How to Legally Reclaim Part of Your Taxes

Personal Income Tax (PIT) is one of the federal taxes in the Russian tax system. This tax applies to virtually every resident of the country and some other groups. That’s why many people are interested in its details and calculation specifics.

PIT, previously known as income tax, is charged on a taxpayer’s total income, excluding tax deductions provided by law. The base rate is 13%.

Most citizens are not required to declare their income to the tax office or pay the tax themselves. This is because their employers act as tax agents and fulfill these duties for them.

However, individuals who are self-employed must annually declare their income using form 3-PIT (Personal Income Tax Declaration) by April 30.

Self-employed persons are not the only ones with such an obligation. The following are also required to file:

Therefore, income from selling a car, apartment rental, gambling, lottery winnings, or internet earnings is subject to taxation under Russian law.

Failure to file the PIT declaration and pay the tax may result in penalties or even imprisonment under Russian law.

In some cases, filing a 3-PIT declaration may be beneficial. If you attach copies of documents proving expenses for education or medical treatment, part of the paid tax may be refunded through deductions.

The Russian Tax Code also outlines other PIT forms: 1-PIT – an internal record card for each employee in an organization, showing all income. 2-PIT – a salary certificate issued by employers upon request. 4-PIT – similar to 3-PIT, used by certain self-employed professionals like private lawyers.

Managing 1-PIT and 2-PIT records, completing 3-PIT and 4-PIT declarations, and submitting them to the tax office can be challenging. You first need to find the correct forms and examples. Then, complete the declaration accurately and legally. False or corrected data is not allowed.