Insurance and Tax
Reinsurance imposed is not sufficient. You will also have to pay taxes.
Locks have become like 'Pabika' which are used to
frighten children. To get rid of them, you have to pass through the seven
circles of hell. But the problems do not end there. Often, insurance companies
do not return the full amount, but 13% less, because they withhold income tax.
We tell you how to fully reinsure.
A case from life Let's
imagine
a situation: a citizen decided to take a cash loan and signed an agreement with
a bank, without really reading it, as many Russians do. He returned home and
found that in addition to the loan, he became the "lucky" owner of a
life insurance policy.
Our
hero is not a serious mistake, he knows that during the cooling period he can
refuse insurance (14 days from the date of conclusion of the insurance
contract). He did just that: he applied for the waiver of the insurance policy.
Turning insurance return into
income
Some time passed and the
amount included in the loan amount as insurance fee returned, but,
unfortunately, not in full. It lacks 13%. As explained in the insurance
company, personal income tax (PIT) has been deducted from returned insurance in
accordance with Article 213 of the Tax Code.
Is this fair? Hardly
anyone would say yes. Insurance returned to a person is not considered income
and therefore cannot be subject to personal income tax. But even so, it
happens.
Tax
subtleties
Tax accuracy In fact, the
logic of the tax system is simple. Russians are entitled to a social tax
deduction from expenses incurred under life insurance contracts for a period of
more than five years. The Federal Tax Service proceeds from the fact that since
citizens have the right to do this, they use it at every opportunity. That is,
each time they reduce the amount of income on which they pay taxes, through the
cost of a life insurance policy. Therefore, when these expenses are returned to
someone, 13% is withheld.
as
a reward
The insurance contract
can be canceled at any time, unless it is mandatory (for example, in mortgage
lending) or an insured event has not occurred. But, if more than 14 days have
passed since the entry into force of the contract, the insurance company will
not return the entire sum insured, but only part of it, keeping the amount
corresponding to the time elapsed. In addition, if the policy is issued in a
bank, the commission that is included in the cost of insurance is not
refundable.