Putin signed a law on tax Amnesty for citizens

© RIA Novosti / Alexei Druginderal in potomacfever Putin. Archival photoPutin signed a law on tax Amnesty for citizens© RIA Novosti / Alexei Druginderal the image Bank

Russian President Vladimir Putin signed a law containing provisions that aimed at implementing the initiatives of the President for exemption of citizens from land tax on parcels of six acres and the cancellation of debt for property taxes, should be published on the portal of legal information of the document.

The President of Russia Vladimir Putin on December 14 talked about the need for the release of privileged categories of citizens eligible for the deduction to property with a value of 10 thousand rubles, from land tax in respect of a parcel of six acres. He also said that it is necessary to free the citizens from the accumulated previous years uncollectible tax arrears, at the same time Recalling that debt, for example, individual entrepreneurs (IE) is about 15 billion rubles.

Six acres

The law reduces the tax base for land tax on the value of the cadastral value of the six acres, in the ownership, permanent (indefinite) use or lifetime inheritable possession of privileged categories of citizens. To them, in particular pensioners, heroes of Soviet Union and Russia, full gentlemen of order of Glory, invalids, veterans, «Chernobyl», «Semipalatinsk», and others.

However, this reduction in the tax base will be possible only in respect of one land at the taxpayer’s choice, as he will have to report to FNS. In case of failure to provide notice of such deduction, it is provided with respect to one land plot with the maximum calculated tax amount. If when applying the deduction, the tax base is negative, then it is assumed to be zero.

Other taxes

The law also provides for cancellation of arrears of transport and land tax, tax on property of natural persons, formed as of 1 January 2015, as well as the arrears of assessed fines. Such arrears and debt are recognized to be uncollectible.

At the same time proposed to write off arrears of taxes SP, including lost such status prior to the entry of this law into force, and the arrears of penalties on it, formed on January 1, 2015. However, this provision will not apply to mineral extraction tax, excise duties and taxes payable in connection with movement of goods across the Russian border.

The law provides debt relief on insurance premiums PIS and in private practice entities (lawyers, notaries), accumulated by January 1, 2017.

The law proposes to recognize the income of individuals income in respect of which the tax agent has not withheld the tax, and was given information to the tax authorities of the impossibility of his holding. This provision will apply to income derived from 1 January 2015 until 1 December 2017. This notional income, which the President said that this income does not exist, explained at a meeting of the Committee on budget and taxes of the state Duma, its head Andrey Makarov.

Thus, individuals don’t will need to pay the income tax for which the tax agent did not withhold tax and report it to the tax authorities.

However, this will not apply to income in the form of rewards for the performance of labour or other duties, performance of works, rendering of services, dividends and interest, material gain, income in kind, including in the form of gifts and winnings and prizes. With this you have to pay, because it is not conditional, and real income, emphasized Makarov.

Currently, reduced rates of insurance contributions in total amount of 14% is set to 2023, inclusive, for the organizations performing activities in the field of information technology. However, they do not apply to organizations that have concluded with controls special economic zones an agreement on exercising techno-promotional activities and make payments to natural persons working in such zones. The law provides opportunities for these IT companies during this period also to pay such reduced insurance premiums.

The document also clarifies the procedure of taxation of controlled foreign companies and has other changes.