Taxpayers Exempted from Penalties for Late Declaration Filings

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The Federal Tax Service (FTS) of Russia has clarified the cases in which taxpayers are exempt from liability for late submission of tax returns.

According to the FTS, the penalty stipulated in Article 119(1) of the Russian Tax Code does not apply to individuals and legal entities if the submitted tax return or calculation does not result in a tax liability, including so-called "zero" returns (declarations with no tax payable).

Additionally, individuals who have received income from the sale or gift of real estate and failed to submit a tax return on time are also exempt from liability. This applies when tax authorities can independently determine the tax amount based on information received from land registry and property registration authorities.

The FTS noted that these changes have retroactive effect. Therefore, taxpayers are not subject to liability, including for returns and calculations submitted before June 26, 2026. If, on that date, there are unenforced decisions on fines under Article 119 of the Tax Code, such fines will not be collected if there are grounds for exemption.

However, the tax service stressed that the exemption from liability does not mean the obligation to submit tax returns is canceled. Taxpayers are still required to submit returns and calculations on time, even if no tax is due.