VAT changes in 2021
From January 1, 2021, changes regarding VAT will come into force. Most companies and entrepreneurs will bypass the changes, since they only concern specific operations.
The list of transactions subject to VAT at a rate of 10% will be reduced
Art. ceases to apply. 26.3 of the Federal Law of 05.08.2020 No. 118-FZ. Now, when leasing breeding livestock and poultry with the right to buy, VAT is charged at a rate of 20%. Previously, the rate was 10%.
It was planned that for domestic air transport the VAT rate would change from 10% to 20%. However, the 10% rate was extended until January 1, 2022 (Article 4 of Law No. 374-FZ dated November 23, 2020). A preferential rate of 0% remains for air transportation:
- whose destination or departure point is in Crimea or Sevastopol;
- whose destination or departure point is in the Kaliningrad region or the Far Eastern Federal District;
- the route of which is not connected with Moscow and the Moscow region.
Will be allowed to issue electronic checks in the Tax Free system
Foreign buyers can recover VAT when purchasing goods at retail. To do this, they were previously issued a paper check, but now they can issue a check electronically.
An electronic check is sent to the customs service, whose employees confirm the fact of export of goods outside the Russian Federation and send information to the seller for payment of compensation.
Some persons will be exempt from VAT
First of all, bankrupt companies are exempt from VAT. The following are not subject to VAT:
- bankruptcy estate;
- goods and services that were sold as part of current activities.
Now companies and individual entrepreneurs who are VAT payers will not be able to deduct the “input” tax from bankrupts.
The list of medical equipment that is not subject to VAT has been added. The tax does not need to be paid when selling passenger vehicles intended for transporting disabled people (Government Decree No. 1480 dated September 18, 2020). To apply the exemption, the vehicle's design safety certificate must include a statement that the equipment is intended only for the transportation of disabled persons.
From January 1, 2021, it was assumed that the sale of breeding products will be subject to VAT at a rate of 20%. However, the exemption was extended for the whole of 2021.
Benefits for IT companies have been adjusted
Transactions on the transfer of rights to computer software and databases that are included in the Unified Register of Russian Software (clause 26, clause 2, article 149 of the Tax Code of the Russian Federation) will be exempt from VAT. All other services are not exempt from VAT.
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How will stolen vehicles be taxed?
The current provision that no tax needs to be paid on a wanted vehicle will remain.
It was supplemented with a rule: if the search is stopped, the release continues to apply. Previously, the Federal Tax Service clarified: if the theft case is dropped and the car is not deregistered, then the tax will be charged again. Tax officials suggested that the taxpayer contact the traffic police to deregister the car, and then definitely not pay the tax. Now you won’t have to do this: even if the theft case is dropped, the tax will not begin to be assessed.
Changes in personal income tax in 2021
In 2021, changes to personal income tax will affect several areas, including social tax deductions, taxation of bank deposits, updating form 6-personal income tax, abolition of 2-personal income tax, and so on.
Updated lists of social deductions
Decree of the Government of the Russian Federation dated 04/08/2020 No. 458 updated and clarified the list of services for which payment can be deducted under personal income tax. Medical evacuation and palliative care have been added to the list of medical services. Orthopedic treatment of dental defects and palliative care services were added to the expensive treatment. Also, as part of the expensive treatment, the list of reproductive technology services has been expanded.
Expensive types of treatment from Government Decree No. 201 of March 19, 2001 were combined into medical services provided as part of high-tech medical care.
They will begin to withhold personal income tax from interest on bank deposits
From January 1, 2021, the tax office will begin to withhold personal income tax on interest on deposits exceeding non-taxable interest income, which is calculated using the formula:
Non-taxable interest income = RUB 1,000,000. * Key rate of the Central Bank of the Russian Federation
The tax payable will be calculated automatically by the Federal Tax Service based on data from the bank and will send the payer a corresponding notification of payment. The tax will need to be paid for the first time before December 1, 2022.
Changed form 6-NDFL and canceled 2-NDFL
Starting from 2021, a new form 6-NDFL will come into force, which is enshrined in the order of the Federal Tax Service dated October 15, 2020 No. ED-7-11/753. In fact, 6-NDFL is now combined with the 2-NDFL form.
Since Form 2-NDFL has been abolished since 2021, issue information on income and withheld taxes to the employee using the form from Appendix No. 4 to the Federal Tax Service Order No. ED-7-11/753 dated October 15, 2020.
Updated form 3-NDFL
By order of the Federal Tax Service of the Russian Federation dated August 28, 2020 No. ED-7-11/615, form 3-NDFL was updated. The form takes into account new features of calculating personal income tax and tax refunds.
Introduced a progressive income tax rate
From January 1, 2021, personal income tax on income over 5 million rubles will be withheld at a rate of 15%. Pay progressive income tax to special KBK 182 1 0100 110, approved by Order of the Ministry of Finance of the Russian Federation dated October 12, 2020 No. 236n.
Income tax changes in 2021
The changes affect the declaration form, the procedure for distributing profits between divisions, and so on.
Developed a new declaration form
Starting with reporting for 2021, report using the new income tax return form, which was approved by Order of the Federal Tax Service of the Russian Federation dated September 11, 2020 No. ED-7-3/655.
Changed the order of profit distribution between departments
To calculate the regional part of the income tax, the tax base will have to be distributed between divisions. To do this, you need to select a distribution base. For example, the average headcount or labor costs. Choose the basis that shifts most of the tax to the benefit division.
A new special economic zone has been created
Federal Law No. 193-FZ dated July 13, 2020 secured the status of the Arctic zone. Its residents have the right to apply a zero rate of income tax to the federal budget and a reduced rate to the regional budget.
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We updated the norms for writing off books and printed materials
Previously, only 10% of the cost of written-off or unsold book products was included in other expenses. Since 2021, this value has increased to 30% (Law No. 323-FZ dated October 15, 2020). The write-off period depends on the type of product:
- Before the next issue comes out, write off periodicals;
- Write off books and other printed materials within 24 months.
Introduced benefits for IT companies
Companies operating in the field of IT technologies and developers of electronic component products can pay income tax at reduced rates:
- 3% - to the federal budget;
- 0% - to the regional budget.
To use the reduced rate there are conditions:
- the average number of employees is at least 7 people;
- share of revenue from sales of software and IT products - at least 90%;
- IT companies must be accredited by the Ministry of Telecom and Mass Communications, and developers of electronic products must be included in a special register of the Ministry of Industry and Trade.
What benefits did families with many children receive?
Individuals with 3 or more minor children can receive a property tax deduction. For residential properties, a deduction will be provided in the amount of the cadastral value of 5 sq. m. m. of the total area of the apartment, the area of part of the apartment, room and 7 sq. meters of the total area of a residential building, part of a residential building per each minor child. A tax deduction is provided in respect of one object of each type (apartment, part of an apartment, room, residential building, part of a residential building) upon application for a benefit and notification of the selection of a preferential object.
In addition, families with many children received the right to a “deduction of 6 acres.” They will be able to reduce the tax base for land tax by the cadastral value of 600 square meters. m. in relation to one plot of land.
These rules apply to legal relations arising from the 2021 tax period. Thus, taxes for 2021 for large families will already be reduced by deductions.
Changes to the simplified tax system in 2021
There are few changes to the simplified system in 2021; the most important innovation is an increase in limits.
Increased limits on simplified tax system
From January 1, 2021, LLCs and individual entrepreneurs whose revenue does not exceed 200 million rubles per year and whose average number of employees is no more than 130 people will be able to apply the simplified tax system. Until the end of 2021, these limits were 150 million rubles and 100 employees, respectively.
But if in 2021 your income exceeds 150 million rubles or the average number of employees exceeds 100 people, you will start paying tax at a new rate:
- 8% - for the simplified tax system “Income”;
- 20% - for the simplified tax system “Income minus expenses”.
Extended tax holidays for individual entrepreneurs
The possibility of applying tax holidays was extended until 2024 (Article 2 of Federal Law No. 266-FZ dated July 31, 2020). An individual entrepreneur may legally avoid paying tax if:
- tax holidays have been introduced in the region;
- the entrepreneur was registered after the adoption of the law on vacations in the region;
- The type of activity of the entrepreneur is enshrined in the law on vacations of the region.
Personal income tax
The issue of exemption from personal income tax for travel abroad for northern employees has been resolved
In the case of taking vacation outside the territory of the Russian Federation, the cost of travel or flights of the employee and non-working members of his family (including the cost of transporting luggage weighing up to 30 kilograms), calculated from the place of departure to the checkpoint across the state border of the Russian Federation, is not subject to taxation.
Non-taxable financial assistance in the amount of 50,000 rubles. it will be possible to pay caregivers
Financial assistance for child custody is currently not subject to insurance contributions. The same norm was introduced for personal income tax.
Resort fees are exempt from personal income tax
The list of personal income tax-free travel expenses has been supplemented with a resort fee.
Food and housing for doctors working in isolation are exempt from personal income tax
During the epidemic, doctors and social workers have to live outside the home, or even at work. Their in-kind income from the cost of housing and food has been exempted from personal income tax since 2021.
When purchasing an apartment under the DDU, the tenure period will be counted from the date of payment, and not from the date of the act
People will not pay personal income tax when selling their apartments in new buildings if the ownership title has recently been registered with Rosreestr, but the settlement with the developer was made a long time ago.
Changes to PSN
For many entrepreneurs, a patent will be their salvation after the abolition of UTII. Therefore, most of the changes affected the expansion of activities on the PSN.
Expanded the list of activities
From 2021, 80 types of activities will be allowed on the PSN. Photographers, teachers in the field of preschool education, cooks, farmers, parking lots, flour producers, and so on will be able to obtain a patent. Regional authorities can supplement this list with other household services from OKVED2 and OKPD2, which are recorded in the Order of the Government of the Russian Federation dated November 24, 2016 No. 2496-R. It is possible to provide services from the list of the region, provided that they are provided to the population.
Introduced one patent for several types of activities
A “general patent” can be purchased by individual entrepreneurs working in the field of livestock and crop production at the same time (Clause 5, Article 1 of Federal Law No. 8-FZ dated 02/06/2020).
Extended tax holidays for individual entrepreneurs
As in the case of simplifications, individual entrepreneurs on PSN may not pay tax until 2024. The requirements are still the same:
- the possibility of applying tax holidays should be enshrined in the legislation of the region;
- the entrepreneur must be registered after the introduction of tax holidays;
- the entrepreneur must work in an area that is subject to tax holidays in the region.
Property tax changes in 2021
Changes have been made to the property tax return form. Starting with reporting for 2021, indicate the average annual value of movable property in the declaration. The information is filled out by organizations that have movable property on their balance sheet with a residual value greater than zero.
Movable property is not subject to tax in 2021. Information about its value in the declaration is for reference only.
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What has changed in the taxation of individuals?
The deadline has been extended (from November 1 to December 31) for individuals to submit to the Federal Tax Service a notification about a selected land plot in respect of which a tax deduction is applied in the amount of the cadastral value of 600 square meters.
m. area of the site, as well as notifications about selected tax objects in respect of which a tax benefit is provided for the property tax of individuals. The duty of tax authorities has been established to independently calculate the amount of land tax and property tax for individuals of pensioners and persons of pre-retirement age, taking into account the corresponding tax benefit, if these persons did not apply for a tax benefit.
In addition, a restriction on increasing land tax has been introduced for individuals: the next year’s tax cannot exceed the previous year’s tax by more than 10%. If according to the new cadastral value the tax increase is more significant, then you will need to pay the same amount with a coefficient of 1.1.
Changes to transport and land taxes in 2021
These are different taxes, but the changes in them are identical.
Tax returns for transport and land taxes have been cancelled.
Starting from 2021, there is no need to submit transport and land tax returns (clause 17 and clause 26 of Article 1 of Federal Law No. 63-FZ of April 15, 2019). For 2021, the organization independently calculates the amount of tax payable and transfers it to the budget. The tax office will check the correctness of the calculation based on data from the State Traffic Safety Inspectorate and Rosreestr.
Introduced a single payment term
Pay transport and land taxes for the past year by March 1 of the current year. A single deadline is established throughout the country; regional legislation cannot change it. However, the region determines the tax rates and timing of advance payments.
The procedure for exempting destroyed vehicles from tax has been clarified
The procedure for excluding destroyed vehicles from the company’s taxable assets was established (clause 44 of Article 2 of Federal Law No. 374-FZ of November 23, 2020). If a vehicle is destroyed or disposed of, the company can submit an application to the Federal Tax Service to stop charging taxes. If the decision is positive, the tax office stops charging tax from the 1st day of the month in which the company destroyed or disposed of the vehicle.
There is no need to attach documents confirming the fact of disposal or destruction to the application. The Federal Tax Service will independently request them from the State Traffic Safety Inspectorate or Gostekhnadzor.
Part 1 NK
New rules for collecting tax debts from individuals have been adopted
We increased the threshold value of the amount of taxes, fees, insurance premiums, penalties and fines from 3 thousand to 10 thousand rubles for the tax authorities to apply to the courts for the collection of these payments from individuals who are not individual entrepreneurs.
Tax authorities will be able to recognize reports as unsubmitted
A tax return (calculation) will be considered unsubmitted if, during a desk tax audit, at least one of several listed in Art. 80 NK circumstances.
For example, if the report was signed by an unauthorized person, if the director is disqualified, or the report was signed with the digital signature of a deceased person.
Changes in excise taxes in 2021
In 2021, excise taxes on tobacco products and smoking accessories will increase. All changes are recorded in clause 10 of Art. 1 of the Federal Law of October 15, 2020 No. 321-FZ. On average, the increase will be up to 20%.
A certificate has been developed for the production of alcohol-containing non-food products (Clause 1, Article 1 of Federal Law No. 321-FZ of October 15, 2020). This document will be useful to organizations that produce antibacterial gels based on ethyl alcohol. With the certificate, you have the right to deduct the excise tax charged on the purchase of alcohol immediately after you use it in the production of the gel.
Changes to the mineral extraction tax
For some types of minerals, the tax rate will be calculated using the Krent Coefficient, which is equal to 3.5 (Clause 11, Article 1 of Federal Law No. 342-FZ of October 15, 2020). This coefficient is used by resource miners from paragraphs. 1-6, 8, 16-16 p. 2 tbsp. 342 of the Tax Code of the Russian Federation. In some cases, the Krent coefficient will be equal to 1. For example, when extracting peat, oil shale, or when developing subsoil, the production of which as of January 1, 2021 is less than 1%.
Another innovation is a tax deduction for fixed assets. Participants in the Arctic zone can reduce the tax payable by the amount of costs incurred for the purchase, construction and commissioning of fixed assets.
What about the taxation of destroyed property?
The amendments establish the procedure for interaction between citizens and tax authorities in the event of loss or destruction of property: what form, how and when to submit so that property taxes are no longer assessed.
You can submit an application to the tax authority of your choice, supporting it (if desired) with documents confirming the destruction of the object. If the tax authorities do not have documents confirming the fact of destruction of the object, then, based on the information specified in the application, information confirming this fact will be requested from authorities and other persons who have this information. Then, within 7 days, the information is checked and a response is prepared.
The application form for the death or destruction of a taxable object, the procedure for filling it out, and the format for submitting it in electronic form will be approved by the Federal Tax Service.
Changes in insurance premiums in 2021
The changes affected only IT companies. Perpetual reduced insurance premium rates have been established for them:
- 6% - for compulsory pension insurance;
- 1.5% - for compulsory social insurance in case of temporary disability and in connection with maternity;
- 0.1% - for compulsory health insurance.
Information technology companies and developers of electronic components and products can apply reduced rates.
In 2021, it is easier to keep records, pay salaries and submit reports in the Kontur.Accounting web service. The system always has up-to-date forms and settings. We give all newcomers a free trial period for 14 days.
