Should Sheet 03 of the income tax return be submitted when paying dividends only to individuals?

Income tax return: reflection of dividends

The receipt of dividends by a company is indicated as part of income when the company financially participates in the activities of third-party companies - that is, invests funds in their development and receives additional income from these investments. In this case, received dividends or interest from investments made are recorded in the total amount of non-operating income on line 100 of Appendix 1 to sheet 02 of the declaration. A more specific breakdown by type of income is not provided in the declaration, since this information is fully provided to users in the explanations to the balance sheet.

If we are talking about the payment of dividends, that is, about the company’s expenses, then these data are indicated in a separate section of the declaration - sheet 03, and in their formation along the lines of this section it is necessary to take into account some nuances.

Place of data on dividends in the income statement

The profit declaration form used for reporting for 2021 was approved by Order of the Federal Tax Service of Russia dated 09.23.2019 No. ММВ-7-3/ [email protected] as amended by Order of the Federal Tax Service dated 09.11.2020 No. ED-7-3/ [email protected]
Comments from ConsultantPlus experts will help you fill it out. If you received dividends, this ready-made solution will help you reflect them in your income tax return. If you act as a tax agent and withhold income tax when paying dividends to a legal entity, this material will help you. Trial access to the legal system is free.

Organizations paying dividends fill out:

• sheet 03;
• subsection 1.3 section. 1 sheet 01.

Dividends paid to individuals are also reflected in personal income tax reporting.

Filling out sheet 03 is carried out exclusively by tax agents. If the company is not one, it may not include it in the declaration.

To learn about the cases in which a legal entity becomes a tax agent for profits, read the material “Who is a tax agent for profits taxes (responsibilities)?”

Dividends paid in income tax return

Fixing the amounts of transferred dividends is important for determining the tax base for the income of the recipient company, since when paying dividends to enterprises and individuals, the company transferring them, according to the general rules, becomes a tax agent, i.e. must calculate and withhold tax on dividends paid. The base and tax are calculated in accordance with the provisions of Art. 275 of the Tax Code of the Russian Federation, and information about them is reflected on a separate sheet of the declaration - sheet 03 with sections A and B, as well as in subsection 1.3 to the first section.

The generation of these declaration pages is relevant only for tax agents. An issuer or depository that transfers dividends without withholding tax does not have to fill them out.

Updates to the declaration form, which come into force with the submission of reports for 2021 (Order of the Federal Tax Service of the Russian Federation dated September 23, 2019 No. ММВ-7-3 / [email protected] ), did not affect the indicated pages, and therefore dividends for 2021 are included in the income tax return reflected in accordance with the previous requirements:

• subsection 1.3 is drawn up in the quarter when payments are made; it is not necessary to include this page of the declaration in the reporting if no payments were made in subsequent periods:

  in line 010 indicate the type of payment. For example, “1” means that the dividend payer is a Russian company;

• in the “Payment Deadline” block, the dates of tax transfers to the budget are recorded;
• in line 040 – the amount of tax payable on dividends;

Section B is formed only for the periods in which payments were made, putting code “A” in the “Sign” line, which indicates the application of the form to section A of sheet 03, and in the “Type” field indicate the number of the transcript being submitted, i.e. the first section filed in the reporting period is assigned the code “00”, the clarifying section – “01”, etc.

For your information! If dividends are paid to an individual by a joint-stock company, then for each recipient the joint-stock company fills out Appendix No. 2 to the income tax return, where it records information about the income paid to the person, his identification data and address. If the status of the payer is LLC, then it is exempt from the obligation to create Appendices No. 2, and reports on dividend income of individuals by submitting 2-NDFL certificates to the Federal Tax Service for each recipient.

Is it necessary to fill out Sheet 03 if the only participant of the LLC is an individual

The only participant of an LLC is an individual. In 2011, he was paid dividends for 2010. The amount of dividends paid, as well as the tax withheld from them at a rate of 9%, are reflected in information on the income of individuals (form 2-NDFL). The tax office requires that we also submit Sheet 03 to the income tax return. Should we do this, and how should we fill out Sheet 03 in this case?

The procedure for filling out a tax return for income tax was approved by Order of the Federal Tax Service of Russia dated December 15, 2010 No. ММВ-7-3 / [email protected] (hereinafter referred to as the Procedure).

According to clause 1.7 of the Procedure, tax calculations as part of subsection 1.3 of Section 1 and Sheet 03 are represented by organizations performing the duties of tax agents for calculating the tax base and the amount of income tax , withholding from the taxpayer - a Russian organization and transferring the specified tax to the federal budget.

Section XI of Appendix No. 3 to the Procedure provides explanations for filling out Sheet 03 of the declaration. Thus, clause 11.2 of Section XI establishes that line 010 of Section A of Sheet 03 should reflect the entire amount of dividends to be distributed among participants by decision of the meeting of participants, including participants who are not payers of income tax, in particular individuals.

Line 043 reflects the amounts of dividends subject to distribution in favor of individual residents of the Russian Federation. When paying dividends to an individual, the organization must perform the functions of a tax agent, that is, calculate and withhold personal income tax from the amount of payments. A tax rate of 9% for dividends paid to an individual who is a tax resident of the Russian Federation is established by clause 4 of Article 224 of the Tax Code of the Russian Federation. At the same time, the procedure for determining the tax base is established in clause 2 of Art. 275 Tax Code of the Russian Federation.

Line 090 reflects the total amount of dividends to be distributed among all participants, minus dividends received by the organization itself (tax agent). If the organization did not receive dividends in the current and previous reporting (tax) period that are subject to exclusion from the total amount of dividends, then line 090 is equal to line 040.

Lines 091 and 092 reflect dividends accrued in favor of Russian organizations. Line 090 may differ from the sum of lines 091 and 092 by the amount of individual dividends subject to personal income tax.

Thus, based on a formal reading of clause 11.2 of the Procedure, we can conclude that the organization paying dividends must, in any case, fill out Section A of Sheet 03 of the income tax return. Moreover, when dividends are paid only to individuals:

— lines 091, 092 and 100 must be filled with dashes;

— Section B of Sheet 03 does not need to be presented as part of the declaration;

— subsection 1.3 of Section 1 of the declaration does not need to be submitted.

Section A of Sheet 03 is presented as part of the declaration for the reporting period in which dividends were paid, as well as for the tax period.

Example.

The only participant of an LLC is an individual. The decision to pay dividends for 2010 was made by the sole participant in March 2011. In fact, dividends were paid in April 2011 in the amount of 2,100,000 rubles. The organization presented Section A of Sheet 03 as part of the declaration for the first half of 2011 and for 2011. Below is a fragment of Section A of Sheet 03. The remaining lines of the section must be filled with dashes.

Results

The composition of information about dividends in the income tax return depends on who the tax agent is, who receives the dividends and when they were paid (in the reporting period or earlier).
If there was a payment of dividends in the current year, section A of sheet 03 must be included in the declaration. The remaining pages and Appendix 2 may be missing in the reporting period. You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

Procedure for filling out sheet 03

The procedure for filling out sheet 03 is contained in the same document that approved the declaration form.

The sheet consists of three sections devoted to:

• income in the form of dividends - section A;
• income on state and municipal securities (interest) - section B;
• decoding of dividend amounts - section B.

At the same time, the majority of organizations fill out only sections A and B, and do not complete section B.

Section A looks like this:

Fill it out for the period in which dividends were paid and for subsequent periods throughout the year. For example, when paying dividends in the 3rd quarter, section A must be included in the declaration for 9 months and a year.

In the section header you need to put:

• tax agent category code: 1 - if you are an issuer of securities on which you pay dividends, 2 - if not;
• type of dividends: interim or annual;
• tax period code and reporting year. For example, for a 2021 dividend paid in June 2021, the period code would be 34 and the reporting year would be 2021.

Next, fill in information about dividends - the total amount (lines 001 and 010) and by tax rates and categories of recipients (lines 020-070).

If you also received dividends, fill out lines 080 and 081, indicating the total amount of dividends and the amount by which the accrued dividends were reduced when calculating the tax, respectively.

In line 090 you need to indicate the difference between line 010 and line 081, in line 091 - the total tax base of dividends, from which the tax is calculated at a rate of 13%, in line 092 - the total tax base for dividends taxed at a rate of 0%.

The following is the income tax accrued on dividends: the total amount (line 100), on dividends paid in previous periods (line 110), and in the last quarter of the reporting year (line 120).

Section B of sheet 03 looks like this:

It is included in the declaration only for the quarter in which dividends were paid and is filled out for each participant. In the “Affiliation Attribute” field you need to put A, in the “type” field - 00, which means the primary calculation. When submitting clarifications, the serial number of the correction from 01 to 98 is entered here. Code 99 is used when canceling information.

After filling out sheet 03, information about dividends must be transferred to subsection 1.3 of section. 1 sheet 01.

It is also filled out only in the quarter when dividends were paid, and is not included in the declarations for subsequent periods.

In line 010 you need to put 1 (code 2 is used for income on state and municipal securities).

In line 01, indicate the tax payment deadline (the day following the day of dividend payment), and in line 040, the tax amount. If dividends were paid for several days, fill in the appropriate number of lines.

You can fill out a declaration for 2021 with dividends paid to individuals and organizations in ConsultantPlus, receiving free trial access to the system: