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HOW TO DECLARE TAXES FROM RENTAL REAL ESTATE

If you rent out a property or renting, then this article will be of interest to You.

I will try
to tell briefly and clearly.

The
important that you need to know regardless of whether you are renting or renting
lease, rental income subject to advance tax during the year.

Very often
found that landlords find various forms of not declaring taxes
with these revenues. For example, do not constitute a rental agreement, sign the contract on gratuitous
the use of the property, the use of friends or relatives, etc.
Of course, this is pure tax evasion and those who do should
know that they fall under liability.

At the same time
correct taxpayers should know that if they enter into a contract
lease-a legal entity, the obligations on the calculation, Declaration and
the payment of the tax imposed on a legal person-the tenant. Ie if you
legal entity-the lessee, you are required to pay advance tax for your
the landlord, who you hold with the monthly rental amount. And
only in the last quarter of the tax is not paid upfront, unless
the landlord has not stated it in writing.

Tax
shall be paid on a quarterly basis until the end of the month following the reporting quarter.

The legislator
also determined normative recognized costs of the lessor that do not
taxed at the rate of 10% of the amount of income. It has no value
who you going to rent – a natural or legal person.

If you
rent their property to a natural person, it is your responsibility
to pay advance tax on the income. This tax is paid before the end of the month
following the reporting quarter. If you forgot to pay the tax in
during the year, you should file an annual tax return where to point the amount
earned income and calculate the tax payable. Such a Declaration
available until 30 April for the previous year. In the same period paid himself
tax.

And on sanctions. For incorrectly
the data provided in declarations on incomes of physical persons, but only if
they lead to the arrears of tax or payment of tax, provided the sanction
up to 1 000 levs, and for repeated violation – up to 2 000 leva.

Olena Shopova

Planely Finance LTD