Application for a deferment (installment plan) for tax payments in 2021

What does “tax deferment” mean?

The legal norms governing the issue of granting a deferment for tax payment are given in Chapter 8 of the Tax Code of the Russian Federation.

You should be aware that deferment means a change in the deadline for fulfilling obligations to the budget. In this case, the maximum deferment period is 1 year. If there are compelling circumstances, you can obtain a deferment for either 3 years or all 5 years. In these circumstances, the necessary decision must be made at the level of the government and the head of the country's financial department.

Business entities have the opportunity to receive this kind of support from the state either for one or for a number of mandatory payments, including:

• personal income tax;
• property tax for individuals;
• transport tax;
• land tax.

As for legal entities, in their case the list is as follows:

• income tax;
• VAT;
• UTII.

It is important to understand that the amount of installment or deferment is limited by current legislation. Thus, guided by the provisions of Article 64 of the above-mentioned regulatory document, it is necessary to emphasize that organizations can receive a deferment in an amount that does not exceed the size of its net assets. If a Russian citizen applies for such a relaxation, then the amount of the installment plan will not exceed the value of his real estate, except in a situation where it is not possible to seize it for legal reasons.

Coronavirus: to whom and how tax deferment and installment plans are provided

Deferment and Installment of taxes, unlike Extension, must be declared. That is, if your organization did not have enough Extension or Tax Deferral is urgently needed now, study the resolution and understand how priorities will be set for providing Deferral.

4.1 What is Tax Deferment and Installment Payment?

Tax deferment is a method of paying taxes in which payment in full is postponed to a later date.

Tax installments are a method of repaying taxes in which payment is made not in full, but in parts.

4.2 General rules

Deferment (installment plan) is provided starting from the calendar date established for tax payment.

Deferment (installment plan) is provided once.

Deferment (installment plan) is possible for federal, regional and local taxes, insurance premiums, the payment of which is due in 2021 . The rules do not provide for the provision of a deferment (installment plan) for the payment of penalties and fines.

For all issues that are not regulated by the rules, you must be guided by the general procedure for providing deferment and installment plans for persons who have suffered damage as a result of a natural disaster, technological disaster or other circumstances of force majeure.

4.3 Planned tax deferral period

The terms for granting deferment and installment plans differ. The criteria that persons interested in receiving a deferment (installment plan) must meet also differ. Depending on the fulfillment of the conditions:

The deferment is provided for a period of up to 1 (one) year, up to 6 (six) months - without providing security. Installment plans are provided for a period of up to 3 (three) years, and for the largest taxpayers, strategic, systemically important and city-forming organizations - up to 5 (five) years.

4.4 To whom and for what taxes is it provided?

A. Affected organizations and individual entrepreneurs carrying out activities -

1. Air transportation, airport activities, road transportation 2. Culture, organization of leisure and entertainment 3. Physical education and recreation activities and sports 4. Activities of travel agencies and other organizations providing services in the field of tourism 5. Hotel business 6. Public catering 7. Activities of organizations additional education, non-state educational institutions 8. Activities for organizing conferences and exhibitions 9. Activities for providing household services to the population (repairs, laundry, dry cleaning, hairdressing and beauty salons)

— can receive a deferment and installment plan for all taxes, except:

• excise taxes,
• mineral extraction tax,
• taxes paid by tax agents.

B. Strategic, System-forming and City-forming companies can receive a deferment and installment plan for all taxes, except:

• Excise duty,
• Mineral extraction tax,
• Taxes paid by tax agents
• VAT,
• Tax on additional income from the production of hydrocarbons.

4.5 How to apply

An application for a deferment or installment plan based on additional grounds must be submitted before December 1, 2021. Along with it, the inspection is provided with:

• the obligation to comply with the conditions under which the decision to defer or installment is made throughout the entire period of changing the payment deadline;
• a debt repayment schedule in any form (the Federal Tax Service explained that it is required if the interested party applies for an installment plan for a period of more than six months);
• ensuring the fulfillment of the obligation to pay taxes, advance payments and insurance premiums if the period of deferment or installment plan exceeds six months. As security, they provide real estate as collateral whose cadastral value exceeds the amount of taxes or insurance premiums included in the debt repayment schedule. Instead of collateral, a surety or bank guarantee may be provided. Application forms and obligations are recommended by the Federal Tax Service.

Bank certificate on monthly cash turnover and account balances; list of counterparties - debtors; conclusion on the occurrence of force majeure circumstances; There is no need to submit an assessment report for the damage caused (paragraph 3, clause 7 of the rules).

If an application is submitted by an LLC (IE) to the simplified tax system, then it indicates the data in the application without submitting supporting documents. The inspectorate will check this data after submitting the declaration for 2021.

The application can be submitted directly or sent by registered mail with a list of attachments. The application is reviewed within 30 days. From the moment the application is submitted until a decision is made on it, no debt collection measures are applied, and the deadlines established by Articles 46 and 70 of the Tax Code of the Russian Federation for sending demands for the fulfillment of tax obligations and making decisions on their collection are suspended.

4.6 How the application is checked

The decision to grant a deferment (installment plan) is made by the tax authority:

• Organizations - at the location of the taxpayer,
• Individual entrepreneur - at the individual entrepreneur’s place of residence,
• Largest - the tax authority at the place of their registration as the largest taxpayers,

After receiving the application, the following conditions are checked:

• decrease in income by more than 10%;
• decrease in income from the sale of goods, works, services by more than 10%;
• a decrease in income from the sale of goods, works, and services subject to VAT at a zero rate by more than 10%. This indicator is used if the volume of such sales is more than 50% of the total volume of sales of goods, works, services and property rights;
• receiving a loss on income tax for the reporting periods of 2020, if there was no loss for 2021. The presence of a loss is determined by the declaration for the reporting period preceding the quarter in which the application for deferment or installment plan is submitted.

The amount of income is determined by the legislation on taxes and fees. To calculate the decrease in income, you need to compare the indicators of the quarter preceding the quarter in which you applied for a deferment or installment plan and the indicators of the same period in 2019. If the taxpayer was registered only last year, then the indicators of the two quarters preceding the quarter in which the application is submitted are compared. For organizations in the general regime, the amount of income is determined on the basis of the income tax return. The amount of income from the sale of goods (work, services) is established according to the VAT return for the corresponding tax period.

There will be a refusal if the organization or individual entrepreneur does not meet the conditions. If a discrepancy is revealed as a result of filing an updated tax return or as a result of tax control measures, then the already made decision on deferment (installment plan) is cancelled. In addition, penalties are accrued from the day established for the initial payment of taxes or insurance premiums for which such a deferment (installment plan) was provided.

4.7 For what period can a Deferment be granted?

If a shorter period is not indicated in the application, a deferment is granted for a year, nine, six or three months, depending on the size of the decrease in income, the presence of losses and the category of taxpayers.

4.8 For what period can the Installment Plan be provided?

The installment period is chosen by the taxpayer himself within the established limits:

Applying for tax deferment

According to the provisions of clause 16 of the Procedure, according to which changes are made to the deadline for paying taxes and fees, ratified by order of the Federal Tax Service No. ММВ-7-8 / [email protected] dated 12/16/2016. A similar right is granted to business entities and citizens by the tax service.

Citizens or business entities wishing to receive relief regarding the fulfillment of obligations to the budget should report to the tax service at the place of their registration, presenting the established list of documentation, including:

• application requesting a deferment;
• information from the bank on the volume of monthly turnover of financial resources for each of the 6 months that precede the date of submission of the application;
• certificates from financial institutions showing the balance of all accounts opened in the name of the applicant citizen or organization;
• a list of the applicant’s debtors indicating the prices of the agreements and the periods for fulfilling obligations under them, with copies of these agreements attached;
• the applicant’s obligation to fulfill the conditions for the duration of the deferment, according to which this decision is made, as well as the debt payment schedule;
• information that will confirm the presence of grounds for receiving relief from the fiscal service.

In addition to the papers indicated above, the applicant is required to submit a guarantee from the bank, surety or collateral.

Before submitting an application, a legal entity or citizen must make sure that there are no circumstances that would prevent them from obtaining such a right, including:

• the existence of an initiated criminal case related to offenses in the fiscal sphere;
• the tax authorities have facts that allow them to conclude that the applicant is in this way trying to hide funds or property that is subject to taxation;
• 3 years before filing such an appeal, the tax inspectorate made a decision to terminate the previously received deferment.

The applicant must receive a decision from the tax authorities on the received appeal within 30 days from the moment such an appeal was submitted.

If the tax office has made a positive decision, then it should contain information such as:

• the volume of obligations to the state treasury;
• a list of payments and contributions for which such a right was obtained;
• information about interest, if any, is paid in cases established by law;
• information about the property that acts as collateral, as well as about sureties or financial guarantees, if any.

If the tax inspectorate makes a negative verdict on the application received, then it must reflect the reasons for such a decision. It should also be remembered that the decision made can be challenged in accordance with the adopted procedure.

A copy of the rendered conclusion is sent to the applicant within 3 days.

Sample application for installment payment of taxes

To the Interdistrict Inspectorate of the Federal Tax Service No. 31 of Russia

in the Sverdlovsk region

Ekaterinburg, st. Michurina, 239.

From LLC "..."

STATEMENT

On providing an installment plan for tax payment

In the period from January 22, 2014 to April 22, 2014, the Interdistrict Inspectorate of the Federal Tax Service of Russia No. 31 of Russia for the Sverdlovsk Region conducted a desk tax audit of the primary “Tax return for value added tax” of the LLC. Based on the results of the inspection, an act dated 05/07/2014 was drawn up, according to which a violation of paragraph 2 of paragraph 3 of Art. 170 of the Tax Code of the Russian Federation in the form of failure to restore the amount of tax accepted for deduction in the amount of 8,079,120 rubles, which led to non-payment of tax in the amount of 8,079,120 rubles. In connection with the above, it was proposed to charge additional amounts of tax - 8,079,120 rubles and penalties for late payment or non-payment - 171,075.37 rubles.

It is not possible to make a one-time payment of the specified amount of money, therefore, we ask you to provide us with an installment plan based on the following:

In accordance with Art. 64 of the Tax Code of the Russian Federation: “deferment or installment payment of tax is a change in the deadline for paying tax, if there are grounds provided for in this chapter, for a period not exceeding one year, respectively, with a lump sum or stage-by-stage payment of the debt amount.”

A one-time payment of tax in the amount of 8,079,120 rubles and a penalty for late payment or non-payment in the amount of 171,075.37 rubles will lead to the threat of signs of insolvency (bankruptcy) of the LLC.

Currently, failure to fulfill the obligation to pay tax in the amount of 8,079,120 rubles and penalties for late payment or non-payment in the amount of 171,075.37 rubles, it is possible that these amounts can be forcibly collected from us and will lead to the seizure of all accounts, which will completely block the activity our organization and the inability to fulfill its obligations both to contractors and to employees, which is extremely unacceptable because:

1. Our organization employs forty-four people on a permanent basis; the salary they receive in our organization increases the well-being of the family of each employee. The bankruptcy of the enterprise will lead to the loss of our employees’ jobs and stable income, which will negatively affect the income of their loved ones, taking into account the fact that every family has minor children,
2. LLC fulfills its obligations under numerous contracts that have a huge social focus and are necessary for public needs, since in particular we are entrusted with the obligation to:

• on the maintenance of public roads of regional importance,
• to carry out work on filling roads with de-icing material on the territory under a municipal contract,
• for the maintenance of highways, engineering structures on them, sidewalks in the territory of the urban district under a subcontract agreement,
• maintenance of public roads of regional importance in the Sverdlovsk region and artificial structures located on them,
• many others, about a hundred existing agreements.

In connection with the above, we ask you to provide us with an installment plan for payment of tax in the amount of 8,079,120 rubles and penalties for late payment or non-payment in the amount of 171,075.37 rubles.

In turn, we undertake to pay interest accrued on the amount of debt, based on a rate equal to one-half of the refinancing rate of the Central Bank of the Russian Federation in effect for the installment period.

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Providing us with an installment plan to pay tax in the amount of 8,079,120 rubles and a penalty for late payment or non-payment in the amount of 171,075.37 rubles on the proposed terms will protect our interests and provide us with the opportunity for further work and development with periodic repayment of debt, which will allow to avoid bankruptcy of our organization, since unfortunately, we have to admit that in practice a situation arises that, in the case where an organization is in bankruptcy proceedings, there is very, very rarely talk about restoring solvency.

In most cases, the bankruptcy of an organization ends in a standard manner, due to the fact that the claims of creditors cannot be repaid due to the lack of funds to repay the debt and the debtor’s lack of property. Upon completion of bankruptcy procedures, debt to the organization's employees, taxes and fees, and other creditors is considered uncollectible and is written off in accordance with the procedure established by law.

On the basis of the above

WE ASK YOU:

• provide an installment plan for payment of tax in the amount of 8,079,120 rubles and penalties for late payment or non-payment in the amount of 171,075.37 rubles

How to write an application?

An application for the right to relief must be submitted in the appropriate form. When drawing up an application, you must provide the following information:

• name and details of the addressee;
• the name of the document itself;
• details and name of the legal entity or the full name of the applicant. In this case, you should indicate the TIN and KPP of the interested person;
• indicate the form for changing the payment period;
• determine the type of fee in respect of which it is necessary to change the payment period, as well as the amount of debt in words;
• identify existing grounds for obtaining relief;
• put the date of the application and the signature of the applicant.

Sample application for a tax deferment

Special conditions for obtaining a deferment for affected industries

How to apply for a tax deferment and what is the simplified procedure for its registration?

To obtain the right to a deferment, you must meet at least one of the following criteria, in addition to classifying the main OKVED as a victim and being present in the register:

Income is determined based on the rules of the Tax Code. Compare the indicators of the quarter preceding the date of drawing up the application with the indicators for the same quarter of the previous year.

A simplified procedure for obtaining a tax deferment due to coronavirus is that:

• Some general conditions for obtaining a deferment are not mandatory.

• The deferment period can be increased to 5 years compared to the general period of 3 years.
• No interest accrues on such a deferment.
• It is not necessary to submit some documents: certificates from banks about turnover and balances, a list of counterparties and confirmation of the occurrence of grounds for deferment.

Reasons for receiving a deferment

From a legal point of view, valid reasons for obtaining such an opportunity are:

• receipt by a legal entity of damage due to force majeure circumstances;
• lack of budget funding, which was supposed to cover the debt;
• the presence of a threat of bankruptcy, which may be caused due to the payment of mandatory payments to the budget;
• production of goods or services on a seasonal basis;
• participation in legal relations that allow you to obtain a deferment in tax payment.

Federal tax breaks

In a situation where an interested person claims the right to receive installment payments for payments to the federal budget, such a decision is also made by the Federal Tax Service. However, such a decision requires coordination with other authorities.

When we talk about fulfilling obligations to the budget of the constituent entities of the Russian Federation, the Federal Tax Service must make a collegial decision, which will be made with the financial structures of those constituent entities of the federation to which such an obligation was formed.

When a decision is made to defer the unified social tax, the verdict is agreed upon with the relevant extra-budgetary funds. If the debt arose during the movement of goods across the customs border, then a joint decision is made with the Federal Customs Service.

How to get a tax deferment due to coronavirus

To receive a deferment (installment plan), you must submit an application to your Federal Tax Service (at your location or place of residence) no later than December 1, 2020 The application must be accompanied by an obligation to comply with the conditions under which the decision on deferment (installment plan) will be made.

If the taxpayer requests an installment plan, then a tax debt repayment schedule will be needed.

Application forms and obligations are given in the information of the Federal Tax Service.

There is no need to provide additional documents (for example, primary documents like bank statements) .

The application with attachments can be sent to the Federal Tax Service in paper form by courier or by mail. There is also an option with the “Contact the Federal Tax Service of Russia” service. In this case, you need to attach scans of the application, obligation and debt repayment schedule (if necessary).

Security documents (more on this later) can only be submitted on paper . 30 working days to review the application .

KEEP IN MIND

Federal Law No. 172-FZ dated 06/08/2020 abolished most taxes (except VAT) for the 2nd quarter of 2021 for organizations and individual entrepreneurs affected by coronavirus. For more information, see “To whom and what taxes will be written off for the 2nd quarter of 2021: list.”