Personal income tax codes for the 2-NDFL certificate in 2016-2017 with explanation

Hello, dear friends! Sooner or later, any investor is faced with the need to pay taxes. I won’t even consider the option of evading this responsibility and I don’t recommend it to you. As for taxation itself, the procedure is not as complicated as it seems at first. There are a lot of pitfalls, but if you deal with them once, then in the future reports will be submitted without any problems. Below I will share my experience working with tax authorities. There will be not only instructions for filling out 3 personal income taxes, but also a number of nuancesrelated to taxation in general.

The network is full of offers from companies willing to take on the labor of maintaining records and submitting documents. The amounts are quoted differently, sometimes the price tag exceeds $1000. I don’t recommend choosing this path , there is nothing supernatural in filling out 3 personal income taxes, there is no point in spending extra money. Here, the calculation is rather made that the investor will not want to understand the bureaucratic nuances.

Studying legislation

If you work with a Russian broker, then he is your tax agent and he resolves all issues of the Federal Tax Service. You will have to pay the tax yourself only if your sources of income are located outside the Russian Federation, this is stated in Art. 208 Tax Code of the Russian Federation.

These include:

Coupon payments on bonds.
Profit received from trading stocks and derivatives on the stock market.
Dividends.
Other types of income , for example, interest accrual on the free account balance.

There is no point in evading taxes . This is not Forex, where withdrawing a couple of hundred dollars of profit will not interest anyone. Investors operate with large sums, and the Federal Tax Service will not ignore them.

The fines are significant:

Art. 119 Tax Code of the Russian Federation regulates sanctions for failure to submit a tax return.
If it is proven that you deliberately evaded paying taxes, fines increase to 20-40%. This is discussed in more detail in Art. 122 Tax Code of the Russian Federation .
It is also not in your interests to delay time, clause 4 art. 75 Tax Code of the Russian Federation regulates the amount of penalties accrued for each day of delay. It is tied to the refinancing rate of the Central Bank of the Russian Federation. At the time of preparation of the material, it is 7.75%, which means that the fine will increase by 7.75/300 = 0.0258% per day.

In the end, it will all end with you paying tax + a fine. So I recommend not to delay or delay submitting documents to the Federal Tax Service.

KBK for payment of personal income tax on dividends in 2021

The profit received by the enterprise after taxation can be distributed among the participants of the company. Dividends recognize not only income from the distribution of remaining profits received by the participant, but also other similar payments to the participants (letter of the Ministry of Finance of the Russian Federation dated May 14, 2015 No. 03-03-10/27550). Dividends are also recognized as receipts outside the Russian Federation, recognized as such by the legislation of other countries (Clause 1, Article 43 of the Tax Code of the Russian Federation).

Profit is divided between participants in accordance with the procedure reflected in the charter of the legal entity. Most often this distribution is made in proportion to the share of participation. Newly admitted participants can also count on payment of dividends according to their available share.

When do you need to fill out the 3rd personal income tax declaration yourself?

It was already said above that if a broker is a tax agent, then he will deal with personal income tax himself. But there are nuances here too. First, let's look at the general scheme of organizing trade . There are 2 options :

Connection between investor - foreign broker - entry to the stock exchange . In this case, we resolve the issues with the Federal Tax Service ourselves . Examples of such companies include Interactive Brokers, Just2Trade, United Traders. They are reliable, but do not have a license from the Russian Federation, and therefore do not calculate taxes for payment to the Federal Tax Service.
Using a gasket in the form of a company operating in the Russian Federation. The chain looks like this - investor — Russian broker — foreign — stock exchange. No need to bother with 3 personal income taxes, this is done by the tax agent.

Example

It happens that when working with a Russian broker, you will have to calculate and pay personal income tax on part of your income yourself. Let me give you an example:

You work with BCS and buy exclusively securities of Russian companies. In this case, joint stock companies themselves transfer the required amount to the state; this happens at the stage of paying dividends.
From the same BCS you buy securities of Russian companies, but issued abroad (Qiwi, Polymetal, Yandex, Rusal), and receive dividends on them. The broker does not pay personal income tax for this part of your income; we calculate it ourselves.

If you are planning to declare your income, but have doubts that the tax agent does not withhold taxes from all types of income, I recommend that you clarify this point with technical support . It is unlikely that they will provide special advice and help with calculations, but at least they can point out the necessary articles of the Tax Code of the Russian Federation and inform you whether the tax is calculated on all items of income or not. Usually clients are met halfway .

With many countries of the Russian Federation, back in the 90s of the twentieth century, it concluded an agreement on the avoidance of double taxation. So, in theory, you won’t have to overpay. Part of the tax paid in the country where the income was received goes towards the 13% personal income tax in Russia. For example, in the USA they pay 10% of dividends, leaving 3%, which the investor declares independently in Russia.

How to reflect dividends in 3-NDFL for 2021: sample

Recalculate amounts in foreign currency at the rate of the Central Bank of the Russian Federation on the date of receiving the currency or making expenses. How to fill out the 3-NDFL tax return: sample completion 2021 Let's move on to filling out the document. Let's start with the title page. Filling out the header.

Foreign countries also levy taxes on income earned abroad. If a special agreement on the avoidance of double taxation has been concluded between the Russian Federation and this country, the personal income tax payable can be reduced by the amount of this expense.

What income do you need to report? Examples of calculations and codes in the tax service

Below I will dwell in more detail on each type of income. This is not yet detailed instructions, but only general steps that everyone will encounter.

Dividends

For this category the code is 1010 . This tax on income received abroad ideally does not exceed 13% for countries with which the Russian Federation has an agreement on the absence of double taxes. But there are nuances here too:

If the form was signed W-8BEN, then in the USA, for example, you will be charged only 10%. All that remains is to confirm that the tax has been paid in America, and pay the remaining 3% in Russia.
If this form was not signed, the tax will be 30% . If you confirm the fact of payment, then in the Russian Federation you do not need to pay anything extra.

W-8BEN is not a universal document ; it is only suitable for the USA. If you buy shares issued in another country, then taxation depends on the state in which they are registered. If the Russian Federation does not have a double taxation agreement, then you will have to pay personal income tax twice. The difficulty is to confirm that taxes have been paid in the US. The broker issues 2 documents :

A report indicating the amount withheld from your income.
Form 1042-S. It includes the same tax as in the previous paragraph.

The subtlety is that there is no guarantee that the Federal Tax Service will accept these documents as evidence that the specified tax was actually paid in the USA. The corresponding confirmation is issued only by the IRS (the American analogue of our Federal Tax Service) and they will not give you this paper.

The decision depends on the specific employee of the Federal Tax Service . When submitting your report, indicate the withheld tax as paid and hope that everything will be resolved in your favor. But I morally recommend that you prepare for the fact that you will have to pay the full 13% instead of 3.

Sample of filling out dividends in 3-NDFL

Example 3

Features of filling in the program:

When setting conditions, note the general source of income.

In the example under consideration, there is no withholding tax, because the organization failed to fulfill its duty as a tax agent.

The report is ready. It can be printed or saved in an electronic file (declaration). It will be possible to reflect dividends in 3-NDFL for 2021 in the same way, but only in the program for the corresponding year.

Example 4

How to work in the program:

We set basic conditions: we indicate that the income was received in foreign currency.

We fill out information about the taxpayer as standard.

In the income code, select 1010. Indicate the amount of income in foreign currency and the amount of tax withheld.

We repeat operations according to paragraphs 3-5 for each payment case separately. In the example under consideration, there are 4 receipts of $340.

Dividends and IIS, example of tax calculation

It is not possible to obtain a tax deduction for dividend income. Previously, an educational program was held on this issue. 3 personal income tax for deduction in an IIS account is needed, but you will receive tax compensation from the state only if you are officially employed and have a “white” salary.

It is more convenient to understand this with examples.

Suppose you received 500 thousand rubles in dividends during the year. They paid a tax of 13% or 65,000 rubles. However, other income is not reflected in the statements. You cannot apply for a deduction.
The same conditions, but in parallel with the dividend yield there is also an official salary of 50,000 rubles per month. The investor transfers the paid dividends from the brokerage account to type A IIS. He can receive compensation from the state in the amount of 52 thousand rubles.

Tax calculation example

The investor owns 500 shares of Caterpillar .
The company paid out $0.84 per share . The total income will be $420, in the USA 10% or $42 is withheld. For a dollar they give 65.5547 rubles. in national currency, income and tax will be 27,532.98 and 2,754 rubles, respectively.
If personal income tax were paid in full in Russia, you would have to pay 3,580 rubles. That is, you need to pay extra 3580 - 2754 = 826 rubles to the budget.

The example uses the USA, you can work with other countries. If the fee exceeded 13%, Russia would not have to pay anything extra. As for which securities to purchase, it is better to read the article on how to buy shares and receive dividends, where this issue was discussed in detail.

Eurobond income

Read more about this type of securities here. Let's assume you own 30 Gazprom Eurobonds (XS0191754729, Gaz Capital SA). For each, the coupon income is expected to be $1,293.75. They pay the same 13% personal income tax, but in rubles and at the exchange rate of the Central Bank of the Russian Federation at the time of receipt. In our example, ruble income is equal to 1293.75 x 65.5547 = 84,811.40 (we always round up to the nearest kopeck). You need to pay a tax equal to 84,811.40 x 0.13 = 11,026 rubles.

As for what documents to attach, you will need:

Bank account statement.
Or notification of receipt of income .

The code in this case is 1530 for traded assets (traded on an exchange, and for at least the last 3 months a market quote has been calculated for them) and 1531 in other cases.

Redemption of bonds

There may be 2 options:

The money went into the brokerage account . Don't worry about taxes.
The funds went directly to the bank account . In this case, the broker can handle your taxes or not - the company itself decides what to do. If the current year's income comes from the redemption of bonds and it went straight to a bank account, be sure to check the company's policy.

The principle is exactly the same as in the previous example. As for documentation , you will need:

Proof of income – notification or account statement.
Confirmation of expenditure - a brokerage report from the date of purchase of the OFZ until the moment of its redemption.
Optional – extract from the depository . This certificate is needed only if the brokerage report does not include the amount spent on the purchase of bonds.

The codes are the same as in the previous paragraph.

Sale of currency

When it comes to what income needs to be declared, many people forget about currency. If you bought it for cash and there is no reporting anywhere, then the tax office most likely will not know about the transaction (unless the amounts are very large) and the issue of paying tax lies on your conscience. In other cases, you will have to pay personal income tax.

Let’s look at the option with a net purchase and subsequent sale of foreign currency:

Bought $5,000 in 2014 at an exchange rate of RUB 35.00. for $1 and spent 175 thousand rubles on it.
In February 2015, they sold the same amount, but at the rate of 70.00 rubles. for $1, the profit on this transaction amounted to 175 thousand rubles. and you need to pay tax on it.
From the point of view of the law, currency = property, which means you can apply a deduction of up to 250 thousand rubles. in year. In our example, we would not have to pay a penny, since the deduction with a margin covers the profit received.
If the deduction is not enough, then it is more profitable not to use it, but to reduce the size of the tax base by the costs that you incurred when purchasing currency. Naturally, this fact must be documented (a brokerage report will do). There can be only one type of deduction, it all depends on the amount of your amount. If the profit is within the limit of 250,000 rubles, it is more profitable to use a property deduction; if it is more, it is more profitable to use a reduction in the tax base.

Example

Purchase costs:

350,000 rub. − 175,000 rub. = 175,000 rub.

175,000 rub. × 0.13 = 22,750 rub. That is, you need to pay 22,750 rubles to the budget.

Another option to legally avoid paying personal income tax is to hold the currency for more than 3 years. In this case, the amount of earnings does not matter and no income tax is paid.

Codes

Choose codes more carefully ; several are suitable for currencies:

2900 – will not allow the use of a property deduction. Also, this option is not suitable for transactions in which a loss has been recorded.
1520 - in this case, deductions 903 (for expenses when purchasing currency) or 906 (property) are applicable.

Sale of securities

As for what taxes need to be paid on the sale of shares, the main subtlety is in currency revaluation. Papers are purchased for dollars, and the tax will consist of:

13% of the profit received due to the increase in the value of shares in foreign currency.
13% of profit due to changes in the ruble value of securities.

Because of this, there are curious cases when a stock has fallen in price in dollars, but due to a strong fall in the ruble, you are still in the black. In this case, this income is reflected in the personal income tax declaration 3 and tax is calculated from it.

Example

Let's look at the procedure for paying personal income tax using an example. Let’s assume that a not particularly active investor sold securities at the beginning of 2021 and is engaged in reporting in 2021:

At a price of $130.00 per share, 130 shares of Caterpillar . Let the settlement date (real date of purchase) fall on January 15, 2019. Please note that in the USA trading is carried out according to the T+3 scheme, so you should have given the purchase order 3 business days before this date. Spent $16,900 on the transaction, or 1,108,575.78 rubles in rubles. (at that time the rate was 65.5962).
The sale of 40 shares occurred on February 25, 2021, at which time the security price was $142.20. Earned $5688 or 3726 48.75 rubles. (the exchange rate at that time was 65.5149 rubles per $1). In our example, the ruble has strengthened somewhat against the dollar, there is no income due to this, so no additional personal income tax is paid due to the exchange rate difference.
We also need to know the broker's fee for this trade and the transaction costs (in the example they are 0). Let the company's commission be equal to $60 or 4024.77 rubles. (rate 67.0795 rubles per $1) Since they did not sell the entire volume, in this transaction they gave 60 x 40/130 = $18.47 or 1216.38 rubles. (65.8568 rubles per $1).

This link is a good version of a table with manual filling. I recommend not keeping the calculations in your head , but recording them immediately.

As a result, we see a total amount of 26,307.36 rubles, from which we need to pay 13% or 3,420 rubles. Let me remind you once again that in this example, currency revaluation did not cause an additional tax, since the ruble strengthened against the dollar. The table in the figure is available online, save it for yourself and adjust it based on your trading results.

The nuance with the purchase of currency must be taken into account, even if you work through a Russian broker. If you buy dollars and then use them for shares, you will have to separately declare the results for securities and for working with currency. The Russian broker will submit reports to the Central Bank, and the result of transactions with currencies is controlled by the investor himself .

Those who like to work with Russian Eurobonds are exempt from currency revaluation from the beginning of 2021. This relaxation does not apply to other assets. Declaration of income of individuals working with foreign companies requires translation of a brokerage report into Russian. For insurance purposes, you can have it notarized, but in practice, a self-translation is often sufficient.

When calculating, do not forget about the FIFO rule . If you regularly buy shares, then when you sell them, it is considered that those that were purchased first are sold first.

The code for this category is 1530.

Other types of income and their codes

Here I will include:

Interest accrued by the broker on the account balance . For them you can specify the code 4800 .
Long- or short-term profit distribution , for example, ETF funds. This category can be carried out as dividends, indicating that in the USA you did not pay tax (0%) and transfer 13% of this amount to the budget of the Russian Federation. The code is the same as for dividends – 1010 .

In this case, it is pointless to give examples. Simply take the resulting number and multiply it by 0.13.

Income codes for the 2-NDFL certificate

Below is a table showing the latest income and deduction codes that are needed when preparing a 2-NDFL certificate. The latest changes in their relation were given on November 29, 2015.

Name	Code
Payments for the use of money and interest of members of the credit community (agricultural focus), acquired as loans from community members	3022
Income received from deposits	3020
Winnings from lotteries and other gaming activities (including slot machines)	3010
Income derived from foreign exchange activities	2900
Discount received upon repayment of a bill	2800
Payment in kind for the labor of employees from enterprises manufacturing agricultural goods, when such payments are made in the interests of the employees themselves, property rights transferred to them	2791
Assistance of a material nature or the price of gifts acquired by veterans and disabled people of the Second World War, widows of military personnel who died during service in the Finnish, Second World War, Japanese War, became disabled during the Second World War and died, prisoners of concentration camps, prisons created by the Nazis or their allies during the Second World War	2790
Compensation for the price of medications purchased by the taxpayer (as prescribed by a doctor) or in other cases complying with the conditions of Article 217 of the Tax Code	2780
Compensation for employees, spouses, children and parents, former employees (now retired), disabled people for the price of medications they purchased (as prescribed by a doctor)	2770
One-time financial assistance provided to employees at the birth or adoption of a child (can be paid to parents, guardians or adoptive parents)	2762
Financial assistance provided to disabled people by a public association	2761
Material assistance provided to former or current employees transitioning to retirement due to age or dismissal	2760
The price of prizes in any form, acquired in a competitive mode or on a competitive basis, organized by decision of the Government, other bodies and not for the purpose of advertising the object	2750
The price of prizes acquired in various games and activities for the purpose of advertising the object	2740
The price of prizes in kind or cash acquired at competitions, competitions organized by decision of the Government, various bodies	2730
Price of gifts	2720
Financial assistance, excluding assistance upon retirement or disability, upon the birth (adoption) of a child	2710
Income received from forward transactions	2641
Income received from the purchase of securities	2640
Income received from the purchase of goods from an individual, individual entrepreneur or enterprise related to the tax payer	2630
Income credited from reducing interest costs on loans acquired from companies (IP)	2610
Salary in kind	2530
Receipt of funds acquired by the payer in kind for services provided or goods sold, necessary for the taxpayer	2520
Payment from the company (IP) in favor of the taxpayer for services, including rest, training, food, necessary for the taxpayer	2510
Receipt of funds acquired from the use or delivery of vehicles and others: automobiles, aircraft, ships, which are necessary for transportation; fines for delaying them at loading and unloading points; similarly with pipelines, wireless, electric line, fiber optic, computer networks	2400
Benefit paid as a result of temporary disability	2300
Royalties sent to the legal successors of authors from various fields of activity: literature, science, art, including for inventions and discoveries	2210
Fees to authors for various achievements: inventions, discoveries, etc.	2209
Fees to authors for developments and works in the scientific field	2208
Fees to authors for the use of literary and artistic works	2207
Fees to authors for the creation of musical compositions not included in the following code, taking into account those prepared for publication	2206
Fees to authors for the creation of musical works: for video, television and cinema, theatrical performances, chamber and other works, including those intended for brass band	2205
Fees to authors for creating works in audio or video format: for video, television and cinema	2204
Fees to authors for the creation of sculptural works, painting, graphics, design art, film and theatrical decorative art	2203
Fees to authors for the creation of design, graphic and architectural works, photographs	2202
Fees to authors for writing works in literature, including those created for the circus, stage, cinema and theater	2201
Vacation accruals	2012
Contractual payments, excluding author fees	2010
Managerial fees and other payments that are sent to the management team of the enterprise	2001
Fees paid to the taxpayer for the implementation of labor and other duties, including payments to military personnel and similar categories of individuals	2000
Receipt of funds received by assigning rights of claim under an agreement related to the construction of shares	1550
Receipt of funds acquired through an investment account	1543
Receipt of funds received by an enterprise participant when he leaves the community	1542
Income generated by the exchange of securities	1541
Receipt of funds from the sale of participation in the authorized capital of enterprises	1540
Receipt of funds for actions related to opening a short position (REPO)	1539
Receipt of interest funds acquired from loan agreements during the reporting period	1538
Interest income received from repo transactions	1537
Receipt of funds from transactions with securities that do not circulate on the organized market, but meet the purchase requirements that apply to such documents	1536
Receipt of funds from quick transactions not related to the controlled market	1533
Receipt of funds from quick transactions rotating on a controlled market and having an underlying asset in the form of stock indices and securities	1532
Receipt of funds from transactions related to securities, but not related to the regulated market	1531
Receipt of funds from transactions involving securities but relating to a regulated market	1530
Receipt of funds acquired from the rental or use of property (does not apply to vehicles, computer networks and communication channels)	1400
Receipt of funds acquired from the alienation of copyright or other rights	1301
Receipt of money received from the use of copyright or other rights	1300
Pensions that are paid under non-state pension agreements concluded by enterprises or other employers with domestic funds for non-state management of pension assets, as well as similarly under agreements concluded by individuals with such funds in favor of other persons	1240
Insurance contributions (the taxpayer received a social tax deduction), according to Article 219 of the Tax Code, which are taken into account when terminating non-state pension agreements	1220
Insurance contributions (the taxpayer received a social tax deduction), according to Article 219 of the Tax Code, which are taken into account when terminating voluntary provision of pensions	1219
Receipt of funds in the form of payments under non-state pension provision agreements and payable in the event of premature termination of non-state pension provision agreements	1215
Receipt of money in the form of payments under agreements for voluntary provision of pensions and payable in the event of premature termination of agreements for voluntary provision of pensions	1213
Receipt of funds in the form of payments under agreements for voluntary provision of pensions and payable in the event of premature termination of agreements for voluntary provision of pensions	1212
Receipt of money - insurance premiums under agreements, if they are paid instead of individuals by employers or other entrepreneurs and enterprises that are not employers for these individuals, but make payments	1211
Receipt of funds - insurance payments under agreements regarding property (of a voluntary nature) in the area of excess of its market price in the event of its destruction or the costs required to carry out repairs or its cost, increased by the amount of funds allocated for insurance	1203
Receipt of money - insurance payments under agreements regarding issues related to the survival of the insured person to a specific period or age, regarding the excess of the amount of deposited funds made during the period of validity of the life insurance agreement (voluntary), taking into account the refinancing rate of the Central Bank of the Russian Federation	1202
Receipt of funds - income from insurance for trips	1201
Receipt of money - other insurance income based on the contract	1200
Receipt of funds to participants in trust mortgage management received from the purchase of certificates issued before the beginning of 2007	1120
Interest on mortgage bonds issued before the beginning of 2007	1110
Interest and discounts received when fulfilling debt obligations (except for interest on mortgage bonds issued before the beginning of 2007)	1011
Dividends	1010
Other income	4800

Attention! Due to recent changes in legislation, the legal information in this article may be out of date!

Our lawyer can advise you free of charge - write your question in the form below:

What else to read:

Instructions for filling out 3 personal income tax

The process of filing reports and paying taxes has long been digitalized. To do everything without leaving home, you will need to register on the tax website. This is the only stage at which you will need to personally visit the Federal Tax Service to receive a login and password for your personal account. If you are registered with State Services, you can do without a visit to the tax authorities.

an electronic signature when submitting documents . The Federal Tax Service website gives out a non-qualified version, which is enough to pay taxes.

We’ll look at filling out 3 personal income tax below, but for now let’s start generating a report on trading results . For example, let's take the “daughter” of Interactive Brokers – CapTrader . The difference from IB is that the minimum deposit is reduced to $2000/€2000.

We proceed in the following sequence:

In your personal account, select the item Report — Extracts. Set the period and type of document - annual.
Documentation is prepared automatically. As a result, we receive a ready-made report indicating all dividends and other categories of income received for the selected period.

You can proceed to working with 3 personal income taxes and paying taxes through the Federal Tax Service website.

Filling out 3 personal income taxes through the Declaration program

The current version of this software can be downloaded for free on the tax website , use only the latest version. The good thing about the program for filling out 3 personal income taxes is that you can save intermediate results and then return to working with the data. When filling out online (via the Federal Tax Service website), there is no such option and everything must be done in one go.

The filling procedure is as follows:

Setting conditions - in this window, select the type of personal income tax declaration 3 . Check the box that you have income in foreign currency if you work with foreign class=”aligncenter” width=”1000″ height=”728″[/img]
Information about the declarant – everything here is intuitive.
Income outside the Russian Federation – in the example this is the key point. Click on the sign " +» and add each source of payments in the same sequence in which they are given in the brokerage report. You will have to tinker, if, for example, 6 funds pay quarterly dividends, this will already be 24 positions for the year. Here we also include possible income from the sale of currency and shares.
Do not forget enter the income code correctly. The drop down menu has all the categories, some look similar so use the guidelines from the sections above.
You can specify the rate yourself; there is an option to automatically download this data. Don't get confused by rounding, in the program everything needs to be reduced to 2 decimal places. As a result, we obtain the value of income in foreign currency, rubles and the amount of tax paid abroad.
It remains to work with the item Deductions. Losses can be carried forward from previous years (this possibility remains for 10 years after receiving a negative result). Information on losses is reflected in accordance with the categories of assets on which they were incurred. For example, if losses were recorded as a result of the sale of shares, then you can use them only if you received income from the sale of securities. The same goes for other asset groups.

After that, click Check and save Form 3 personal income tax as an .xml document. I recommend that you also save the declaration at the creation stage. Active investors may have several dozen positions in the Income ; filling them out will take more than an hour. It is better to play it safe so as not to lose the intermediate result.

Work online

This option can be used as a backup if there are any problems with the program. The sequence remains the same, although the interface changes periodically:

The item we are interested in is in the section Life situations.
The process is simplified a little due to the fact that you do not need to manually enter your information. The system will load them from the profile on the Federal Tax Service website.
Otherwise, everything is the same - we consistently go through the stages at which sources of income, deductions (if there are reasons to use them), and tax paid abroad are indicated. As in the program, when working through the website, the system itself loads exchange rates for the required dates and generally makes filling out the 3rd personal income tax return as easy as possible.

You can also download the result of your work in the Declaration . The same .xml file. Step-by-step instructions are not needed, since everything comes down to pressing a couple of buttons.

In addition to this file, submit a brokerage report with its translation into Russian and, optionally, something like an accompanying document (or explanatory note). The letter can explain in more detail the source of income and explain how you made the calculations. This is an optional element, but sometimes it helps to resolve controversial situations and not waste time.

Tax payment is due by July 15th . This can also be done online through the tax office website.

How to correctly fill out a tax return when receiving dividends on foreign shares and ETFs?

Declaring dividends, as well as calculating and paying tax on these dividends is one of the main problems for a Russian investor when purchasing foreign securities. This problem is faced by both those who invest in Russia and those who carry out transactions through a foreign broker.

Russian brokers are not tax agents for income in the form of dividends from foreign securities. Foreign brokers, in principle, do not perform such functions for foreign clients.

Therefore, if a Russian investor, for example, purchases foreign shares on the Moscow or St. Petersburg stock exchange, for which dividends are paid, he will have to independently report the dividends received to the tax office. All this will also have to be done if the investor purchases foreign ETFs that trade on foreign exchanges and pay dividends.

Documents required to prepare the declaration

The main document on the basis of which you will need to fill out the declaration is the brokerage report. It is there that, firstly, the dates and amounts of dividends received are reflected, and, secondly, the amount of tax on dividends that was withheld abroad is indicated.

In many cases, when dividends are paid on foreign stocks or ETFs abroad, some tax will be withheld from the amount of these payments. It does not matter how exactly such securities were purchased - through a Russian broker on a Russian stock exchange or through a foreign broker on a foreign stock exchange. Thus, the investor will receive dividends to his brokerage account minus tax.

However, the amount of tax on dividends that was withheld abroad can be “set off” for payment in Russia. If an agreement has been concluded between Russia and the country where the dividend tax was withheld (essentially, the country in which the issuer of the shares or ETF is registered) to avoid double taxation, then the amount of personal income tax that must be paid on dividends received in Russia can be reduced on the amount of tax on dividends withheld abroad.

If a tax on dividends was withheld abroad at a rate of less than 13%, then in Russia it will be necessary to pay the remaining tax up to 13%. If a tax was withheld abroad at a higher rate than 13%, then in Russia you will not have to pay anything extra. However, a tax return will need to be filed in any case. At the same time, no one will return the overpayment of tax abroad; in fact, you will have to come to terms with it.

All amounts of dividends received and taxes withheld abroad in one form or another must be reflected in the brokerage report. If this information is not in the broker report, you need to communicate with the broker so that he adds this information to the report. Without this, it will not be possible to prove to the tax office that tax has already been partially or fully withheld from the investor abroad.

In addition, even before purchasing any foreign securities, you should definitely check with your broker about filling out tax documents so that the investor’s dividend tax is withheld at a lower rate abroad. For example, now most Russian brokers allow clients to fill out the W-8BEN tax form when investing in American stocks. Based on this form, the investor declares that he is a US tax non-resident. As a result, the investor will be subject to a 10% withholding tax on U.S. stock dividends, rather than 30%, if this form is not completed. Thus, if a 10% tax is withheld on shares of American companies or ETFs abroad, in Russia you will need to pay the remaining 3%.

The main thing is not to forget to indicate in the declaration the amount of dividends paid, the amount of tax withheld abroad and attach a brokerage report as a supporting document.

How to fill out the declaration correctly

The first question to think about is: how to record dividends coming into the account - each dividend on a separate line or enter all dividends in one total amount?

Formally, it is more correct to reflect each dividend received as a separate amount and, accordingly, a separate line in the declaration. Yes, this will require more time to prepare the declaration. If, for example, dividends were received into a brokerage account 70 times, then you would have to enter 70 separate lines on your tax return. However, each dividend received is, in theory, a separate income received. And in this form, it will be clearer and easier for the tax inspector to compare the data from the declaration and brokerage reports that confirm the amount of dividends received and tax withheld abroad.

Depending on the securities on which dividends are paid, taxes may be withheld abroad at different rates. On some dividends, tax may be withheld in a smaller amount than on others, or not at all. Therefore, it is more correct to reflect this information in the declaration separately for each dividend.

How to do it? Let's look at this using the example of filling out a declaration through the taxpayer's Personal Account.

On the main page, follow the links “Life situations” -> “Submit a 3-NDFL declaration” -> “Fill out online”. Next you will be taken to the declaration preparation form.

After entering the starting information in the “Data” section, then in the “Income” section, you must go to the “Income outside the Russian Federation” subsection and click on the “Add source of income” button:

After this, you need to enter information about the received dividend (income source No. 1):

In the “Name” field, you can indicate that this was a payment of dividends on a specific security. In the “Country” field from the directory, you need to select in which country the issuer or provider of the ETF on whose shares/ETF the dividends were received is registered.

Further in the “Income” section for tax residents of the Russian Federation in the “Tax rate” field the default value will be 13%. In the “Type of income” field from the directory, you need to select the income code “1010 – Dividends”. In the “Provide tax deduction” field, you can select “Do not provide a deduction” (since dividend income cannot be reduced by any tax deductions).

In the “Amount of income in currency” field, you must indicate the amount of dividends in the corresponding currency that was received into the account. The “Date of receipt of income” field indicates the date when dividends are credited to the account. The “Tax payment date” field indicates the date on which tax was withheld from received dividends. As a rule, the date of receipt of income and the date of payment of taxes coincide.

Then information is provided about the currency in which the dividends were received. In the “Name of currency” field, you need to select the appropriate currency from the directory.

At the same time, if you put o just below, then the dividends received and the tax withheld from them will be automatically recalculated into rubles at the rate of the Central Bank of the Russian Federation on the date of receipt of dividends and the date of payment of the tax, respectively (see fields “Amount of income in rubles at the rate of the Central Bank” and “ Tax amount in rubles at the Central Bank exchange rate"). True, there were cases when the wrong exchange rate of the Central Bank of the Russian Federation was reflected in the Personal Account. Therefore, it is better to additionally check all these numbers yourself.

Finally, in the lowest field you need to enter the amount of tax that was withheld from the received dividend. The amount is indicated in currency. At the same time, if the “Determine rate automatically” checkbox was previously checked, the amount of withheld tax will be recalculated in rubles at the rate of the Central Bank of the Russian Federation in the adjacent field.

Thus, the investor does not need to independently indicate somewhere at what rate the tax was withheld abroad. You just need to indicate how much tax in foreign currency was withheld. If, when converting all amounts from foreign currency into rubles, it turns out to be less than 13% of the dividend amount, then the results of the declaration will automatically calculate how much tax will still need to be paid.

This completes the introduction of the first dividend.

Next, you need to click on the “Add source of income” button and, by analogy, enter information about the next dividend received.

Is it possible to simplify filling out the declaration?

However, is it possible to simplify the process of filling out the declaration and reflect the amount of dividends received and withheld tax in one amount?

If you really want to, you can try to do this. In this case, the total amount of dividends received and the total amount of tax withheld abroad are entered into the declaration in rubles. Next, it is best to attach a “transcript” to the tax return in the form of a brokerage report and, for example, calculations in Excel, where it will be indicated line by line from which specific dividends and taxes withheld on their receipt all these amounts were obtained.

After this, you will need to wait for the tax office to react. There are examples when tax inspectors are satisfied with such a declaration, and they have no questions. However, the tax office may ask you to adjust the declaration and reflect the dividends received not on one line, but each dividend separately.

Therefore, if the investor is not very afraid of once again communicating with the tax office, then, as an experiment, you can try to reflect the dividends in the declaration in one amount and see the reaction of the tax office.

There is one more important point. At the American broker Interactive Brokers, you can change the base currency of the account in which brokerage reports are generated. If you use rubles as the base currency, then the total amount of all income (including dividends) and withheld taxes will be reflected in the report in rubles. However, the transfer of all amounts into rubles will be carried out not at the rate of the Central Bank of the Russian Federation (as it should be in accordance with the Tax Code), but at the exchange rate, which will differ from the rate of the Central Bank of the Russian Federation.

Therefore, if the declaration indicates the total amount of dividends and withheld taxes based on ruble reports from Interactive Brokers, then, from the point of view of the Tax Code, this amount will be incorrect.

And here again everything will depend on whether a particular tax inspector will notice this, whether he will ask questions and ask to adjust the tax return.

Therefore, each investor will have to decide for himself how to fill out a tax return: to do it, what would be formally correct - to enter each dividend in a separate line, or, as would be simpler - to enter everything in one total amount.

How to pay tax on dividends?

After the declaration is completed, the total amount of personal income tax payable will be shown in the “Results” section in your Personal Account. Let me note once again that personal income tax on dividends cannot be reduced in any other way - you can only “offset” the tax paid abroad. No tax deductions apply to dividends. Accordingly, tax on dividends will always have to be paid and it will not be possible to return it.

Some time after signing and sending the declaration through the taxpayer’s Personal Account, the amount of tax debt will begin to be displayed on the main page of the account, which can be paid immediately in the Personal Account.

Let me also remind you that the declaration is submitted before April 30 of the year following the year in which the income was received. Therefore, if in 2021 an investor received dividends on foreign securities into an account with a Russian or foreign broker, the declaration must be submitted by April 30, 2021. In this case, personal income tax will need to be paid by July 15 of the year following the year in which the income was received. Accordingly, personal income tax for 2021 will need to be paid by July 15, 2021.

You can read about how to pay personal income tax here:

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I would also like to note that we will discuss in more detail various aspects of preparing a tax return and reducing taxes at webinars that will take place in December.

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Upcoming webinars:

December 16 (Wed) – “How to reduce personal income tax and fill out a tax return when investing through Interactive Brokers” - a webinar about what requirements exist in Russian legislation for brokerage accounts opened abroad, in what cases and how exactly you will have to fill out a tax return and how you can optimize taxes when investing through the American broker Interactive Brokers

December 17-18 (Thu-Fri) – “How to reduce personal income tax and fill out a declaration when investing in Russia” - a webinar about exactly what situations a Russian investor faces tax issues and how taxes can be optimized when investing in Russia

Notes on filling out 3 personal income taxes and the work of the Federal Tax Service

In theory, everything looks simple, but investors regularly encounter problems when filing a return. I'll highlight a couple of points:

Shares of limited partnership are subject to increased tax on dividends. You don’t have to pay anything from them in the Russian Federation.
In theory, tax authorities can equate a brokerage account to a bank account and fine the investor for illegal currency transactions. I am not aware of any cases where an ordinary person has encountered such problems. Theoretically, you can use the Federal Law on voluntary declaration and report all your assets and accounts, including brokerage ones. In return, the state releases you from punishment. But this opportunity is aimed at criminals; there is no point in using it for an ordinary citizen - you have not stolen anything .
A notarized translation of a brokerage report may be required - this is a matter of chance and the mood of a particular employee of the Federal Tax Service.
Currency revaluation does not actually reduce your income, you still receive it in rubles, the effect here is rather psychological.

And most importantly, be prepared for the fact that the Federal Tax Service will not accept the documents the first time and will require clarification. After all, in our country only a small segment of the population invests, and a Federal Tax Service employee may simply not have experience working with such documents. So be patient and just explain what's what. And don’t delay submitting the package of documents ; it’s better to have some time to spare.

How to fill out dividends in 3-NDFL

Since this is income, it is reflected on sheets A and B of 3-NDFL (depending on the source). Let's look at it in order.

Example 1

On sheet A, indicate the name and details of the tax agent.
Enter the amounts paid and tax withheld. All this data on dividends for 3-NDFL is in the certificate that the organization is required to provide at the end of the reporting year (in form 2-NDFL).
Specify code (08) and tax rate (13%).

How to report on foreign sources:

On sheet B indicate the tax rate (13%).
On page 020, write down the name of the foreign company that paid the income (you can use the Latin alphabet). Next to it, indicate the country code in which this company is located.

Below, put the code designation of the payment currency, the income code (1 - only for profits from controlled foreign companies, in other cases - 2).
On page 040, enter the date of receipt of income.
Based on the Central Bank exchange rate in effect on that day, calculate the amount of income in rubles.

Complete pages 080-130. The date of tax payment will coincide with the date of transfer of money, when the foreign company automatically writes off the required amount upon payment.

Repeat steps 1-6 for each payment transaction.

Important!

Clause 3 of Article 214 of the Tax Code states that tax on dividends must be calculated for each payment separately!

After filling out sheets A and B, the overall result is reflected in Section 2:

all income received is summed up;
calculate the resulting amount of tax payable.

A sample of a completed 3-NDFL declaration based on the data from Example 1 is available for download here.

The best foreign brokers

I.B.

Below I will briefly discuss companies that have proven themselves well and are also suitable for Russians. Let's start with Interactive Brokers:

Starting deposit from $10,000 – suitable only for experienced investors and traders.
Thousands of assets available.
Share fees are 68% lower than direct competitors ($2.24 vs. $8.0).
There is access to global exchanges , as well as trading platforms in North and South America, Africa, and Europe.
Thousands of assets available for trading.

Open an account with IB

CapTrader

The company is not popular in Russia, but rather due to the lack of information about it in Russian. In the near future I plan to make a detailed review of this broker:

In terms of reliability, the company is comparable to InteractiveBrokers; it is its “daughter”.
Starting capital has been reduced to $2000/€2000 . For the first account with a foreign broker, CapTrader is more suitable than IB.
There is access to all popular exchanges (America, Europe, Asia, the Pacific region, global platforms).
There are slightly fewer assets available than IB.
There is a demo account.

Exante

For individuals, the minimum deposit is €10,000.
There is a demo account.
The spreads are not record narrow, slightly inferior to Exness, but remain normal.
You can work with cryptocurrencies, metals, stock market instruments, futures - not a single area has been ignored.
A single account has been implemented for all markets.
The total number of assets available for trading exceeds 50,000.

These are some of the best foreign companies. If you are interested in working on the Russian market, I recommend trying to trade with BCS. A review of the BCS broker was done earlier, the company offers good conditions, plus there are no problems with reliability.

Current codes of income and deductions for personal income tax in 2021: decoding table

In double the amount if the second parent refuses the deduction - for the third and each subsequent child (their own) under 18 years of age, including full-time students, graduate students, residents, cadets, interns under 24 years of age

The fine is small - 500 rubles. for each certificate with an error, however, if there are many individuals who are income recipients, then errors in the codes in 2 personal income taxes in 2021 can result in a significant amount of penalties. To avoid a fine, you need to identify the error before the tax authorities do and submit “clarifications”.

Results

The easiest way is to entrust the filling out of 3 personal income taxes and the preparation of a package of documents to a third party; there are plenty of such proposals. In my opinion, this makes no sense, and it’s not just about the money, although the price tag can exceed 30 thousand rubles. It is important to understand where taxes come from, what deductions can be applied and know the procedure itself step by step. You will feel more psychologically confident if you create a package of documents yourself, and in the future you will be able to help fellow investors.

There are a lot of nuances in the issue of taxation, the legislation is imperfect. It is impossible to cover all the subtleties in one review, so I welcome questions in the comments. I will be happy to share my own experience and help you find a solution to the problem .

I also recommend subscribing to my blog to receive notifications when new materials are released. I conclude the review here and wish you success not only in investing, but also in preparing documentation for the tax authorities, this is no less important. All the best and see you soon!

If you find an error in the text, please select a piece of text and press Ctrl+Enter. Thanks for helping my blog get better!

3,771

Code of the type of income in the 3-NDFL declaration: line 020 of Appendix 1

Form 3-NDFL has many sheets, but a citizen is not required to fill out all of them. He is required to fill out those sheets that reflect his individual situation. Thus, Appendix 1 (in declarations filled out before 2021 - this is sheet A) is filled out by citizens submitting documents for deductions.

fill out a declaration in the operating room of the Federal Tax Service - there are stands with reference information and, as a rule, there are printed collections with various codes and numbers; if you get into the declaration campaign, which is held annually from February to April inclusive, then consultants will help you correctly indicate the information in all columns;
use codes posted on the website of the Federal Tax Service of Russia.

Procedure for filling out sheet 03

The procedure for filling out sheet 03 is contained in the same document that approved the declaration form (order No. ММВ-7-3/ [email protected] ).

The sheet consists of three sections devoted to:

income in the form of dividends - section A;
income on state and municipal securities (interest) - section B;
decoding of dividend amounts - section B.

At the same time, the majority of organizations fill out only sections A and B, and do not complete section B.

Section A looks like this:

Fill it out for the period in which dividends were paid and for subsequent periods throughout the year. For example, when paying dividends in the 3rd quarter, section A must be included in the declaration for 9 months and a year.

In the section header you need to put:

tax agent category code: 1 - if you are an issuer of securities on which you pay dividends, 2 - if not;
type of dividends: interim or annual;
tax period code and reporting year. For example, for a 2021 dividend paid in June 2021, the period code would be 34 and the reporting year would be 2021.

Next, fill in information about dividends - the total amount (lines 001 and 010) and by tax rates and categories of recipients (lines 020-070).

If you also received dividends, fill out lines 080 and 081, indicating the total amount of dividends and the amount by which the accrued dividends were reduced when calculating the tax, respectively.

In line 090 you need to indicate the difference between line 010 and line 081, in line 091 - the total tax base of dividends, from which the tax is calculated at a rate of 13%, in line 092 - the total tax base for dividends taxed at a rate of 0%.

The following is the income tax accrued on dividends: the total amount (line 100), on dividends paid in previous periods (line 110), and in the last quarter of the reporting year (line 120).

Section B of sheet 03 looks like this:

It is included in the declaration only for the quarter in which dividends were paid and is filled out for each participant. In the “Affiliation Attribute” field you need to put A, in the “type” field - 00, which means the primary calculation. When submitting clarifications, the serial number of the correction from 01 to 98 is entered here. Code 99 is used when canceling information.

After filling out sheet 03, information about dividends must be transferred to subsection 1.3 of section. 1 sheet 01.

It is also filled out only in the quarter when dividends were paid, and is not included in the declarations for subsequent periods.

In line 010 you need to put 1 (code 2 is used for income on state and municipal securities).

In line 01, indicate the tax payment deadline (the day following the day of dividend payment), and in line 040, the tax amount. If dividends were paid for several days, fill in the appropriate number of lines.

You can fill out a declaration for 2021 with dividends paid to individuals and organizations in ConsultantPlus, receiving free trial access to the system: