Income tax rate in 2021

Having analyzed the changes in the field of income tax that come into force on January 1, 2021, we can come to the conclusion that the most significant of them are:

introduction of a new classifier of fixed assets,
changes in the area of controlled debt criteria;
replenishment of the list of expenses with costs for assessing the qualifications of employees.

Some other innovations related to individual industries and types of activities are also planned. Let us dwell on each moment for a more detailed analysis.

New OKOF classifier

From January 1, 2021, organizations will determine depreciation groups and depreciation periods for fixed assets according to the new classifier of fixed assets.
At the moment, the fixed assets classifier OKOF OK 013-94 is in effect, approved by Decree of the State Standard of the Russian Federation of December 26, 1994 N 359.

Starting in 2021, the new classifier OK 013-2014 (SNS 2008), approved by Order of Rosstandart dated December 12, 2014 N 2018-st, will come into force.

Thanks to the new OKOF, not only will new classification codes begin to be applied, but also depreciation groups for some fixed assets will change, which in turn will entail a change in their useful life.

The correspondence between the old and new OKOF codes is established by Rosstandart Order No. 458 dated April 21, 2016.

Attention! For fixed assets put into operation before January 1, 2021, there will be no need to recalculate the depreciation rate, even if, according to the new classifier, these fixed assets will belong to a different depreciation group. At the same time, for those fixed assets that will be put into operation from January 1, 2021, taxpayers will be required to apply depreciation groups and useful lives in accordance with the new handbook.

VAT changes

From 2021 in the Russian Federation, the provision of a number of common services on the Internet by foreign organizations (advertising services on the Internet, provision of rights to use programs, etc.) is subject to VAT.
Russian organizations and individual entrepreneurs purchasing such services will perform the functions of tax agents for VAT from 2017 (Articles 161, 174.2 of the Tax Code of the Russian Federation; Federal Law dated July 3, 2016 No. 244-FZ). From July 1, 2021, taxpayers who receive subsidies to reimburse expenses incurred, for which a VAT deduction was claimed, will have to restore the VAT deduction, regardless of which budget the subsidy was received from: federal, regional or local (subclause 6, clause 3, art. 170 of the Tax Code of the Russian Federation; clause 4 of article 2 of Law No. 401-FZ). Let us recall that before this date, the obligation to restore the VAT deduction arose only when receiving a subsidy from the federal budget (Part 6, Article 13 of Law No. 401-FZ; letter of the Ministry of Finance of Russia dated August 30, 2016 No. 03-07-11/50508).

Tax accounting of controlled debt

From January 1, 2021, Federal Law No. 25-FZ dated February 15, 2016 will introduce significant changes to Article 269 of the Tax Code of the Russian Federation.
The criteria for recognizing the debt of a Russian company as controlled, the interest on which, as is known, is subject to rationing for tax purposes, will change. As a result, the number of situations in which debt can be considered controllable will increase significantly.

From the beginning of 2021, the amount of controlled debt will be calculated based on the totality of all taxpayer obligations that have signs of such debt.

Law No. 25-FZ, in addition, will make clarifications to paragraph 4 of Art. 269 of the Tax Code of the Russian Federation. According to them, if the capitalization ratio changes in the subsequent reporting period or at the end of the tax period compared to previous reporting periods, the maximum amount of interest to be included in expenses on controlled debt for the previous reporting period is not subject to change.

(The capitalization ratio depends on the amount of debt, the amount of equity capital of the borrower and the share of participation of the foreign company controlling the debt in its capital.)

Has the base rate changed?

Organizations that are engaged in activities that are not classified as preferential or special by tax legislation, from January 1, 2021, will continue to pay tax at the basic rate, equal to, as before, 20%. Income tax in Russia is regulatory, that is, distributed between the federal and local budgets. It is in this regard that changes have occurred:

until the beginning of 2021, organizations transferred 2% of their profits to the federal budget and 18% to the local budget;
by the end of 2021, legal entities will direct 3% of profits to the federal budget and 17% to the local budget.

Tourist assistance for Russian tour operators

Having examined the changes that are relevant to most business entities, let’s move on to innovations affecting individual areas of business.
Starting next year, innovations in legislation in the field of outbound tourism will come into force, expanding the functions of the association of Russian tour operators, called “Tour Pomosch”.

Thus, from January 1, 2021, instead of a compensation fund, tour operators will create a reserve fund and a personal liability fund.

Accordingly, changes have been made to the Tax Code. According to the new edition of paragraphs. 18 clause 2 art. 251 of the Tax Code of the Russian Federation, funds received by an association of tour operators in the field of outbound tourism in the form of contributions transferred to the reserve fund and personal liability funds will be considered as targeted income for the maintenance of non-profit organizations.

According to the amendments to paragraph 48.15 of Art. 270 of the Tax Code of the Russian Federation (as amended), expenses incurred from both of these funds will also not be taken into account when taxing profits.

Effective rate

The term “effective income tax rate” appeared not so long ago - two years ago. It does not represent a standard tax rate. It is used in relation to a controlled foreign company, but not to determine the amount of tax payment, but to determine whether the profit of this company should be taxed.

The formula for determining the effective rate is as follows:

Effective rate = amount of tax on profit received / amount of profit received * 100%.

Tax base for transactions with securities – clarified

From January 1, 2021, the procedure for determining the tax base for transactions with securities will be clarified.
In particular, Law No. 242-FZ in Art.
280 of the Tax Code of the Russian Federation, paragraph 30 is introduced. Now, for bonds of Russian organizations, the terms of issue and circulation of which provide for the receipt of income in the form of interest, subject to taxation at the tax rate provided for in paragraphs. 1 clause 4 art. 284 of the Tax Code of the Russian Federation (15%), when the transaction price includes part of the accumulated coupon income, when calculating the total tax base, the accrued coupon income for which the specified tax rate is applied will not be taken into account. Get documents on the topic for free

Income tax rate in 2021

Income tax is transferred to two budgets – federal and regional. Each budget has its own income tax rate. So, in 2021, income tax is charged:

to the federal budget - at a rate of 3%;
to the regional budget - at a rate of 17%.

This breakdown is set for 2021 to 2021. Before January 1, 2021, the breakdown was as follows: 2% to the federal budget, 18% to the regional budget.

note

Operators of a new offshore field and holders of relevant licenses apply a 20% rate to the tax base generated when carrying out activities related to the production of hydrocarbons. At the same time, they must transfer the entire amount of income tax to the federal budget (clause 6 of Article 284 of the Tax Code of the Russian Federation). But the amounts of income tax paid by organizations in Crimea and Sevastopol, information about which is included in the Unified State Register of Legal Entities, are credited to the budgets of these entities in full (Clause 4, Article 13 of the Federal Constitutional Law of March 21, 2014 No. 6-FKZ).

Taxable profit is the difference:

between income that is subject to income tax, received during the reporting or tax period (for example, the first quarter, half a year, 9 months, a year);
expenses that reduce tax profit incurred during the reporting or tax period (for example, the first quarter, half a year, 9 months, a year).

Firms determine the amount of income tax on their own. Let us recall the formula by which tax is calculated.

Read also: “New income tax return form”

Formula for calculating the amount of income tax

EXAMPLE OF CALCULATION OF INCOME TAX BEFORE JANUARY 1, 2021.
The income of JSC Aktiv, subject to income tax, for the reporting year 2016 amounted to RUB 4,200,000. Expenses that reduce taxable profit for the same period - 3,000,000 rubles. Taxable profit is equal to: 4,200,000 rubles. – 3,000,000 rub. = 1,200,000 rubles. In the region where Aktiv operates, the profit tax rate is: - to the federal budget - 2%; - to the regional budget - 18%. At the end of the year, the company must charge income tax: - to the federal budget – 24,000 rubles. (1,200,000 rubles × 2%); - to the regional budget - 216,000 rubles. (RUB 1,200,000 × 18%). The total amount of income tax will be: RUB 1,200,000. × 20% = 240,000 rub.

Redistribution of income taxes in favor of the federal budget reduces tax revenues to regional budgets. The specified redistribution of the profit tax rate between budgets for the period from 2021 to 2021 was established by Federal Law No. 401-FZ of November 30, 2021.

Read also “Changes in income tax: rates in 2021”
EXAMPLE OF CALCULATION OF INCOME TAX AFTER JANUARY 1, 2021.
The income of JSC Aktiv, subject to income tax, for the reporting year 2017 amounted to 4,200,000 rubles. Expenses that reduce taxable profit for the same period - 3,000,000 rubles. Taxable profit is equal to: 4,200,000 rubles. – 3,000,000 rub. = 1,200,000 rubles. In the region where Aktiv operates, the tax rate is: - to the federal budget - 3%; - to the regional budget - 17%. At the end of the year, the company must charge income tax: - to the federal budget - 36,000 rub. (1,200,000 rubles × 3%); - to the regional budget - 204,000 rubles. (RUB 1,200,000 × 17%). The total amount of income tax will be: RUB 1,200,000. × 20% = 240,000 rub.

Regional authorities can reduce the income tax rate in the part that goes to their budget. However, in any case, it cannot be lower than 12.5% (set for 2017–2020, until January 1, 2021 - 13.5%).

Beginning in 2021, this reduction could result in an overall increase in the amount of income tax an organization pays.

Read also “Writing off overpayments of income taxes”
EXAMPLE OF DISTRIBUTION OF INCOME TAX AMONG BUDGETS
In one of the regions of Russia in 2021, the income tax rate in the part that goes to the regional budget was reduced to 14%. In this case, companies that operate in this region must pay income tax at a general rate of 16% (2% + 14%). In 2017–2020, the situation will be different. If the income tax rate in the part that goes to the regional budget is also reduced to 14%, in this case, firms that operate in this region must pay income tax at a general rate of 17% (3% + 14%).

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Changes in insurance premiums

From January 1, 2021, insurance premiums are regulated by the Tax Code.
Corresponding amendments were made to the first part, and the second was supplemented with a new chapter 34 “Insurance contributions” (Law No. 243-FZ). We note that insurance premiums for compulsory social insurance against industrial accidents and occupational diseases will, as before, be controlled by the Federal Social Insurance Fund of Russia, and the Fund has already approved a reporting form that will need to be submitted starting from the first quarter of 2021 (clause 3 of Art. 2 of the Tax Code of the Russian Federation; Federal Law dated July 24, 1998 No. 125-FZ; Order of the FSS of Russia dated September 26, 2016 No. 381).

Basically, the provisions of Chapter 34 of the Tax Code duplicate the provisions of the repealed Law on Insurance Contributions. Table 2 shows the most significant, in the author’s opinion, changes in insurance premiums.

Table 2. Changes in insurance premiums

Important! Starting in 2021, they will come into effect (Rosstat order No. 498 dated October 26, 2015, as amended by Rosstat order No. 686 dated October 27, 2016) Instructions for filling out federal statistical observation forms No. P-1, P-2, P-3, P-4 , P-5(m). You should pay close attention to the instructions for filling out form No. P-4 “Information on the number and wages of employees”, since this is how, from January 1, 2017, the average and average number of employees is calculated in all cases, including for tax purposes. The last thing I would like to draw attention to is the need to pay contributions in 2021 to new BCCs opened by the Federal Tax Service of Russia, and this also applies to contributions for 2021 paid in 2021 (information from the FSS of Russia “Interaction of the policyholder with the FSS of the Russian Federation and the Federal Tax Service of Russia for legal relations arising before December 31 and from January 1, 2017”).