Personal income tax

The tax on incomes of physical persons assumes deduction from wages of a small percentage. This type of tax brings the greatest profit to the country's budget, and therefore helps in the development of the economy as a whole. It presupposes the existence of an object and a subject of taxation.

The object is understood as actually received income by citizens of the country. The subject of taxation includes a working individual who is both a citizen of this and another country, and a stateless person. The annual income of a person is recognized as income, and accounting is maintained both in cash and in kind from all sources, that is, at each workplace. If we talk about non-residents of the country, when calculating their income, only sources located in the territory of a given country are included.

The total income includes not only wages, but also levying deductions, profits from the realized real estate, pension grantings by non-state funds. In addition to the monetary form, accounting for material goods takes place. To such it is customary to include payment for housing and communal services, subscriptions to magazines, payment of a public transport ticket and receiving a significant discount for vouchers to sanatoriums and medical institutions. All this is provided by the employer and requires writing off a small interest in the state fund, therefore, personal income tax is charged.

Sometimes an employer suggests that an employee buy scarce or expensive goods at a price much lower than the average market price. In this case, the difference is charged on profits and is also subject to taxation. If the legal entity has temporary financial difficulties, payment of labor may be made in kind. The personal income tax takes into account this situation.

The income tax in Russia is paid by the employer himself, collecting the necessary amount from the salary of the staff. The taxpayer independently pays the tax on personal income accrued on the following types of profit :

• The amount of money received after the sale of personal property, both movable and immovable. Subject to the ownership of the object of taxation for at least three years.
• On wages, if the employer for objective reasons has not made a deduction to the budget and extrabudgetary funds. In tax practice, it is called tax agents.
• For regular dividends on shares, bonds or other financial instruments, as well as on the rent received from the delivery of real estate.

But the big profits are received by state bodies at the expense of the tax transferred by employers. The size of income tax on average is 15% of the amount of monthly wages.

Just like any rule, there is an exception, and in the taxation system there are benefits that are granted in special cases or in the presence of certain conditions. Thus, benefits are introduced for the taxation of incomes of persons injured or disabled during participation in hostilities. If a minor child undergoes paid education, the benefits are provided for the cost of training. The same benefits are granted for treatment amounting to 25 thousand rubles. Taxation is not subject to amounts intended to help those in need, that is, listed for the purpose of charity.

The income tax from individuals does not include in the number of objects subject to taxation the amount of money provided by state bodies, such as insurance or social assistance. The tax rate is differentiated depending on the type of profit.