Question and Answer
Question 1: If an IE uses an apartment for business purposes free of charge, does it have income?
Answer: Yes. An IE operating under a simplified declaration may get an income in the form of gratuitously received services for the use of the apartment. Its value is determined on the basis of accounting records.
Question 2: If an IE put an apartment for a rent, is it necessary to pay tax?
Answer: Yes. Income from renting an apartment is included in the object of taxation of an IE applying a special tax regime based on a simplified declaration.
Question 3: If an IE pays for utility services and repairs of the owner's apartment, does the owner have income?
Answer: Yes, the individual owner of the apartment incurs income subject to taxation at the source of payment in the amount of the cost of such reimbursement. In such a case, the calculation, withholding, and payment of IIT to the budget are carried out at the source of payment by the tax agent.
Question 4: If Lessee compensates the IE for utility and repair expenses, is this considered income?
Answer: Yes. Compensating expenses for the maintenance and repair of leased property may be recognized as income of the IE and taken into account for tax purposes.
