In 2018, enterprises and self-insured persons who rent properties for their activities will be required to pay in advance the tax on the rental income received by their landlords. Until now, this responsibility was borne by the natural persons who are landlords.
With the amendments to the Personal Income Tax Act, which are already in force, companies are required to withhold and pay in advance 10% of the rent paid to landlords. The amount of the advance tax is calculated by deducting 10% of statutorily recognised expenses from the rent, and multiplying the remainder by a tax rate of 10%. Once the tax has been withheld, the enterprise or the self-insured person must provide the landlord with a statement of account for the amounts paid and an official note certifying the income paid and the tax withheld.
The withheld tax must be paid by the 10th day of the month following the month in which it was withheld.
