Beginning investors have many questions when it comes to paying taxes. Due to low financial literacy in Russia, this is not discussed in detail anywhere. Therefore, today I will talk about all the features of taxation of dividends from Russian and foreign companies.
Personal income tax rates are prescribed in Article 214 of the Tax Code. For resident individuals the rate is 13% and 15% for non-residents. It is worth noting that all Russian brokers are tax agents according to the same Tax Code of the Russian Federation. Therefore, they automatically calculate and withhold tax on dividend income for Russian companies. Our brokers are not tax agents for American stocks.
How to reflect dividends in 2 personal income taxes
According to the legislation of the Tax Code, the tax agent (your broker) calculates and withholds tax in the following cases:
- closing a brokerage service agreement;
- at the end of the tax period (in January for the previous year);
- every time you withdraw funds from a brokerage account.
For newcomers to the stock market, the last point especially raises questions. For example, you have converted your currency into rubles (or vice versa) and are withdrawing funds from your brokerage account. For currency transactions, the broker is not a tax agent, but tax will still be withheld from you. And the question arises, how can this be?! It turns out that it doesn’t matter at all in what currency and what amount you withdraw. The fact of withdrawing money from the account initiates the calculation of income tax on transactions where the broker is a tax agent. This could just be coupons or dividends received, profits from purchase and sale transactions.
Upon termination of the contract or at the end of the calendar year, the broker provides its client with a 2-NDFL certificate. This certificate reflects all income received for the previous year. I will tell you below what code the dividend income is reflected under. After receiving such a certificate, you will only have to report on transactions in the foreign exchange market and on divas from American securities. Below is a screenshot from the Federal Tax Service website, where code 1010 is dividends . Just remember this for the future.
Example from the Federal Tax Service website code 1010 dividends
How to fill out a 2-NDFL certificate for 2021
Starting with reporting for 2021, a certificate in form 2-NDFL will need to be submitted to the Federal Tax Service using a new form.
The form of the certificate and the procedure for filling it out have been approved, which comes into force on January 1, 2021.
Tax agents paying income to individuals are required to report to the Federal Tax Service in form 2-NDFL. Tax agents are persons who, in accordance with the Tax Code of the Russian Federation, are entrusted with the responsibility for calculating, withholding from the taxpayer and transferring taxes to the budget system of the Russian Federation (clause 1, article 24 Tax Code of the Russian Federation). Tax agents:
- IP;
- separate divisions of foreign organizations in the Russian Federation.
- Russian organizations;
- lawyers who have established law offices;
- notaries engaged in private practice;
As a rule, tax agents are employers.
By this order, the tax authorities approved two forms of 2-NDFL:
- certificate of income and tax amounts of an individual (for issuance at the request of employees, in accordance with Appendix 5 to this order)
- Form 2-NDFL (for submission to the Federal Tax Service, in accordance with Appendix 1 to this order)
Thus, different certificates will need to be submitted to the Federal Tax Service and issued to employees. Methods for submitting Form 2-NDFL in 2021
depend on the number of employees in the organization:
- up to 25 people – the report is submitted on paper or electronically;
- 25 people or more - the report is submitted only in electronic form.
Penalties for violating the deadlines for submitting 2-NDFL in 2021.
- 200 rub. – from the organization (IP) for each unsubmitted certificate (clause
2-NDFL dividend code in 2021
Dividends in the income tax return are always marked with code 1010, as I said above. For a clear example, I am attaching a screenshot of the completed declaration. I have highlighted in red: the month the income was received, code 1010 dividends in the 2 personal income tax certificate and the amount of income. Everything turns out quite simple and clear. The top rate is 13% for residents and 15% for non-residents.
An example of how dividends are reflected under code 1010 in the 2NDFL certificate
The appearance of the certificate is the same for all brokerage companies; this is the GOST standard. Therefore, it is enough to learn to read and decipher the numbers in these documents once and you are already a professional investor. In addition to the shown dividends in 2 personal income taxes, you can also order a water tax report. This document is more likely for independent accounting than for obtaining a deduction. There is a detailed calculation of the taxable base (NTB) for all types of income from transactions with securities.
You can also write an application addressed to the depository where your shares are stored to request “certificate of income received from issuers.” Often this request costs 100-500 rubles and is completed within a few days. This certificate will include only coupons from bonds and dividends from Russian and foreign shares. For income on American securities, this is a particularly useful reference. After all, you yourself need to fill out 3 personal income taxes at the end of the year if you receive payments from foreign issuers.
Personal income tax rate on dividends
We have come to the most interesting moment, which raises many questions. For Russian companies everything is clear: depending on residence it is 13% or 15%. But the tax on dividends of individuals on shares that you bought on the St. Petersburg Stock Exchange has a peculiarity.
By default, the issuer will charge you 30%, the same as for American securities. This can also be done by Best Efforts Bank, which is the superior depository of the St. Petersburg Exchange. One way or another, the amount minus 30% will reach the broker. To obtain tax relief and avoid double taxation, you can fill out Form W-8BEN.
All Russian brokerage companies offer to fill out this certificate form and after acceptance from the St. Petersburg Exchange the rate will be 10%. It is minus 10% (which is 3 times less if you do not fill out W8) that the money will go to your brokerage account. This form is valid for 3 years from the date of acceptance by the St. Petersburg Exchange and can cost 300 or 600 rubles.
And here one condition arises: for 3% of income you will need to report to the Federal Tax Service yourself. At first glance it looks quite complicated, but in reality everything is simple. You need to get a brokerage report for the period from your broker or order a certificate of income received from issuers. It will indicate where which tax has already been withheld. With a signed Form W-8Ben, you just need to manually calculate the amount of income on the calculator and pay an additional 3% tax.
Reporting rules and sample of filling out the 2-NDFL certificate
03 October 2021 at 15:13 Form 2-NDFL certificate for 2021 is a document that is necessary to report on the results of the year to the Tax Service on the income of employees - individuals. It is also used to issue it to employees who request information about wages paid and income tax transferred.
From January 1, 2021, the report must be submitted according to the new rules.
Related articles Table of contents If you find an error in the text, please let us know by highlighting it and pressing Ctrl+Enter From January 1, 2021, Federal Law No. 325-FZ of September 29, 2021 comes into force, which introduces 2 new rules:
- All employers with more than 10 employees must submit electronic reporting. Currently, e-reports are submitted by those with more than 25 employees;
- The deadline for submitting the annual form is postponed from April 1 to March 1. The norm is effective from reporting for 2021.
Earlier it became known that employers and companies paying income (for example, dividends) to individuals at the end of the current year will continue to have to report according to new rules, for which they will need a sample 2-NDFL for 2021. The new registration procedure is significantly different from the previous one.
Let's look at how to fill out, where to find and download the current Form 2-NDFL 2021. From 01/01/2021, changes have been made that will have to be taken into account by all employers, individual entrepreneurs and organizations paying income to individuals. Based on the Order of the Federal Tax Service of Russia dated October 2, 2018 No. ММВ-7-11/, there is now not one form, but two.
Questions and Answers, various emergency situations
If you are filling out information for an organization, then indicate your TIN and KPP (registration code). If you are filling out a form for your employee, then after the TIN, indicate the checkpoint in accordance with the location of the unit.
In September, she received financial assistance in the amount of 6,000 rubles, and in December, a bonus based on the results of work for 2021 - 20,500 rubles.
Personal income tax certificate header 2, a sample of which requires mandatory entries, should look like this:
- in the upper right corner the name of the application (Appendix 1 to the Federal Tax Service of Russia dated November 17, 2010 No. ММВ-7-3/611) and indicating the number and date of the last edition;
- under this data the name of the document, its attribute and the code of the federal tax system inspection are placed;
- Next, it is indicated for what period the certificate is issued, its serial number and the date of issue.
Order No. ММВ-7-11/19 specifically notes that it begins to operate with the submission of information on the income of individuals for the 2021 tax period.
According to the new version of Appendix No. 2 “Codes of forms of reorganization and liquidation of an organization (separate division)” to the rules for filling out form 2-NDFL, the following codes are established:
- “0” – liquidation;
- “1” – transformation;
- “2” – merger;
- “3” – separation;
- “5” – accession;
- “6” – separation with simultaneous joining.
According to the new rules, the legal successor indicates the OKTMO code precisely at the location of the reorganized structure or its isolation. In the “Tax Agent” line, the successor also indicates the name of the reorganized company.
Having a protocol for submitting Form 2-NDFL is very important. Because it is he who confirms the fact of submitting certificates in form 2-NDFL
And also that they passed the filling control. Therefore, do not forget to pick up your copy of the Protocol from the Federal Tax Service!
Submit 2-NDFL certificates for 2021 to the tax office using the new form. The structure was changed and several fields were removed. Provide employees with information about their income on the new form “Certificate of income and tax amounts of an individual.” This form generally corresponds to the old 2-NDFL. To figure out where what information now needs to be entered, check out this table.
Remember: it is incorrect to enter a two-digit code, which is the serial number of the INFS branch in the locality.
This will make it easier for you to plan your work for the coming days and provide valuable instructions to your colleagues.
Personal income tax on dividends in 2021: rate, calculation, new examples
Personal income tax on dividends in 2021 must be transferred after the distribution of profits. The article contains all the deadlines, tax calculation algorithm, current BCCs, sample payment slips, free reference books for 2021.
and useful links. Guest, get free access to the BukhSoft program Full access for a month! — Generate documents, test reports, use the unique expert support service of the Glavbukh System. Call us by phone (free). Attention! These reference books and sample documents will help you pay personal income tax on dividends to the budget on time.
Download for free: Find out the rate and pay the tax on time. It will help you indicate the correct BCC in the payment order. It will help you avoid mistakes. Download for free Complies with all legal requirements Complies with all legal requirements are considered and transferred according to special rules that differ, for example, from the rules for transferring taxes on wages or on business income.
There are special formulas for calculating tax, as well as special details for payment documents.
Payment details include data from the tax office and the payer (tax agent), as well as special payment encodings, including KBK. Budget classification codes change regularly.
Thus, from 2021, the document establishing the BCC for tax payments has been completely updated. That is why, in order to avoid accidental errors, it is better to generate payments automatically - in the BukhSoft program.
The program automatically generates payment orders with current details.
Dividends in the 2021 certificate
If the company paid dividends to individual founders in 2021, then certificates must also be drawn up for them and submitted to the Federal Tax Service. The dividend income code in the report is 1010, and the deduction code (if it was provided) is 601. The tax rate changes:
- 13% if the participant is a resident;
- 15% if the participant is a non-resident of the Russian Federation.
If the founder of the company who received the dividends is a resident of the Russian Federation and at the same time receives wages in the company, then the dividends should be reflected in the same section 2 as other income. In this case, there is no need to fill out the report separately.
Read more: Sick leave code in certificate 2-NDFL
Dividends and 2 personal income taxes: features of reflection
» Joint stock companies and LLCs pay a portion of the profits received to their owners. Such rewards are called dividends and are subject to tax.
Accordingly, dividends are reflected in 2 personal income taxes.
Payment of profits occurs in accordance with the legislation of the Russian Federation. It is listed at the following frequency:
- every half year;
- annually.
- Every quarter;
Profit distribution occurs in accordance with the size of the share of each founder (shareholder).
The procedure itself consists of three stages:
- Payment of funds.
- Making a decision on the transfer of dividends.
- Determining the amount of profit that will be distributed.
After making a decision to pay the funds, the organization has 60 days to transfer the money. Personal income tax is withheld on the day of payment.
For residents of the Russian Federation the rate is 13%, for non-residents – 15%. The deadlines for transferring the fee to the state budget vary, they depend on the organizational and legal form of the enterprise:
- for JSC – within a month after the funds are transferred.
- For LLC – the next day after payment;
When calculating the fee, standard, property, and social deductions are not applied. It is calculated with each payment, even if there are several of them during the year.
If only the profit of the organization itself is distributed, the budget payment is calculated using the usual formula: income X tax rate. For example, an LLC has two founders, Petrov I.A. and Smirnov P.O., their shares are 70 and 30%, respectively.
Help on form 2-NDFL in 2021
/ Download (valid until the end of 2021) View information Below is detailed information on how to fill out The following situations are considered: 1.
2. ATTENTION! From January 1, 2021, the 2-NDFL form will be updated again.
What has changed + new forms can be viewed in. 2-NDFL is an official document about the income of an individual received from a specific source (usually an organization or individual entrepreneur) and the personal income tax withheld from this income. Organizations and individual entrepreneurs submit certificates only in case of payment of income to employees and other individuals.
But individual entrepreneurs do not draw up form 2-NDFL for themselves. You are required to submit certificates both to the tax office and to your employees.
2-NDFL employees are issued within three working days from submitting an application for a certificate.
A certificate may be needed when leaving a job and moving to another job, filing tax deductions, applying to a bank for a loan, applying for a visa to a significant number of countries, applying for a pension, adopting a child, submitting documents for various benefits, etc. . Tax certificates are submitted once a year:
- no later than April 1 (until April 2, 2021, since the 1st is a day off); until March 1, if it is impossible to withhold personal income tax (certificates with sign 2).
In the following common cases, we must submit information about income for persons not working in the company: The company paid for work/services under contract agreements; The LLC paid dividends to participants;
What is the general procedure for reflecting dividends to individuals in the new 2-NDFL certificate?
Dividends in the new 2-NDFL should be reflected along with other income taxed at the same rate. In a typical case, when the individual recipient is a tax resident of the Russian Federation, this will be 13%.
For dividends, an income code is provided in 2-NDFL 1010. The amount according to the code should be shown in full (along with tax).
Sections 1-3 of the new certificate and the Appendix separately for dividends do not need to be filled out.
Sign 1 is added to the new certificate if the dividends were paid in cash and personal income tax was withheld at the source (Article 226 of the Tax Code of the Russian Federation).
2-NDFL with sign 1 must be submitted no later than April 1 of the year following the year of payment.
Sign 2 (tax not withheld) must be included in the certificate if dividends were paid in non-monetary form (for example, in kind). In this case, the payer of dividends does not withhold tax at source and the obligation to calculate and pay personal income tax to the budget falls on the recipient of dividends (Article 228 of the Tax Code of the Russian Federation).
2-NDFL with sign 2 must be submitted no later than March 1 of the year following the year of payment.
