2-NDFL certificates are filled out for all employees who received income subject to income tax in a calendar year in accordance with Chapter. Tax Code of the Russian Federation. In approved by the Order of the Federal Tax Service dated October 2, 2018 No. ММВ-7-11/ [email protected] in the certificate form, the accrued amounts are reflected along with the codes. The type of income is determined by the encrypted indicator. Sometimes doubts arise about which bonus code to choose in 2-NDFL in 2020 in one case or another. In the current directory there are several values that can include the amount of accrued remuneration.
Selecting a reward code
Employers pay bonuses to employees based on their own local regulations. The reason for payments can be different (for exceeding specified volumes, improving the quantity and quality of products, etc.), the frequency of accrual also varies - one-time incentive, monthly payments, annual bonus. The personal income tax code for different types of premiums may differ.
A complete breakdown of all income codes is given in the Appendix to the Federal Tax Service order dated September 10, 2015 No. ММВ-7-11/ [email protected] (the last changes were made to the reference book on October 24, 2017). For bonuses, income codes (codes 2002 and 2003) were introduced by order of the Federal Tax Service dated November 22, 2016 No. ММВ-7-11 / [email protected] They are also valid for certificates for 2021.
The bonus code in 2-NDFL depends on the source and reason for payment of bonuses. The tax agent himself chooses the desired value based on the actual circumstances of the accrual. For one-time bonuses, the income code may also vary.
Remuneration for the performance of labor duties is indicated in 2-NDFL by code 2000. But for bonuses, code 2000 is not suitable, because it is intended for wages and amounts of monetary allowance or maintenance during the performance of labor/official duties. Awards should be reflected in the certificate under codes 2002 and 2003.
Income code in 3-NDFL
According to the law, individuals are required to pay income tax on all types of profit. To provide reporting, a declaration in form 3-NDFL is filled out. It is a standard document consisting of several sheets. If you fill out the information in full format, the form will turn into an endless Talmud.
To simplify the procedure when filling out a declaration, the legislation has adopted codes for types of income for 3-NDFL. In the general understanding, such a code means a number consisting of a combination of two digits. Under it is encrypted a specific type of remuneration that the taxpayer wants to report to the Federal Tax Service and pay personal income tax.
Information on the compliance of types of profit with their coding can be checked in online accounting with changes from 2021. They are also reflected in Appendix No. 3 and No. 4 of the Order.
In what cases is the code 2002 entered?
For bonuses, code 2002 is used for remunerations accrued for production results or other indicators provided for by the laws of the Russian Federation and/or paid to employees in accordance with labor and collective agreements. Typically, these payments are included in labor costs.
Example 1
The company accrues additional remuneration to each sales department employee who completes the volume of transactions specified in the Bonus Regulations during the month. The bonus amount is 10,000 rubles for each employee who has concluded contracts with customers in a month worth more than 150,000 rubles. For such a monthly premium, the income code in the 2-NDFL certificate is 2002.
Example 2
Based on the results of the calendar year, all employees of the enterprise are paid bonuses if the total volume of production increased by more than 5%. What bonus code should I use at the end of the year? The payment is directly related to production activities, therefore, when the annual bonus is calculated, the income code must be selected - 2002.
Income type codes for the 3-NDFL declaration for 2021
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.
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Important! The income code in the 3-NDFL declaration is indicated in Appendix 1 (in previous versions - sheet A) in column 020, as well as in the 2-NDFL certificate - in the table with the amounts of your income. Having a certificate, you can easily fill out Appendix 1 - you need to duplicate all the amounts from it.
But there are cases when Appendix 1 needs to be filled out, but not according to the 2-NDFL certificate, for example, a person’s income is not a salary, but some kind of fees for GPC agreements. For such cases, there are 2 solutions:
Codes of types of income that are valid for 2021 were approved by order - No. ММВ-7-11 / [email protected] dated 10/3/2018.
This year the following values are relevant for citizens:
| Income type code 01 | Selling real estate at market price |
| Income type code 02 | Sale of real estate at 70% of the cadastral price |
| Income type code 03 | Sales of other types of property |
| Income type code 04 | Operations with the Central Bank |
| Income type code 05 | Renting out your property |
| Income type code 06 | Present |
| Income type code 07 | Salary, fees and other remuneration for work under a civil process agreement or Labor Code of the Russian Federation, from which the employer withheld personal income tax |
| Income type code 08 | Salary, fees and other remuneration for work under a GPC agreement or Labor Code of the Russian Federation, from which the employer did not withhold personal income tax |
| Income type code 09 | Dividends |
| Income type code 10 | Other income |
It’s easy to identify your income - according to a certificate or according to an agreement: you need to be guided by written reasons, for example, you were given a car by a written gift agreement, select the income type code - 06 in the 3-NDFL declaration. If the gift was given only orally, then the Federal Tax Service will not know about it.
If you have questions or need help, please call Free Federal Legal Advice.
When does code 2003 apply?
The withholding agent provides premium code 2003 only in certain cases. Such operations include:
- payment of bonuses from the company’s net profit;
- payment of bonuses to employees from special-purpose funds or from targeted revenues.
Example 3
In a company engaged in the construction of residential buildings, for Builder’s Day they decided to give out 3,000 rubles from the company’s profits. bonuses for all employees. The holiday bonus income code that the accountant will indicate in the 2-NDFL certificates is 2003, since the payment is not directly related to labor results, and its source is the company’s net profit.
Explanations from the Federal Tax Service
When choosing a bonus code in the 2-NDFL certificate for 2021, you can be guided by the Federal Tax Service letter No. SA-4-11 / [email protected] dated 08/07/2017. It explains what types of rewards can be attributed to a particular code.
For a bonus in 2-NDFL, income code 2002 is selected in the case when the reward is accrued:
- based on the results of work activity for a certain period of time (month, year, quarter);
- for particularly important assignments or assignments;
- in connection with the conferment of an honorary title;
- in connection with receiving awards for production achievements.
The certificate contains personal income tax code 2003 if the premium:
- issued for the anniversary;
- accrued for the holiday;
- designed for additional stimulation;
- refers to other payments not related to the performance of labor or official duties.
Sometimes it is not possible to unambiguously attribute income to one or another indicator. In difficult cases of choosing an income code for a bonus in 2020, the tax agent is recommended to submit a detailed request to the Federal Tax Service of Russia.
Example 4
The employee was awarded a bonus for length of service. The company was faced with a question: which award code should be specified: 2000 or 2002? The additional payment does not directly depend on the employee’s production results, and at the same time is associated with a long period of his working activity. In letter No. SA-4-11/ [email protected] the Federal Tax Service explained that the long service bonus should be included in income with the coding 2000.
Thus, for different types of bonuses, the personal income tax code may differ. Moreover, the indicator does not depend on the frequency of payment. The tax agent independently determines which code to assign the accrued remuneration to, guided by the current income coding directory and its own Regulations on Bonuses (or other local document), which makes it possible to determine the source and procedure for assigning incentive amounts. For bonuses, personal income tax codes in 2020 are 2002 or 2003, depending on the reason for payment.
List of existing codes
Income codes in 3-NDFL are divided into sources in the Russian Federation and abroad, respectively, the digital designation implies a breakdown:
- from 01 to 10 – for grounds received on the territory of the Russian Federation;
- from 21 to 32 - for foreign bases.
On sheet A (Appendix 1)
For sources in the Russian Federation, types of income are reflected in 3-NDFL:
| 01 | from the alienation of real estate, based on the market price of the property specified in the purchase and sale agreement (for example, this code in 3-NDFL indicates income from the sale of a land plot) |
| 02 | from the sale of real estate, based on the cadastral value multiplied by 70% |
| 03 | from a transaction of purchase and sale of other property |
| 04 | from various types of transactions with the Central Bank |
| 05 | from renting out property (residential premises, land plots, etc.) for a certain period of time (renting) |
| 06 | received free of charge, in kind or in cash (donation) |
| 07 | salary, bonuses and other forms of remuneration received on the basis of TD (GPS), from which personal income tax is withheld by the employer |
| 08 | salary, bonuses and other forms of remuneration paid to the employee under TD (GPS), income tax has not yet been withheld by the employer (including partially) |
| 09 | dividends received from equity participation in the company's activities |
| 10 | other income that cannot be attributed to other types of profit |
We recommend additional reading: On personal income tax certificate 2, is an organization’s seal required?
Income from any sales is reflected in codes “01”, “02”, “03”. How to choose between the first two codes? To understand which option to choose from the sale of real estate, you need to understand the specifics of determining the tax base for transactions related to the sale of property.
In accordance with the Tax Code (Article 217), if the profit from the sale is less than its cadastral value when taking into account the reduction factor, then this value, code “01”, is used as the taxable base. Code “03” applies to such types of property as cars, appliances, furniture, various types of equipment, etc.
Codes “07” and “08” are determined depending on whether the employer withheld income tax from the employee or not.
On sheet B (Appendix 2)
Code of types of income 3-NDFL for sources outside the Russian Federation:
| 21 | the amount of profit from the activities of a foreign company |
| 22 | dividends received from equity participation |
| 23 | interest accrued on profit |
| 24 | royalties |
| 25 | profit from the sale of property |
| 26 | remuneration for the sale of shares (and other securities), more than 1/2 of the value of which is expressed in the form of property located in a foreign country |
| 27 | profit from the provision of professional services |
| 28 | wages and other types of remuneration for hired work |
| 29 | payments for a leadership position on the company's board |
| 30 | rewards for athletes, musicians, film and theater artists, etc. |
| 31 | fee for performing civil service |
| 32 | other unaccounted income |
One of the most popular reasons for contacting Federal Tax Service employees when filling out documents is the question of whether it is necessary to pay personal income tax on funds from foreign countries from currency purchased for a trip abroad or for investment investments. Since information on such transactions is not recorded by the Federal Tax Service, there is no need to include profit from the sale of foreign currency in the 3-NDFL declaration.
In 3-NDFL, when indicating the source of profit, it is allowed to use Latin letters. If, based on the documents available to the declared person, it is not possible to draw a conclusion about the basis of the profit, then it is allowed to indicate the type of transaction performed.
