The purchase or sale of land is a legal transfer of ownership and, according to legal requirements, must undergo a registration procedure. As a result, as part of interdepartmental interaction, Rosreestr notifies the tax service. The seller should be aware that there are cases when he is obliged to pay tax on such a transaction. Let’s consider the issue of taxation of a transaction for the sale of a land plot and clarify what innovations 2019 will bring us.
How to sell a plot of land in 2019?
What tax is imposed on the sale of land?
Any income received by an individual, including from the sale of real estate, is subject to tax (personal income tax).
Tax on the sale of land in 2019 for individuals remains the same – 13%. For non-residents the tax rate is 30%.
This norm is enshrined in Article 207 of the Tax Code of the Russian Federation. Taxpayers are individuals, both residents of the Russian Federation and non-residents, who received income from Russian sources. To calculate the tax base, all income received in any form is taken in accordance with Article 210 of the Tax Code.
Please note that for tax residents only those individuals are citizens of the Russian Federation who resided on Russian territory for at least 183 calendar days over a 12-month period. The exception is military personnel and civil servants sent abroad.
Tax on the sale of land owned for more or less than 3 or 5 years
It should be clarified that not everyone is required to pay tax on funds received from the sale of real estate. In fact, whether you will be exempt from personal income tax when selling a land plot depends on how many years you owned the property before the transaction. The Tax Code provides for two situations when the tax amount will not be calculated:
1. When land was purchased before 2016, the effective tenure period is a minimum of 3 years(clause 17.1 of article 217 of the Tax Code of the Russian Federation). The same period applies to cases of receiving an allotment as:
- a gift from a close relative (under an appropriate agreement);
- inheritance;
In the case of selling a plot after three years of ownership, there is no need to submit a declaration to the tax authority, calculate and pay personal income tax to the budget.
2. In other cases, a minimum tenure of 5 years applies.
These periods begin to count from the moment the right is registered with a government agency, from the date indicated in the extract from the Register of Real Estate Rights (USRN) or the registration certificate.
Tax is not charged when selling a plot in the following cases:
- when owning an object for more than the minimum established period (3 years or 5 years) at a cost of no more than 5 million rubles;
- a piece of land was purchased at a price less than or equal to that for which it was sold, and this is confirmed by documents.
Tax amount
When selling a plot of land before the expiration of the minimum tenure period, you need to know that tax calculation occurs with the taxpayer having the choice of:
- Expense deduction. By reducing the proceeds from the sale by the amount of expenses that were spent on acquiring this land as a real estate property. This also includes interest costs on a loan taken to purchase land, as well as the services of a realtor. A prerequisite is documentary evidence of the costs incurred. This right can only be exercised by residents of the Russian Federation.
- Property deduction. Its size is 1 million rubles. Used without exceeding this amount in one tax period. This means that in one calendar year you can sell several plots that have been owned and registered for less than 3 years. But the deduction will be provided no more than a million rubles. The remaining amount will be subject to tax at a rate of 13% for residents (30% for non-residents).
If upon sale, the cost of the land plot is lower 1,000,000 rubles, then you don’t have to pay tax if you use a property deduction. But in this case, a declaration in form 3-NDFL must be submitted, indicating the necessary deduction.
The income received from the sale of land is calculated as follows:
- the amount transferred to the seller by the buyer, specified in the transaction agreement, is specified;
- this amount is reduced by documented expenses for the acquisition of an object that is sold as a result of this transaction or the amount of property deduction.
Example of personal income tax calculation. The plot was acquired by Ivanov I.M. in 2018 for 1.2 million rubles. In 2019, he sells it for 1.5 million rubles. Tax can be calculated in two ways and you can choose the most profitable one at your discretion:
- Using the property deduction, the tax base will be equal to 1.5 million – 1 million = 500 thousand rubles. Personal income tax = 500 thousand rubles * 13% = 65 thousand rubles. (This option is applicable when the buyer cannot provide documents proving the purchase of the site and confirm the expenses incurred for this.)
- Obviously, a profitable option would be to reduce the tax base by the amount of expenses: 1.5 million – 1.2 million = 300 thousand rubles. Personal income tax = 300 thousand rubles * 13% = 39 thousand rubles.
If, in order to purchase this plot, citizen Ivanov I.M. took out a loan from a bank, then the interest that he paid to the credit institution can be added to the confirmed expenses. You can prove them using a certificate taken from the bank. Thus, the tax base will become even smaller by the amount of interest paid.
Is it possible to underestimate the cost of selling a plot of land for tax purposes?
Separately, it should be said about the case when a land plot was sold below its cadastral value in order to evade taxation. The new edition of the Tax Code defines the provisions for the sale of any real estate, which includes land acquired after 2016.
If a land plot is sold below its cadastral value, then a comparison with the cadastral valuation at the beginning of the year when the transfer of ownership rights to it is registered is applied. In the event that the amount of income from the sale is lower than the value according to the cadastre, then the tax base is calculated. coefficient 0.7.
For example: Citizen Markov M.M. entered into an inheritance of a land plot in 2019 and in the same period sold it for 300 thousand rubles. Its cadastral value is much higher and is estimated at 1,500 thousand rubles.
The base for calculating the tax will be 1500 thousand * 0.7 = 1050 thousand rubles. If we apply a property deduction, we will reduce it by 1 million rubles and 50 thousand rubles will remain.
Personal income tax = 50 thousand * 13% = 6500 rubles.
In the case when the cadastral value of this site turned out to be less than one and a half million rubles, then reducing it by a factor of 0.7, the total would be less than 1 million rubles. After property deduction, there is no taxable income. This means that citizen Markov M.M. As a result, he did not receive taxable income and was exempt from tax.
1300 thousand * 0.7 = 910 thousand rubles - 1 million rubles = 0
When selling a plot that is in shared ownership of several persons, there are features:
- When selling shares under one transaction agreement, the property deduction is applied once, i.e. for the entire cost of the property in the amount of 1 million rubles (for example, the plot is jointly owned by two persons in equal shares and is sold under one contract, then a deduction will be provided to each of 500 thousand rubles);
- When selling shares under different agreements, each owner has the right to take advantage of a property deduction regarding his share (for each agreement the deduction will be 1 million rubles).
Procedure and deadlines for paying land tax in 2019
Income received in the case when land that was owned for less than a minimum period is sold and there is personal income tax to be paid to the budget is declared. This is the responsibility of the taxpayer. Even a zero result for personal income tax requires confirmation of calculations by the tax authority.
This means that you need to fill out a declaration in form 3-NDFL and submit it next year after receiving income, no later than April 30. Personal income tax must be paid in the year the declaration is submitted. no later than July 15.
If the land was sold in 2018 before the due date, then the tax return (3-NDFL) must be submitted by April 30, 2019, and the land tax must be paid by July 15, 2019.
If the declaration is submitted to the Federal Tax Service on time, but the tax payment deadline is missed, then penalties will be applied for each day of delay. When the obligation to both declare and pay is not fulfilled, a fine of 20% of the amount of taxable income is imposed on the guilty person. In addition to the fine, penalties are also subject to collection, calculated in the amount of 1/300 of the Central Bank refinancing rate in effect on the date of debt calculation.
Examples of completed declarations in the following cases:
On the profits that citizens of our country receive in any way, they are required to pay tax.
This also includes the duty that is imposed, because by selling property, its owner receives income.
Since 2017, amendments to the law adopted in 2016 have come into force, therefore the taxation system and rates have been changed.
All aspects of taxation in our country are regulated by the Tax Code.
Based Article 224 paragraph 1 you are required to pay tax on profits received from the sale of real estate. At the same time, the law provides for certain periods of ownership of property that has been sold. A fee is paid if the period of possession is less than established by law.
Previously, this period was three years. But after the entry into force Federal Law No. 382-FZ, which makes changes to the existing taxation system, all real estate that became property after January 1, 2016 is subject to income tax upon its sale, if the period of ownership at the time of sale is less than five years.
The Tax Code also specifies the procedure for paying tax, calculating its rate and benefits that are provided for certain categories of taxpayers.
In addition, you should know that, according to Article 130 of the Civil Code, those objects that are located and cannot be moved to another place without damage are also recognized as real estate. That is, a house that stands on a plot is a separate piece of real estate, and its sale is also subject to contributions to the state budget.
Who should pay
By law, taxes are paid by all individuals who sell land, a house or any other property.
Both residents of the country and those who are not residents must pay the fee.
Residents Not only citizens of the country are considered, but also those who live in the territory of our country for at least six months, even without being its citizen. Residents of the country are required to pay taxes on the sale of any property located both in Russia and abroad.
Non-residents are those individuals who do not reside in the country for more than six months. These can be Russians living in other countries for more than 6 months a year, and foreign citizens. They are required to pay tax only when selling land plots located in Russia.
Depends on citizen status tax rate. Thus, residents pay a fee for the sale of land in the amount of 13% of the income received; for non-residents the rate is 30%. 
Property tenure
According to the law, for property acquired after January 1, 2016, a taxable period of ownership is established - at least five years.
If the property was purchased before this time, that is, before January 1, 2016, the taxable period of ownership is 3 years.
Tax benefits
The law determines not only the amount of duty, but also the categories of citizens who have benefits when paying taxes or are completely exempt from them.
Thus, in connection with changes in the Tax Code in force since 2016, release allowed from contributions to the budget for land plots acquired after
January 1, 2016, upon expiration three year old period of ownership in the following cases:
In addition, from paying taxes regardless of the period of land ownership individuals are exempt such cases:
- the sold plot was the only property of the family and housing was purchased with the proceeds;
- the property has been owned for more than three years, and its value does not exceed 5 million rubles;
- the land is sold at the same price as it was purchased, or for a lower cost, and all supporting documents will need to be prepared and submitted.
In all other cases, to be exempt from paying taxes, you must own the land for at least 5 years.
It is worth noting once again that real estate objects are Both the plot and the house that is located on it may not always have the same period of ownership. It often happens that a plot of land is first purchased, and over the past few years a house is built on it. When selling a house and a plot at the same time, the tax will be calculated for each object separately, taking into account the period of ownership of each of them and their value.
Calculation of the amount
To determine the amount of taxable base value, the following factors need to be taken into account:
First, to understand whether you need to pay tax at all, you need to determine the period of ownership of the property and how it came into ownership. Perhaps as a result, it will turn out that the sale of land is not subject to duties.
In all other cases, the income that was received as a result of the sale of land must be taken as a basis. Taking into account the new requirements, this amount is compared with its cadastral value. In this case, this indicator is multiplied by a factor of 0.7; if the result obtained turns out to be greater than the income received, then 70% of the cadastral value is taken as the basis for the tax base.
From this amount all possible benefits are deducted:
- with social benefits – 600 sq.m. land plot is not subject to tax;
- tax deduction – 1,000,000 rubles if the land was owned for less than 5 years;
- expenses for the purchase of land (if ownership was acquired as a result of the purchase of a plot, and not as a gift, privatization or inheritance)
Reduction of the tax base for social benefits applies in any case.
But you can choose between a tax deduction and the costs of purchasing a plot depending on the circumstances: if the costs are more than 1 million rubles, then it is more profitable to use these parameters; if the costs were less, then the tax base is reduced by the amount of the deduction.
The resulting amount multiplied by the tax rate(13% for residents and 30% for non-residents).
Payment procedure and terms
All taxpayers are required to file an income tax return no later than April 30 the year following the year in which the income was received. That is, if the plot was sold in 2018, then by April 30, 2019, you must fill out and submit a declaration to the tax office. Each taxpayer must calculate the amount of duty independently. The completed declaration must be submitted to the tax authorities at the place of registration.
If this year your income was determined only by the sale of a plot, then the declaration contains information only about this property. If, in addition to it, income was received from the sale of other property, then general declaration in form 3-NDFL.
All taxes must be paid no later than July 15 the same year in which the declaration was filed.
Only those citizens who are exempt from paying taxes may not submit a declaration. It is better to resolve all controversial issues in advance by consulting with the tax authorities and providing all the necessary documents for verification. The entire calculation procedure and the list of required documents can be found on the Federal Tax Service website.
In case of non-payment of tax sanctions are applied to the violator. The fine is 20% of the income received for each overdue day, and the penalty is 5% or at least 1 thousand rubles per day.
If you receive a notification from the tax office about the need to pay tax, but by law you are exempt from it, or the amount issued by the tax authority is greatly inflated, you need to contact the tax authority with all the documents that confirm your right to not pay tax or reduce the tax base.
Features for agricultural land
Income from the sale is subject to income tax in the same way as the sale of any property. The same applies to individuals bid, as when selling a plot of land for individual housing construction: 13% for residents and 30% for non-residents. It is also calculated according to the general scheme.
Exempt from payment persons who have owned the land for more than 5 years. All basic benefits also apply to owners of agricultural land.
However, if you are registered as an individual entrepreneur and receive profit from the site, then in this case the size of the tax rate and the procedure for its payment will depend on the general taxation scheme of your organization.
For information on changes in legislation regarding the payment of this type of contributions to the budget, see the following video:
All provisions in the article are relevant in 2019.
Tax on the sale of land is paid by all individuals if the property sold belonged to the former owner for less than 3 years. Since 2016, this period has been increased and currently stands at 5 years.
The previous three-year period remains for real estate acquired and registered in ownership before 2016, as well as for real estate donated, inherited, privatized and received under a lifelong annuity agreement. For these types of property, the period of ownership that exempts a citizen from paying tax on the sale of a land plot is at least 3 years. Let's consider in what other cases you can avoid paying tax on the sale of salaried goods.
When taxes are not paid
Conditions that exempt a citizen from the obligation to pay personal income tax for sold land:
- ownership period is more than three (in some cases five) years. An unconditional basis for exemption from payment of payments on income from the sale of land and houses;
- the profit from the sale of a salary and a house is completely covered by the tax deduction.
If the income received is equal to or less than the value of the property deduction, tax on the sale of a land plot is not subject to payment to the budget, but the obligation to submit reports on the profit received remains.
Thus, if at least one of the above conditions is met, the amount of income payment to be contributed to the budget will be zero. Let us further consider in what cases it is necessary to declare the income received and in what amount a deduction can be used in relation to the income received.
Reducing profit from the sale of leased property for tax deduction
The amount received from the sale of a loan (held for less than the period established by law) can be reduced by:
- the entire cost of purchasing the sold property;
- the amount established by law in the amount of 1 million rubles.
This benefit is not a tax deduction by law, but by its nature it can also be classified as one of the types of benefits. This preference can be applied if the amount of costs for the purchase of real estate is documented by the relevant papers.
Accordingly, if the sold plot was previously received as an inheritance from a grandmother, or was donated, then it will not be possible to take advantage of this benefit, since there were no direct costs of the owner for the purchase, and the purchase costs of the previous owner (testator or donor) cannot be taken into account in this case .
If the purchase costs cannot be documented, the citizen can reduce the profit received from the sale by the established amount of tax deduction. The maximum deduction amount can be used if income is equal to or exceeds 1 million rubles.
Example #1
Topalov V.D. in 2019, he sold the plot he had inherited from his mother a month earlier. The amount of income amounted to 3,542,300 rubles. Since the plot was in his ownership for less than 3 years, he must calculate tax on the sale of the land plot from the profit received.
Due to the fact that the land was inherited and there are no documents confirming the costs of its purchase, Topalov will only be able to take advantage of a tax deduction in the amount of 1 million rubles. Taking into account this benefit, the amount of payment to be included in the budget will be 330,499 rubles:
(3,542,300 – 1,000,000) x 13%
Example No. 2
Soloviev A.I. in 2015 purchased a small plot of land with a small house for 1,360,500 rubles. A year later, he decided to sell it. The amount of income amounted to 2,585,000 rubles. Since the holding period is also less than the established one, the profit received is subject to personal income tax.
Due to the fact that Solovyov has documents confirming the purchase of land and house, he can take all costs into account when calculating the tax. The amount payable to the budget will be 159,185 rubles:
(2,585,000 – 1,360,500) x 13
Having answered the question of whether it is necessary to pay tax when selling land, we will consider in what cases it is necessary to declare the profit received.
Presentation of reports on profits received
The obligation to declare income received arises only when it is necessary to pay tax on the sale of the property. That is, if the plot has been owned for more than 3 (5) years and income from the sale is not taxed, there is also no need to submit reports.
But, if the tax payable is zero (the amount of deduction exceeded the income received), a declaration will need to be submitted.
Reporting (including zero reporting) must be submitted by April 30 of the year following the date in which the property was sold and income was received.
If an individual fails to submit a declaration on time, this will entail tax liability and the imposition of a fine on him in the amount of at least one thousand rubles.
Personal income tax payment
The tax payable must be paid no later than July 15 of the year following the purchase and sale of the land.
Having determined in which cases income is subject to an income tax, we will consider the features of calculating and paying an income tax on the sale of a leasehold property.
Features of calculation and payment of personal income tax:
- the basic tax rate is 13%, however, if a citizen lived abroad for more than 183 days for the entire year in the year in which he sold the property, then he will have to calculate the tax at a rate of 30%, in addition, he will not be able to take advantage of the deduction , since non-residents are deprived of this preference;
- if several residential properties or other residential real estate were sold in one year, the total amount of the deduction will be one million rubles for the entire property;
- the fact of having income (other than from the sale of real estate) does not matter for receiving the deduction;
- Tax must be paid to the Federal Tax Service at your place of registration.
Still have questions?
Write your question in the form below and receive detailed legal advice:Who should pay for the plot, how much is its size, when is it tedious to pay the tax? In our material we will consider all aspects of paying for this, preparing reports, and study all other nuances that will help to correctly carry out calculations for individuals and legal entities.
Who should pay tax on the sale of land?
There are two main categories of payers of this tax:
- Individuals - residents of the Russian Federation who spent at least 183 days in Russia during the year.
- Legal entities and individual entrepreneurs who are .
Residents must pay this tax regardless of whether it is located in Russia or outside its territory. But non-residents only if the sale of a land plot was completed in Russia.
The tax amount for individuals is:
- 13% for residents.
- 30% for non-residents.
But in the case of legal entities, income received from the sale of a plot must be taken into account in the total amount of income from their activities, therefore, the calculation and other conditions for paying tax are determined by the taxation system used at the enterprise.
Duration of ownership is an important factor in calculations
Tax legislation, including Article 217 of the Tax Code of the Russian Federation, establishes two periods of ownership for land plots that were acquired after January 1, 2016. And they both affect the size of the tax liability:
3 year period
This period is considered sufficient to exempt an individual from paying tax after the sale of the plot. To avoid paying tax, you must have one of the following grounds:
- There is a gift agreement between relatives.
- The plot is privatized.
- There is a lifelong maintenance agreement available.
5 year period
This period is also the minimum allowable, allowing individuals to be exempt from paying tax.
But an important note is that it can be used if it is not possible to apply a 3-year period. For land plots purchased before January 1, 2016, a three-year period will continue to apply.
True, the Federal Law stipulates that regions themselves can shorten these periods for certain categories of citizens at their request.
How to calculate personal income tax?
Individuals themselves must pay taxes, determine benefits (if any), and carry out all calculations. That is why it is so important to understand exactly how in this case - after all, if errors are identified by the inspection authorities, claims may be made.
One of the most important questions is how much tax is paid, what documents need to be drawn up and how are payments made? Let's take a closer look.
The tax is paid on the amount that is the tax base - it is calculated taking into account all the costs of purchasing housing, deductions, etc. To determine the tax base you also need to take into account:
First, we determine the period when the plot was owned, then we take as a basis the amount received as a result of the transaction. The tax base most often does not exceed it, but it allows you to reduce its size due to the presence of deductions. Then the base is calculated individually.
At the same time, since 2016, it is necessary to analyze the amount received, compare it with that received in the transaction (this information can be found in the contract), and take into account the cadastral value.
If the income received from the transaction is less than the amount received as a result of multiplying the cadastral value by a coefficient of 0.7, then in this case it is this value that must be used, and not the cost of the sold land plot.
Thus, the primary value cannot be less than 70% of the cadastral value. After receiving the amount you need to subtract:
- 10 thousand rubles is a social benefit.
- A fixed tax deduction, which is equal to 1 million and can only be applied to land that has been owned for at least five years.
- The amount of expenses that were spent on the purchase of the site. In this case, expenses must be confirmed (receipts, contract, etc.). This option cannot be used for land received as an inheritance or gift.
Social benefits can be used in all cases, but applying a tax deduction is everyone’s business and depends on the circumstances. For example, if the amount of costs turns out to be greater than the deduction amount, it is much more rational to use the cost method. However, some citizens still use their right to receive a deduction to reduce their tax base.
Payment of tax on the sale of land and declaration
In addition, taxpayers are responsible for filing returns and paying taxes. The document itself must be submitted to the tax office no later than April 30 of the year following the reporting year. That is, when selling a plot in 2015, the document must be sent for verification no later than April 30, 2016. Tax payment is made no later than July 15 of the same year (after submitting the declaration).
If an individual received only income from the sale of his property in the reporting year, then the declaration will contain only information on this transaction. If there is other income, for example, the rental of property or the sale of other objects, a general declaration is drawn up in form 3-NDFL.
Only those who do not have to pay tax upon sale, for example, who have owned a land plot for more than 5 years, etc., may not provide this document. If this obligation is present, but when calculating the tax it turns out to be zero or less, the declaration is drawn up in accordance with all the rules, but the tax does not need to be paid.
Along with this document, it is also worth providing the tax office with other documents to confirm the benefit, the right to use the deduction, checks and contracts confirming expenses. Undoubtedly, the tax inspector can check all these documents without you, since he has access to various databases, however, this condition is mandatory - if there are no supporting documents, it may turn out that there is no deduction, which means that taxes will be recalculated in favor of an increase .
To simplify the preparation of reporting and calculations, individuals can use specialized services on the website of the Federal Tax Service. There you also have the opportunity to enter your personal account, where you can contact the department, ask questions, make payments, etc.
Can they refuse to accept a declaration?
It is important to remember that the tax inspector may not accept the declaration, but only for legal reasons, which include:
- Lack of important documents – for example, the applicant’s passport.
- Lack of signature on the declaration.
- When submitting a document to the tax office, to which the applicant does not belong.
- The document is filled out incorrectly.
But if you filled out the document correctly, and the inspector refused to accept your declaration, you have the right to appeal to a superior person - in this case, the tax service employee faces disciplinary action.
Taxes on the sale of land to individual entrepreneurs or legal entities
As we have already said, individual entrepreneurs and legal entities must pay this tax only if they use the land for commercial purposes. That is why all income from the sale of land will be included in the overall tax base of the enterprise.
There will be a slightly different form of calculation - the rate is calculated based on the adopted taxation system, and the creation of reports and payment of taxes are carried out according to the general rules for paying taxes.
Examples of calculations - useful information
Let's take a closer look at tax calculations when selling a plot, which will allow you to avoid purchasing and correctly draw up a declaration and make payments.
Individuals
We have the following data: the taxpayer can apply a property deduction - this advantage is defined in Article 220 of the Tax Code of the Russian Federation. If the seller of the plot is exempt from payment in accordance with Article 217 of the Tax Code of the Russian Federation, he can reduce the tax base by 1 million rubles. It is tedious to subtract this amount and pay tax from the resulting amount. There is an example: a plot of land was sold for 3 million rubles, and the seller was able to reduce the base by 1 million rubles, as a result, the amount from which the calculation needs to be made was 2 million rubles.
Therefore, the tax will be equal to: 2 million rubles * 0.13 = 260 thousand rubles.
At his discretion, an individual can either take advantage of the deduction or present in the document the expenses that he incurred to purchase the site, reducing the base by this amount. The second option will be the most rational in the case of:
- There are documents that will confirm expenses - checks, a purchase and sale agreement indicating the price.
- The amount of expenses exceeded 1 million rubles.
For example: citizen Ivanov bought a plot for 2 million rubles, but sold it for 3 million rubles, and all the necessary receipts and documents were preserved. Ivanov must “report” this in his declaration and reduce expenses by 1 million. Therefore, the tax amount will be:
1 million rubles * 0.13 = 130 thousand rubles.
Legal entities
It all depends on what taxation system is adopted at the enterprise:
When working under a special regime or simplified tax system, a tariff of 6% is used. It’s simple to calculate: when selling property worth 3 million, the tax amount will be 180 thousand rubles (3 million * 6%)
If the company operates on the principle of “Revenues reduced by expenses”, you need to use a rate of 15%. This system allows you to deduct the following types of expenses from the tax base:
- For registration, approval of ownership, land surveying, etc.
- To pay the state fee for registration.
- To pay the notary fee.
But the costs of purchasing a plot cannot be used for deduction - this should be remembered so as not to make mistakes in the calculations.
If the work is carried out according to the general regime, then the income from the sale of the plot must be subject to a rate of 20% of the profit. True, the Tax Code of the Russian Federation allows you to reduce this amount by expenses incurred for the purchase if you have supporting documents.
Responsibility for non-payment and failure to submit a declaration
If, after the sale of the plot, the seller does not submit a tax return and does not pay the tax, sanctions will be applied to him - fines, penalties, etc. In this case, a penalty is charged for each day of delay in the amount of 1/300 of the refinancing rate established by the Central Bank of the Russian Federation.
Fines are provided for failure to submit a declaration or errors in them in the amount of 1/200 of the tax amount, but not more than 30%. The minimum fine is not less than 1000 rubles.
In case of non-payment of tax or payment of an incomplete amount, a fine of 20-40% of the total tax is provided. The amount depends on the reason for non-payment.
In contact with
plot
If an individual sells a plot of land, then he has an obligation to pay tax on the income of individuals in accordance with the norms of Chapter 23 of the Tax Code of the Russian Federation. In order for the obligation to pay personal income tax to actually arise, two conditions must coincide: both the person who owned the land plot and the land plot itself must be subject to the rules governing the procedure for paying personal income tax.
As for taxpayers, they can be both citizens of the Russian Federation and foreigners, but the site itself must be located on Russian territory. Within the framework of personal income tax, taxpayers are divided into 2 categories, and regardless of citizenship, the distinction is made according to the time of stay in the territory of the Russian Federation and looks like this:
- Residents are those who live in the Russian Federation for a little more than six months for 12 months, or more precisely, more than 183 days. Leaving the country for treatment or study for a period of less than six months is not taken into account.
- Those who stay in Russia for a shorter period of time are not considered residents.
Both are required to pay personal income tax if they received income from the sale of land in Russia.
Important: in accordance with the letter of the Federal Tax Service of the Russian Federation dated December 11, 2015 No. OA-3-17/4698@, the mere presence of a Russian citizen in the country for less than 183 days during a calendar year is not grounds for the loss of his resident status. This issue is resolved in each case individually, depending on the availability of permanent residence in the Russian Federation.
Tax rate when selling a plot by an individual
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The personal income tax rate is set by tax legislation at 13%. But there are exceptions here. Regarding the sale of land, this rate applies to tax residents, and persons who are not tax residents use a rate of 30%.
It turns out that if the plot was sold for 2,000,000 rubles and the seller is not released from the obligation to pay personal income tax and is not entitled to any deductions, then he will have to pay 260,000 rubles (2,000,000 * 13%). But the non-resident seller will already pay 600,000 rubles (2,000,000 * 30%).
How does the tenure of land affect the amount of tax when selling a plot?
Receiving money from the sale of real estate is not always considered income. If the owner owned the plot for more than 3 years and then sold it, then he is exempt from paying tax. This rule is enshrined in clause 17.1 of Art. 217 Tax Code of the Russian Federation. Until January 1, 2016, this is exactly the rule that was in effect, but now the period of ownership of a property required for tax exemption has been increased to 5 years. Thus, according to the new rules, to be exempt from personal income tax, you must be the owner of a land plot for more than 5 years. But if ownership of the plot has been obtained:
- by inheritance or as a gift from a family member or close relative;
- during privatization;
- during the execution of a lifelong maintenance agreement with dependents;
then the sale with subsequent exemption from payment of tax on the sale of land can continue to be carried out after 3 years.
The innovation applies to transactions made after 01/01/2016. In this case, it is not the date of signing the contract that is taken into account, but the date the seller receives the money. Therefore, if the agreement was signed at the end of 2015, and the buyer paid the money already in 2016, then the tax period will be considered 2016, and the taxation mechanism will be used with appropriate changes.
What deductions can be applied when taxing land sellers?
When it comes to income from the sale of land, a property deduction is applied, regulated by Art. 220 Tax Code of the Russian Federation. If the owner is not exempt from paying personal income tax after selling the plot, and this happens when he owned it for less than 3 years, and since 2016 - for less than 5 years, then he can apply a property deduction in the amount of 1,000,000 rubles.
The mechanism for applying this deduction looks like this: first, the amount of the deduction is subtracted from the amount received upon sale, and the tax rate is applied to the remaining amount.
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Provided that the plot was sold for 2,000,000 rubles, the tax will be:
(2,000,000 - 1,000,000) * 13% = 130,000 rubles.
But instead of 1,000,000 rubles, you can deduct from the income from the sale of land the amount spent on purchasing this plot. This option is only suitable if the amount of costs can be documented. Well, it is advisable to use it if the cost of purchasing a plot exceeded 1,000,000 rubles.
Provided that the plot was sold for 2,000,000 rubles and purchased for 1,750,000 rubles, the tax will be:
(2,000,000 - 1,750,000) * 13% = 32,500 rubles
The latter option is significantly more profitable, but it is not suitable for privatized plots received as a gift or inheritance.
Another feature of the property deduction: if the plot was jointly owned, for example, by 3 people whose shares are equal, and was sold under one contract, then each of the co-owners will receive the right to only a third of the property deduction. But if the co-owners sell their shares separately, then each will have the right to apply a deduction in the amount of 1,000,000 rubles.
Procedure for declaring and paying tax
The declaration must be submitted by persons who sold their land and are not exempt from paying personal income tax. Those owners of plots who sold land that belonged to them for more than 3 years are not required to submit a declaration. But there are situations when they also receive tax payment notices. Here you just need to provide tax documents, which show that they are exempt from paying tax.
The law sets a deadline for filing a declaration. It is usually submitted after the end of the tax period, i.e. the calendar year, until April 30 of the following year. Essentially, the taxpayer has 4 months to declare their income.
A declaration is drawn up in a specially approved form 3-NDFL. This indicates the amount of income received from the sale of the plot and the amount of property deduction applied. The taxpayer makes the calculation independently.
Along with the declaration, the taxpayer provides tax documents that confirm the information specified in it, namely:
- To confirm the amount of income, a purchase and sale agreement is required.
- If a deduction is applied in the amount of the amount paid when purchasing the plot, then bank statements or a receipt from the seller for receipt of money or other similar documents are also needed.
You must have the originals of these documents with you.
The calculated tax amount must be paid by July 15. Otherwise, for each month of delay there will be a fine of 20% of the unpaid amount. But the fine for failure to submit a declaration is equal to 5% of the unpaid amount for each month of delay, but in any case not less than 1,000 rubles.
Tax on the sale of land is paid to the budget by the seller, taking into account property deductions. In addition, the seller may be exempt from paying tax altogether if he sold a plot that he owned for more than 3 years. The seller is required to notify the tax office of the income received, even if the tax amount after applying the deduction is zero.