Back in July 2019, the Federal law 210-FZ was signed: among other things, it made a number of changes to the Tax code. They are designed to expand the list of conditions under which a citizen of the Russian Federation after the sale of housing is exempt from personal income tax. The amendments will come into force on 1 January 2020. From now on, you will not need to pay personal income tax when selling a single home, provided that you own it for 3 years.
Exemption from personal income tax on the sale of a single home
From paying personal income tax and filling in the Declaration after the sale will be exempt individuals who owned housing for 3 years, provided that it is the only living space in the property. Prior to the entry into force of amendments to the Tax code, the three-year period applied only to cases of sale of an apartment that:
presented by a close relative - when selling a gift after three years of ownership, they will not have to pay the tax again; received under an annuity contract with a mandatory condition-maintenance of a dependent; became property as a result of privatization.
The new conditions apply not only to apartments or houses, but also on land, as well as rooms and even shares in an apartment or house.
Bought before 2016 housing or land will soon be able to sell, guaranteed not to pay tax: on real estate purchased before 01.01.2016 the rule of three-year tenure has not changed.
Accordingly, from January 2020, selling any housing purchased before 2016, a person is exempt from tax.
The only accommodation for the next 90 days
Remain without residential real estate, according to the amendments to the legislation, will have 90 days. After this period, you can safely buy a new home: in this case, the tax authorities have no right to demand payment of personal income tax from the previously made sale.
When you still have to pay personal income tax from the sale of residential real estate
A five-year minimum term of ownership is maintained for apartments, houses, shares and plots, after the sale of which the citizen has other real estate. The rule applies to both residents and non-residents:
but if citizens pay the standard 13%, foreigners-30% of the profits.
It is not necessary to notify about the right to non-payment of personal income tax
Amendments to the legislation provide for the expansion of control by tax authorities over transactions with residential real estate. Therefore, write, as before, an application requesting release from personal income tax is not necessary. However, the tax Inspectorate may require a citizen to explain why he did not pay personal income tax after the transaction.