Two news - good and bad
A good one consists
is that, as a rule, the Russian broker transfers dividends that have already been “cleared” of tax.
At the same time, a tax of 13% is withheld from dividends on shares received in Russian rubles. The best part about this is that you don’t need to report such income to the Federal Tax Service! The broker himself will transmit all the necessary information to the tax office. It would seem that everything is simple: all taxes have been paid and “sleep well.” But here lies the bad news.
Bad news
is that for dividend shares of foreign and some Russian companies accrued in foreign currency, the broker is not a tax agent. And in this case, you must independently report to the Federal Tax Service about receiving income in the form of such dividends. Even if the issuer has already withheld tax from the dividend salary.
Which Russian companies paying dividends in foreign currency are an exception? Today it is:
- ETLN – Standard
- POLY – Polymetal
- AGRO – RusAgro
- TCSG – Tinkoff
- FIVE – Pyaterochka
- QIWI – Qiwi.
There are still a few that don't pay dividends yet, so they may not be considered for tax purposes. This:
- LNTA – Tape
- MAIL – Mail.ru Group
- YNDX – Yandex
- POGR – Petropavlovsk
Why is there such confusion with Russian companies? Why do we pay tax here and report to the Federal Tax Service, but here everything is done by a broker and there is no need for additional communication with the tax office?
The fact is that the above large Russian brands are legally registered not in Russia, but in other foreign countries. Accordingly, they are subject to local laws, including tax laws. And in the “bourgeois” tax code there is no clause that a registered company is obliged to transfer data on the income of Russian shareholders to the Russian Federal Tax Service
.
Thus, when receiving dividend income from all sources outside the Russian Federation and from Russian companies issued in other countries, it will be necessary to report to the tax office and, if necessary, pay tax.
Composition of income tax reporting for tax agents
In 2021, the income tax calculation prepared by the tax agent included:
- title page;
- sheet 03 “Calculation of corporate income tax withheld by the tax agent (source of income payment)”;
- subsection 1.3 of section 1 “For organizations paying corporate income tax on income in the form of dividends and interest”;
- Appendix No. 2 to the declaration.
The income tax return form and the procedure for filling it out were approved by order of the Federal Tax Service of Russia dated September 23, 2019 No. ММВ-7-3/ [email protected]
Sheet 03 of the income tax return is filled out by organizations that act as tax agents when paying dividends.
When paying dividends, sheet 03 and subsection 1.3 are included in the income tax return. section 1.
In this case, a separate sheet 03 is filled out for each decision to pay dividends.
As follows from paragraph 1.16 of the Procedure, the calculation must also be submitted if dividends are paid only to individuals or foreign organizations.
According to clauses 1.17 and 22.1 of the Procedure for filling out the corporate income tax return, approved by order of the Federal Tax Service of Russia dated September 23, 2019 No. ММВ-7-3/ [email protected] , in accordance with clause 4 of Art. 230 of the Tax Code, Appendix No. 2 to the declaration should be submitted.
Previously on the topic:
How to pay dividends in 2021?
How to calculate personal income tax on dividends: specifics from the Ministry of Finance
To pay or not to pay tax?
You can order a report on income and withheld taxes for the past year from any broker, both Russian and foreign. This document shows whether tax was withheld in the country where the dividends came from.
The percentage of tax withheld may vary. This figure depends on the tax regime of the issuer's country
. For example:
- 0% – Cyprus, Jersey
- 10% – USA
- 15% – Netherlands.
It is important to consider that tax rates in the country may still differ for residents and non-residents. So, for example, the United States withholds a tax of 30% from its citizens, and for non-residents there are concessions: for them the charges will be 10%.
So is it necessary to pay tax in Russia if a foreign source has already withheld it? Or do you need to pay double tax: abroad and in Russia?
Agreements on the avoidance of double taxation have been concluded between the Russian Federation and most countries
. What does this mean? If tax has already been withheld in one country, then you do not need to pay it in another, or only the difference is paid.
Features of filling out the new form 3-NDFL for 2021 for individual entrepreneurs
Date of publication: 02/20/2021 09:47
On January 1, 2021, the declaration campaign for personal income tax began. Citizens who received income in 2020 are required to independently report it and pay tax. Individual entrepreneurs, notaries, lawyers who have established law offices, and other persons engaged in private practice must also declare income received in 2021.
The deadline for submitting a declaration in form 3-NDFL is no later than April 30, 2021.
It must be borne in mind that the declaration must be submitted by the taxpayer himself or through an authorized representative acting on the basis of a notarized power of attorney.
Due to the current situation with the sanitary and epidemiological situation in the region, it is better to send a tax return by mail, submit it electronically via telecommunication channels or through the “Taxpayer Personal Account for Individuals” service.
The tax return form for personal income tax (form 3-NDFL) for 2021 and the procedure for filling it out were approved by order of the Federal Tax Service of Russia dated August 28, 2020 No. ED-7-11/ [email protected]
The general structure of the new tax return form generally remains the same, but now it includes a statement about the offset (refund) of the amount of overpaid personal income tax, information about the amount of tax (advance tax payment) paid in accordance with paragraph 7 of Art. . 227 of the Tax Code of the Russian Federation and calculation of advance payments paid by individual entrepreneurs and persons engaged in private practice.
Now form 3-NDFL consists of three main sheets (Title Page, Sections 1 and 2), which are mandatory for completion by all taxpayers, as well as nine appendices and three calculations for the appendices, which are filled out if necessary.
To correctly fill out a tax return, taxpayers who are required to submit a 3-NDFL tax return must pay special attention to the changes in filling out paragraphs 1 and 2 of Section 1 “Information on the amounts of tax subject to payment (surcharge) to the budget / refund from the budget” of the tax return form (hereinafter referred to as Section 1 of the declaration).
In paragraph 1 of Section 1 of the declaration, the amount of personal income tax on income from business, advocacy and private practice is not reflected. This amount is reflected in paragraph 2 of Section 1 of the declaration, and the accrued amounts of advance tax payments are also reflected there (for the first quarter, half a year, nine months ).
The amount of tax subject to additional payment to the budget may be reduced by the amount of tax paid in connection with the application of the patent tax system, subject to offset.
The amount of tax subject to additional payment to the budget is reflected without reduction by the amount of advance payments actually paid.
In Appendix 3 of the declaration, the amounts of income received from business, advocacy and private practice, the amount of professional and standard tax deductions, as well as tax bases and the amount of calculated advance payment are reflected in rubles on an accrual basis.
We remind you that the deadline for paying tax on income received in 2020 and declared in Form 3-NDFL is no later than July 15, 2021.
Personal income tax codes in 2021
Please note that in 2-NDFL certificates providing information on profits for the past year, it is necessary to use new income codes, which were specified in Appendix No. 1 to the order of the Federal Tax Service of the Russian Federation No. MMV-7-11/387 dated September 10, 2015. They are presented in the table below. When filling out the certificate, you may also need Appendix No. 2.
| Revenue code | Name of income |
| Revenue code 1010 | Dividends |
| Revenue code 1011 | Interest (except for interest on mortgage-backed bonds issued before 01/01/2007, income in the form of interest received on bank deposits, and income received upon redemption of a bill of exchange), including discount received on a debt obligation of any type |
| Revenue code 1110 | Interest on mortgage-backed bonds issued before 01/01/2007 |
| Income code 1120 | Income of the founders of the trust management of mortgage coverage received on the basis of the acquisition of mortgage participation certificates issued by the mortgage coverage manager before 01/01/2007 |
| Income code 1200 | Income received in the form of other insurance payments under insurance contracts |
| Revenue code 1201 | Income received in the form of insurance payments under insurance contracts in the form of payment for the cost of sanatorium and resort vouchers |
| Revenue code 1202 | Income received in the form of insurance payments under voluntary life insurance contracts (except for voluntary pension insurance contracts) in the case of payments related to the survival of the insured person to a certain age or period, or in the event of the occurrence of another event (except for early termination of contracts), in part of the excess of the amounts of insurance premiums paid by the taxpayer, increased by the amount calculated by sequentially summing the products of the amounts of insurance premiums paid from the date of conclusion of the insurance contract to the day of the end of each year of validity of such a voluntary life insurance contract (inclusive), and the average annual refinancing rate in force in the corresponding year Central Bank of the Russian Federation |
| Revenue code 1203 | Income received in the form of insurance payments under voluntary property insurance contracts (including civil liability insurance for damage to the property of third parties and (or) civil liability insurance of vehicle owners) in terms of excess of the market value of the insured property in the event of loss or destruction of the insured property, or expenses necessary to carry out repairs (restoration) of this property (if repairs were not carried out), or the cost of repairs (restoration) of this property (if repairs were carried out), increased by the amount of insurance premiums paid to insure this property |
| Revenue code 1211 | Income received in the form of amounts of insurance premiums under insurance contracts, if these amounts are paid for individuals from the funds of employers or from the funds of organizations or individual entrepreneurs who are not employers in relation to those individuals for whom they make insurance premiums |
| Revenue code 1212 | Income in the form of cash (redemption) amounts paid under voluntary life insurance contracts, subject to payment in accordance with the insurance rules and terms of the contracts upon early termination of voluntary life insurance contracts |
| Income code 1213 | Income in the form of cash (redemption) amounts paid under voluntary pension insurance contracts and subject to payment in accordance with the insurance rules and terms of the contracts upon early termination of voluntary pension insurance contracts |
| Income code 1215 | Income in the form of cash (redemption) amounts paid under non-state pension agreements and subject to payment in accordance with the insurance rules and terms of the agreements upon early termination of non-state pension agreements |
| Revenue code 1219 | Amounts of insurance contributions in respect of which the taxpayer was provided with a social tax deduction provided for in subparagraph 4 of paragraph 1 of Article 219 of the Tax Code of the Russian Federation, taken into account in the event of termination of the voluntary pension insurance agreement |
| Income code 1220 | Amounts of insurance contributions in respect of which the taxpayer was provided with a social tax deduction provided for in subparagraph 4 of paragraph 1 of Article 219 of the Tax Code of the Russian Federation, taken into account in the event of termination of non-state pension provision |
| Revenue code 1240 | Amounts of pensions paid under non-state pension agreements concluded by organizations and other employers with Russian non-state pension funds, as well as amounts of pensions paid under non-state pension agreements concluded by individuals with Russian non-state funds in favor of other persons |
| Income code 1300 | Income received from the use of copyright or other related rights |
| Revenue code 1301 | Income received from the alienation of copyright or other related rights |
| Income code 1400 | Income received from the rental or other use of property (except for similar income from the rental of any vehicles and communications equipment, computer networks) |
| Revenue code 1530 | Income received from transactions with securities traded on the organized securities market |
| Revenue code 1531 | Income from transactions with securities not traded on the organized securities market |
| Revenue code 1532 | Income from operations with financial instruments of futures transactions that are traded on an organized market and the underlying asset of which is securities, stock indices or other financial instruments of futures transactions, the underlying asset of which is securities or stock indices |
| Revenue code 1533 | Income from operations with financial instruments of futures transactions not traded on the organized securities market |
| Revenue code 1535 | Income from operations with financial instruments of futures transactions that are traded on an organized market and the underlying asset of which is not securities, stock indices or other financial instruments of futures transactions, the underlying asset of which is securities or stock indices |
| Revenue code 1536 | Income received from transactions with securities not traded on the organized securities market, which at the time of their acquisition met the requirements for traded securities |
| Income code 1537 | Income in the form of interest on a loan received from a set of repo transactions |
| Income code 1538 | Income in the form of interest received in the tax period under a set of loan agreements |
| Revenue code 1539 | Income from operations related to the opening of a short position that is the object of repo operations |
| Revenue code 1540 | Income received from the sale of participation shares in the authorized capital of organizations |
| Revenue code 1541 | Income received as a result of the exchange of securities transferred under the first part of the repo |
| Income code 1542 | Income in the form of the actual value of a share in the authorized capital of an organization, paid when a participant leaves the organization |
| Revenue code 1543 | Income from transactions accounted for on an individual investment account |
| Revenue code 1550 | Income received by a taxpayer upon assignment of rights of claim under an agreement for participation in shared construction (an investment agreement for shared construction or under another agreement related to shared construction) |
| Revenue code 2000 | Remuneration received by a taxpayer for performing labor or other duties; salary and other taxable payments to military personnel and equivalent categories of individuals (except for payments under civil contracts) |
Concept of income codes
Federal Tax Service Order No. ММВ-7-11/ [email protected] approved all income codes that accountants must use when filling out any 2-NDFL certificate. It is not permitted to use any other designation as this constitutes a serious violation.
When filling out the document, it is taken into account exactly what income the citizen receives while working for the company. The most popular is code 2000, which means cash payments represented by employee wages.
If a civil law agreement has been drawn up with a citizen, then payments based on this agreement are reflected using the code 2010 . If you need to reflect vacation payments, then the designation 2012 is used. Code 2010 cannot be used when transferring royalties.
Other types of designations
There are several other individual codes that will definitely be included in the help text. These include:
- 2013 – payment of compensation for vacation, which for various reasons was not taken out by the employee during the year.
- 2014 – transfer of severance pay and monthly earnings for the period when the downsized or dismissed employee is looking for a new place of employment. This code is additionally applied if compensation is paid to the director, deputy director or chief accountant. Such payments are assigned upon liquidation of a company or reduction of staff. Dismissed specialists working in the northern regions can count on increased compensation.
- 2301 – the employee receives fines or penalties from the employer if the consumer’s demands are not satisfied, and these funds can be transferred voluntarily or on the basis of a court decision.
- 2611 – writing off non-cash debt from the organization’s balance sheet.
- 3023 – income represented by interest on traded bonds, but they must be denominated in rubles.
- 619 – availability of income from operations on an individual investment account.
- 1530 - income from transactions with securities.
Reference! When filling out 2-NDFL, not only income is taken into account, but also various deductions. For example, if citizens do not receive a tax deduction for the purchase of real estate or the construction of a residential property, then designation 311 is applied.
