Why does the child tax come? Property Tax on Children: Should Minor Children Pay Property Tax? When to pay tax

Very often, parents of minor children ask themselves a seemingly simple question: do minor children pay property tax, since they have no official income (except for state benefits, alimony, pensions and other income that is not taxed in principle)? However, the answer to this question is not as simple as it might seem.

To pay or not to pay

Based on everyday logic and common sense, children do not need to pay taxes, because even the property they own is maintained at the expense of their parents.

In addition, looking at the Tax Code, we will find the definition of “tax” and read that tax is an individual gratuitous payment levied on individuals in the form of alienation of funds belonging to them by right of ownership.

It would seem that the law is on the side of the parents: tax must be paid on the child’s money, which he simply does not have, because even money given to the child by grandparents cannot be taxed. But here we will be disappointed: the law establishes the obligation to pay property taxes for minor children to the budget. Also controversial is the question of the age at which taxes on children are paid. There has been a lot of disagreement on this issue among lawyers, tax authorities and the public in general.

It must be said that in theory, common sense defeats the untenable arguments of tax officials, but in practice, parents are forced to pay taxes for their child.

Position of the tax authorities

First, let's figure out what category of citizens the law classifies as children.

In accordance with the Family Code, a child is a person who has not reached the age of majority, that is, 18 years old.

Often parents register a share in the ownership of real estate in the name of their child. It can be:

• apartments;
• summer cottages with residential buildings;
• garages;
• unfinished properties.

These properties are subject to taxation. By law, individuals are required to pay to the budget a tax on property owned by them, which means that children must also pay a tax on their property. The tax authorities have no doubts about this. In their opinion, property tax should be paid regardless of the taxpayer’s age and any property criteria.

The tax authorities explain the obligation of parents to pay taxes for their children by the fact that parents are obliged to support their minor children, and refer to the Family Code (Article 80). Lawyers say that this article implies an obligation to create a decent standard of living for a child and support him, and does not oblige him to pay taxes.

Tax authorities also threaten to charge fines in case of failure to pay property taxes for a child, because the law prohibits bringing minors under 16 years of age to tax liability. In practice, parents will often have to pay a fine, because few people will want to argue with the tax office about the legal intricacies of this issue. But here we note that the subject of the tax legal relationship is the taxpayer himself, that is, the child. This means that only he can pay the fine, but the law removes such an obligation from minors. If, however, a fine was imposed on a child under 16 years of age, you will be able to challenge it in court.

Conclusion: the position of the tax authorities is not justified, but despite this, you will still have to come to terms with the position of the state and pay the required amount. Before doing this, we suggest that you check whether you and your child fall under the preferential category of citizens.

Privileges

To find out about possible benefits, you need to contact the territorial body of the Federal Tax Service at your place of residence, or make a request on the website of the tax authority. If you receive a positive answer, then, as a legal representative, contact the tax office with an application for benefits. Remember that the benefit can be provided only for one property of your choice, or the property will be selected by the tax authority (with the highest property value).

Art. will explain to you whether you are one of the beneficiaries. 407 of the Tax Code. Thus, the following are exempt from tax:

• disabled people (groups I and II);
• disabled since childhood;
• persons entitled to receive social support in accordance with the law;
• members of military families left without a breadwinner;
• and other reasons.

All the necessary information about existing benefits can also be found on the Federal Tax Service website.

In addition, tax legislation is also under the jurisdiction of the constituent entities of the Russian Federation, so check the availability of property tax benefits in your constituent entity, as well as in local legislation.

In order to control existing tax debts, you can register your child in your personal account on the Federal Tax Service website.

How to get a TIN for children

We found out that children still pay taxes, which is why TINs are issued to children, just like adults. To do this, you need to contact the tax authority at your place of residence, or take the opportunity to make such an application through the Federal Tax Service website.

You will need the following documents:

• the child’s passport (or the child’s birth certificate if he is under 14 years old);
• passport of the legal representative (for example, the mother, if the children are under 14 years old, to confirm the legality of the powers and so that the mother herself pays for them);
• certificate of registration at the child’s place of residence.

How can parents pay taxes for their children?

Article 8 of the Tax Code states that tax must be paid from the taxpayer's wallet, but this rule does not apply in our case. There are two ways for parents to pay taxes:

• cash at the bank;
• by credit card, via online banking.

In the first case, you simply indicate the child as the payer, especially since the receipt already comes in his name. If you transfer money by card, be sure to include all information about the child in the payment instructions:

• birth certificate,

If you made a mistake when filling out a payment document or forgot to enter information about children (in this case, the payment will not be credited for children), you should contact the tax authority as soon as possible, explain the situation and clarify the child’s information so that the tax can be credited for the baby.

Thus, the question of whether a child should pay property taxes is quite controversial. Disputes have been going on for a long time among interested citizens and tax authorities, but at the moment we are not able to change the current practice, so we advise parents to regularly pay tax for their children and check for unpaid amounts on the Federal Tax Service website. Do not forget that you have full responsibility for paying all taxes for the child and providing for him in general.

If you do not agree with the actions of the tax authorities, including in relation to the fines imposed on you, it would be correct to resort to legal remedies and sue the tax authority.

The Tax Code of Russia does not contain benefits regarding the payment of taxes by children. As property owners, they are also required to pay tax, regardless of the fact of lack of income. But this responsibility, until they reach adulthood, must be fulfilled for them by their parents or legal representatives.

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Do children pay property taxes? Taking into account paragraph 1 of Art. 54 of the RF IC, a child is considered a person who is under 18 years of age. From 6 to 14 years of age, a child has the legal capacity of a minor, which does not allow him to participate in most transactions and other legally significant actions.

From the age of 14, a child can perform legally significant actions independently, but only with the consent of his parents or other legal representatives.

General information

The fact that a minor owns property does not relieve him from the obligation to pay property taxes. According to tax legislation, minor citizens are not included in a separate category of payers who may be exempt from paying property tax.

Their legal representatives who own the real estate, including through the right of trust, will have to pay. Tax, based on the value of the property, as well as its category of object.

The tax is calculated in accordance with the general procedure. If taxes are not paid, the child may be a defendant in court. His interests will be represented by his parents. Payment is calculated based on the inventory value of the property.

Estimated rates are approved at the regional level and for real estate are 0.1%, taking into account the cadastral value of the property.

At the local level, the rate can be increased to 0.3%. The tax on expensive real estate - valued over 300 million rubles - is calculated based on a rate of 2%. For other objects the rate is 0.5%.

If the tax calculated on the cadastral value is higher than the tax on the inventory value, then correction factors are used: 0.1-0.6%.

From 2020, the tax will be calculated exclusively on the cadastral value of real estate. To pay the tax, deductions are provided, which are:

• 20 sq. m. - for an apartment;
• 10 sq.m. – for the room;
• 50 sq.m. – for other real estate.

Who pays?

The payment of the tax is carried out by the parents or legal representatives of the child. If the property is held in trust, then the tax is calculated and paid by the trustee.

Should a child pay property tax - he has the right to pay the tax independently upon reaching the age of 16.

This is also possible when the child has received full legal capacity through emancipation, which is possible with the consent of the parents, guardianship authorities or a court decision.

Possible by any person who does not want the child to receive a fine for late taxes.

The legislative framework

The tax is calculated according to. Explanations on the use of the Tax Code of the Russian Federation are given in Letters of the Ministry of Finance of the Russian Federation dated April 22, 2015, August 11, 2011.

The age of a child as a full-fledged subject of legal relations is regulated by the provisions of Art. 28-29 of the Civil Code of the Russian Federation.

Objects of taxation

They are:

• private houses, apartments;
• rooms in an apartment, dormitory;
• land;
• garages, buildings;
• commercial premises.

The object of taxation may be an unfinished object. Tax is also charged on shared property.

The amount of tax on the share is calculated based on the share indicators and its cadastral value, which is calculated from the total value of the property.

Children's property tax

Children's property tax is mandatory, in contrast to the opinion that a child, without a regular income, should not pay.

Failure to pay taxes on time may result in fines of up to 20% of the value of the arrears. Tax calculation is carried out by the Federal Tax Service independently.

A notification with the amount already calculated is sent to the taxpayer's address. If the taxpayer agrees with the amount, then he pays it through the bank’s cash desk or other possible means.

If you disagree with the amount, the applicant should contact the tax office and submit your objections, including if the cadastral value of the property is high.

Is it accrued?

Children's property tax in general. The amount is indicated in the notification. The age of the payer for paying the tax has no bearing.

Payment of property tax is possible in three periods at once.

From what age?

The tax is subject to accrual from the moment the property becomes the property of the minor. This is possible in the case of inheritance or registration of a gift transaction, privatization of real estate. Theoretically, payment can be accrued from the moment the baby is born.

How to pay?

It can be done in any way. You can specify the details indicated in the notification and transfer the tax through the bank cash desk.

Funds can be transferred through the Federal Tax Service website or the State Services portal. Money can be transferred through a payment terminal.

Who is entitled to benefits?

Rely on children who have lost their parents - military personnel. The tax is not paid on residential real estate whose area is less than 50 square meters. m.

Funds are not transferred to persons with disabilities of groups 1 and 2.

FAQ

Citizens are interested in the obligation to pay tax for children. There are current questions about the amount of tax and the procedure for calculating it. Applicants are interested in the consequences of non-payment of tax or late remittance.

Is a child given a TIN?

A TIN is issued to a child upon the application of parents or legal representatives. To do this, you need to provide the minor's birth certificate or passport.

Document processing time is 3 days. A child has the right to apply for a document in person from the age of 14 years.

Can I pay from my parents' account?

You can pay taxes from any account. The payment order must indicate the name of the object and details. It is not necessary to provide information about the payer.

Payment is possible from the account of any person. The main thing is to provide a document confirming the identity of the payer if he contacts the bank.

If it is not indicated that the tax was paid for the child?

For the tax recipient, such a question does not matter. The main thing is that the payment comes with information about a specific object.

If a child’s tax has arrived, it is advisable to pay it on time. tax for individuals – until December 1 of the tax period.

Despite the position of individual lawyers, the child must pay tax without fail. He may also be held liable for late payments. For a minor, parents or guardians must pay the tax.

In 2019, simultaneously with the need to pay tax, you can challenge the cadastral value of real estate. This can be done administratively or judicially. If litigation is unavoidable, it is advisable for the child’s representatives to seek support from a qualified lawyer.

Video about property tax on minor children

Attention!

• Due to frequent changes in legislation, information sometimes becomes outdated faster than we can update it on the website.
• All cases are very individual and depend on many factors. Basic information does not guarantee a solution to your specific problems.

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Alienation of property in favor of children is a familiar and frequent procedure, but most of all parents have questions regarding the aspect of whether a minor child who has personal property of material wealth should pay property tax. The debate has been going on for a long time, with tax authorities on one side. The legislator determines that taxation is excluded only for those categories of citizens who have appropriate benefits. There is no specific reference to the fact that this also applies to minors.

Basics

The basis of all disputes is the opinion of citizens that minor children, due to their limited legal capacity, lack of stable and regular income, as well as the opportunity to find a job, should belong to the preferential category of owners. On the other side of the scale is the norm of the Federal Law, which determines that all owners of property that the legislator classifies as taxable must pay contributions to the state, regardless of financial well-being and age. The law directly answers the question of whether persons under 18 years of age pay property taxes.

But the rights and responsibilities of a minor child are limited to the guardianship and care of parents, who must support the children and guarantee them the opportunity to learn and self-develop. In practice, the personal property tax assigned to minor children is paid by able-bodied parents or those who replace them (guardians, adoptive parents). Along with the need to pay contributions in place of the child, parents are given the opportunity to use the facilities until the child reaches the age of majority and is able to manage personal benefits.

Principles

The number of individuals whose income is subject to taxes includes all citizens of the Russian Federation and those who temporarily or permanently reside in the territory of the state, including minors. The following types of mandatory deductions are provided that also apply to teenagers:

• property;
• transport;
• income.

Important! To assign a payment amount, official confirmation is required that the child’s personal property includes objects or financial income that are subject to taxation.

But children receive those types of financial support that are not reduced by taxation (alimony, government assistance, pension, acquisition of inheritance after the death of a relative). All that remains is ownership of property.

The amounts collected from individuals are different for everyone. This is due to the financial well-being of the spouses. Before making calculations, the IRS makes formal requests to the federal registry services to find out the family income. Based on the data obtained, a stable tax amount is formed.

Not all objects are subject to mandatory taxation. These include:

• residential real estate;
• non-residential real estate;
• country houses;
• garages;
• real estate objects that are under construction.

Exceptions

The only way to avoid payments is to assign benefits to the owner of the property, that is, the teenager. The law determines that the assignment of benefits and the application of preferential categories to minor citizens is the same as for individuals who have reached 18 years of age. In addition to federal reasons, grounds formed for a specific region are allowed.

Not all approved bonuses can be received by a teenager. One of the most common possibilities for exemption from payments is raising a child in a family that has lost its breadwinner, if the deceased was in military service.

The legislator also stipulates that deductions will not be collected when a citizen of any age owns real estate with a total area of ​​less than 50 m2, built on a plot of land intended for gardening and not for development.

Receipt

If an adult determines that a child is applying for benefits, you need to contact the tax authorities. If you have doubts regarding the grounds that have arisen, you can submit an online request to the service, where they will inform you whether there are grounds for assigning bonuses to your child.

The need to carry out the procedure falls on the shoulders of the parent or other adult whose status is equivalent to biological kinship (guardian or adoptive parent). Such participants automatically receive authority to represent the child in the dispute. The parent must go to the local tax office and provide:

• identification document of the applicant;
• confirmation of the ability to represent the interests of the child;
• the teenager’s personal document (birth certificate or passport);
• a document that confirms the grounds for assigning benefits.

In exceptional cases, Federal Tax Service employees may require additional papers. You also need to write an application indicating the property that the applicant wants to be exempt from taxation. Regardless of the circumstances of the assignment of benefits, each citizen has the right and opportunity to cancel the tax on only one object from each type of property (real estate, transport, etc.). If the application does not display the desired property, tax officials can independently select the property that will be excluded.

Paying taxes is a constitutional duty of a citizen of the Russian Federation. The collection can be carried out for various reasons, but with one goal - to replenish the treasury of the state or municipality.

To find out whether minor citizens are subject to property tax, you need to know some of the features of the concept itself. There are main types of taxes:

• Central, the proceeds of which go to the implementation of the tasks of the entire state.
• Local, which are produced to implement the functions of local governments.

By definition, property tax is a local fee that is established by the representative body of a municipal entity (city, village council). In addition, payment terms and procedures and interest rates are determined.

Simply put, paying property taxes allows you to own that property. The grounds and subtleties of this type of duty are established by Chapter 32 of the Tax Code of the Russian Federation.

You can find out, view or check the rate of tax payments in the person’s personal account on the government services website.

Who should pay

Until the end of 2014 The taxpayer was recognized as the owner of property that may be subject to duty, in accordance with the second article of Law No. 2003–1. Since 2015, changes have been made to the definition. Now the payer is the person who has the right of ownership to those properties that are listed in Art. 401 of the Tax Code of the Russian Federation.

A taxpayer is a legally capable individual or legal entity who has a direct obligation to pay the duty. The subject of taxation are persons who own:

1. Living space, this includes an apartment or room.
2. Own residential building.
3. Parking space for a vehicle or garage.
4. A single real estate complex.
5. A piece of property whose construction has not yet been completed.
6. Share in the above property.

All of the above types of property have their own subtleties. Thus, a citizen’s living space is part of an apartment building. Such a house is equipped with a staircase, a roof, and windows. All these elements are not taxable to an individual resident.

The plot of land where the house is located for personal farming, gardening, and livestock farming belongs to the second point. Therefore, he is subject to tax. It is necessary to mention the innovation in the legislation of the Russian Federation since 2016. Now non-residential premises are equal to residential premises and, accordingly, oblige the owner to pay a tax fee for them. Such locations include country or garden houses, gazebos.

Citizens can receive some privileges when paying taxes. Persons entitled to be partially or completely exempt from payments include:

Registration of social benefits is not limited by time. The person collects the required package of documents and submits it in any convenient way. The list of papers is as follows:

• Written confirmation of the object for which it is planned to receive material benefits;
• Evidence confirming the possibility of obtaining tax privileges.

The citizen chooses how to submit an application:

• Go to your local tax center yourself;
• On the Federal Tax Service website;
• Send a letter by mail.

Large families are a category of citizens to which the state pays special attention. However, they are not provided with benefits when paying the duty. In conditions of limited material capital, such privileges are not expected either at the federal or local level. The only exceptions may be certain municipalities that are legally exempt from taxes.

By law, large families are entitled to privileges when entering kindergarten. Minors from such families are enrolled in an educational institution with priority.

Children should pay taxes (opinion of tax authorities)

Tax center staff are conservative in their decision. For their reasons, minority does not exempt from constitutional obligation. Any person who owns any property is subject to taxation. Therefore, every time they intend to oblige the minor to pay fees. The basis for this decision of the tax authorities are logical facts:

• Property that is legally subject to duty is registered in the name of the child.
• Minors are not included in the list of grounds for obtaining benefits.
• According to Art. 80 of the RF IC, parents must support minor children.

In practice, it is the parent or legal representative who pays the tax fee for their child. After all, the youngest child does not have sufficient income to fulfill his responsibility.

As is known, in case of non-payment of duty, a fine is charged. Since in this situation the taxpayer is the teenager, penalties are issued in his name. However, the legislation of the Russian Federation prohibits bringing minors (under 16 years of age) to tax liability. Based on this provision, the actions of the Federal Tax Service are contradictory.

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.

conclusions

So, does the child have to pay property taxes? Due to his minority, a citizen is not able to fully independently implement his constitutional obligation. The main helper and sponsor in such a situation are parents.

Ignoring receipts for property tax payments is not the most correct and fair decision.

It entails appropriate sanctions. In particular, a fine in the name of the taxpayer. Even in this case, parents take responsibility.

Opinions on this issue differ, but practice shows one thing: tax authorities continue to oblige children to pay a fee for property registered in their name. But this obligation is unconditionally fulfilled by the parents of their child.

However, it is worth remembering that property tax is set by the municipality. Thus, in Novosibirsk since 2010, the number of beneficiaries includes:

• minor citizens;
• orphans;
• orphans and persons without parental care aged 18-23 years.

Thus, the debate about the need to pay property tax for young children remains open today. Theoretical arguments do not justify the actual story. The older generation conservatively follows the maternal instinct - to be responsible for your child in any situation.

- The tax office demands that our daughter, who owns
part of the apartment paid property tax. But the girl is only 4 years old. How
Can I tax a child?

When forcing a child to pay property tax, tax authorities refer to the Tax Code and the Law of the Russian Federation of December 9, 1991 N 2003-1 “On the property tax of individuals.” Both there and there are no benefits for children, so formally the inspectors are right. Although the demands are absurd, these are our laws - officials are justified. However, they prefer not to notice that the Tax Code also contains arguments for the protection of children. Unfortunately, these arguments are often not noticed by judges in civil courts, who act on the principle: “If there is a tax, then someone has to pay it.”

Let's try to challenge this point of view. Let's start with the fact that according to Article 45 of the Tax Code of the Russian Federation, the taxpayer himself, that is, the child, is obliged to pay the tax, but he cannot do this. There may be exceptions to the rule given in Article 45, but they must be defined in the Tax Code of the Russian Federation, and there is nothing said there about payment for children. True, there is Article 27 of the Tax Code of the Russian Federation, from which it follows that the legal representatives of minors are their parents and therefore they must represent their son or daughter in every possible way, including paying tax - this is what the inspectors say. But let us recall that according to Article 8 of the Tax Code of the Russian Federation, a tax is considered “a mandatory, individually gratuitous payment levied on organizations and individuals in the form of alienation of funds belonging to them by right of ownership.” Simply put, the tax must be paid “out of your own wallet,” which a four-year-old child does not have. Therefore, in fact, the tax may not be paid.

Inspectors, of course, do not like this logic, and they can impose a fine under Article 122 of the Tax Code of the Russian Federation “Non-payment or incomplete payment of tax amounts.” It says that the defaulter will be charged 20 percent of the tax amount, or even 40 percent, if the inspector proves that the child was aware of the “illegal nature of his actions” (Clause 2 of Article 110 of the Tax Code of the Russian Federation). But the question is: who will they fine? A four year old girl? It won’t work, because according to Article 107 of the Tax Code of the Russian Federation, sanctions are legal if the violator is 16 years old. It seems possible to demand a fine from the parents; they are already over 16. But let us remember that officials call the father and mother “the legal representative of the individual taxpayer.” And the Tax Code of the Russian Federation provides for liability only for the action or inaction of legal representatives of the organization (Article 28 of the Tax Code of the Russian Federation), to which a four-year-old girl again does not apply. Tax officials cannot take advantage of Article 51 of the Code, which deals with “fulfillment of obligations to pay taxes... by an incapacitated individual.” This article determines that a guardian can pay tax, but only for a person whom the court has declared incompetent. That is, this norm does not apply to children. Another “clue” for officials is Article 80 of the Family Code, which states that parents are obliged to support minor children. But does paying tax count as such content? We doubt it. And, besides, in tax legal relations, the Tax Code is more important, not the Family Code (Clause 1, Article 11 of the Tax Code of the Russian Federation).

To be fair, we note that for malicious evasion of child support, Article 157 of the Criminal Code of the Russian Federation also provides for criminal liability (three-month arrest). But we don’t think that judges will demand that a person be arrested for failure to pay a little over 30 rubles (that’s what they demand from a persistent four-year defaulter).

And finally, the last thing inspectors can threaten is penalties. Their amount is small (1/300 of the debt amount for each day of delay, multiplied by the Bank of Russia rate). This rate is now 16 percent, and annual penalties are approximately 19.5 percent (16 percent: 300 days X 365 days), or about 6 rubles. But, in our opinion, this amount does not have to be paid, since penalties are charged if the tax was transferred later than necessary (Article 75 of the Tax Code of the Russian Federation). And we have already said that in our case no one should list it. And in conclusion, we note that the tax can be collected only for three years (clauses 10 and 11 of Article 5 of the Law of the Russian Federation of December 9, 1991 N 2003-1 “On the property tax of individuals”).

Artem RODIONOV, tax expert, deputy editor-in-chief of the Double Entry magazine - especially for the Russian Business Newspaper.