The term of renting an apartment without taxes - is it possible to save on tax

There is an opinion that there is a certain term for renting an apartment without tax, but this is not entirely true. According to the legislation of the Russian Federation, the income of a citizen must be taxed. Is no exception and receiving income from renting an apartment.

Many owners are wondering: can housing be rented out without payment? No.

Any such procedure, regardless of the timing of delivery and the total amount of revenue, is subject to state duty.

As mentioned above, the provision of housing for temporary use entails the receipt of material benefits. That is why this procedure is taxed. The tax rate varies depending on the status of the person. If the apartment is rented out by an individual, then the rate will be equal to 13% of the total amount received for the entire period of income. For an individual entrepreneur, the rate is reduced to 6%.

It should be noted that both individuals and legal entities have obligations to pay taxes. They are fully responsible for non-payment of state fees. Leasing without paying taxes carries administrative or criminal penalties.

Renting an apartment for 11 months

There is an opinion among many that renting an apartment for a period not exceeding 11 months is not taxable. But this opinion is wrong.

If you wish to rent your property to third parties for a period of less than 11 months, you may choose not to register the lease with the relevant government authorities. But an unregistered apartment rental agreement for 11 months does not exempt you from taxes and their payment.

Tax exemptions

But there are some exceptions when payment is not a mandatory procedure.

Renting an apartment to relatives

One of them is renting an apartment to relatives. According to the legislation of the Russian Federation, the transfer of real estate to relatives for temporary use does not entail any material benefit. That is why this procedure is not taxed.

But there are many cases when violators tried to illegally issue documents confirming consanguinity in order to evade payment of the state fee. These actions are illegal, they entail administrative or criminal liability.

Renting an apartment without financial benefit

And the second exception is the lack of benefits received. This is quite rare in practice. It happens that you rented an apartment or a house to third parties, but did not receive income from this procedure. The tenants simply did not pay rent. Therefore, there is nothing to pay.

This situation leads to many lawsuits. Public authorities must confirm whether there was indeed no material benefit. If this can be done, the individual or legal entity is completely exempt from paying taxes.

Liability for tax evasion

If you rent an apartment and this procedure does not fall under any of the above, you need to pay taxes. Evasion from paying a certain percentage of the profits to the state budget can be regarded as a violation of laws. Violation of laws is subject to administrative or criminal liability. The punishment depends on the gravity of the crime committed.

Provides for penalties for illegal and unauthorized business activities. Renting out an apartment falls within the scope of this law. For evasion of payment of state fees may threaten:

• A fine not exceeding three hundred thousand rubles.
• Public Works. Their total duration should not be less than 180 hours.
• Arrest. Its general term can vary from a couple of months to six months.

Important! There are also more severe penalties. They are relied upon for evading the payment of state duties on an especially large scale. “Especially large amount” is considered to be the receipt of revenue for renting an apartment or house, the total amount of which exceeds 21 thousand rubles, over several years.

For this offense, an individual or legal entity may face:

• Money penalty. Its amount exceeds three hundred thousand rubles, depending on the severity of the crime committed.
• Arrest. His term can be from 6 months to one year in a strict regime colony.

These penalties for illegal business activities and non-payment of taxes on an especially large scale are regulated by Article 198 of the Criminal Code of the Russian Federation.