longer pay tax for a plot of land with an area of 6 acres or less. Like other preferential categories according to the Tax Code of the Russian Federation (see above).
If, after deduction, the tax base has a negative value (when the plot is less than 6 acres), it is considered equal to zero. And if the plot is more than 6 acres, then the tax is taken from the remaining acres after deducting six acres from them.
The tax office itself will calculate the excess tax for the benefit recipient using the following formula:
TAX BASE = TOTAL NUMBER OF HUNDREDS IN THE SITE – 6 HUNDREDS
Also see "Land tax: rate in 2021".
