Does the child have to pay property taxes? This topic worries the majority of families. Especially after maternity capital appeared in Russia. With its help, people were able to purchase new homes. The main condition is the allocation of shares in real estate to children. This is how the minor becomes the owner of the residential property. Should a child pay personal property tax? And if this is necessary, then how to cope with the task?
Description of the tax
What is property tax called? This is the first thing that is important for every modern taxpayer to remember.
Property tax is an annual payment that must be made to all property owners. The size of the payment depends on the region of residence of the person, as well as on the cadastral value of the “real estate”.
Accordingly, it is awarded for the possession of certain objects. As a rule, owners encounter the following components:
- houses and dachas;
- rooms and apartments;
- garages and parking spaces;
- unfinished construction projects.
All this is not so difficult to understand. But what can be said about the situation when children own real estate?
Taxpayer's obligation
Should children pay property taxes? To correctly answer the question asked, you will have to thoroughly study the current legislation. What does it say?
All taxpayers are required to pay for their property. And within the allotted time frame. This means that children who own property must also make contributions to the state treasury.
At the same time, Russian legislation requires that taxpayers pay receipts from their income. Children are not a working-age population. In addition, they do not have the right to carry out transactions through banks. This means that tax payments are not available to them.
Not legal
Based on the foregoing, several conclusions can be drawn. The first is the Federal Law “On Property Taxes for Individuals” which classifies children as payers. Secondly, the Tax Code states that children are not a working population. It turns out to be a kind of contradiction, especially if we take into account Article 8 of the country’s Tax Code.
Accordingly, demanding payment from children is an illegal action. If the tax authorities want a minor child who does not have a job (official employment) to pay, you can simply ignore these complaints. But when the receipt arrives, you need to do something with it. What exactly? What should parents do?
This is important to know: How long can it take to sell an apartment after buying it without tax?
To pay or not?
So should a child pay property tax under certain circumstances? What do lawyers say about this?
Based on all of the above, it follows that minors have no opportunity to make tax payments. But if you do not pay the bills, the citizen begins to be in debt.
What to do? Does the child have to pay property taxes? If the parents are disabled or healthy, this is not so important. The main thing is that taxation takes place. And you have to deal with him somehow.
Lawyers assure that tax payments for minors are made by their legal representatives. That is, the child’s property tax is paid by the parents. But in this case you will have to follow some rules.
Should a child pay property tax: legal advice
Finance January 18, 2018
Does the child have to pay property taxes? This topic worries the majority of families. Especially after maternity capital appeared in Russia. With its help, people were able to purchase new homes.
The main condition is the allocation of shares in real estate to children. This is how the minor becomes the owner of the residential property.
Should a child pay personal property tax? And if this is necessary, then how to cope with the task?
Description of the tax
What is property tax called? This is the first thing that is important for every modern taxpayer to remember.
Property tax is an annual payment that must be made to all owners of real estate. The size of the payment depends on the region of residence of the person, as well as on the cadastral value of the “real estate”.
Accordingly, it is awarded for the possession of certain objects. As a rule, owners encounter the following components:
- houses and dachas;
- rooms and apartments;
- garages and parking spaces;
- unfinished construction projects.
All this is not so difficult to understand. But what can be said about the situation when children own real estate?
Taxpayer's obligation
Should children pay property taxes? To correctly answer the question asked, you will have to thoroughly study the current legislation. What does it say?
All taxpayers are required to pay for their property. And within the allotted time frame. This means that children who own property must also make contributions to the state treasury.
At the same time, Russian legislation requires that taxpayers pay receipts from their income. Children are not a working-age population. In addition, they do not have the right to carry out transactions through banks. This means that tax payments are not available to them.
To pay or not?
So should a child pay property tax under certain circumstances? What do lawyers say about this?
Based on all of the above, it follows that minors have no opportunity to make tax payments. But if you do not pay the bills, the citizen begins to be in debt.
What to do? Does the child have to pay property taxes? If the parents are disabled or healthy, this is not so important. The main thing is that taxation takes place. And you have to deal with him somehow.
Lawyers assure that tax payments for minors are made by their legal representatives. That is, the child’s property tax is paid by the parents. But in this case you will have to follow some rules.
Payment Features
What exactly are we talking about?
We found out whether children should pay property tax and land tax as well. How to make the corresponding payments?
We will read detailed instructions on how to close tax debts later. To begin with, every parent must remember some rules for transferring money to the Federal Tax Service.
When paying a payment, citizens must indicate for whom they are transferring the funds. Otherwise, deductions will not be taken into account. The Federal Tax Service simply will not understand where the money needs to be transferred.
How legal is such an instruction? Absolutely. Recently, Russia has allowed to pay other people's taxes. And the mentioned payments for minors always had to be made by their legal representatives. But there are also exceptions.
Not according to the rules
Does the child have to pay property taxes? In some cases, the child is required to independently transfer money according to the invoices issued. When is this possible?
If the minor is recognized as fully capable. This usually happens after 16 years of age:
- during marriage;
- upon emancipation.
Accordingly, in the described situation, the tax payment is made on behalf of the child. This is a normal phenomenon, although it is quite rare.
No payment - freedom?
Sometimes parents of minor property owners note that their children do not receive payment notifications. Is this grounds for release from obligations?
Unfortunately no. Do children have to pay property taxes if the notice in the prescribed form never arrived? Yes.
According to current legislation, the absence of tax notifications does not relieve one from the corresponding liability.
This means that the taxpayer will have to independently clarify the debt to the state, find out the details of the recipient’s Federal Tax Service, and also carry out transactions.
Payment deadline
Minor owners must pay property taxes, but in this case the payments are made on behalf of one of the parents. And for free. This is exactly what both Federal Tax Service employees and lawyers say.
It is important to comply with the deadlines for paying property taxes. The current payment deadline is December 1st. Notifications in the prescribed form are sent to taxpayers by November 1.
What happens if you miss a payment? The citizen will have a debt. And it doesn’t matter who the taxpayer is – a child or an adult. The main thing is that the payment deadlines have been missed. Additionally, a person will be charged a penalty every day. This means that you will end up paying more than the down payment.
Transaction methods
Does the child have to pay property taxes? The answer is yes. The main thing is that the transaction is carried out on behalf of legal representatives with appropriate commentary. Without it, the money will not be counted as payment for the child.
How can you cope with the task? Citizens can pay taxes:
- in banks;
- through payment terminals;
- through tank machines;
- by using the State Services website;
- on the portal “Payment for State Services”;
- electronic wallets;
- Internet banking programs.
These are the most common scenarios. Next, we will look at an example of paying property taxes.
Payment instructions
Should children pay property taxes? Lawyers and tax officials say the responsibility for making appropriate payments lies with the parents of minors. Receipts cannot be ignored.
To pay tax for a child, you can do the following:
- Open the “Payment for Government Services” website.
- Go to the “Tax debts” section.
- Check the box next to “By document”.
- Enter the payment notification number in the field that appears.
- Click on the “Find” button.
- Click on “Pay”.
- Provide the citizen's bank account details.
Source: https://monateka.com/article/269533/
Payment Features
What exactly are we talking about?
We found out whether children should pay property tax and land tax as well. How to make the corresponding payments?
We will read detailed instructions on how to close tax debts later. To begin with, every parent must remember some rules for transferring money to the Federal Tax Service.
When paying a payment, citizens must indicate for whom they are transferring the funds. Otherwise, deductions will not be taken into account. The Federal Tax Service simply will not understand where the money needs to be transferred.
How legal is such an instruction? Absolutely. Recently, Russia has allowed to pay other people's taxes. And the mentioned payments for minors always had to be made by their legal representatives. But there are also exceptions.
Not according to the rules
Does the child have to pay property taxes? In some cases, the child is required to independently transfer money according to the invoices issued. When is this possible?
If the minor is recognized as fully capable. This usually happens after 16 years of age:
- during marriage;
- upon emancipation.
Accordingly, in the described situation, the tax payment is made on behalf of the child. This is a normal phenomenon, although it is quite rare.
Do minor children pay taxes for an apartment?
When receiving any property as an inheritance, many heirs are first of all interested in whether they need to pay any taxes on all this.
In general, this question arose due to the fact that, under certain conditions, inherited property can be considered as income, which in turn is subject to income tax in the amount of 13%.
The situation is even more complicated in cases where minor children inherit property.
Property tax for minors
The fact that Russia has taxes on movable and immovable property is not news to anyone. Any adult citizen of the Russian Federation is obliged to pay taxes on his property. In certain situations, a person may qualify for benefits that may cover part or all of their tax receipts. Let's look at how things stand when it comes to children.
Under certain conditions, children can receive property from their relatives or other individuals without any problems. Russian legislation does not provide for full ownership of property by children at a certain age, and therefore in this case they require an official guardian who will manage or monitor the property until they reach adulthood.
In fact, the law is quite clear on whether children pay tax. A child is any individual who has not reached the age of 18 years. However, the law provides for the possibility of paying taxes in person, starting from the age of 16.
What taxes are charged on children?
Logically, a child who does not work cannot, technically, pay taxes. This is because taxes mean payments by an individual from his own funds, and if the child does not work, then he actually cannot have them. In practice, the situation is slightly different, but not always.
In reality, the tax service can assess taxes on property owned by a child who has not reached the age of 16, and therefore cannot be officially employed and earn money. In such a situation, it is implied that the child's parents must pay taxes for him, as legal guardians, and if they refuse to do so, legal liability is provided.
At least this is how the tax authorities see this situation. On the other hand, lawyers argue that such a practice is not correct from the point of view of the law, and therefore such things can be easily challenged in court and won, but most citizens simply do not do this. The inconsistencies in this scenario are quite striking:
- the child must pay taxes on his property;
- if a child is not able to pay on his own, his parents should do it for him;
- Until a certain age, a child cannot act as a full-fledged legal entity when disposing of property.
Roughly speaking, the tax office works based on the opposite - if you don’t want to pay taxes for a child, first prove that you shouldn’t do it, which in itself is not entirely correct.
Who pays property tax
Who should pay property tax
As we have previously said, any individual over 18 years of age automatically qualifies for paying property taxes. This applies not only to citizens of the Russian Federation, but also to foreigners who have property in Russia, but for them the tax rate may differ.
All children under the age of 16 are not required to pay taxes on the property they own. Basically, this point concerns property that was inherited, and not simply transferred by parents in order to avoid paying taxes. Tax evasion in this manner is considered illegal and is investigated by the tax service.
If the minor is working
However, a child who reaches the age of 16 and begins working is quite capable of paying taxes on the property he owns. In this scenario, minors also pay taxes like any other individual over the age of 18.
To do this, a minor must be officially employed, receive an official salary, and pay income tax.
Along with the beginning of payment of taxes on property, additional opportunities arise that relate to its ownership and disposal.
From the moment a child turns 18, he can fully and calmly manage his property within the limits of current legislation.
Tax rate
The tax rate is a rather complicated issue. This is because by property, especially when it comes to inheritance, we mean a variety of things:
- residential real estate;
- commercial real estate;
- vehicles;
- objects of art;
- patents or rights to something;
- regular payments and so on.
Everything that we mentioned earlier is considered differently by legislation in different conditions. The situation is simplest with residential real estate - apartments, houses, all private buildings on a personal plot of land, and so on.
For such property, the legislation provides for the simplest possible conditions - when receiving an inheritance, heirs of the first two categories do not even have to pay any additional taxes, only a state fee for paperwork.
Further, as the owner of an apartment or house, you need to pay an annual real estate tax, which starts from 0.1% of the cadastral value - for apartments the cost of 20 square meters is deducted. m, which for many may be the majority of the total cost. The base rate may rise over the next few years, but that's where things stand for now.
Commercial real estate taxes are now much more complex, especially if they are involved in significant cash flow. Under certain conditions, such real estate can be considered an asset that generates funds. They fall under income and are subject to income tax, on top of simple property taxes.
If a child inherited the patents of his relative or the rights to some piece of art (painting, book, trademark, etc.), the inheritance in this case will be considered as direct income.
If you receive regular payments from such an inheritance, you must also pay income tax, even if it all goes through your parents.
In such a situation, you will not be able to appeal the tax service’s decision in court.
Preferential categories
But do not forget that the legislation of the Russian Federation provides for groups of beneficiaries who can receive partial or complete exemption from paying property taxes by inheritance. This paragraph applies not only to adult individuals, but also to children. Benefit groups include:
- disabled people or people with disabilities (since childhood);
- children of military personnel who died in service;
- presence of disability of 1 or 2 groups;
- individuals for whom social support is provided;
- individuals who received benefits in accordance with the decision of local authorities.
As you can see, all these points are practically no different from those that concern adults. That is why, you first need to study all possible benefits, regional legislation and other factors that may help you obtain partial or complete tax exemption.
At the same time, we should not forget that even preferential categories are provided with an exemption from paying certain taxes, but only within fairly clear limits.
For example, if you own two apartments, you can receive tax exemption for only one of them.
In other cases, benefits may only provide for a reduction in the base tax rate, either for one unit of property or for several at once.
Source: https://prorealtora.ru/obyazany-li-deti-platit-nalog-na-imushhestvo-po-nasledstvu/
No payment - freedom?
Sometimes parents of minor property owners note that their children do not receive payment notifications. Is this grounds for release from obligations?
Unfortunately no. Do children have to pay property taxes if the notice in the prescribed form never arrived? Yes. According to current legislation, the absence of tax notifications does not relieve one from the corresponding liability. This means that the taxpayer will have to independently clarify the debt to the state, find out the details of the recipient’s Federal Tax Service, and also carry out transactions.
Payment deadline
Minor owners must pay property taxes, but in this case the payments are made on behalf of one of the parents. And for free. This is exactly what both Federal Tax Service employees and lawyers say.
It is important to comply with the deadlines for paying property taxes. The current payment deadline is December 1st. Notifications in the prescribed form are sent to taxpayers by November 1.
What happens if you miss a payment? The citizen will have a debt. And it doesn’t matter who the taxpayer is - a child or an adult. The main thing is that the payment deadlines have been missed. Additionally, a person will be charged a penalty every day. This means that you will end up paying more than the down payment.
What are the property tax benefits for minors?
Minor children may have a property tax exemption, but only if they fall into one of the following categories:
- they have been disabled since childhood;
- they are disabled children;
- they are children from military families who have lost their breadwinner.
This is important to know: What is a communal apartment?
Minors no longer have any grounds for applying for property tax benefits.
It is useful to know that additional benefits for property tax for minors may be established by the laws of the cities of Moscow, St. Petersburg and Sevastopol.
The presence of a property tax benefit means that a minor does not have an obligation to pay it. That is, a benefit means an exemption from paying tax. But such release is possible only in relation to one piece of property of each type at the choice of the parent (or representative) of the child, regardless of how many grounds there are for such release.
Separately, we note that the benefit is not provided for property whose cadastral value exceeds 300 million rubles.
The procedure for registering and receiving benefits is as follows. The parent or other legal representative of the minor submits an application to the tax office of his choice. He can attach to the application documents confirming his right to benefits. If the benefit has already been provided previously, and the child has the right to further use it, then it is not necessary to reapply.
If a minor entitled to a benefit owns several objects of the same type, then the tax office must submit a notification indicating the object in respect of which the benefit will be applied before November 1 of the year from which the tax benefit is applied. If notification is not received from the parent (or other representative) of the minor, then the tax office itself will provide a benefit in relation to the property on which the maximum tax is charged.
Transaction methods
Does the child have to pay property taxes? The answer is yes. The main thing is that the transaction is carried out on behalf of legal representatives with appropriate commentary. Without it, the money will not be counted as payment for the child.
How can you cope with the task? Citizens can pay taxes:
- in banks;
- through payment terminals;
- through tank machines;
- by using the website “GosOplata Gosuslug”;
- electronic wallets;
- Internet banking programs.
These are the most common scenarios. Next, we will look at an example of paying property taxes.
Arguments against"
For each statement of the Federal Tax Service, you can provide a counter-argument. Let's look from the other side at the obligation to pay property tax for a minor child.
| Argument from the tax authority | Counter argument |
| Art. 80 of the RF IC – maintenance by parents of a person under eighteen years of age. | The opinion of lawyers is that a kind of dependency does not include paying taxes for a child. |
| Penalties for non-payment or late payment. | Clause 2 Art. 107 of the Tax Code of the Russian Federation establishes that bringing to financial liability is possible only in relation to persons who have reached the age of 16. The resolution of the Constitutional Court of the Russian Federation dated March 13, 2008 regulates that full civil capacity arises only after reaching the age of 18. Ownership of real estate presupposes the implementation of certain legal actions (transactions, sales). The child, due to his minority and limited civil capacity, cannot fully manage his property. Hence the conclusion is that a minor with only partial civil capacity cannot pay tax. |
| Art. 8 of the Tax Code of the Russian Federation defines the concept of “tax”. | Based on the theory given in the legislation, the taxpayer must pay the fee independently and with his own funds. As we know, minors do not fully have this opportunity. |
| Art. 45 of the Tax Code of the Russian Federation stating that payment of the fee is made by the taxpayer himself. | Practice shows that the implementation of constitutional duties is undertaken by the legal representative. Here you can mention the Letter of the Ministry of Finance dated April 22, 2020. Payment of the fee by third parties, including relatives, is prohibited. |
| Letter from the Federal Tax Service of the Russian Federation dated April 23, 2009 N 3-5-04/ [email protected] that a parent must pay a fine for his child. | This is counterbalanced by the decision of the Supreme Arbitration Court that the subject of tax legal relations is exclusively the teenager himself. Neither relatives, nor friends, nor legal representatives of the person. |
| Art. 51 of the Tax Code of the Russian Federation, which regulates the duty of a guardian to pay a fee for persons whose civil rights are limited by the court. | It is unlawful to use such an article, at least because children are not incapacitated persons. |
Payment instructions
Should children pay property taxes? Lawyers and tax officials say the responsibility for making appropriate payments lies with the parents of minors. Receipts cannot be ignored.
To pay tax for a child, you can do the following:
- Open the “Payment for State Services” website.
- Go to the “Tax debts” section.
- Check the box next to “By document”.
- Enter the payment notification number in the field that appears.
- Click on the “Find” button.
- Click on “Pay”.
- Provide the citizen's bank account details.
- Insert a comment if necessary.
- Confirm the operation.
It is done. The proposed instructions are relevant for paying taxes through the GosGosuslugi portal;
In reality, everything is much simpler than it seems. Especially if the child has a TIN. This is due to the fact that parents will be able to find the necessary payment much faster in certain systems.
