Tax deductions for Tatarstan citizens to be calculated automatically, even for fitness

Almost 11bn rub returned to Tatarstan citizens

The head of the Federal Tax Service of the Republic of Tatarstan, Marat Safiullin, reminded Tatarstan citizens that there are only a couple of weeks left before the end of the declaration campaign — then fines and penalties will follow, citizens must have time to submit a declaration by April 30 in the form of 3-NDFL. This applies to individual entrepreneurs, lawyers engaged in the private practice, tenants of housing, lottery winners and individuals who received property as a gift not from close relatives or income from the sale of bitcoins and other cryptocurrencies.

“The declaration can be submitted at the place of residence or online — the latter is very convenient, through the taxpayer's Personal Account for individuals. Today in Tatarstan, more than 1 million citizens are registered," Safiullin said.

Of them, about 60-70% file their tax returns online. The resource is particularly popular when filing a tax return — you can apply for it during a year.

“There are tax returns for the purchase of goods, housing construction, education, and medical treatment. One can get a social tax return independently or through a tax agent. Our citizens are very active in using tax, social and property returns. For example, in 2020, 364,000 tax returns were filed — a very large number, and 10,7 billion rubles were returned to them from the budget. This is a significant support for our citizens," said the head of the Tatarstan tax authorities.

Expected personal income tax collection — 1 billion rubles

The Federal Tax Service of the Republic of Tatarstan expect about 100,000 declarations from individuals who must report on their income and pay the amount of taxes — this is the forecast value of the Tatarstan tax authorities themselves — of about 1 billion rubles.

Anyway, in 2022, the tax will still be deducted. In accordance with the changes in the Tax Code of the Russian Federation, if a taxpayer who has received income this year does not independently submit a declaration, they are charged the amount of tax, and with it — fines and penalties, Safiullin again threatened — this is a feature of the declaration campaign of 2021.

Returning part of costs for fitness

However, the head of the Tatarstan Federal Tax Service also shared “goodies”. For example, starting from 2022, any Tatarstan citizen engaged in sports can receive tax returns. Apparently, indirectly, in this way, the state will not only support the health of citizens, but also the business of fitness clubs, which, we will remind, has sunk in the coronavirus pandemic.

“In March 2021, amendments to the Tax Code were adopted, according to which citizens can receive returns under the terms of sports and recreation services for themselves or their children under 18 years of age from 2022. I think this will also be very popular," Safiullin confidently suggested. “One can get a tax return for sports and recreation events. For example, visits to fitness halls, playing sports. The check for services will be a document for receiving a return. And for children who are engaged in sports, who have not reached the age of 18.”

Curiously, health resort treatment is also included in the list of such services, which will be subject to tax returns. However, non-poor lovers of expensive spas will not get such return. The upper limit of the price for services is 120,000 rubles. If a person visits “elite institutions”, said Marat Safiullin, no check will help him, “there is a limit of 120,000 rubles”.

Under simplified procedure

The changes to the Tax Code, in fact, are aimed at simplifying the procedure for ordinary citizens, the head of the Tatarstan Federal Tax Service made it clear. For example, a draft bill on amendments to the Tax Code of the Russian Federation regarding the introduction of a simplified procedure for obtaining tax returns for personal income tax is currently being considered. Already this year, to get a return, it will be enough to submit an application through your personal account without submitting a declaration and providing confirmation documents. The tax authorities will receive information from agents and banks. Starting from the next year, the the possibility of receiving social tax returns for medical and educational expenses “with the help of information about electronic receipts” will be finalised. And the amount of the refund of such deduction will be reduced significantly, up to 1,5 months.

“Today, we have 3 months for a desk check and 1 month for a refund. For the convenience of taxpayers, all tax inspections now conduct a daily reception without a lunch break! From Monday to Thursday, from 9 am to 6 pm. And every Tuesday and Thursday — from 9 am to 8 pm. We also have a call centre — 800-222-22-22," Safiullin said.

Federal Tax Service of of Tatarstan explained the procedure for paying tax on income from bank deposits

However, there are also not very pleasant tax changes. Marat Safiullin reminded that from January 1, 2021, citizens who receive interest from bank deposits in the amount of more than 1 million rubles will have to pay tax.

“There is a tax deduction in the amount of 42,500 rubles. This is calculated based on the Central Bank's rate [at the moment] — from 1 million rubles. If your income exceeds the amount of 42,500 rubles in the form of interest — you will have to pay a 13% tax from it. If a bank deposit is more than 5 million rubles — then 15%," explained the chief tax officer of Tatarstan.

Everything depends not only on the size of bank deposit, but also on bank deposit rate. If the rate is lower than the Central Bank's key rate (4,25%), you do not need to pay the tax, if it is higher (for example, 5%), you will have to pay the tax. But what is interesting is that the citizens themselves, who have millions in their accounts, are not required to submit a declaration: everything will be calculated for them in the Federal Tax Service. Based on the information that the banks provide themselves. Safiullin also assured that the Federal Tax Service will have the opportunity to find out and charge the necessary tax, even if a Russian holds deposits of less than 1-5 million rubles in different accounts. “Even if a person has income from different tax authorities — we will find out, since they must submit declarations.”

Tax deductions will be calculated automatically

In this case, the question inevitably arises — why submit paper or even electronic declarations, if the tax authorities still see everything and know everything? Why would a person who wins a lottery prize in a ridiculous amount, for example, 4,000-5,000 rubles, submit a lot of papers and file a declaration? Marat Safiullin, after thinking about it, was forced to essentially agree with this. The tax system of the Russian Federation and the Republic of Tatarstan is already ready for automatic calculation of at least personal income tax, he admitted.

“The tax service is moving towards it. I think, sooner or later, [personal income tax] will be calculated automatically. But while there is the federal bill -the declaration must be submitted," he said.

It is interesting, by the way, that some categories of citizens are no longer required to submit declarations, they are taxed automatically (approximately like VAT — from all of us). In particular, the self-employed — they, Safiullin noted, do not file a declaration, “they automatically issue a check after paying for their services. Every month, automatically, 4 per cent of services to individuals and 6 per cent of services to legal entities, the tax is charged and paid.”

Fighting the “gray market” of rental housing — through complaints from neighbours

Finally, the Federal Tax Service commented on the painful problem for them. As you know, not all apartment owners who rent out an area pay tax (although they are required to do so). The team of Marat Safiullin could not, however, say what the share of such illegal entrepreneurs is.

However, it is not difficult to roughly imagine the size of the gray market. Today in Tatarstan, Safiullin said, there are more than 110,000 registered as self-employed. Every year, the 3-NDFL declaration on rental income is submitted by only 3,500 people. Of course, they can't fight illegal renters in the Federal Tax Service with desk checks. Such “gray” tenants are still identified in indirect ways.

“If we receive information — we conduct checks against these persons: when there are complaints from neighbours, from other bodies, representatives of housing cooperatives," Marat Safiullin admitted.