At the federal level, this issue is entirely regulated by Government Decree No. 1103 of October 27, 2012. This legal act establishes:
- Rules for the provision of housing and compensation for expenses for rent (sublease) for specified persons;
- procedure for approving the maximum cost of renting 1 sq. m of total housing area.
Simply put, if federal government agencies cannot provide official housing to their employees due to its absence, then they will compensate the latter for expenses associated with renting housing. It should be noted that the procedure for providing compensation for civil servants is perhaps one of the strictest.
| Period for which compensation is paid | Requirements for “hired” (“sub-rented”) residential premises | Grounds for termination of payment of compensation |
| From the date of concluding a fixed-term contract with a civil servant and for the entire period of his service | Valid options: a separate apartment (or a house) that meets all sanitary and technical requirements of the legislation of the Russian Federation; The housing of the civil servant and his family is located at the place of permanent residence and complies with current standards in terms of area | Expiration of an employee's contract or its early termination |
To summarize, it should be emphasized that compensation to an employee is provided only on the specified conditions and if the housing meets the established requirements.
Registration of compensation for expenses for renting residential premises by federal civil servants
The issues of registration and provision of compensation are dealt with by the heads of the federal government agency (or its territorial branch). The registration procedure is initiated by the applicant for compensation by submitting the required documents to an authorized official.
| Documents to be presented | Time limit for consideration of an employee's appeal | Compensation calculation |
| Passports (your own and each family member); a valid rental agreement; documents confirming payment made (documentary evidence of expenses) Photocopies of the above documents are made and presented along with their originals. | Up to 7 days (counting starts from the date of application - submission of documents) | The amount of compensation is calculated by the authorized government agency to which the employee applies. When calculating, the current standards for housing area and the legal limit on the cost of renting 1 square meter are taken into account. m total pl. |
It should also be noted that the amount an employee spends on renting housing may be less or more than the amount of compensation determined by an act of the authorized government agency (its territorial branch).
In the first case, when the employee’s expenses are less than the established amount of compensation, compensation is paid in the amount of actual expenses, which are documented.
In the second, when expenses exceed a certain amount of compensation, the employee makes them autonomously. The actual payment of the required compensation is made no later than a month from the moment the interested party submitted documents on the expenses incurred for the rental.
Distinctive features in the procedure
The procedure for making payments varies depending on the category of applicants.
Military personnel, police officers, FSIN
Citizens working in law enforcement agencies are entitled to official housing, but there are often not enough places, so compensation is paid (read about hiring official housing here). You need to write a report to provide compensation for rental housing due to the lack of personal and service apartments.
Orphans
An application on a standard form must be brought to social security along with other documents. If an orphan was supposed to be provided with a room in a dormitory, but he did not take advantage of it, payments will be denied.
Important! The state provides free housing to orphans, but for this you need to get in line at the administration.
State employees
The employee must write a statement and submit it to the head of the organization. Regional authorities have the right to make additional demands, so you need to check with the administration or municipal body to determine whether you can qualify for payment.
Employees of other organizations
The list of conditions and documents that must be provided is compiled by the employer. As a rule, this is an application for compensation, papers confirming the absence of housing in the property and a lease agreement. Nonresident citizens may only be asked for a rental agreement.
https://youtu.be/EO9dOrvWsGA
General rules for calculating compensation for renting housing to employees
When calculating the amount of compensation for renting residential premises, the maximum cost of renting 1 sq. m. is first taken into account. m. total area. For 2020, the relevant value is set by order of the Ministry of Labor and Social Protection of the Russian Federation No. 512n dated 08/01/2018. The introduced norm is applied, first of all, when calculating compensation for expenses for renting residential premises for the following categories of workers:
- civil servants of federal government agencies who are located in another area of the Russian Federation;
- military personnel;
- persons discharged from military service who are on a waiting list for housing.
As experts note, in 2020 this cost limit in most constituent entities of the Russian Federation has decreased. You should also take into account the following current standards for the total area of housing.
| Lone civil servant | Married couple (2 people) | Family of three or more people. |
| 33 sq. m. | 42 sq. m. | 18 sq. m. for each family member |
Important! In terms of the standards established by Resolution No. 1103 for the total area, under certain circumstances, an excess of up to 5 square meters is allowed. m. These include: the right of a civil servant to additional space and the application of local standards that are higher than them.
You can calculate the amount of compensation yourself using an online calculator.
Documents for other categories of citizens
State employees do not need to write a report addressed to the head of a special unit. The application is submitted to the social department of the municipality or to the personnel department of your organization. Compensation is due if:
- the citizen has entered into a long-term employment contract with the organization;
- the employee does not own living space;
- the profession belongs to a special list of scarce specialties.
A certificate of family composition will be required along with the attached package of documents. This document is necessary for proper calculation of compensation. Orphans and other categories of benefit citizens submit an application to the social protection department. If the citizen receiving benefits is in prison, the transfer of funds stops. If a citizen refuses the proposed office space, then payments are not provided to cover the costs of another property.
In each specific case, nuances may arise that require competent legal work and assistance to the interested party. The refusal of officials can always be challenged in court if there are grounds and ways to resolve the conflict situation have been found.
https://youtu.be/hBVjNH0t8g0
Compensation to a non-resident employee for expenses associated with his move to his place of work in another area
There are often situations in which an employee, often together with his family, with prior agreement with the employer, moves to another area for permanent work.
Then the provisions of Art. are applied to him and his family. 169 Labor Code of the Russian Federation. The employer reimburses the new employee for expenses associated with the move. This, as a rule, includes: transportation of luggage (property), the actual travel to the destination, arrangement after arrival, which may, in fact, include payment for the rental of living quarters.
The employer must provide housing for the arriving nonresident employee. How to do this, he decides for himself. Possible typical solutions to this issue come down to renting housing.
Firstly, the employer can rent housing for the new employee himself and, accordingly. pay for it from your own funds. Secondly, a non-resident employee can independently find suitable housing, rent it, and the employer will then reimburse him for all expenses associated with paying for rent.
Important! The employee must document expenses incurred in relation to rental housing.
The legal basis, according to which the amount of compensation for expenses incurred and the rules for their provision are determined, is formed by legal acts of the Government of the Russian Federation and local authorities. When resolving these issues, the provisions of the collective agreement, bilateral agreements between the employee and the employer, as well as applicable local acts of the organization are also taken into account.
Compensation paid to a nonresident employee who has moved for renting housing is subject to generally obligatory insurance contributions. The general taxation procedure applies. The basis for operation of the device does not affect it in any way.
Director of the Department L.Yu. Chikmacheva.
(From the letter of the Ministry of Labor and Social Protection of the Russian Federation No. 17-3/B-199 dated May 19, 2016).
Until the moment of moving in
Most of the program participants are families where adult children rent housing. Lots of families with kids.
Those on the waiting list who receive compensation can participate in parallel in other compensated forms of security - social mortgages, subsidies for the purchase or construction of housing, purchase and sale with installment payments.
An important point: as long as the young family on the waiting list is registered and rents housing, it receives compensation. For example, those on the waiting list purchase an apartment under the “Affordable Housing for Young Families” program in a new building and will be deregistered, but since the house is not ready for occupancy and they cannot move, the family continues to live in a rented apartment, and the city will continue to pay compensation until moving into a new home.
The transfer of compensation stops: – in the event that the person on the waiting list is removed from the housing register (the re-registration period for this category is set at least once a year); – if the lease (sublease) agreement for residential premises is terminated or terminated early; – if the person on the waiting list has not submitted documents confirming the transfer of rent (sublease) of residential premises to the landlord’s account later than the 10th day of the first month of the quarter following the reporting period.
Problems with the transfer of compensation are guaranteed if it turns out that those on the waiting list do not live at the address specified in the contract.
Common mistakes when providing compensation to an employee for rental housing
Error 1. Accommodation expenses during business trips (for renting housing) are covered by the employer. Reason: Art. 168 Labor Code of the Russian Federation. In addition, the business traveler retains his place of work and average earnings. This rule is strictly applied.
But when withholding personal income tax and mandatory contributions for compensation of expenses, the current limits on daily expenses are taken into account. If you have supporting documents about expenses, income tax is not charged for renting housing. In their absence, tax is withheld from amounts that exceed the limits.
For your information, daily allowance for a regular business trip in the Russian Federation is limited to 700 rubles. When traveling abroad, their limit increases to 2,500 rubles. As for the mandatory contributions, they are withheld from the entire amount of money spent on accommodation, if these expenses are not documented.
Procedure
To receive monetary compensation for renting an apartment, employees of the above-mentioned bodies must take the following actions:
- Register at the place where you perform your official duties;
- Register as someone in need of improved housing conditions;
- Contact an authorized person or a special commission, attaching the necessary documents, with a request for a refund.
If an employee intentionally alienated real estate, or otherwise worsened his living conditions, then only after five years can he be registered.
The organization itself pays rent directly to the owner of the property.
There are two possible approaches here.
APPROACH 1 (safe, but not the most profitable)
Regulatory authorities believe that rental costs are remuneration in kind, which forms the employee’s income. Therefore, the obligation to provide the employee with housing must be specified in the employment contract with him.
WE WARN THE MANAGER
If the lease agreement with the property owner is concluded for a year or more,
then it will need to be registered with the Ros-re-estr ap. 2 tbsp. 651 Civil Code of the Russian Federation.
Moreover, in accordance with the Labor Code of the Russian Federation, the part of remuneration paid in kind cannot exceed 20% of the amount of the employee’s salary. 131 Labor Code of the Russian Federation. And according to the Ministry of Finance, of all the expenses for renting an apartment, the “profitable” expenses
the company can recognize as labor costs only an amount not exceeding the specified limit.
255 Tax Code of the Russian Federation; Letters of the Ministry of Finance dated 03/19/2013 No. 03-03-06/1/8392, dated 05/02/2012 No. 03-03-06/1/216, dated 10/28/2010 No. 03-03-06/1/671, dated 17.01. 2011 No. 03-04-06/6-1. The texts of the Letters from the Ministry of Finance and the Federal Tax Service mentioned in the article can be found in the “Financial and Personnel Consultations” section of the ConsultantPlus system.
Although the court once recognized that such expenses can be taken into account in full for profit tax purposes. The Federal Antimonopoly Service of the Central District indicated that the expenses were aimed at ensuring the production process and without them, employees invited from afar would not be able to fulfill their job duties. He also noted that the norms of the Labor Code cannot regulate tax relations and the argument about a 20% limitation is unlawful. After all, the list of expenses in favor of the employee that can be taken into account when calculating income tax is open in Resolution of the Federal Antimonopoly Service of the Central Election Commission dated September 29, 2010 No. A23-5464/2009A-14-233.
The employee’s income in the form of rent paid for him must be subject to NDF Lpodp. 1 item 2 art. 211 Tax Code of the Russian Federation; clause 2 of the Letter of the Ministry of Finance dated 09/07/2012 No. 03-04-06/8-272; Letter of the Ministry of Finance dated 07/05/2013 No. 03-04-06/25983.
Therefore, the GPP tax will have to be withheld from the employee’s cash income. 1, 2 tbsp. 226 Tax Code of the Russian Federation.
Do not forget that by paying rent directly to the owner of the property, who is an individual non-entrepreneur, your company in any case becomes a tax agent in relation to the income received by the landlord, and therefore must withhold personal income tax from it. 5 tbsp. 3, pp. 1, 4 tbsp. 226, sub. 1 clause 1, clause 2 art. 227 Tax Code of the Russian Federation; Letter of the Ministry of Finance dated April 29, 2011 No. 03-04-05/3-314.
We wrote more about renting housing from an individual:
Also, the amount of rent will need to be included in the base for insurance premiums.
Since it forms the “natural” income of the employee, received by him within the framework of the labor relationship. 1 tbsp. 7 of Law No. 212-FZ of July 24, 2009 (hereinafter referred to as Law No. 212-FZ).
Regarding accounting,
then to reflect transactions related to rental housing, you will need to make the following entries.
| Contents of operation | Dt | CT |
| Rent included in expenses | ||
| Personal income tax is withheld from income in the form of rent from the employee’s salary | 70 “Settlements with personnel for wages” | |
| Personal income tax is withheld from the income of the lessor - an individual in the form of rent | 76 “Settlements with various debtors and creditors” | 68, subaccount “NDFL” |
| Rent transferred | 76 “Settlements with various debtors and creditors” | 51 “Current accounts” |
| Insurance premiums are calculated on the employee’s income in the form of rent | 20 “Main production” (26 “General business expenses”, 44 “Sales expenses”) |
But of course, approach 1 is very ambiguous. And if you are ready to defend your opinion before regulatory authorities, study approach 2.
Its essence lies in the fact that the cost of renting an apartment is not the payment of an employee. But despite this, such costs are reasonable and economically justified. Without them, the employer will not be able to properly organize the production process.
Then for profit tax purposes
Expenses in the form of rent can be taken into account in full as part of other sub-expenses. 10, 49 p. 1 art. 264 Tax Code of the Russian Federation; Resolution of the Federal Antimonopoly Service of the Central Election Commission dated February 15, 2012 No. A35-1939/2010.
The employee has no income, and personal income tax
There is no need to hold him back. This point of view, by the way, is also supported by the court. 2 Resolution of the Federal Antimonopoly Service ZSO dated 09/02/2011 No. A70-10656/2010; Resolution of the Federal Antimonopoly Service of the Moscow Region dated March 21, 2011 No. KA-A40/1449-11. At the same time, the court once noted that such rental payments are made in the interests of the organization and are not related to the wage system and Resolution of the Federal Antimonopoly Service of Ukraine dated June 8, 2012 No. F09-3304/12.
Insurance premiums
There is no need to accrue everything for the same reason: providing an employee with housing is not remuneration for work.
CONCLUSION
If you don’t like arguing with tax authorities and are not ready to use approach 2, then it will be easier for you to increase the employee’s salary by the amount of the lease payment. And let him pay for his rented housing. Of course, you will have to withhold personal income tax from this amount and pay insurance premiums, but there will be no problems recognizing it as “profitable” expenses.
