Is an individual required to file a tax return for property rented from a legal entity?

Is an individual required to file a tax return for property rented from a legal entity?



Is an individual with the activity type “7729002 – Rental of other clothing”, who pays income tax at a rate of 14%, required to submit a withholding tax return if they rent an office from a legal entity? Also, when filing the annual tax return, is the tax calculated after deducting expenses from income, or based on total turnover?

According to the State Tax Service under the Ministry of Economy, pursuant to Article 124.3 of the Tax Code, rental payments made to legal entities or permanent establishments of non-residents are not subject to withholding tax. Therefore, there is no obligation to withhold tax from the rental payment.

Income from non-business activities is taxed at 14% of annual income, without taking expenses into account. The income tax return must be submitted to the tax authority no later than March 31 of the year following the reporting year.

Legal basis: Articles 101, 124 and 149 of the Tax Code.