The Legal Regime of Tax Exemptions
Article 60 of the Tax Code sets clear boundaries: exemption from a general state or local tax is possible only through an amendment or addition to the Code, and a local tax exemption through an amendment to the relevant normative act. A tax exemption is an advantage granted to a particular category of taxpayers compared with other taxpayers — paying less tax or being fully relieved of it. Individual exemptions and the relief of a separate person are prohibited, and the taxpayer's right to the exemption runs from the moment the corresponding legal basis arises, for the entire period of its operation. This page explains which incomes and property are exempt under articles 82 and 206 of the Code and how an application is prepared.
Incomes Exempt from Income Tax
Under article 82, the following types of income of natural persons are exempt from income tax: incomes of a non-resident from employment in foreign diplomatic and equalled establishments; received grants, state pensions, state compensation, state academic and state scholarships; benefits received within charitable activity from a non-entrepreneurial legal entity and from a charitable organization for the financing of treatment; contributions to and returns on the funded pension scheme. Property received by inheritance or gift also follows special rules — our separate page covers that topic. The list of exemptions is closed: whatever is not expressly fixed in the Code is not an object of exemption, and crossing that boundary leads to subsequent assessment of the tax.