The tax authorities explained when preferential auto loans lead to the accrual of personal income tax (PIT).

      On April 7, 2026, 11:45 Economics In March, media reported that the Federal Tax Service began charging personal income tax (PIT) to car owners who took out loans at reduced rates in 2024. As explained by the regional Federal Tax Service, the material benefit from savings on interest does not arise in all cases. It appears if the borrower pays less than 2/3 of the refinancing rate or does not pay interest at all — for example, with an interest-free loan. However, this rule only applies when the loan is issued by an organization or individual entrepreneur that is a related party to the borrower or their employer. If there is no interdependence or employment relationship between the parties, there is no income in the form of material benefit, and thus no obligation to pay PIT. Thus, if a person purchased a car at a dealership using a bank's offer for an interest-free loan for three years and does not work at that bank, the tax on material benefit is not charged. A different situation arises if the borrower is an employee of the bank that issued the loan. In this case, a material benefit arises, which is subject to PIT at a rate of 35%. Even in such circumstances, exceptions may apply. The material benefit may not be taxed if it was received between January 1, 2021, and December 31, 2023, inclusive. Additionally, the exemption applies to savings on interest for loans concluded before December 31, 2024, provided that the taxpayer has a confirmed right to a property tax deduction for expenses related to the construction or purchase of real estate in Russia. The key rate of the Bank of Russia, effective both on the date of the loan agreement and at the time of changing its terms, is used to calculate the tax base. Following the results of 2025, the amounts of PIT not withheld from income in the form of material benefit will be included in tax notifications along with property taxes. They must be paid by December 1, 2026. Citizens can also independently declare such income by submitting a 3-PIT form no later than April 30, 2026. We remind you that from January 2026, the rules for approving car loans in Russia have tightened. NIA "Nizhny Novgorod" has a Telegram channel. Subscribe to stay updated on major events, exclusive materials, and timely information. Copyright © 1999—2025 NIA "Nizhny Novgorod". When reprinting, a hyperlink to NIA "Nizhny Novgorod" is mandatory. This resource may contain materials 18+