RENTER OF RESIDENTIAL PREMISES
Renter of residential premises may be liable to property income tax, income tax surtax and profit tax, as well as stipulated contributions.
1. Property income tax
1.1. Property income tax is levied on the amount of rent reduced by 30% of expenditures at the rate of 10%.
1.2. Property income tax determined in the manner prescribed for self-employed activities is levied on income from property which is determined on the basis of financial records and registries as the difference between business receipts and business expenses at the rates of 20% and 30%.
1.3. Property income tax determined in the manner prescribed for self-employed activities is levied on property income which is exempted from value added tax in accordance with the Value Added Tax Act, if the taxpayer, in the taxation period, gains total receipts higher than the amount prescribed for the obligatory entry in the value added tax scheme.
2. Income tax surtax is paid on the amount of income tax if the renter has permanent or habitual residence on the territory of the municipality or city prescribing the income tax surtax by virtue of own decree.
3. Profit tax is calculated and levied on profit determined under the provisions of Profit Tax Act (if the Tax Administration approved paying of profit tax instead of income tax to the income tax taxpayer) at the rate of 18% or 10%.
4. Compulsory contributions are paid in accordance with the Act on Contributions (only when property income tax is determined in the manner prescribed for self-employed activities).
The taxpayer is obliged to submit the document on the occurrence or change of facts related to the gain of rents and leases from immovable and movable properties to the Tax Administration Local Office competent according to their permanent or habitual residence, within eight days from the date of the occurrence or change of facts relevant for taxation.
By way of derogation, if the public notary notarized the taxpayer’s signature on the document on the occurrence or change of facts related to the gain of rents and leases from immovable and movable properties, or solemnized such a document, that is, drafted it in the form of a public notary act, public notary is obliged to immediately, and no later than 30 days from the day of executing such an official action, submit electronically one copy of the document to the Tax Administration Local Office competent in accordance with the permanent or habitual residence of the taxpayer gaining income from property, in which case, the taxpayer is not obliged to submit any document.