Taxation $($RUS$)$

PIT: homework

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|\}$

$\backslash$hline Tax base $($Income and deductions$)$ & Up to $5$ mln RR & Over $5$ mln RR $\backslash \backslash$

$\backslash$hline Dividend income & & $\backslash \backslash$

$\backslash$hline $\backslash$begin$\{$tabular$\}\{$l$\}$

Lottery winning $\backslash \backslash$

$-4000$ RR

$\backslash$end$\{$tabular$\}$ & & $\backslash \backslash$

$\backslash$hline $\backslash$begin$\{$tabular$\}\{$l$\}$

Income on securities and derivatives $\backslash \backslash$

$-$ Investment deductions

$\backslash$end$\{$tabular$\}$ & & $\backslash \backslash$

$\backslash$hline $\backslash$begin$\{$tabular$\}\{$l$\}$

Income on securities and derivatives held at personal investment account $\backslash \backslash$

$-$ Investment deductions

$\backslash$end$\{$tabular$\}$ & & $\backslash \backslash$

$\backslash$hline $\backslash$begin$\{$tabular$\}\{$l$\}$

Other income, incl. salary $($so called main tax base$)\backslash \backslash$

$-$ Standard deductions $\backslash \backslash$

$-$ Social deductions $\backslash \backslash$

$-$ Property deductions, housing incentive $\backslash \backslash$

$-$ Professional deductions $\backslash \backslash$

$-$ Investment deduction of $400$ kRR to IIA $\backslash \backslash$

The increased rate of $\backslash (15\backslash \%\backslash )$ will not be applicable to: $\backslash \backslash$

i$.$ proceeds from the sale of a property and$/$or an interest in a property $($except for securities$)\backslash \backslash$

ii$.$ the value of a property received as a gift $($except for securities$)\backslash \backslash$

iii. payments under insurance contracts and pension payments.

$\backslash$end$\{$tabular$\}$ & $13\backslash \%$ & $\backslash$begin$\{$tabular$\}\{$l$\}$

$650000$ RR $\backslash \backslash$

$+\backslash (15\backslash \%\backslash )$ over $5$ mln RR

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline $\backslash$begin$\{$tabular$\}\{$l$\}$

REPO transactions with securities $\backslash \backslash$

Securities' loans $\backslash \backslash$

Investment partnership $\backslash \backslash$

Income on controlled foreign companies $\backslash \backslash$

$($those tax bases are not examined$)$

$\backslash$end$\{$tabular$\}$ & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$1$ Taxable income

Julia works as a sales manager for a trading company. Her net salary for each month in $2023$ was $72000$ RR$.$ On the $\backslash (1^\{\backslash$text $\{$st $\}\}\backslash )$ of March $2023$ she was awarded a performance bonus for the last year in the amount of $300000$ RR $($net amount$),$ which she deposited in a bank for $6$ months at the interest rate of $\backslash (12\backslash \%\backslash )$ the next day.

In $2023$ she sold her summerhouse for $1500000$ RR as she inherited a new cottage from her uncle at the market value of $3000000$ RR$.$

In May $2023$ Julia bought a new car which unfortunately got into accident. Julia received $250000$ RR of insurance payment from insurance company.

During the year she traveled a lot on business and the total amount reimbursed to her by her company was $55000$ RR $($within statutory norms$).$ She also got a voucher for trip to Egypt as a gift from her company valued at $140000$ RR$.$

Her employer also reimbursed her interest paid by Julia on her mortgage loan in the amount of $120000$ RR$.$

In March $2023$ she received $15000$ RR of dividends $($net of taxes$)$ from PAO "Gprom" for the year $2022.$

Required: Calculate taxable income for Julia for the year $2023.$ Show separately each item of taxable and exempt income. Ignore deductions.

Property deductions

Aleksey is a tax resident. In $2023$ he sold the following property:

On $7$ October $2023$ Aleksey decided to sell his personal car for $200000$ RR$.$ The car was received by Alexey as a gift in $2014.$

In June $2023$ Aleksey and his wife decided to sell a summerhouse with the plot of land in the Moscow region for $840000$ RR$.$ Their ownership of this summerhouse and plot of land was split $50/50$ from $2014.$ The purchase value of the plot of land was $90000$ RR in $2014.$

In December $2023$ Aleksey sold his garage for $340000$ RR$.$ He bought this garage in $2021$ with the purchase cost of $190000$ RR$.$ He kept all the documents in relation to purchase of the garage. Cadastral value of estate property at sale date is $315000$ RR$.$

Required: a$)$ Calculate the amount of personal income tax for $2023$ in relation to the operations described above. Assume that all the necessary supporting documents are available. b$)$ Calculate the amount of personal income tax for $2023$ in relation to the operations described above in case the purchase cost of garage was $290000$ RR$.$ Assume that all the necessary supporting documents are available.

Interest income

Elena opened the following deposits in $2022$ in Russian banks:

Required: calculate PIT for $2023.$

Dividends

Anton owns $81$ shares of the company GRANAT. The total number of the company's issued shares was $2700$ owned by Russian legal entities. In September $2023$ the shareholders of GRANAT decided to distribute as dividend $\backslash (70\backslash \%\backslash )$ of the after$-$tax profits of the $2022$ financial year. The total amount of profits before tax $($equal to the taxable profits subject to standard CPT rate per the $2022$ annual tax return$)$ was $78$ mln RR and the dividends were paid in December $2023.$

The net amount of interim dividends received by GRANAT from its subsidiary company KOT in $2023$ was $20$ mln RR $($not qualified for $\backslash (0\backslash \%\backslash )$ rate$)$ and $\backslash (10\backslash$mathrm$\{$mln$\}$ R R $\backslash )$ from subsidiary company JEL $($qualified for $\backslash (0\backslash \%\backslash )$ rate$).$

Required: Calculate personal income tax on dividends received by Anton, net amount received by Anton and explain the procedure of this tax payment to the budget.

Investment deduction

Pavel is a local manager of the bank. His gross monthly salary is $620000$ RR in $2023.$

He sold listed securities $($Sber bank$)$ in his broker account on September, $202023$ at a price of $1200$ RR per share. Also Pavel invested $1000000$ RR on his individual investment account $($type A$)$ which was opened in January $2017.$

Required:

a$)$ calculate PIT for $2023$ as if he did not close his IIA account.

b$)$ calculate PIT for $2023$ as if he closed his IIA account on $31$ Dec $2023.$