Daily allowances in excess of taxation in 2021

Are daily allowances subject to income tax?

Art. 168 of the Labor Code of the Russian Federation states that an employer who sends a specialist on a business trip is obliged to compensate him for additional expenses associated with living away from home - to pay daily allowance. Their size is set by the company independently based on financial capabilities and ideas about fairness. It is fixed in the internal acts of the organization, for example, in a collective agreement.

Art. 217 of the Tax Code of the Russian Federation, indicates that daily allowances are not subject to personal income tax, provided that they do not exceed the following limits:

700 rub. – for traveling around the country;
2.5 thousand rubles. – for business trips abroad.

Art. 217 of the Tax Code of the Russian Federation obliges the company to withhold personal income tax from business trips in excess of the norm. To do this, the accountant acts according to the following algorithm:

Calculates the amount of excess of paid daily allowances over the limits specified in the Tax Code of the Russian Federation.
Determines the amount of personal income tax using the appropriate rate: 13% for residents of the Russian Federation, 30% for non-residents.

According to the provisions of the Tax Code of the Russian Federation, the accountant is obliged to calculate income tax during the month when the advance report prepared by the traveler was approved. Personal income tax is withheld from the specialist at the time of the next salary payment and is transferred to the state treasury no later than the day following this date.

Business trips in 2021: we arrange and pay for them

Excess daily allowance and form 6-NDFL

The Tax Code of Russia determines that the daily allowance for trips within the country is 700 rubles; foreign business trips require the payment of a daily allowance in the amount of 2.5 thousand rubles. If a person is paid amounts in excess of the established norms, they are subject to personal income tax. However, the organization does not have the right to withhold this tax at the moment when it gives a person funds in the form of an advance, since it is not known for certain exactly what amount will be spent by him.

If a person returns from a business trip ahead of schedule, her expenses will be less, but if she is delayed on a business trip, her expenses will increase accordingly. Considering that finances provided to a person on the basis of an advance request cannot be considered the person’s economic benefit, it would be unlawful to charge personal income tax at the time of payment.
Form 6-NDFL

Thus, when the question arises of calculating personal income tax on an employee’s daily allowance, you need to adhere to the following sequence of actions:

provision of a report by the employee;
calculation of the exact amount of a person’s income that is subject to taxation;
personal income tax calculation;
withholding tax, which is calculated on the amount received by the employee as additional income.

The job description of a payroll accountant regulates the functions that a specialist must perform. Is it necessary to apply for a probationary period when working part-time? We’ll tell you here.

Dates

To reflect the amount of daily allowance that exceeds the established norm in form 6-NDFL, you need to clarify which dates should be indicated in the second section of the calculation. For taxable daily allowances, the date on which the actual income was received is the last day of the month in which the advance report was approved after the employee returned from a business trip. It is this date of the month that should be indicated in line 100 of form 6-NDFL (the date on which the income was actually received).

In line 110 (the date when the tax was withheld) you should indicate the date when the income from which personal income tax was withheld was paid. It is important to know that this date is not allowed to come earlier than the last day of the month, since the withholding of personal income tax is not allowed if the income was not received by the employee. Since the receipt of income occurred on the final day of the month, tax withholding may occur when the next payment is made.

Based on this, we can conclude that the transfer of personal income tax from excess daily allowances must occur no later than the working day that follows the day when personal income tax was withheld from the daily allowance.

Is the cost of travel subject to personal income tax?

Art. 168 prescribes that the employing company is obliged to compensate the employee for the cost of travel to the destination. In Art. 217 of the Tax Code of the Russian Federation states that income tax is not provided for the following types of expenses:

cost of round trip tickets;
baggage fee;
travel to the airport (station), to the destination in the city where the specialist was sent;
commission fees;
payment for airport services.

Important! The only condition for exempting compensation paid to an employee from personal income tax is documentary evidence of the expenses incurred.

For example, if a specialist traveled by train, he presents a ticket to the hiring company. If the business trip involved air travel, you can attach an electronic ticket receipt and a scan of your passport with border crossing marks to the advance report. To confirm expenses for taxis and airport services, you need to save receipts.

The employer’s obligation to charge tax on travel expenses arises in a situation where the specialist was unable to document them, but compensation was paid. The accountant calculates the tax in the month when the advance report was approved and deducts it from the specialist’s next salary.

The question of whether compensation for VIP lounge services is subject to personal income tax deserves special attention. Current legislation does not contain any restrictions prohibiting the classification of this type of expense as transportation costs. In practice, questions and claims from regulatory authorities are not excluded, so it is better for the company to have an explanation why the employee needed VIP service at the airport. For example, the manager was holding negotiations there and preparing an urgent presentation. Rules regarding such costs can be specified in the enterprise's collective agreement.

Features of payment of insurance premiums

In 2021, a mandatory requirement to charge taxes on excess daily payments was introduced. Article 424 of the Tax Code of the Russian Federation determines the terms of payment and the procedure for calculating compensation to employees.

When an employee receives daily allowance in excess of the norm, an advance report is approved. This means that reimbursements from the employer for business trip expenses that exceed the limits are attributed to the insurance of payments for the same calendar month in which the employee’s advance report is approved.

When the daily allowance is within the amount established by law, there is no need to make insurance contributions on it. Compliance with the legal requirements for calculating travel allowances will allow you to avoid claims against the company from the Tax Service, the Pension Fund of the Russian Federation and the Social Insurance Fund. Insurance deductions are made from the employee's additional expenses for his residence in a foreign area, which exceeded the standards. This condition applies to business trips lasting more than 24 hours.

Are living expenses subject to personal income tax?

According to Art. 217 of the Tax Code of the Russian Federation, compensation for expenses for renting housing during a business trip is not subject to personal income tax, provided that the expenses incurred by the specialist are documented. If he rents a hotel, he will need a BSO or a check; if he rents an apartment, he will need an agreement with the owner and a paper confirming payment.

If the documents are executed incorrectly or are not submitted, the compensation is exempt from income tax within the daily limits:

700 rub. – for domestic Russian trips;
2,500 rub. – for foreigners.

The accountant includes the amount exceeding legal limits as part of the specialist’s taxable personal income tax. He calculates the tax in the month when management approved the advance report.

Setting up a new accrual for excess daily allowance

Create a new Accrual (Settings – Accruals). On the Main , indicate that this is Income in kind and the accrual is carried out on a separate document .

On the Taxes, contributions, accounting tab, configure the parameters for taxation of this type of income with personal income tax and contributions.

If the amount of excess daily allowance is specified in local regulations, then for insurance premiums you should select Type of income - Income that is entirely subject to insurance contributions for compulsory health insurance, compulsory medical insurance and social insurance, not subject to contributions for accident insurance , otherwise it will be Income , entirely subject to insurance premiums

Peculiarities of taxation of personal income tax on payments made abroad

If a specialist is sent to solve business problems abroad, he has a number of additional expenses that are not typical for domestic trips:

for obtaining a visa;
to purchase health insurance;
consular fees;
fee for the right to enter by car, etc.

Compensation for expenses associated with a trip abroad is exempt from taxation, provided that the expenses were actually incurred and documented. If the papers submitted to the employer are in a foreign language, they must be translated.

If checks confirming foreign expenses are denominated in foreign currency, the accountant converts them into rubles at the official exchange rate of the Central Bank of the Russian Federation, established on the last date of the month when management signed the specialist’s advance report.

Income code “Travelling” in certificate 2-NDFL

Mandatory payments to employees sent on business trips are provided for in Art. 167-168 Labor Code of the Russian Federation. These transfers to specialists are reflected in the 2-NDFL certificate. There are special income codes for them:

2000 – for the amount of average earnings, which, according to Art. 167 of the Labor Code of the Russian Federation, is necessarily reserved for the posted worker.
4800 – for the amount of daily allowance paid in excess of the norms established by Art. 217 of the Tax Code of the Russian Federation, and subject to income tax.
4800 – for compensation for accommodation, travel and other expenses not documented by the employee.

There is no special income code “Business trip” in the 2-NDFL certificate. Payments to a specialist, subject to income tax, are broken down by codes 2000 and 4800. Amounts within the limits that are exempt from taxation are not shown in the document.

Are daily allowances in excess of the norm subject to personal income tax and insurance premiums in 2021 - Center Pro

When sending an employee on a business trip, the employer is obliged to compensate some of his expenses. Thus, the Labor Code establishes an exhaustive list of expenses that must be made at the expense of the employer.

These include not only payment for travel and accommodation. Also, at the expense of the company, the seconded specialist must pay daily expenses (DS). Read more in the separate material “Payment of travel expenses in 2021.”

Before determining whether per diem is subject to insurance premiums, here are some key points to remember about business travel.

The employer is obliged to pay the posted employee:

travel to and from your destination;
accommodation (housing rental);
expenses related to the performance of labor duties;
costs that compensate for the inconveniences associated with living outside the place of residence, or CP.

Travel and accommodation costs are determined based on actual expenses incurred. Moreover, such expenses will have to be documented. That is, provide checks, tickets or receipts.

With SR the situation is different. It is quite problematic to document such expenses.

Therefore, it is necessary to set a limit for SR - a specific amount of money that will be given to the employee for one day of stay on a business trip.

Determining limits

So, the current legislation does not establish a maximum size of SR. However, officials have determined a certain limit, above which daily allowances in excess of the norm are subject to insurance premiums (2018).

Article 217 of the Tax Code establishes that excess daily allowances are subject to insurance contributions (2018). Also, personal income tax will have to be withheld from amounts exceeding the limit. The limits are set as follows:

for trips within Russia - 700 rubles per day;
for foreign business trips - 2500 rubles per day.

In other words, if an institution has established large values for this type of expense, then the amount exceeding the limit is subject to taxation (personal income tax and personal income tax). Please note that this limit only applies to taxation. The company has the right to establish a CP greater than specified in Art. 217 Tax Code of the Russian Federation.

Using a specific example, we will determine whether daily allowances are subject to personal income tax and insurance premiums.

Primerov Ivan Andreevich was sent to Moscow for 10 calendar days. 43,000 rubles were allocated for travel expenses, including:

5000 rub. - to pay for travel;
18,000 rub. — for rental housing (payment for a hotel room);
20,000 rub. - SR (2000 rubles per day, therefore, daily allowances over 700 rubles, insurance premiums will have to be charged).

Amounts allocated for travel and accommodation are not subject to taxes. But above-limit daily allowances are subject to insurance premiums. Let's do the calculation:

We determine the amount of excess (2000 rubles – 700 rubles) × 10 days. = 13,000 rub.
We calculate personal income tax: 13,000 × 13% = 1,690 rubles.
We determine the amount of SV: 13,000 × 30.2% (OPS - 22%, compulsory medical insurance - 5.1%, VNIM - 2.9%, NS and PZ - 0.2%) = 3926 rubles.

Consequently, Examples will receive 41,310 (5000 + 18,000 + (20,000 – 1690)) rubles. And the company’s expenses will amount to 46,926 (43,000 + 3926) rubles.

Please note that one-day business trips and daily allowances (insurance contributions) are no exception. You will still have to withhold personal income tax on the excess and pay the contribution tax to the budget.

How are daily personal income tax and insurance premiums assessed?

The taxation procedure for SRs exceeding those established in Art. 217 of the Tax Code of the Russian Federation, the general one applies. For personal income tax, the rate is set at 13%. Let us remind you that not the entire amount is taxed, but only the difference exceeding the permissible limit.

The amount of insurance coverage is determined individually.

This means that if a company has benefits and applies reduced rates for SV, then in order to tax daily allowances above the norm, insurance premiums for 2021 will be calculated at reduced rates.

We described in more detail what benefits are valid in 2021 in a special article “Who is entitled to reduced SV tariffs in 2021”.

For example, a company operates in the field of IT technologies and has the right to reduced insurance rates:

According to the conditions of the example given above, the company will pay to the budget not 3,926 rubles (13,000 × 30.2%), but only 1,846 rubles (13,000 × 14.2% (8% + 4% + 2% + 0.2% Therefore, insurance premiums for excess daily allowances are calculated and paid at preferential rates if the company has a legal right to them.

Daily allowances based on insurance premiums 2020

Many accountants wonder whether per diem is correctly reflected in the calculation of insurance premiums? Tax officials gave an official explanation that not only SR, but also all amounts of travel expenses should be included in the calculation of SV.

So, when filling out the report, indicate the entire amount that was accrued to the posted employee. Don't forget to include travel, accommodation and other expenses. Enter travel expenses in line 030 of subsection number 1.1 of Appendix No. 1 to Section No. 1 of the SV report.

The amount that is not subject to taxation is indicated in line 040 of subsection 1.1, Appendix No. 1 of the first section.

Therefore, line 050 will indicate the taxable difference.

Lines 030, 040 and 050 of subsection 1.2 of Appendix No. 1 of the first section should be completed in the same way. And also lines 020 and 030 of Appendix No. 2 to the first section. Such recommendations are presented in the Letter of the Federal Tax Service dated 08.08.2017 No. GD-4-11/15569.

The information will also have to be detailed in the third section of the DAM. Namely, in part 3.2.1 of the third section, reflect the daily allowance in the report on insurance premiums as follows:

Let's sum it up

So, we have identified the following important points:

The CP limit is set by the organization independently.
The norms must be enshrined in the order.
If the CP per day exceeds 700 rubles. for trips around Russia and 2500 rubles. per day for business trips abroad, then amounts exceeding the daily allowance for business trips are subject to insurance contributions.
All travel expenses should be included in reporting, namely in the DAM.

Please note that if a company does not include travel expenses in the DAM report, then tax authorities do not have the right to issue a fine. However, this only applies to non-taxable amounts.

It should also be noted that if the company has not included non-taxable business trips in the DAM, then it is advisable to provide an adjusting report.

But if the adjustment is not provided, then the tax authorities cannot fine the company, since the tax base is not underestimated.

What are the premiums for per diem in 2021?

Insurance premiums for daily allowances in 2021 will have to be charged if the amount of daily allowances exceeds the norm established for this type of payment for the application of exemptions for them. Let's consider what this norm is and exactly what contributions will need to be accrued.

How has the taxation of daily allowance contributions changed since 2021?

Since 2021, insurance premiums intended for the Pension Fund of the Russian Federation, the Compulsory Medical Insurance Fund and the Social Insurance Fund (in terms of disability and maternity insurance) have changed their administrator, coming under the control of the tax authorities. The rules for calculating these contributions are now contained in a separate chapter of the Tax Code of the Russian Federation dedicated to them.

Until 2021, the above contributions were subject to the now repealed law “On Insurance Contributions...” dated July 24, 2009 No. 212-FZ, in which in paragraph 2 of Art. 9 stated that daily allowances due to an employee during his stay on business trips both within the territory of the Russian Federation and abroad are not subject to contributions. The daily allowance was not limited in any way.

In the rules established by the new legal act (clause 2 of Article 422 of the Tax Code of the Russian Federation), a similar rule has been changed and contains a reference to restrictions within which daily allowance contributions may not be charged. Thus, exceeding the established limits automatically leads to the emergence of an obligation to charge insurance premiums for daily allowances in 2017-2018.

Find out what is included in the daily allowance and how to calculate it correctly here.

What amount of daily allowance should be reflected in a single calculation of insurance premiums, read here.

What daily allowances should be considered as issued in excess of the norm?

What rules determine the division of daily allowances incurred during business trips into those that are exempt from the calculation of contributions for them and those that form the basis for calculating insurance premiums for daily allowances in 2018?

In terms of establishing this boundary, clause 2 of Art. 422 of the Tax Code of the Russian Federation refers to clause 3 of Art. 217 of the Tax Code of the Russian Federation, i.e. to the same restrictions that apply to resolve the issue of taxation of daily allowances on the income of individuals. In the text of paragraph 3 of Art. 217 of the Tax Code of the Russian Federation specifies 2 values of daily allowance, if exceeded, the obligation to withhold personal income tax from an employee who has been on a business trip arises:

700 rub. — per day of a business trip in the Russian Federation;
2,500 rub. - per day of stay on a business trip abroad.

Starting from 2021, these same values will have to be used in relation to the issue of calculating insurance premiums subject to the provisions of the Tax Code of the Russian Federation.

Source:

How to withhold personal income tax from travel expenses and daily allowances in excess of the norm and transfer them to the budget

Having considered the issue, we came to the following conclusion: In the accounting of a budgetary institution, the accrual of personal income tax on the amount of excess daily allowance and its transfer to budget revenue should be reflected using account 0 303 01 000 “Calculations for personal income tax” under CVR 111 and subarticle 211 KOSGU.
Answer prepared by: Expert of the Legal Consulting Service GARANT
Emelyanova Olga
December 7, 2021
The material was prepared on the basis of individual written consultation provided as part of the Legal Consulting service.
————————————————————————- *(1) If “XX” is indicated in the 22nd, 23rd digits of the accounting account number, then when generating accounting records, you must apply the group code of the synthetic account of the accounting object, corresponding to the economic content of a specific transaction.

Are daily allowances subject to personal income tax and insurance premiums in 2019?

Expenses related to business trips reimbursed to an employee include daily allowances. Daily allowances are additional expenses associated with the accommodation of a posted worker outside his place of permanent residence (Part 1 of Article 168 of the Labor Code of the Russian Federation). The amount of daily allowance is set by the employer independently. How are daily personal income tax and insurance premiums assessed?

Daily allowance and personal income tax

700 rubles – for business trips within the Russian Federation;
2,500 rubles – for business trips abroad.

Accordingly, the part of the daily allowance exceeding the above standard must be calculated and paid to the personal income tax budget.

Are daily allowances subject to insurance premiums?

Are daily allowances subject to insurance contributions?

Insurance premiums are not charged on daily allowances if such daily allowances do not exceed the above limits (clause 2 of Article 422 of the Tax Code of the Russian Federation). Accordingly, daily allowances in excess of the norm are subject to insurance premiums in 2021.

In other words, when traveling within the Russian Federation for daily allowances over 700 rubles, insurance premiums will need to be calculated. And for business trips abroad, insurance premiums are calculated from daily allowances exceeding 2,500 rubles per day of business trip.

Source:

Stages of levying daily insurance premiums in 2021

When sending personnel of an organization on business trips, they must be paid daily allowances. Such trips, according to the Labor Code, include those in which the employee carries out official assignments outside his main place of work. It is indicated as the address of the employing organization in the employment contract.

Source: https://centrproh.ru/personal/oblagayutsya-li-sutochnye-sverh-normy-ndfl-i-strahovymi-vznosami-v-2020-godu.html