Retirement tax exemption is a priority for any state. It is worth noting immediately that this group of the population is often hit by economic stress. Therefore, the government has been upgrading the support system for a long time and is trying to interact with the regions to resolve the issue of subsidies and economic assistance to citizens who, due to their retirement age, have stopped working.
Considering the model of pension benefits and security, it is necessary to highlight such an important issue as tax breaks. Every worker on the territory of the country and having property, or having established a legal entity, knows that under certain articles a fee is charged to the federal and regional budgets for a quarter or a year.
Tax evasion leads to the fact that the offender will be prosecuted with the subsequent collection of debt through the bodies of bailiffs. Pensioners in the country receive different amounts every month as subsidies. However, they are not always able to properly fulfill tax obligations. Therefore, the government went forward and introduced a system of benefits that abolish the main tax deductions on the property of such citizens.
About tax benefits
Retirement tax exemption is an important task that is constantly changing the model. In the early 2000s, benefits were not for all categories of property. After 2010, allowances were made for contributions for land and vehicles. However, here there are various restrictions and rules that must be observed in order not to pay taxes.
This form of support is fully aimed at providing citizens of retirement age with the opportunity to save on deductions to the federal and regional budgets. Such a list of benefits introduced on the territory of the Russian Federation allows to increase the standard of living of pensioners by several percent.
All rules for calculating tax benefits are spelled out in legislative acts. They are fully regulated by the Tax Code. A normative act coordinates this provision and establishes rules for the payment or provision of benefits in the regions. The implementation of the legislative decision lies entirely with the territorial tax authorities.
For what purposes did you introduce
Pensioners tax exemption is aimed at preserving the income of citizens receiving monthly subsidies. Given that in the regions they can be an average of 11-12 thousand rubles, for example, real estate tax paid in December of each year can be half of the amount of this income.
It turns out that after paying utility bills the pensioner will have no money left. Skipping payments is also not recommended, because this can lead to litigation and the enforcement of debt collection. As a result, tax systems are constantly being optimized to provide more benefits to unemployed citizens of retirement age.
However, if it is established that a pensioner is trying to earn money on this right, providing wealthy citizens with the opportunity to arrange their expensive cars for themselves, he can be held administratively, and in other cases, criminally liable.
The category of citizens eligible to apply for benefits
Pensioners were exempted from taxes in stages. At first, real estate tax was abolished. Then it was decided to abolish deductions to the budget for vehicles. Not so long ago, at the beginning of 2018, it was decided to abolish the land tax.
The basic rule under which the provision of benefits applies is the citizen's retirement age when applying to the Federal Tax Service at the place of registration or residence. According to recently adopted changes, it is now 65 years for men and 60 years for women.
At the time of adoption of the benefits, it was decided to keep for citizens who have already become pensioners up to this point. According to the old rules, such exemptions are granted to citizens aged 55 and 65 years. There are a number of restrictions. Many pensioners are wondering if it is possible to transfer benefits to another family member. In reality, there is no such program. In addition, tax breaks begin to apply only if a citizen writes a statement in the department of the Federal Tax Service.
How are tax breaks made?
Pensioners are exempted from property tax only upon a personal visit to a citizen of the Federal Tax Service. You can also send a statement and documents through the MFC. It is worth noting that it is possible to send papers and a statement to the tax authorities through an authorized person. The right to carry out this action on behalf of a pensioner is notarized.
An important condition for making a decision on the abolition of tax is the availability of properly executed documents for property that is subject to taxation. Upon receipt of the application, specialists of the Federal Tax Service verify the property of a citizen and the correctness of execution of all documents for real estate.
The application is also executed in the prescribed form, which can be obtained free of charge from the Federal Tax Service or downloaded from the official website. Those citizens who have registered personal accounts on the tax service portal can apply online. This is possible due to the fact that when processing documents online all the details are already present in the taxpayer’s online account.
Why not pay taxes
The exemption from property tax for pensioners applies to 3 categories of objects:
- Vehicles.
- Of the earth.
- Real estate.
Additional taxation conditions may vary by region. The regional government, adopting a federal act, applies it on its subject and can make additional security funds to improve the lives of citizens of retirement age.
The described objects that fall under the category of preferential will also have restrictions. This is necessary in order to stop the attempt of some citizens to try to avoid paying taxes on expensive mansions, a large amount of land or luxury vehicles.
Therefore, the regulator, represented by representatives of the Federal Tax Service, introduced the standards by which benefits are calculated and provided. There is a positive point. Husband and wife of retirement age can share benefits on property, which reduces the cost of making funds to the budget.
Vehicles
The exemption of a pensioner from tax on immovable property is subject to strict regulation. According to established standards, retirees who have a vehicle whose power does not exceed 100 hp can get an opportunity not to pay for a car or motorcycle.
In addition, there is an amendment that allows not to pay the transport tax for pensioners with disability status. They are also fully exempt from paying contributions to the state treasury. In addition, citizens of 60 years of age who own a vehicle received from the social security authorities fall under the same legal norms.
This legal action applies only to one car. It will not work to issue 2 cars to the Federal Tax Service. The only legal option is for, for example, the husband and wife to have one vehicle each. In this case, they will not deduct taxes to the budget.
Of the earth
The exemption of pensioners from land tax also has a number of restrictions. Earlier, land legislation indicated that when using land, each owner is obliged to pay the amounts established by the regional tax authorities to the budget.
The amendments to the legislation allowed pensioners to not pay taxes. For this, it is necessary to have a plot that does not exceed 6 acres in area. This decision was made due to the fact that most older citizens have summer cottages in the suburbs or land in villages of this size.
An application for exemption from property tax on pensioners in this case will also be submitted to the Federal Tax Service. A number of municipalities and regions offer extended benefits. For example, war veterans are completely exempt from paying the land tax, like the heroes of labor, for a plot of any area.
Real estate
The exemption of pensioners from real estate taxes helped to really save a lot of money in family budgets. The amount of taxes is large, and when they are paid, the pensioner for the current month may not have the means to stay.
The right to receive benefits does not only apply to apartments, but also to any buildings whose area does not exceed 50 square meters. What is noteworthy, if both spouses own one property, then the tax benefit goes to them in offset.
It turns out that the wife, like the husband, after writing the application, the right to claim benefits for tax on other real estate is automatically canceled.
Ground for refusal to provide tax benefits
Documents on pensioner tax exemption can be returned by the Federal Tax Service if they were filled in improperly. This is the only reason that a pensioner may be refused to withdraw the obligation to contribute funds to the state budget for the object.
An indirect reason for refusal may be an attempt by a citizen to apply for benefits for another property owned if this right has already been used. In this case, after checking all the details, the department’s employees will also make a negative decision.
What other benefits do pensioners have?
A pensioner's application for tax exemption is filed at any time. There are no legal restrictions on this action. In addition, at the same time, the applicant can receive benefits for each category of property specified in tax legislation.
Other benefits and subsidies are mainly assigned and accepted by the governments of regions and republics. For example, there may be tax holidays and benefits for pensioners with disabilities or in the status of war or labor veterans.
Heroes of the USSR and Russia, with a pension certificate, can also qualify for tax breaks in the regions. Federal law does not establish restrictive measures for the adoption of such decisions in areas and territories.
If differences between regions of residence
Pensioners are exempted from taxes throughout the country. Subject to all the prescribed requirements, a citizen has every right to receive such exemptions. Not a single region on the territory of the Russian Federation has the right to refuse, without justification, the reasons for the implementation of this requirement.
The differences between the areas themselves lie in social programs operating within a particular subject. They are fully financed from the regional budget and are regulated by the adopted acts of the local administration.
Are there any restrictions on benefits?
The exemption of pensioners from the payment of land tax can be limited only as a result of violation of the statutory order of circulation and registration of property. Before applying to the tax authorities with an application for exemptions, you should check and make sure that all the necessary paperwork for the property has been collected and that it fully complies with the requirements specified in tax legislation.
It is impossible to get a benefit in advance at the pre-retirement age. Only after receiving the appropriate certificate, as well as paying the first amount due from the PFR budget, a citizen can apply for a privilege giving the right not to pay taxes in the prescribed form.