How to fill out personal income tax reporting forms for the fourth quarter of 2021

What reporting forms must be submitted by February 16

The reporting period for personal income tax is a quarter. The calculation for the fourth quarter of 2018 is submitted to the tax authorities no later than the deadline for submitting annual reports. The following forms must be submitted:

• Information on the amounts of accrued and actually paid income and the amounts of withheld tax on personal income;
• Appendix No. 1 “Deciphering the amounts of income paid to individuals and paid personal income tax and contributions to the INPS (except for dividends and interest)”;
• Appendix No. 2 “Deciphering the amounts of dividends and interest paid and personal income tax paid”;

• Appendix No. 3 “Deciphering accrued income for individuals”;
• Appendix No. 4 “Deciphering the income of individuals exempt from taxation.”

Changes in financial statements submitted to Rosstat

All forms of reporting provided, as well as deadlines for submitting documents, remain unchanged in 2021.

However, it is worth paying attention to the fact that innovations are expected in determining the addressee of this documentation. At the moment, financial statements are submitted to Rosstat and the Federal Tax Service.

In accordance with the bill dated March 6, 2017 No. 02/04/03-17/00062756, it is assumed:

1. Cancellation of submission of financial statements to the statistical authority.
2. Formation of a unified information base for processing documents in the Federal Tax Service. Data from this database can only be requested for a fee.
3. The ability for business entities to submit reports at their own discretion: both in paper form and in electronic form (or simultaneously in both). In this case, the reporting company must be ready to submit a paper version of the reporting to the Federal Tax Service upon request.

We recommend material: Documents for closing an individual entrepreneur in 2021.

Income in the form of wages

Income in the form of wages is all payments to individuals based on employment contracts. This:

• accrued wages for work actually performed;
• allowances for academic degrees and honorary titles;
• incentive payments;
• compensation payments;
• payment for unworked time.

Payments to individuals under civil contracts for the performance of work and provision of services also count as income in the form of wages. An exception is payments to individual entrepreneurs carrying out business activities on the basis of such agreements.

For income in the form of wages, the employing enterprise acts as a tax agent. It is obliged to withhold and pay from this income of individuals personal income tax, contributions to the individual income tax system, and insurance contributions of citizens to the extra-budgetary Pension Fund.

Property income

Property income of individuals is the income they receive from transactions with their property. They are not related to wages. Such income can be received by both employees of the enterprise, as well as founders, owners or third-party individuals.

A legal entity - a resident of Uzbekistan is a tax agent for property income paid to an individual. Therefore, he must withhold personal income tax from his income and pay it to the budget.

Property income is not subject to contributions to the INPS. Consequently, the amounts of accrued personal income tax are paid in full to the budget.

Property can be rented from both an ordinary individual and an individual entrepreneur. In this case, the company also acts as a tax agent; it must withhold and pay personal income tax on the amount of rent paid to the individual. In this case, personal income tax is withheld at the minimum rate.

Property income may be eligible for benefits.

What is new to expect when filling out the 3-NDFL declaration?

Today, 3-NDFL is filled out according to the form that was introduced by order of the Federal Tax Service on December 24, 2014.

Presumably, adjustments will be made to the legislative act in accordance with the provisions of the draft dated May 11, 2017 No. 02/08/05-17/00065969. Today the project is at the adoption stage.

Changes will be made to the following points:

1. The order of data presentation (sheet E).
2. The procedure for providing information (sheet 3) regarding deductions within securities.
3. Lines about data on real estate, upon the sale of which there is a need to pay personal income tax, will be added to sheet K.

It is likely that amendments will be made to the order related to updated provisions on the procedure for filling out the declaration. The changes will also affect document barcodes.

Interesting material: Increase in personal income tax in 2018 for individuals.

Income in the form of material benefits

Income in the form of material benefits is income received by individuals from a legal entity. Income in the form of material benefits can be received by any individual, regardless of whether he is an employee of the enterprise or not.

Income in the form of material benefits is subject to personal income tax at the source of payment in conjunction with income in the form of wages. The same personal income tax rates apply as for income in the form of wages.

Income in the form of material benefits up to six times the minimum wage during the tax period is not subject to personal income tax if they were paid in the form of:

• gifts in kind to employees;
• gifts and other types of assistance to non-working pensioners and persons who have lost their ability to work, who were previously employees of a legal entity;
• gifts and other types of assistance to family members of the deceased employee.

When filling out reports on such income, the amount of the benefit must be deducted from the tax base for personal income tax.

An enterprise may not withhold personal income tax on income in the form of material benefits based on a written application from an individual who is not in an employment relationship with it. Then the individual will be required to submit a year-end income statement to the tax authorities and pay tax.

Income in the form of material benefits of individuals who are not in an employment relationship with the enterprise is not subject to contributions to the INPS.

Submitting reports to the tax office in 2021 for individual entrepreneurs using the simplified tax system

All owners of individual entrepreneurs, according to the legislation of the Russian Federation, are required to submit declarations to the Federal Tax Authority in a timely manner.

There are two options for submitting tax reports for individual entrepreneurs in 2018 according to the simplified tax system, these include:

1. Payment of a tax fee of six percent.
2. Payment of tax on income minus expenses in the amount of 15%.

Both forms are acceptable for a company with or without employees. The difference is that if there are employees, the owner of the company must send reports not only to the tax authority, but also to the Pension Fund of Russia, as well as the Social Insurance Fund.

Reporting on the simplified tax system requires regular registration of documents with data on income to the tax office.

Formation of documentation is allowed both in paper format and in electronic form. The first option must be sent to the authorized body in person or by letter, and the second can be sent via Internet channels.

An example of filling out personal income tax reporting forms

A small enterprise has the following indicators as of October 1, 2021:

All debt was repaid on October 8, 2021.

There are no part-time workers or those working under the GPA at the enterprise.

October 23, 2021 advance payment of salaries for October - 7,000,000 soums.

Accrued in October 2021:

Of these withheld:

Explanations:

All income of individuals, personal income tax and contributions to state trust funds accrued for October 2021 were paid on November 8, 2018.

On November 23, 2021, employees were paid an advance payment for November salaries - 7,000,000 soums.

Accrued in November 2021:

Of these withheld:

Explanations:

All income of individuals, personal income tax and contributions to state trust funds accrued for November 2021 were paid on December 7, 2021. The laptop was also issued to the employee on this day.

On December 21, 2021, employees were paid an advance on wages for December - 7,000,000 soums.

Accrued in December 2021:

From accrued/paid income for December 2021, the following was withheld:

Explanations:

Fill out the reporting forms.

Attention Only those calculation applications for which data are available are filled in.

Data from personal income tax reporting for the third quarter of 2021:

Tax reporting forms in 2021

New structure of document 4-FSS. Speaking about reporting forms in 2021, you should pay special attention to the changes that relate to the structure of the 4-FSS calculation. This document is provided by employers to the Social Insurance Fund when making contributions for injuries.

Reporting for 9 months, starting from 2021, will be filled out taking into account the updated version (FSS order No. 275 of June 7, 2017).

According to the legislation, the following information has been added to the new form:

1. An additional line has been added to the title page to indicate the level of budget from which the employer receives funding if he operates as a budgetary enterprise.
2. An additional line (1.1.) has been added to table No. 2 to record data on arrears in contributions of policyholders who have undergone reorganization or on debts of divisions of companies deregistered with the Social Insurance Fund.
3. A line (14.1) has been added to table No. 2 to record debts of the Social Insurance Fund to the policyholder or deregistered divisions of the company.

Taking into account all the changes, the following adjustments have been made:

1. The data from line No. 8 (formula) is now reflected in line 1.1.
2. The data in line No. 8 (formula) is now reflected in line 14.1.

Adjustments were made to the order in which the calculation was completed. The procedure itself was supplemented with the following provisions:

1. Period for calculating the average number of staff.
2. Written off debt.

Useful material : Agreement between individual entrepreneur and individual entrepreneur. Sample document.

Sample of filling out the Information

INFORMATION ABOUT THE AMOUNT ACCRUED AND ACTUALLY

INCOME PAID AND AMOUNTS WITHheld

INDIVIDUALS INCOME TAX

(TO BE FILLED IN WITH ACCRUAL TOTAL FROM THE BEGINNING OF THE YEAR)

(reporting period – IV quarter 2021)

(in sums)

Information on the amounts of accrued and actually paid income and the amounts of withheld income tax for individuals is filled in on the basis of the data in appendices No. 1 and 2.

Calculation of row amounts in Details: