How does the tax service know that you rent an apartment and do not pay taxes
Real estate expert Oleg Tsarev talks about how public authorities receive information about renting out housing and non-payment of mandatory income taxes
It is no secret that 70 % of apartments in the rental market are rented out without paying taxes. But still the tax service manages to find out that people rent an apartment, and the state does not receive anything from it. There are many ways to find out about such housing, most of them for the owner are random or, as they can still be called, sudden.
The most important are the neighbors. They are different. First, the neighbors in the entrance. Unfortunately or fortunately, there are still many of them who were hardened by communism. They are used to reporting everything that happens to the precinct. It can also be neighbors with whom you have a bad relationship, or they do not like your employers. There are neighbors in a communal apartment. We are talking about a situation when a person owns a room in a communal apartment, rents it out, and neighbors from other rooms do not like it, they report it to the district or can write a direct letter to the tax service. And if it doesn’t work out, they go to court.
The second method of obtaining information about such real estate objects follows from the first — the courts. Often people in court disputes provide rental agreements for an apartment that they allegedly incurred some expenses, or, for example, in a dispute, the employer and landlord provide this contract to the court to clarify the relationship between the two parties. As a rule, these contracts are necessarily submitted to the tax service due to the interaction (albeit weak) of state bodies.
The next method of identifying apartments for rent is the Federal migration service. Citizens coming here from foreign countries or republics are required to register. All this data goes to the Federal migration service, which, in turn, transmits it to the tax service, and the tax service already addresses the owners of this apartment with the question :” do you accidentally rent your apartment? And would you like to pay us taxes?»
Also, all government agencies, the Ministry of war and the Ministry of the interior compensate their employees, employees, part of the payment for housing; due to the fact that the payment is made officially, of course, this data goes to the Federal tax service.
Well, perhaps the most sudden phenomenon is the situation when you rent an apartment, you seem to have it rented for an employee of the organization, but the company just reimburses him for the costs in cash. This applies most to commercial private organizations. When the tax service comes to the organization with a check, all the documents that are stored in the accounting Department become visible. And, of course, this data is checked. Thus, the fact of renting out housing is established, and the owner will be forced to pay taxes.
Many now may be scared by the idea that you will have to pay for the entire period, which is specified in the contract or in several contracts. What if the inspectors make you pay tax for all previous years of rent?!
However, in practice, the inspectors do not require this — they are limited to the current tax period. In the Declaration 3-NDFL (see section “Income from sources in the Russian Federation, taxable under the rate of … percent”) the landlord specifies “income from renting flats to rent in 2007”, details of the contract and rate — 13 percent. A copy of the contract itself and a receipt for receiving the money are attached to the Declaration.
The same can happen when renting an apartment through a real estate Agency. Usually real estate agents take a copy for the report at the Agency, this copy can be stored, which, of course, is a huge rarity. In case of verification, like any other commercial organization, you will have to pay tax.
Imagine this situation: in 2007, the owner is called to the inspection, conduct an “educational conversation”, as a result, he decides to pay tax on income received in 2006. But in fact, the apartment was also rented in 2005, and in 2004. Do you have to pay tax for these periods? The answer is no! The tax service is satisfied with the information it has at the moment.
From all the above, we can distinguish several main informants of the Federal tax service: public utilities (housing and utilities) and district inspectors. Previously, even unscrupulous inspectors earned small but significant money from residents or owners for the service of silence before the tax service. And now the state is changing, employees are becoming more honest; sometimes it even seems that the precinct has a plan to identify apartments for commercial rent.
Of course, there are more and more methods every year. Recently, information was released that the tax service will soon begin to investigate the sites through which real estate objects are sold, and that all this will be revealed. The state has made it possible for citizens to pay much less tax than individual entrepreneurs — at the rate of 4 %. As a self-employed person, you will be able to rent out your apartment and pay absolutely little money, so it is better to be conscientious, pay taxes and live in peace.
Many now believe that prices will increase by at least 4 %, but this is not a fact, because many have long been renting apartments and are listed as individual entrepreneurs. Many owners have already refused to transfer payments to the card, as in the new laws of 2019, banks can now pay attention to constant monotonous transfers and report this to the tax service. Therefore, I would also urge citizens not to hide income from the state, because the secret always becomes clear.