Organizations and individual entrepreneurs, acting as tax agents, are required to withhold and pay personal income tax on income paid to each of their employees.
Whether your employees work under an employment contract or individuals under a GPC (civil law) agreement does not matter, personal income tax is withheld from payments to both.
In some cases, income is exempt from personal income tax, for example, gifts and material assistance up to 4,000 rubles, payments to individual entrepreneurs, compensation payments, maternity benefits, etc. (Article 217 of the Tax Code of the Russian Federation).
Calculation and payment of personal income tax
ATTENTION: from January 1, 2021, tax agents are required to transfer calculated and withheld personal income tax no later than the day following the day the income is paid to the taxpayer. Now this is a single rule for all forms of income payments (clause 6 of Article 226 of the Tax Code of the Russian Federation).
And personal income tax withheld from sick leave (including benefits for caring for a sick child) and vacation benefits must be transferred to the budget no later than the last day of the month in which they were paid.
IMPORTANT: There is no need to pay personal income tax on the advance payment.
Calculated using the formula:
Personal income tax = (employee’s monthly income – tax deductions) * 13%
- Tax deductions are an amount that reduces the income on which personal income tax is charged.
- The tax rate on payments to foreign employees is 30%.
- For organizations, dividends paid are also subject to personal income tax at a rate of 13% (since 2015).
Where to pay income tax:
Personal income tax is paid to the tax office with which the employer is registered. On the website of the Federal Tax Service of Russia there is an online service “Determining the details of the Federal Tax Service”, which will help you find out the necessary details.
KBK (code corresponding to a specific type of payment), which is indicated in the payment order, for personal income tax payment in 2021 - 182 1 0100 110.
Payment of personal income tax depends on the place of work of employees
With the transfer of personal income tax and the presentation of information on this tax, everything is different. Entrepreneurs as tax agents are required to transfer personal income tax withheld from employee income to the budget at their place of registration (Clause 1, 7, Article 226 of the Tax Code of the Russian Federation). There you must also submit information about the income of employees in form 2-NDFL (Clause 2 of Article 230 of the Tax Code of the Russian Federation). But, as we have already said, the imputed entrepreneur is simultaneously registered with two tax inspectorates: both at the place of residence and at the place of conducting the “imputed” activity (Clause 1 of Article 83, paragraph 2 of Article 346.28 of the Tax Code of the Russian Federation). And since the Tax Code of the Russian Federation does not stipulate the procedure for transferring personal income tax by imputed workers, it is not clear where to transfer personal income tax withheld from employees engaged only in “imputed” activities or simultaneously in “imputed” and ordinary activities.
Tax paid early
According to the law, personal income tax must be withheld upon actual payment of income to employees (clause 4 of article 226 of the Tax Code of the Russian Federation). And then transfer it to the budget.
And if you decide to pay personal income tax FROM YOUR OWN FUNDS ahead of time before paying your salary, then this is already a violation (clause 9 of Article 226 of the Tax Code of the Russian Federation), and the transferred amount will not be considered tax paid. That is, such payments cannot be offset “against future accrued personal income tax.”
And then you will have to pay personal income tax again, only according to the rules - when issuing your salary. If this is not done, a fine will be charged - 20% of the untransferred amount (Article 123 of the Tax Code of the Russian Federation), as well as penalties.
That first, early paid amount is positioned as erroneously transferred. It can be returned by writing an application to the Federal Tax Service.
Workers are engaged only in “imputed” activities
Previously, regulatory authorities believed that in this case you should transfer personal income tax at your place of residence (Letter of the Federal Tax Service of Russia for Moscow dated April 10, 2009 N 20-18/2/ [email protected] ). Some courts have taken the same position. However, then the Federal Tax Service and the Ministry of Finance changed their point of view. And now they believe that personal income tax should be transferred to the budget at the place of the “imputed” activity from the income of workers engaged in “imputed” activities. Certificates of employee income must also be submitted to the same inspection (Letters of the Ministry of Finance of Russia dated 09/01/2010 N 03-04-05/3-518, dated 03/19/2010 N 03-11-11/60). That is, the regulatory authorities offer the imputation authorities to transfer personal income tax for employees in the manner established for organizations with separate divisions (Paragraphs 2, 3, paragraph 7, Article 226 of the Tax Code of the Russian Federation). Of course, this is less convenient. But it is always safer to follow the explanations of the regulatory authorities (Article 75, paragraph 3, paragraph 1, article 111 of the Tax Code of the Russian Federation).
Note When conducting activities such as transportation of passengers and cargo, delivery and distribution retail trade, advertising on transport, you do not need to register with the Federal Tax Service at the place of conducting the “imputed” activity (Article 75, paragraph 3, paragraph 1 of Art. 111 of the Tax Code of the Russian Federation). And since you will be registered only with the tax office at your place of residence, then you will transfer personal income tax to the same inspectorate for all employees and submit 2-NDFL certificates.
Memo on transactions with personal income tax
| Calculation of personal income tax | Tax amounts are calculated by tax agents on the date of actual receipt of income, determined in accordance with Article 223 of this Code, on an accrual basis from the beginning of the tax period (clause 3 of Article 226 of the Tax Code of the Russian Federation). |
| Date of actual receipt of income | Clause 2 of Art. 223 of the Code establishes that when receiving income in the form of wages, the date of actual receipt by the taxpayer of such income is the last day of the month for which he was accrued income for work duties performed in accordance with the employment agreement (contract). |
| Personal income tax withholding date | Tax agents, according to clause 4 of Art. 226 of the Code are required to withhold the accrued amount of tax directly from the taxpayer’s income upon actual payment. As for the payment of income in kind and in the form of material benefits, personal income tax must be withheld from any income that was paid to a given individual in cash (but not more than 50% of this amount). |
| Date of personal income tax transfer | From January 1, 2021, tax agents are required to transfer calculated and withheld personal income tax no later than the day following the day of payment of income to the taxpayer (clause 6 of Article 226 of the Tax Code of the Russian Federation).
|
Income tax (NDFL)
The general tax regime for individual entrepreneurs provides that income from business activities is subject to personal income tax (hereinafter referred to as personal income tax) at a rate of 13% .
Individuals registered as individual entrepreneurs and carrying out entrepreneurial activities without forming a legal entity independently calculate the amounts of personal income tax payable to the appropriate budget in the manner established by Article 225 of the Tax Code of the Russian Federation.
When determining the tax base for personal income tax, the following may be taken into account:
- standard tax deductions (Article 218 of the Tax Code of the Russian Federation);
- professional tax deductions (Article 221 of the Tax Code of the Russian Federation).
Professional tax deductions are provided in the amount actually incurred by the individual entrepreneur and documented expenses directly related to the extraction of income. The composition of expenses accepted for deduction is determined by the individual entrepreneur independently in a manner similar to the procedure for determining expenses for income tax purposes.
If the taxpayer is unable to document his expenses related to activities as an individual entrepreneur, a professional tax deduction is made in the amount of 20% of the total income received by the individual entrepreneur from business activities (Article 221 of the Tax Code of the Russian Federation).
When determining the tax base, expenses confirmed by documents cannot be taken into account simultaneously with expenses within the established standard.
Losses from previous years incurred by individual entrepreneurs do not reduce the tax base.
To determine the amount of taxable income, the amount of expenses for individual items and the amount of professional tax deduction as a whole, an individual entrepreneur is required to keep records of income and expenses and business transactions in the manner determined by the Ministry of Finance of the Russian Federation (clause 2 of Article 54 of the Tax Code of the Russian Federation).
The total amount of personal income tax payable by the individual entrepreneur to the appropriate budget based on the results of the tax period - calendar year (Article 216 of the Tax Code of the Russian Federation) is calculated by the individual entrepreneur taking into account:
- amounts of tax withheld by tax agents when paying income to such an individual entrepreneur;
- amounts of advance payments for personal income tax actually paid to the corresponding budget.
The calculation of the amounts of advance payments is made by individual entrepreneurs based on the results of the first quarter, half a year, nine months based on:
- tax rates;
- actual income received from business activities;
- professional tax deductions;
- standard tax deductions;
- taking into account previously calculated amounts of advance payments.
*starting from income received from 01/01/2020 (Federal Law of April 15, 2019 No. 63-FZ “On Amendments to Part Two of the Tax Code of the Russian Federation and Article 9 of the Federal Law “On Amendments to Parts One and Two of the Tax Code of the Russian Federation” and certain legislative acts of the Russian Federation on taxes and fees").
Payment of the calculated amounts of advance payments is made by the individual entrepreneur based on the results of:
- first quarter - no later than April 25 ;
- half-year - no later than July 25 ;
- 9 months - no later than October 25 .
The deadline for payment of advance payments based on the results of the first quarter and half of the year by individual entrepreneurs included as of March 1, 2021 in accordance with the Federal Law “On the Development of Small and Medium Enterprises in the Russian Federation” in the unified register of small and medium-sized businesses has been extended until October 25 2021 and November 25, 2020, respectively.
If the last day of the payment deadline falls on a weekend, a non-working holiday and (or) a non-working day, then the tax can be paid no later than the next working day (Clause 7, Article 6.1 of the Tax Code of the Russian Federation).
In order to calculate the total amount of personal income tax based on the results of the tax period, the individual entrepreneur is obliged to submit no later than April 30 of the year following the expired tax period.
In 2021, individual entrepreneurs must submit a tax return, Form 3-NDFL, for 2019 no later than July 30, 2020 (the deadline was extended by a decree of the Government of the Russian Federation).
The total amount of personal income tax payable to the relevant budget, calculated in accordance with such a tax return, is also paid at the place of registration of the individual entrepreneur no later than July 15 of the year following the expired tax period.
The deadline for payment of personal income tax for 2021 by individual entrepreneurs included as of March 1, 2021 in accordance with the Federal Law “On the Development of Small and Medium-Sized Enterprises in the Russian Federation” in the unified register of small and medium-sized businesses has been extended until October 15, 2021.
Tax agent reporting
1) Calculation of 6-NDFL.
On January 1, 2021, Law No. 113-FZ of 05/02/2015 came into force, according to which every employer must submit personal income tax reports quarterly. That is, you need to report no later than the last day of the month following the reporting quarter.
• View a sample of filling out 6-NDFL.
• Read more: Quarterly personal income tax reporting 2021.
2) Certificate 2-NDFL.
It is compiled (based on data in tax registers) for each of its employees and submitted to the tax office once a year no later than April 1, and if it is impossible to withhold personal income tax - before March 1.
ATTENTION: by order of the Federal Tax Service of Russia No. ММВ-7-11/ [email protected] dated October 30, 2015, a new form 2-NDFL was approved. It is valid from December 8, 2015.
How to submit a 2-NDFL certificate:
- On paper - if the number of employees who received income is less than 25 people (from 2021). You can bring it to the tax office in person or send it by registered mail. With this method of reporting, tax officials must draw up in 2 copies a “Protocol for accepting information on the income of individuals for ____ year on paper,” which serves as proof of the fact that 2-NDFL certificates were submitted and that they were accepted from you. The second copy remains with you, do not lose it.
- In electronic form on a flash drive or via the Internet (number of employees more than 25 people). In this case, one file should not contain more than 3,000 documents. If there are more of them, then you need to generate several files. When sending 2-NDFL certificates via the Internet, the tax office must notify you of their receipt within 24 hours. After this, within 10 days the Federal Tax Service will send you a “Protocol for receiving information on the income of individuals.”
Also, together with the 2-NDFL certificate, regardless of the method of submission, a document is attached in 2 copies - Register of information on the income of individuals.
• Download the 2-NDFL certificate form.
• See Instructions for filling out 2-NDFL.
3) Tax accounting register.
Designed for personal data recording for each employee, including individuals under a GPC agreement. Based on this accounting, a 2-NDFL certificate is compiled annually.
Tax registers record income paid to individuals for the year, the amount of tax deductions provided, as well as the amount of personal income tax withheld and paid.
There is no single sample tax register for personal income tax. You must create the form yourself. For this purpose, you can use accounting programs or draw up a personal income tax-1 certificate based on the currently inactive personal income tax certificate.
But the Tax Code defines the mandatory details that must be in personal income tax registers:
- Information allowing identification of the taxpayer (TIN, full name, details of the identity document, citizenship, address of residence in the Russian Federation)
- Type of income paid (code)
- Type and amount of tax deductions provided
- Amounts of income and dates of their payment
- Taxpayer status (resident / non-resident of the Russian Federation)
- Date of tax withholding and payment, as well as details of the payment document
Fines in 2021
1) For each 2-NDFL certificate not submitted on time - a fine of 200 rubles.
1) Violation of the deadlines for filing 6-NDFL - a fine of 1,000 rubles. for each full or partial month. delays.
2) After 10 days of delay in reporting on the calculation of 6-NDFL, the tax inspectorate has the right to suspend transactions on bank accounts and electronic money transfers.
3) For providing false information - a fine of 500 rubles (1 document). But if you independently discover and correct errors in the document in a timely manner before the tax office does, then this fine will not affect you.
