Tax on car donation in 2017. How to pay a tax on a vehicle donation deal.
A gift is one of the possibilities of transfer of property. This kind of procedure often causes a lot of fears from both the donor and those who are being presented. the anxieties of such people are caused by insufficient awareness about the requirements put forward by the tax service.
Is the gift a profit, and whose duty is to pay a tax on the donation of a car?
The answers here directly relate to the relative links between the parties and other factors.
Does the grant agreement foresee a tax payment?
Anyone owning the property is free to dispose of it as he pleases.
A citizen has the right to sell or present his property to whom he only wants: his son, daughter, father, mother, neighbor or simply an outsider. The basic requirement of such a transaction is the will of the donor and, of course, gratuitousness.
Only a single owner or a notary authorized by the general power of attorney can give the car, in which the person is authorized to perform the given action. A private person and organization can be a gift to their property. While a person can only be a physical person.
The transfer of ownership of the property itself must be registered in the state body and regulated by the Tax Code. According to the law, the donated vehicle is an income and therefore it must be taxed.
tax when giving a car in 2017
What is the tax provided for the donated TC?
Since the donor, in fact, does not receive a profit, he is not obliged to file tax returns at all and pay the state duty and fees. The tax on the gift received as a gift must only be awarded to the person. Since there is a profit in a particular case, the Tax Code prescribes its payment for 3 NDFL.
It should be taken into account that if one of the spouses wishes someone to present a car registered on him, bought during the period of living together, then he must obtain the permission of the second spouse.
And what if the parties are relatives?
The Tax Code of the Russian Federation (item 18.1 of Article 217) states that if a vehicle is given to someone from blood relatives, then the tax in this case is not taken.
By law, relatives may be relatives:
– spouse and spouse;
– brothers or sisters;
– children, mother, father;
– grandmother, grandfather and, accordingly, their grandchildren.
Paragraph 4 of Article 5 of the Code of Criminal Procedure of Russia points out that adopted children and people whose adopters are also close relatives among themselves.
But in the latter case, although the party to be awarded is, in fact, exempted from taxation, but tax authorities are often required to pay tax. This type of distribution, usually, occurs by an automatic machine, because tax staff often do not want to penetrate the kinship of the donor and the donor.
In order not to happen, it is best to inform the FTS in writing that the donation procedure has been implemented between people by related bond and attach a copy of the certificate of marriage, metric, certificate of adoption, etc. to this notice.
But the requirement to pay personal income tax can also be received by the donor. It is quite possible that this is due to the very fact of the sale of the car. In such a situation, you should act in the same way – send in a tax explanatory letter, send all the listed documents and attach to them a copy of the gift agreement.
And if the parties are not relatives at all?
If a motor vehicle is awarded to a person who is not a donor of a relative, then he will be required to pay a 13-percent tax for the car he received.
And if the car is sold in the family?
If there is a purchase / sale transaction, then in this case, the bonds do not play any role here. A person who buys a car will not pay anything because there is no tax on the purchase. But since another party to the deal has income, then he will, of course, have to pay a 13 percent tax on profits.