Income tax by renting of real estate

Income tax by renting of real estate

Tax for income while lease is stable and does not change from the day of accepting. Contracts of rent are made between two persons – renter and lessee. Tax inspection is interested only in the first participant of the contract – side receiving the income.

Rate of income tax for renter – it is stable irrespectively from the rent – 20% (it should be paid by quarter or in a year forward), plus the sum while registration of the contract in Housing Department.

Renter must register the contract of rent and fill in the annual tax declaration about incomes in tax service. Also you should show to the Housing Department the number of renters (with theirs details) for correcting the communicative services.

Only 10% rent contracts are registered in proper agencies and not more then 1% by real cost. If renter from the beginning is not planning to register the contract - there is always the real price. To join two contradictory sums fill in two set of contracts – one with real price (for you) and one with fictive (for tax inspection).

Change this malpractice is possible only by entering the necessary notary certificate of the contracts rent with payment of state duty (not more than 1%) instead of monthly 20 % income tax. It will increase the number of those “wishful” but real sums will not be in such contracts – as while selling, maximum in each forth.