List and rules for providing tax benefits to military pensioners
Tax benefits for military pensioners are a real measure of support provided by the state. The legislation classifies the following persons as military pensioners:
- Those with 20 years of service and who resigned of their own free will or were dismissed for this reason. Also removed from service due to health reasons, due to general injuries.
- Those who became disabled due to military service.
Exclusively the above-mentioned entities have the right to claim various types of preferences. The following tax breaks are available for military retirees in 2020:
- transport tax discounts. This is not a federal type of fee, therefore the amount of the discount and the actual possibility of providing it are considered at the legislative level of each region separately;
- discount on property contribution. More precisely, a complete exemption from payment for one property;
- in some regions, land tax benefits are provided to military pensioners. The taxable amount is reduced;
- relief on personal income tax. For military pensioners, 13% is not deducted from pension payments, insurance, compensation, gifts up to 10 thousand rubles.
The benefit is a partial exemption, a discount. Many are interested in what taxes Russian military pensioners are completely exempt from. Thus, former military personnel do not pay for one piece of real estate they own.
The procedure for granting benefits is of an application nature. That is, a person first pays bills received from the Federal Tax Service, then applies for a benefit at an authorized institution and receives compensation for the funds spent.
Should a military retiree pay vehicle tax?
Former military personnel belong to a socially significant category that is entitled to certain privileges.
The right to exemption from payment is determined by federal authorities. However, the exact answer to this question is determined by the decree of local constituent entities of the Russian Federation, since transport tax is regulated by local authorities.
The region independently decides whether a pensioner should pay tax and, if so, how.
To find out whether you need to pay tax, just contact the tax office at your place of residence, where employees will explain in detail what prerogatives a pensioner can enjoy. The amount of the tax depends on the amount of transport in a given region and the basic characteristics of the existing vehicle.
Legislative regulation
Taxes are one of the main sources of replenishment of the state treasury, therefore, clarity and order should reign in taxation matters. Tax benefits for military pensioners in 2020, as well as other types of preferences, are regulated by various legal acts:
- Article 407, paragraph 7 “Tax Code of the Russian Federation (Part One)” dated July 31, 1998 N 146-FZ proclaims preferential tax benefits for military personnel who have reached the age limit and have length of service.
- Army soldiers who retired for good reasons are paid a one-time benefit of two salaries for a duration of service of less than 20 years, and seven salaries for a length of service exceeding 20 years (clause 140 Order of the Minister of Defense of the Russian Federation dated December 30, 2011 No. 2700 (as amended by 10/24/2017) “On approval of the Procedure for providing monetary allowances to military personnel of the Armed Forces of the Russian Federation” (Registered with the Ministry of Justice of Russia on 05/12/2012 No. 24125).).
- Increasing the amount of pension payments for length of service to disabled people who became incapacitated during service (Article 16 Law of the Russian Federation dated 02/12/1993 N 4468-1 (as amended on 12/20/2017) “On pension provision for persons who served in military service, service in government agencies) internal affairs, the State Fire Service, authorities for control of the circulation of narcotic drugs and psychotropic substances, institutions and bodies of the penal system, troops of the National Guard of the Russian Federation, and their families").
Privileges
When a military personnel retires due to length of service, he is also entitled to tax benefits.
In order to obtain the status of a military pensioner, you must:
- retire due to disability or age;
- 20 years of continuous service in the Armed Forces of the Russian Federation.
Benefits for military pensioners are established at the federal level. According to current legislation, these categories of citizens have the right to complete tax exemption for all property owned by them.
If you submit an application for tax breaks late, the pensioner may require a tax recalculation for the last 3 years.
Other benefits are provided for this category of citizens:
- receiving an apartment or house at your own chosen place of residence upon retirement;
- obtaining a plot of land for housing construction out of turn;
- after retirement, this category of citizens remains on the list for receiving housing at their last place of military service;
- military pensioners receive assistance when changing their place of residence, building living space, etc.
This is important to know: Is it possible to get a tax deduction when buying an apartment from relatives?
The federal budget allocates funds for this. If a serviceman was not provided with housing during his service, his dismissal from the army is impossible.
This category of citizens has the right to benefits related to education. They are allowed to enter a higher education institution under conditions of reduced requirements for the candidate. If a military pensioner decides to get a second higher education, all costs associated with the study process are borne by the state.
In this matter, a lot depends on the troops in which the retired citizen served, as well as the reason for his being sent to the reserve.
Property taxes for military personnel are paid only by homeowners. If a citizen rents an apartment, there is no need to pay tax for it. Also, a citizen will not be able to apply for a tax deduction or benefit for the submitted payment for his relatives.
An important condition for granting tax relief is the non-use of the privileged property for commercial purposes.
For other categories of military personnel, the benefit can be applied only to one object of each type.
For example, if a serviceman owns two apartments, then he will be able to make payments on preferential terms only for one of them. In this case, the citizen will be required to provide a notification to the tax service, which will indicate which specific object will be subject to taxation on preferential terms.
This document must be submitted to the Federal Tax Service office no later than November 1 of the year that is the tax period. If this has not been done, the benefit will be applied to the property from which the tax levy is the maximum.
A citizen receives the right to pay property tax on more favorable terms from the moment he has grounds for this.
If the right to receive a benefit arises in the middle of the year, the citizen will be required to pay the payment before the date when he has official confirmation of his right to receive the benefit. The citizen will also need to write an application requesting a tax break.
Types of government assistance
In addition to tax benefits, a list of other types of government support is provided for former military personnel:
- provision of own square meters. It is possible to receive a housing certificate, a one-time cash payment for private construction, compensation for the costs of renting residential premises (Article 15 of the Federal Law “On the Status of Military Personnel” dated May 27, 1998 N 76-FZ);
- additional payment for those disabled due to military injury - 1000 rubles per month (clause 1 of Presidential Decree No. 887);
- medical support for military pensioners. Free treatment takes place in the medical institution to which you were assigned during service;
- free medicines;
- sanatorium-resort treatment for military pensioners;
- Dental prosthetics for military pensioners is free;
- preferential travel on national vehicles;
- others.
Regions have the right to expand the list of established preferences for the above-mentioned category of persons.
Property tax
Former military personnel who have retired into well-deserved retirement have certain prerogatives in the field of property collection. Due to fairly frequent changes in legislation, confusion arises and people wonder whether military retirees pay property taxes. Based on an analysis of current legal norms, it is worth answering the question asked in the affirmative. Like all people, older military personnel are not fully exempt from paying this fee. However, they have some concessions.
In 2020, property tax benefits for military pensioners imply an absolute exemption from payment for only one object of one type. For example, Sidorov, a retired colonel, receives a pension based on military service. He is the owner of two apartments and one garage. By choice, the pensioner will not pay property taxes for one of the apartments and the garage. For the second one, I have to pay in full.
Who is classified as a military personnel
Perhaps all people understand who is considered to be military personnel. These include citizens who are in military service on a contract basis or by conscription. Now it doesn’t matter whether a person voluntarily joined the army of the Russian Federation or was drafted. In any case, he will be entitled to benefits.
All people who are members of the following troops will be counted:
- Armed forces of the Russian Federation.
- Railway.
- Borderline.
- Ministry of Emergency Situations.
- Ministry of Internal Affairs
- Civil defence.
- State security.
- Information and special communications.
- FSB.
- Engineering and technical.
- Road construction.
- Other formations.
We also note that even a foreigner who legally resides in Russia can count on benefits. However, he can only serve under a contract, since they have no right to call him up. As for benefits for foreigners, they are no different from those provided to citizens of the Russian Federation.
Registration procedure
To receive benefits on personal property taxes, a military pensioner should contact the inspectorate of his area. This can be done personally, through an authorized person, or by mail. It is better to implement your plan before November 1, since the calculation for payment of taxes will subsequently be carried out.
The following package of documentation is attached to the authorized institution:
- Application for benefits on property, land, and transport taxes.
- Identification.
- TIN.
- Confirmation of the fact of ownership of real estate.
- Pension book.
Tax breaks for military retirees
All-Russian preferences for former military personnel are established in paragraphs of the Tax Code. There are many of them. In particular, a reduction in the tax base or the complete exclusion of one object applies to the following types of property:
Also, this category of citizens has the right to transfer the balance of the property deduction to previous tax periods (clause 10 of Article 220 of the Tax Code of the Russian Federation).
A property deduction is provided not only for the purchase of real estate and land, but also for the payment of interest on a loan/credit provided for the purchase/construction of housing and land for housing.
Hint: the applicant must declare each type of concession separately. No benefits are provided in aggregate.
Thus, the beneficiary’s action algorithm is as follows:
- Independently determine one piece of property for each category for which preferences are granted;
- Collect the necessary documents and make copies;
- Submit an application to the Federal Tax Service office for each position separately.
Property tax benefits
Each owner annually pays a mandatory tax to the budget for the objects they own. A preference for a former soldier is the exemption of one of the objects from taxation (Article 401, paragraph 10, paragraph 1, paragraph 4 of Article 407 of the Tax Code of the Russian Federation; Letter of the Federal Tax Service of Russia dated 01/09/2017 N BS-4-21 / [email protected] ). It is provided on a proactive basis. Therefore, the applicant must:
In addition, regional laws establish other privileges for certain groups of the population. As a rule, they are provided in the form of deductions (refunds of taxes paid). Details should be found in the regulatory framework of the region of residence.
The general rules for obtaining benefits are to exempt one taxable item of each type at the taxpayer's choice. That is, if a military pensioner has an apartment, a garage and a country house, then he is exempt from paying tax on all three objects. But if he owns two apartments and a garage, then he is exempt from paying tax on one apartment and garage, and for the second he will have to pay tax (clause 3 of Article 407 of the Tax Code of the Russian Federation).
And in addition to these benefits, tax deductions are also provided taking into account the type of residential premises. The parameters laid down in the legislation are as follows:
- apartment - reduced by 20 sq. m.;
- house - 50 sq. m.;
- room - 10 sq. m.
Attention! To avoid any misunderstandings, it is better to apply for the benefit, otherwise the tax authority will provide this benefit based on its data.
Also, if notification is not provided in respect of which object the benefit is used before December 31 of the year that is the tax period, then the tax benefit will be provided in relation to one object with the maximum accrued tax amount (clause 7 of Article 407 of the Tax Code of the Russian Federation)
If the benefit is applied for the first time, an application must be submitted with a package of the above documents. If the benefit has already been used before December 31, 2017, the application cannot be submitted again (Letter of the Ministry of Finance of Russia dated April 9, 2018 N 03-05-04-01/23385). However, if the beneficiary acquires new property, in respect of which the benefit may also be applied, he must submit the specified notification to the Federal Tax Service.
Regional features
Each region at the legislative level develops its own system of preferences for certain categories of citizens. Pensioners and former military personnel are no exception.
In the Moscow region, pensioners are not exempt from paying car tax, but combat veterans and military disabled people have this prerogative (Article 25 of Moscow Region Law No. 151).
In the Leningrad region, discount travel on national vehicles has been established for military veterans, compensation for utility bills (Article 8.1 of the Law of St. Petersburg No. 728-132 “Social Code of St. Petersburg”).
Thirty-five thousand rubles is the tax-free part of the cost of a land plot in the city of Tver.
This is how the land tax benefit is implemented for persons who became disabled while serving and for combat veterans. [Total votes: 0 Average: 0/5]
Land tax benefits
Land tax benefits intended exclusively for military pensioners are provided in two ways:
- By reducing the existing tax base.
- By exempting the beneficiary from paying one or another tax fee.
The land tax for pensioners who served in military service may be reduced by ten thousand rubles, but only in relation to one plot of land, and only in cases where the owner of this property is:
- Hero of the Soviet Union or Hero of the Russian Federation.
- Combat veteran.
- A person who served in a special unit designed to test nuclear weapons and eliminate the consequences of accidents.
According to the requirements of the Law “On the Status of Military Personnel,” persons who served for more than twenty years and were dismissed before the beginning of 2020 are also entitled to monetary compensation in the amount of land tax paid. But pensioners who quit after this period cannot count on receiving such a benefit.
