A growing number of citizens who have to have a free flat and handing it out, unwilling to do so within the law. Especially as precedents for the prosecution of tax evaders with this type of income in Russia is already available, as well as prerequisites to the fact that the trend will grow. Moreover, all the owners of trade-dwelling interested in minimizing their costs, but not everyone knows how to organize the payment of taxes.
The order of execution of an individual enterprise (FE)
According to Section 1, Art. 23 Civil Code citizen has the right to engage in entrepreneurial activities without forming a legal entity with the state registration as a private entrepreneur (IP).
Procedure for registration of IP is governed by the Federal Law “On State Registration of Legal Entities and Individual Entrepreneurs” as well as the Federal Law “On amendments to legislative acts in part to improve procedures for state registration and registration of legal entities and individual entrepreneurs.”
To register you must provide IP to the tax authority established by the documents and pay the state fee of 400 rubles. Register IP is carried out within 5 working days after making accept the exercise of the registering authority records of the entrepreneur in the Uniform state register of individual businessmen – in EGRIP (Section 2, Art. 11 of the Law № 129-FZ).
Where in Moscow registered IP and what documents are needed
In Moscow, IP registration is only one tax – a tax inspection № 46 of the city of Moscow. Documents submitted to the registration authority in person or sent by mail to the insured when shipping and inventory investment. Applicant, as a rule, a person or a person acting under power of attorney (notarized) for a person wishing to register as an individual entrepreneur.
To register you must provide IP to the tax office the following documents:
- Passport, a certified copy of your passport and a copy of the Taxpayer;
- Notarized application for state registration (must fill out the application in block letters);
- Statement on the transition to a simplified form of taxation in two copies (on this below);
- Receipt of payment of registration fee of 400 rubles (bank details can be found in the tax office);
- Power of Attorney (if registration is made by proxy).
In a statement on the state registration should clearly indicate the type or types of real estate, which will carry out your IP:
- Letting of own real estate;
- Letting of own residential real estate;
- Letting of own non-residential real property;
- Provision of intermediary services related to real estate;
- Agency activities Real estate;
- Provision of mediation services in buying, selling and renting real estate;
- Provision of intermediary services in purchase, sale and lease of nonresidential real property;
- Provision of mediation services in the assessment of real property;
- Provision of mediation services in the assessment of residential real estate;
- Provision of mediation services in the evaluation of non-residential real property;
- Real Estate Management;
- Maintenance of housing stock;
- Maintenance nonresidential;
- Activities of accounting and technical inventory of real property;
When submitting documents to the tax office beware: you will need to take a pass on this IP registration, and not a legal entity – a different procedure and, accordingly, different queue.
Then you open a bank account (of number of workers with legal entities). A set of documents required for each bank’s own. In the Savings Bank, in contrast to commercial banks that do not require statistical codes which are used to account for legal entities and are assigned to the Federal State Statistics Service. Upon notification of account opening within 10 days of this should be reported to the tax, to avoid fines, and pass back the original document, while leaving a copy of itself. The last step – the branch of the Pension Fund to take the place of residence and fill out a form ADV-11 – statement of payment of insurance contributions for mandatory pension insurance (can be downloaded online, along with recommendations for its use).
When submitting documents to the tax office the applicant receives a receipt with the list and the date of receipt. If the filing of documents through a trustee’s receipt within 5 working days to mail to physical persons registered as individual entrepreneurs. Documents confirming the registration, sent by mail. As a rule, newly PI gets them about 2 weeks.
Document order
Contracts with tenants and other documentation should be kept in case of an audit. For tax reporting, these documents do not apply, but at the request of an inspector should be provided.
Accounting your business will depend on the mode of taxation. An individual entrepreneur has the right to choose one of three tax systems – general and two simplified, with the object of taxation “income minus expenses” or object of taxation “income”. The latter – the most simple and economical for such activities as rental housing.
In the simplified tax system with a taxable “income” tax is calculated at a rate of 6% of the amount of income received from tenants. This tax replaces the payment of VAT and personal income tax on income from business personal property tax (in respect of property used for business) and the unified social tax (in respect of income derived from business activities, as well as pay and other benefits, charged by them in favor of natural persons).
Law “On Accounting” in accordance with the release of entrepreneurs from the accounting. Instead it is a book for recording expenditures and revenues, which together should be stored leases. This book once a year rent to the tax office for verification.
Procedure for filling income tax return
Procedure for filing a tax return depends on the tax system and is regulated by the relevant head of the tax code. To fill in the declaration on incomes of physical persons engaged in business activities, should be read in chapter 23 of the Tax Code.
As noted above, the simplest and most economical mode of taxation – a simplified system at a rate of 6% of revenues. In this case, the declaration shall be filled once a year. In accordance with Article 346.23 of the Tax Code taxpayers – individual entrepreneurs – are tax declaration to tax authorities at the place of residence not later than 30 April of the year following the expired tax period (year), and in the year of registration – until 31 December. In addition, each year until April 25 to submit a form ADV-11 (see above).
Important addition: a declaration is required to take once a year, but the taxes are paid quarterly, otherwise you will be charged penalties.
From time to time there are instances when tax inspectors refuse to accept accountability for landlords, alleging that the taking of housing for rent may not take place in the PIs, and insisting on payment of personal income tax. If you happen to encounter such a requirement, remember – it’s unlawful refusal.
Restrictions on the use of a simplified system for IP listed in paragraph 3 of Article 346.12 of the Tax Code. There, in the list of restrictions on the use of a simplified tax system activity “renting of real estate (housing)” is missing.
To protect itself from such misconduct is enough inspectors at registration IP, follow these steps:
- In the codes of activities of state registration of the application to enter the appropriate activity code;
- In a statement on the application of a simplified tax system as tax objects indicate “income taxed at a rate of 6%.”
Under these conditions, the inspector will not be able to refuse to accept the declaration of tax payable on the application of the simplified tax system (UPDF).