News

THE TAX RETURN FILING DEADLINE HAS BEEN EXTENDED TO 30 JULY 2020

Based on the information provided by the Federal Tax Service on 6 April 2020, "the income declaring campaign has been extended for 3 months" due to the complex epidemiological situation as well as within the framework of measures for maintenance of sustainable economic development


 


Based on the information provided by the Federal Tax Service on 6 April 2020, "the income declaring campaign has been extended for 3 months" due to the complex epidemiological situation as well as within the framework of measures for maintenance of sustainable economic development.

It is worth reminding that, in accordance with the Tax Code, the deadline for submission of 2019 income tax return was before April 30. However, under the current circumstances, the personal income declaring campaign shall be extended to July 30. Note however that the tax assessed in the tax return needs to be paid before 15 July 2020. Not only the Russian Federation citizens but also foreign nationals and stateless persons, which were tax residents in the reporting period (that is stayed in the Russian Federation for over 183 days in2019) shall file an income tax return with the Russian tax authorities. In some cases, this also relates to the income received outside of the Russian Federation.

Taxpayers, required by law to file their tax returns with a tax authority located at their place of registration, can be divided into groups in accordance with paragraph 1 of Article 227, paragraph 1 of Article 227.1, and paragraph 1 of Article 228 of the Tax Code of the Russian Federation:

  • individuals conducting entrepreneurial activities without forming a legal entity;
  • privately practicing notaries and lawyers with law offices, and other persons engaged in private practice in accordance with the law;
  • foreign nationals carrying out labour activities, who are hired by individuals under a patent issued in accordance with Federal Law N 115-ФЗ dated 25 July 2002 “On the Legal Status of Foreign Nationals in the Russian Federation” (hereinafter referred to as Federal Law N 115-ФЗ);
  • individuals – based on the amount of remuneration received from individuals and organizations who are not tax agents, on the basis of labour and civil contracts signed, including income earned under employment or lease contracts;
  • Individuals – based on the amounts received from the sale of property owned by these persons under ownership and property rights, except as provided for in paragraph 17.1. of Article 217 of the Tax Code of the Russian Federation, when such income is not taxable;
  • individuals – tax residents of the Russian Federation, except those Russian military personnel specified in paragraph 3 of Article 217 of the Tax Code of the Russian Federation, earning income from sources outside the Russian Federation, – based on the size of such income;
  • Individuals earning other income not taxed by tax agents, – based on the size of such income;
  • Individuals earning income in the form of remuneration paid by organizers of lotteries, totalizators and other risk-based games (including those that use slot machines), – based on the size of such income;
  • individuals earning income in the form of remuneration paid to them as heirs (legal successors) of authors of works of science, literature and art, inventions, useful models and industrial designs;
  • individuals earning from other individuals, who are not individual entrepreneurs, income in cash and in kind as a gift, except as provided for in paragraph 18 of Article 217 of the Tax Code of the Russian Federation, when such income is not taxable.

If the withholding agent failed to withhold the personal income tax upon payment of income and failed to notify the tax authorities about its failure to withhold such tax (including about the amount of the personal income tax, which it failed to withhold), then such income needs to be declared by the person on his own behalf. However, if the withholding agent performed this obligation, then the tax authority shall send a notice to the taxpayer, whereby the taxpayer is required to pay the personal income tax on or before 1 December 2020.

The tax return filing deadline ofJuly 30 does not apply to tax deductions. In such cases, the tax return may be sent at any time during the year.

Form 3-NDFL may be filled in online using the “Taxpayer Account for Individuals” service.  Filing Form 3-NDFL online has become easier and takes less time after upgrade of the service. It is only required to select one of the six real-life situations:

1. declaring supplementary income from property rent;

2. property related tax deduction(in case of purchase/construction of property);

3. social tax deduction related to educational training;

4. social tax deduction related to medical treatment and purchase of pharmaceuticals;

5. social tax deduction related to charitable contributions;

6. investment related tax deduction.

The Federal Tax Service of Russia calls attention to the fact that the traditional “Doors Open Days” campaign, which used to be held shortly before the end of the Income Declaring Campaign, was cancelled this year.

Layers from TIM Services & TIM Advisers will be happy to provide you supportwith regards to the income declaring campaign in 2020.