Submission of 3-personal income tax for 2021 in a new form

LEGAL DIGEST, NEWS \ 25.01.2022

We remind you of the need to submit a personal income tax return in the form of 3-NDFL for 2021. This document has to be submitted in a new form approved by the Federal Tax Service.

The 3-NDFL declaration should be submitted by citizens of both the Russian Federation and foreign countries who independently calculate and pay income tax to the budget from the following types of income:

• sale of property owned by an individual on the right of ownership;
• obtaining income from other individuals or organizations (which are not tax agents), on the basis of concluded labour contracts, civil law contracts or lease agreements;
• obtaining income from sources outside the Russian Federation (applicable only for individuals who are tax residents of the Russian Federation);
• obtaining income for which income tax was not withheld by tax agents;
• obtaining other income, the list of which is listed in article 228 of the Tax Code of the Russian Federation.

It is necessary to submit the declaration to the tax inspectorate at the place of residence of the individual. At the same time, starting from January 1, 2022, its new form, approved by the Order No. ED-7-11/903 of the Federal Tax Service dated October 15, 2021, is in effect. The main changes in the document are:

• Indication in section 2 of information about income in the context of their types, and not tax rates as it was before.
• Assigning a code (25 in total) to each type of income. If an individual received income under different codes, then for each such income it is necessary to fill out a separate sheet of the corresponding section.
• Addition to line 060 “Tax base for tax calculation” section 2 lines 061-063, which disclose the amounts of tax bases for tax calculation at rates of 13% and 15%
• Indication in Appendix 2 “Income from sources outside the Russian Federation” of the code of the country of the source of income payment and the code of the country of entry of such payment.
• Adding two new lines in Appendix 7 to reflect property deductions presented in a simplified manner – lines 121 and 131.

The deadline for submitting the 3-NDFL is not later than April 30 of the year following the year of obtaining income. That is, an individual has to report on the income obtained for 2021 not later than April 30, 2022.

An individual can submit a document independently or through a representative. The document submission form is either paper or electronic one. On paper, it is possible to submit a declaration in person or by mail with an enclosure list. In electronic form, the document can be submitted through the Unified state services portal or through the personal account of an individual.

Please note that individuals are entitled to receive tax deductions, for which it is necessary to provide the tax agency with documents, which also include a declaration on the form 3–NDFL.

And for foreign citizens who have received the status of a tax resident, the submission of 3-NDFL is a mandatory condition for the recalculation and refund of tax previously withheld at the rate of 30%.

It is also possible to receive certain types of deductions (property and investment) in a simplified manner through electronic interaction with the tax authorities through the Taxpayer’s Personal Account on the website of the Federal Tax Service.

To do this, through the appropriate website, it is necessary to submit an application for a tax deduction indicating the details of the individual’s open bank account. All the necessary information and documents confirming the right to a deduction will be checked by the tax authorities on their own, having received data from banks and credit organizations.

After receiving the information, the Federal Tax Service authorities in the personal account of the taxpayer place data for filling in the application by an individual and then check it for compliance with the established requirements. If the result of the audit is positive, then the tax authorities make a decision to grant a deduction and determine the amount that needs to be returned to the individual’s bank account.

For questions about the preparation and submission of a 3-NDFL declaration, as well as obtaining tax deductions, please contact Acsour. Our specialists will advise you in more detail on this topic.