Tax calculation if dividends are paid to an individual resident of the Russian Federation

Personal income tax rate on dividends

Until 2015, the tax on dividends had to be withheld at a rate of 9%. Since the beginning of 2015, the personal income tax rate has increased, regardless of the period in which payments to the founders are distributed. The tax rate on dividends depends on the status of the recipient of the founders' payments. If he is a resident of the Russian Federation, then a rate of 13% should be applied; if the recipient is not a resident, then the rate is 15%. The exception applies only to double taxation avoidance agreements concluded with foreign countries. It is necessary to determine what status the recipient of the founding payment belongs to at the time of its distribution.

Important! For residents of the Russian Federation, the personal income tax rate on dividends is 13%, for non-residents – 15%.

Concept of dividends

In taxation, dividends mean the income that the owner of a legal entity receives when distributing the resulting profit. For example, in a joint-stock company dividends are paid to participants, and in an LLC, profits are usually distributed among the founders according to the available shares. Profit is paid to both individuals and legal entities. But now they have the obligation to pay taxes: for individuals - personal income tax, and for legal entities - income tax.

Tax rates on dividends of legal entities and individuals

Founder status

A resident in our country is a person who stays on the territory of the Russian Federation for at least 183 calendar days within 12 consecutive months. The time spent by a person in the Russian Federation is not interrupted if leaving the Russian Federation is due to the following reasons: (click to expand)

• Training or treatment, the duration of which is less than 6 months;
• Performing duties related to work (services) on offshore hydrocarbon deposits.

In addition, the following persons are also recognized as residents, regardless of the time of their stay in the Russian Federation:

• Russian military personnel who serve abroad;
• Officials who were sent abroad.

Determine the status of the organization's participants at the time of each dividend payment. The same participant can become both a resident and a non-resident within one year only. After a tax period of 12 months, companies must find out the exact status of the recipient of the “founder’s payment”, in accordance with which the personal income tax rate is determined. When changing the status, personal income tax is recalculated for the full tax period (

Personal income tax on dividends in 2021

Personal income tax is calculated and withheld on the day when the “founding” funds are paid out. In this case, dividends must be accrued earlier than this day, namely, based on the date of the founders’ decision to accrue dividends. Each payment is calculated separately. Depending on the tax rate (13% or 15%), the calculation of dividends may be different. If dividends are paid to company participants in kind, personal income tax should also be withheld, and the tax rate will not change. The procedure for determining the tax rate will be the same.

Procedure for calculating personal income tax on dividends to residents

The calculation of personal income tax on payments to residents will depend on whether the organization making the payments received the same type of payments from other companies.

For example, the organization has no income in the form of dividends. In this case, the calculation procedure will be as follows:

Personal income tax = D x 13%, where

D – dividends accrued to the resident.

13% – tax rate.

The calculation will be more complicated if the organization is the founder of another company from which it received any amounts for participation in the current or previous year. To calculate the tax, you will have to check whether dividends received from another company were taken into account in payments to the founders or not. If such receipts have already been taken into account in the calculations, then personal income tax must be calculated as usual, that is, the payment is multiplied by 13%. If income from another company has been received, but dividends have not yet been paid, the calculation will be as follows:

Personal income tax = DPR / DR x DR – DP x 13%, where

DNR – dividends that are accrued;

DR – dividends to be distributed;

DP – dividends received, excluding amounts taxed at a 0% rate.

It should be remembered that you will not need to withhold personal income tax if the dividends received by the company are equal to or greater than the amount paid to the participants.

Procedure for calculating personal income tax on dividends to non-residents

For non-residents, the formula for calculating personal income tax will differ only in the size of the rate:

Personal income tax = D x 15%

How to calculate tax on dividends

Let's look at how the calculations are carried out.

Example 1

The authorized capital of Alpha LLC consists of equal shares of three investors. In May 2021, the LLC paid its founders Ivanov P.S., Petrov S.I. – Russian citizens, and Sidorchuk I.P. – to a non-resident of the Russian Federation, a citizen of Ukraine, dividends. Each - in the amount of 300,000.00 rubles.

When paying them, personal income tax is withheld. From Russians - 39,000.00 rubles. (300,000 x 13%); each of the Russian participants received 261,000.00 rubles. (300,000 – 39,000).

The personal income tax withheld from a citizen of Ukraine amounted to 45,000.00 rubles. (300,000 x 15%), and payment to Sidorchuk I.P. amounted to 255,000.00 rubles. (300,000–45,000).

The next day after the payments to the founders, Alpha LLC transferred the withheld personal income tax in the amount of RUB 123,000.00. to the budget (39,000+39,000+45,000).

Example 2

In 2021, Beta LLC decided to pay dividends for 2015 in the amount of RUB 1,000,000.00. to its investors: Gamma LLC (60% of the authorized capital), Delta LLC (30%), resident of the Russian Federation P.S. Ivanov. (7%) and non-resident of the Russian Federation Ukrainian Sidorchuk I.P. (3%).

Beta LLC owns shares in the authorized capitals of:

• Epsilon LLC – 100%; Beta LLC owns this share for three years: 2014, 2015 and 2021, that is, dividend income will be taxed at a rate of 0%.
• Zeta LLC – 40%, that is, dividend income will be taxed at a rate of 13%.

In 2015, Beta LLC received dividends from Epsilon LLC in the amount of RUB 1,500,000.00. and from Zeta LLC - in the amount of RUB 500,000.00. These dividends were not taken into account when calculating the tax base for dividends paid by Beta LLC to its participants in 2015. At the end of 2015, Beta LLC distributed profit in the amount of RUB 1,000,000.00 among its participants. in the following order:

• Ivanov P.S. and Sidorchuk I.P. RUB 70,000.00 each and 30,000.00 rub. respectively;
• Gamma LLC – RUB 600,000.00;
• Delta LLC – RUB 300,000.00.

Dividends were paid in May 2021. Personal income tax and income tax on them are calculated as follows:

• In Sidorchuk I.P. Personal income tax amounted to RUB 4,500.00. (30,000 x 15%), payment to Sidorchuk I.P. amounted to RUB 25,500.00. (30,000 – 4,500).
• Ivanov P.S. Personal income tax is calculated according to the following rule: if the company that issues dividends makes a profit in another organization, then personal income tax must be calculated using the formula: personal income tax = 13% x (Div - Div1) x Div2/Div, where:
• Personal income tax is the calculated tax of an individual resident of the Russian Federation;

Div – the amount of profit to be distributed (in our example, 1,000,000.00 rubles);

• Div1 – the amount of dividends received (this includes profits received from third parties, including for previous periods, but not included in the calculation of tax), minus income received by Russian organizations in the form of dividends, provided that on the day of the decision on the payment of dividends, the organization receiving dividends for at least 365 calendar days continuously owns by right of ownership at least 50 percent of the authorized capital of the organization paying dividends or depositary receipts giving the right to receive dividends in an amount corresponding to at least 50 percent of the total the amount of dividends paid by the organization (RUB 500,000.00 - income from Zeta LLC);
• Div2 – share (dividends) of an individual – a resident of the Russian Federation (RUB 70,000.00).

So, personal income tax on dividends from Ivanov P.S. amounted to RUB 4,550.00. (70,000/1,000,000 x 13% x (1,000,000 – 500,000); Ivanov will receive 65,450.00 rubles (70,000.00 – 4,550).

Deadline for transferring personal income tax on dividends in 2021

The period for paying personal income tax on founder's payments depends on the legal form of the organization making the payments.

For LLCs, the following rule has been established for determining the deadline for paying personal income tax: the tax must be transferred no later than the day following the day of payment of dividends. It does not matter where the money was issued from, from the cash register or transferred to the founder’s card. Dividends, by the way, can even be transferred to a third party indicated by the founder.

An organization must transfer personal income tax at the place of its registration, regardless of where the recipient of the dividends is registered.

Important! The BCC for paying personal income tax on dividends is the same as for paying income tax on other income. KBK 182 1 0100 110.

Let's look at an example:

Let's assume that the organization paid dividends to one of the participants on April 10, 2021. Personal income tax from this payment must be transferred on the same day or the next, that is, April 11, 2021. If the payment occurs on Friday, April 13, 2021, then personal income tax must be transferred no later than April 16, 2021. This rule applies to LLCs. For JSC, the rules are different. Tax on dividends on shares of a Russian company is paid to the budget within up to 1 month from the date of payment.

Let’s summarize the deadlines for paying personal income tax on dividends in 2021 into a table (click to expand)

Important! If the deadline for paying personal income tax on dividends falls on a weekend or holiday, it is postponed to the next working day.

The legislative framework

Tax calculation if dividends are paid to an individual resident of the Russian Federation

New procedure for calculating tax from 2021

The amount of personal income tax subject to withholding by the tax agent when paying dividends to an individual resident of the Russian Federation is calculated for each such payment using a rate of 13% (15%) (clause 1 of Article 224 of the Tax Code of the Russian Federation) taking into account the specifics established by Art. 275 of the Tax Code of the Russian Federation (clause 2 of Article 270 of the Tax Code of the Russian Federation). Please note that from 2021 a progressive personal income tax tax rate is applied, which provides for the following rates:
—

13% – from the amount of income within 5 million rubles for the tax period (year),

—

15% – from the amount of income exceeding 5 million rubles for the tax period (year).

In order to apply a progressive tax rate, tax agents will have to separately take into account tax bases for different types of income - wages, dividends, etc., even if the amount of all income exceeds 5 million rubles from the beginning of the year. (clause 3 of article 214 of the Tax Code of the Russian Federation). At the end of the year, the tax service independently sums up all the taxpayer’s income, which may be taxed at a progressive personal income tax rate, and, if it is more than 5 million rubles, recalculates the tax and generates a tax notice (clause 6 of article 228 of the Tax Code of the Russian Federation).

Tax deductions established by Art. 218-221 of the Tax Code of the Russian Federation (standard, social, property, professional) do not apply to dividends (letter of the Federal Tax Service dated June 23, 2016 No. OA-3-17 / [email protected] ).

Reduction of personal income tax by previously paid income tax

Law No. 8-FZ dated February 17, 2021 introduced changes to the calculation of personal income tax on dividends.
The amount of income tax withheld from dividends received by a Russian organization is taken into account when calculating personal income tax, which must be withheld from dividends paid in proportion to the share of participation in such an organization to an individual who is a Russian tax resident (clause 3.1 of Article 214 of the Tax Code of the Russian Federation). The amount of corporate income tax subject to offset is determined as follows: Profit tax subject to offset when calculating personal income tax (Znp) = Bz (base for determining the amount of income tax subject to offset) x 0.13 (0.15).

The Bz indicator is taken equal to the smallest value of the following values:

—

or the product of indicators K and D2 (the share of dividends subject to distribution to a specific participant in the total amount of distributed dividends, multiplied by the total amount of dividends received from other companies);

—

or the amount of dividends from which the amount of personal income tax is calculated.

When determining the value of the indicator B3, the amount of income from equity participation in respect of which the amount of tax is calculated means the part of the dividends distributed to a specific individual, from which personal income tax is calculated. This tax may be reduced by the income tax credit.

According to the new formula, that part of the income tax that was withheld by the organization (in the current period or earlier) from dividends paid to a specific individual is credited. True, offset is not carried out in all cases: personal income tax on dividends specified in sub. 1.1 clause 1 art. 208 of the Tax Code of the Russian Federation (dividends paid by a Russian company to a foreign company located in a state with which Russia has a tax treaty, and this foreign company is owned by an individual (in whole or in shares)) will not be reduced by income tax. In other words, for individuals who indirectly participate in a Russian organization through a foreign company in which they have a share, offset is impossible.

If the Russian organization itself did not receive dividends from other companies, then personal income tax deductions are not applied to dividends (clause 3 of Article 210 of the Tax Code of the Russian Federation).

An example of calculating personal income tax on dividends with income tax offset

JSC Alpha is the sole founder of LLC Beta, from which in December of this year it received dividends in the amount of 105,000 rubles.
In September of this year, Alfa JSC accrued and paid interim dividends to its shareholders in the total amount of RUB 379,500. At the same time, 82,500 rubles. paid through depositories, and 297,000 rubles. JSC Alfa paid independently:

—

165,000 rubles in favor of a legal entity - Gamma LLC;

—

132,000 rubles in favor of individuals (residents of the Russian Federation). We will calculate the amount of personal income tax on dividends from individuals after offset against the amount of income tax paid on dividends received.

So, in the general case, personal income tax will be equal to 132,000 x 13% = 17,160. Using the formula indicated above, we compare which is less: the amount of income (132,000) or K x D2. K = 132,000/379,500 x 100% = 34.783%, D2 = 105,000. K x D2 = 34.783% x 105,000 = 36,522,132,000 > 36,522 Deduction = 36,522 x 13% = 4,748 personal income tax to y board with dividends = 17,160 – 4,748 = 12,412

Deadlines for transferring personal income tax to the budget

The procedure for calculating and paying personal income tax is influenced by the organizational and legal form of the tax agent:
—

A JSC that pays dividends itself (not through a depository) is recognized as a tax agent that calculates and pays personal income tax in accordance with Art. 226.1 Tax Code of the Russian Federation. The period during which the amount of personal income tax calculated and withheld from dividends must be transferred, for a joint-stock company - no later than one month from the date of payment of income to the shareholder (clause 3, clause 9, article 226.1 of the Tax Code of the Russian Federation; letter of the Ministry of Finance dated October 31, 2018 No. 03- 04-06/78283);

—

LLC – calculates and pays personal income tax in accordance with Art. 226 Tax Code of the Russian Federation. The deadline for payment of personal income tax is no later than the day following the day of payment of dividends to the taxpayer (clause 1, clause 1, article 223 of the Tax Code of the Russian Federation, clause 3, clause 4, clause 6 of article 226 of the Tax Code of the Russian Federation).

How to report to a tax agent

The payment of dividends is reflected in the calculation of 6-NDFL, exactly how - it is discussed in the letter of the Federal Tax Service dated March 30, 2021 No. BS-4-11 / [email protected]
Paid dividends must be shown in sections 1 and 2 of the calculation. If dividends were accrued but not paid, they will not be included in 6-NDFL.

In field 021 of section 1 the date when personal income tax needs to be transferred to the budget is entered, and in field 022 - the withheld tax.

In section 2, when paying dividends, the following indicators are reflected:

—

in fields 110 and 111 – the full amount of dividends distributed and paid (with personal income tax and without income tax offset) in favor of individuals;

—

in fields 140 and 141 – calculated tax;

—

field 160 is the amount of personal income tax withheld from dividends (the difference between the calculated tax and the amount of income tax that is subject to offset).

Field 130 remains blank when dividends are paid. The recipient of the dividends must be included in field 120 of the calculation (clauses 3.2, 4.3 of the Procedure, approved by order of the Federal Tax Service dated October 15, 2020 No. ED-7-11 / [email protected] ).

In the annual calculation of 6-NDFL, dividends received by an individual, minus the amount of corporate income tax for credit, will be reflected in the “Amount of Income” field of the appendix “Information on income and corresponding deductions by month of the tax period” to the Income Certificate.

In the “Income code” field of the certificate there will be code 1010, there will be no deduction code (letter of the Federal Tax Service dated 04/13/2021 No. BS-4-11/4999).

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The first article in the series “Tax calculation if dividends are paid to a Russian legal entity”

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Second article in the series “Tax calculation if dividends are paid to a foreign legal entity”

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The third article in the series “Tax calculation if dividends are paid to a foreign individual - non-resident of the Russian Federation”

Read the link for more useful materials about dividends and reporting.

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