Accrual and payment of dividends in accounting entries. taxes & accounting, No. 18, March, 2021

Dividend calculation: postings

Dividends are part of the net profit paid to the participants or shareholders of the company. The amount of profit to be distributed is determined at the end of the financial year. Its amount is reflected in the final annual entry on the credit of account 84.

A decision on such payment can only be made by a general meeting of participants or shareholders of the company. If there is only one founder, then the decision to distribute part of the positive financial result is made only by him.

Settlements with the founders are reflected in account 75 of the chart of accounts. For calculations on the payment of income, the Ministry of Finance in Order No. 94n recommends opening a subaccount 2 for it. Analytical accounting should be kept in the context of each founder. An exception is made for settlements with shareholders - owners of bearer shares in a joint-stock company, since it is impossible to establish their identification data.

Accruals are reflected on the date of the decision to pay part of the company’s undistributed positive financial result to the owners.

Dividends accrued: posting Dt 84 Kt 75.

The payment of income to the founder is reflected by the entry Dt 75 Kt 50, 51.

What are dividends

These are payments of part of the company’s profit at the end of the period to participants who have a share in the business. The calculation takes into account any income remaining after taxes are paid. This is enshrined in paragraph 1 of Art. 43 Tax Code of the Russian Federation. They are paid to the founders and shareholders, including employees who have shares in the company for which they work. The size is directly proportional to the share in the authorized capital as a percentage. Transfers can be made at the end of a quarter, half a year, or year. But they do not necessarily have to be paid regularly. Such a decision is usually made by the meeting if production development is favorable and financial results are stable. Otherwise, profits can be distributed to business development without paying dividends. Dividends are not paid in the following cases:

financially unstable state of the organization;
if the authorized capital is not fully contributed;
if a loss is incurred.

Taxation of payments to company participants

From transfers to individuals, the company is obliged to calculate, withhold and transfer personal income tax to the budget (Article 226 of the Tax Code of the Russian Federation). This must be done no later than the next day. The rate for tax residents of the Russian Federation is 13%, for non-residents - 15%.

In relation to part of the profit paid to the organization, it is recognized as a tax agent, that is, it must withhold and transfer profit tax to the budget (clause 3 of Article 275 of the Tax Code of the Russian Federation). Moreover, this rule also applies to enterprises operating:

on the general taxation system;
on a simplified taxation system.

The rate, in accordance with paragraphs. 2 p. 3 art. 284 of the Tax Code of the Russian Federation is 13%. The exception is payments to a Russian company that owns at least half of the authorized capital for at least 365 consecutive days before the payment. If the founder is a foreign company, then the rate is 15%. The tax must also be remitted no later than the next day.

Reporting

6-NDFL

The amounts of dividends paid to individuals and personal income tax calculated from them must be reflected in the calculation of 6-personal income tax (clause 2 of article 230 of the Tax Code of the Russian Federation):
in Section I - for the period of payment to individuals (clause 3.3 of the Procedure for filling out the calculation of 6-NDFL, Article 216 of the Tax Code of the Russian Federation);
in Section II - for the quarter in which the deadline for transferring personal income tax from them came (Letter of the Federal Tax Service of the Russian Federation dated 08/09/2016 N GD-4-11/14507).
The tax agent is obliged to pay personal income tax no later than the day following the day of payment of income (clause 6 of Article 226 of the Tax Code of the Russian Federation).

Calculation of 6-NDFL is generated from the section:

Salaries and personnel – personal income tax – reporting on 6-personal income tax – Create button;
Reports – 1C Reporting – Regulated reports – Create button – 6-NDFL.

Clicking the Fill out the report on Form 6-NDFL will automatically fill in the amounts of accrued dividends, calculated, withheld and transferred personal income tax.

6-NDFL calculation will be filled in:
Section 1 Generalized indicators (in two blocks): page 010 – 13% (15%);
line 025 – amount of accrued dividends;
line 045 – amount of calculated tax on dividends; PDF
Section 2 Dates and amounts of income actually received and withheld personal income tax:
page 100 – date of actual receipt of income;
page 110 – tax withholding date;
page 120 – tax payment deadline;
p. 130 – the amount of income actually received;
line 140 – amount of tax withheld. PDF

2-NDFL

Information about dividends paid to individuals and personal income tax withheld from them must be reflected in certificate 2-NDFL in the period when the dividends were actually transferred to the recipient of the income (clause 2 of Article 230 of the Tax Code of the Russian Federation).

A certificate in form 2-NDFL can be generated:

for the recipient of income from the section Salaries and personnel - personal income tax - 2-personal income tax for employees;
based on the results of the year as a report, Salaries and personnel - personal income tax - 2-personal income tax for transfer to the Federal Tax Service.

In 2-NDFL, Fill button automatically fills in the following amounts:

accrued dividends;
calculated personal income tax;
withheld personal income tax;
transferred to the personal income tax budget.

Dividends taxed at a rate of 13% are reflected in the Certificate as part of income taxed at a rate of 13% on the tab 13%.

Dividends, taxed at a rate of 15%, are reflected separately from other income on the tab 15%.

In the certificate of income of an individual in form 2-NDFL the following will be filled in:
For a resident individual:
Section 2 Information about the individual – recipient of the income: Taxpayer status – 1.
Section 3 Income taxed at the rate of 13%: Income code – 1010;
The amount of income is the amount of accrued dividends. PDF
For a non-resident individual:
Section 2 Information about the individual – recipient of the income: Taxpayer status – 2;
Section 3 Income taxed at the rate of 15%: Income code – 1010;
The amount of income is the amount of accrued dividends. PDF

Income tax return

The amounts of dividends paid to other organizations, as well as the income tax withheld from them, must be reflected in the income tax return for the reporting period in which the payment was made:
Sheet 03 – filled out for each decision of the owners (clause 11.2.1 of the Procedure for filling out the income tax return);
Section B of Sheet 03 – is filled out for each organization to which dividends reflected in Sheet 03 of Section A were paid;
Subsection 1.3 of Section 1 of Sheet 01 is filled in with the amounts of tax on dividends paid in the quarter (month) based on the results of which the declaration is submitted (clause 4.4 of the Procedure for filling out the income tax declaration).

The income tax return is generated in the section Reports – 1C Reporting – Regulated reports.

In the declaration, clicking the Fill automatically fills in:
page 022 Sheet 03 Section A – dividends to legal entities, taxes on which are calculated at a rate of 13%;
page 030 of Sheet 03 Section A – on dividends from individuals; PDF
Sheet 3 Section B – on dividends of Karandash LLC; PDF
Subsection 1.3 Section 1. PDF
Page 050 – dividends accrued to individual income recipients who are not tax residents of the Russian Federation are not automatically filled in.
Needed manually:
adjust the amount in line 030 , indicating 700,000 rubles. – dividends from Ivanov A.P.
fill out page 050, indicating RUB 300,000. – dividends of Kutuzov A.P. PDF

Cash flow statement

Organizations that do not use simplified forms of accounting report information on dividends paid and personal income tax withheld from them in the Cash Flow Report (clause 11 of PBU 23/2011).

As part of the financial statements, a Cash Flow Statement (CFS) is generated from the section Reports - 1C Reporting - Regulated Reports.

In ODDS the following is automatically filled in:
line 4124 – corporate income tax; PDF
line 4129 – other payments; PDF
line 4322 – payments for the payment of dividends and other payments for the distribution of profits in favor of the owners (participants) in the amounts of dividends paid. PDF

See also:
Payment of personal income tax on dividends
Payment of income tax on dividends of RO NA

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Dividends: accrual and payment, accounting entries

Let's look at an example.

By decision of the founders, LLC “Company” pays part of the net profit to three participants on February 15, 2018: JSC “Founder”, Ivanov S.M., Semenov K.S. - each in the amount of 100,000 rubles. All recipients are tax residents of the Russian Federation.

date	Contents of operation	Sum	Debit	Credit
A decision was made to transfer part of the positive financial result to the founders: 100 000 × 3	300 000	84	75
Personal income tax has been calculated from transfers to individuals: (100 000 × 2) × 13 %	26 000	75	68
Profit tax has been calculated on income to the organization: 100 000 × 13 %	13 000	75	68
Listed by decision on distribution of part of the financial result: 300 000 – 26 000 – 13 000	261 000	75	51
Withheld personal income tax is transferred to the budget	26 000	68	51
Withheld income tax transferred to the budget	13 000	68	51

Dividend payment

Payment Assistant

The program provides an assistant for the payment of dividends, personal income tax and income tax on dividends.

The assistant is launched from the Dividend Accrual by clicking the Pay .

The result of his work will be the creation of Payment Order .

For individuals Ivanov A.P. and Kutuzov A.P. Payment order documents will be automatically generated :

for the payment of dividends;
to pay personal income tax.

Payment order documents will be generated for Karandash LLC :

for the payment of dividends;
to pay income tax on dividends.

Payment order

From June 1, 2021, when paying income to an individual through a bank, payment documents must indicate the code of the type of income for the purposes of enforcement proceedings. And also provide a breakdown of the amount of deduction from income, if any (Part 5.1, Article 70 of Federal Law No. 229-FZ dated October 2, 2007, Bank of Russia Directive No. 5286-U dated October 14, 2019).
To auto-substitute the income code in the Bank Statement, you need to fill out the Type of Income in the Accruals .
Automatic substitution of income payment code in the statement
Reminder of codes for income paid to individuals
Salary payment codes in payment documents
Difficulties in using income type codes in payment documents

A payment order can also be created from the Dividend Accrual using the Create based on .

Please pay attention to filling out the fields:

Type of transaction – Transfer of dividends ;
Recipient – Individual ;
Expense item – Payment of dividends with the established type of movement Payment of dividends and other payments in favor of owners . PDF

An expense item is a cash flow item (CFA), it is important for the correct reflection of dividends in the Cash Flow Statement , if the organization generates one.

Document Write-off from current account

The amounts of dividends paid and taxes paid will be reflected in the reporting after the documents are written off from the current account .

A debit from a current account can be generated using the link Enter a debit document from a current account in the Payment order :

For individuals – Ivanova A.P. and Kutuzov A.P.:

for the payment of dividends;
to pay personal income tax;

For a Russian legal entity – Karandash LLC:

for the payment of dividends;
to pay income tax on dividends.

The generated document Write-off from the current account will be automatically filled in.

You need to check the fields:

Type of transaction – Transfer of dividends ;
Expense item – Payment of dividends .

Postings according to the document

The document generates transactions:

Dt 75.02 Kt – payment of dividends.

GLAVBUKH-INFO

How is the receipt of income (dividends) from a Russian company (LLC) reflected in the organization’s accounting? The distribution of the LLC's net profit was made in March, and the funds were credited to the organization's current account in May. The amount of profit distributed in favor of the organization is 100,000 rubles; the tax agent withheld income tax in the amount of 9,000 rubles from the amount of income.

Civil relations

An LLC has the right to make a decision quarterly, once every six months or once a year on the distribution of its net profit among the participants of the company. The decision to determine the part of the company’s profit distributed among the company’s participants is made by the general meeting of the company’s participants (Clause 1, Article 28 of the Federal Law of 02/08/1998 N 14-FZ “On Limited Liability Companies”). The term and procedure for payment of distributed profit are determined by the company's charter or a decision of the general meeting of company participants. The period for payment of part of the distributed profit of the company should not exceed sixty days from the date of the decision on the distribution of profit between the participants of the company (Clause 3 of Article 28 of Federal Law No. 14-FZ).

Corporate income tax

For the purpose of calculating income tax, income from participation in other organizations (dividends) distributed in favor of the organization is taken into account as part of non-operating income on the date of receipt of funds to the organization’s current account (clause 1, article 43, clause 1, article 250, clause 2, clause 4, article 271, clause 2, article 273 of the Tax Code of the Russian Federation).

The calculation and withholding of income tax on income from participation in other organizations (dividends) is carried out by the tax agent - the source of payment of income in the manner established by clause 2 of Art. 275 of the Tax Code of the Russian Federation (paragraph 2, clause 2, article 275 of the Tax Code of the Russian Federation). In general, tax is withheld at a rate of 9% (clause 2, clause 3, article 284 of the Tax Code of the Russian Federation).

When filling out a tax return for corporate income tax, the amount of income from participation in other organizations (dividends), minus the tax withheld by the tax agent, is indicated on line 100 of Appendix No. 1 to sheet 02 and on line 020 of sheet 02 of the declaration (paragraph 2, paragraph. 5.2, paragraph 4, clause 6.2 of the Procedure for filling out a tax return for corporate income tax, approved by Order of the Federal Tax Service of Russia dated March 22, 2012 N ММВ-7-3/ [email protected] ). The specified amount as income excluded from profit is also reflected on line 070 of sheet 02 of the declaration (paragraph 10, clause 5.3 of the Procedure). Thus, the amount of income (dividends) received from participation in other organizations does not form the tax base for calculating income tax.

Accounting

Income from participation in another organization (dividends) distributed in favor of the organization is included in other income (clauses 7, 10.1, 16 of the Accounting Regulations “Income of the Organization” PBU 9/99, approved by Order of the Ministry of Finance of Russia dated 06.05. 1999 N 32n). Based on the requirements of PBU 9/99, such income is recognized on the date of announcement of the decision on the distribution of profit in the amount distributed in favor of the organization. The Ministry of Finance of Russia in Letter dated December 19, 2006 N 07-05-06/302 “Recommendations for conducting an audit of the annual financial statements of organizations for 2006” proposes to recognize the specified income in the amount minus the tax withheld by the tax agent in accordance with the legislation of the Russian Federation. In this case, the organization will be able to determine the amount of this income only upon actual receipt of funds.

In accounting, when receiving income from participation in other organizations (dividends), an entry is made to the debit of account 51 “Settlement accounts” and the credit of account 76 “Accounting for settlements with various debtors and creditors”, subaccount 76-3 “Settlements for due dividends and other income " Recognition of other income is reflected in the debit of account 76, subaccount 76-3, and the credit of account 91 “Other income and expenses”, subaccount 91-1 “Other income” (Instructions for the application of the Chart of Accounts for accounting financial and economic activities of organizations, approved by Order of the Ministry of Finance Russia dated October 31, 2000 N 94n).

The accounting entries in the posting table are based on the position of the Russian Ministry of Finance.

Application of PBU 18/02

As stated above, the amount of income from participation in another organization (dividends) is excluded from the income tax base.

In the general case, income that forms the accounting profit of the reporting period, but is not taken into account when determining the tax base for income tax for both the reporting and subsequent reporting periods, leads to the formation of a permanent difference and a corresponding permanent tax asset (PTA) (p.p. 4, 7 Accounting Regulations “Accounting for calculations of corporate income tax” PBU 18/02, approved by Order of the Ministry of Finance of Russia dated November 19, 2002 N 114n). In addition, according to clause 20 of PBU 18/02, the organization determines the conditional income tax expense (income), which recognizes the product of the accounting profit generated in the reporting period by the income tax rate established by the legislation of the Russian Federation on taxes and fees and the current at the reporting date.

At the same time, income from participation in another organization (dividends) is subject to income tax at the source of payment, and in accounting in the situation under consideration, based on the position of the Ministry of Finance of Russia, such income is reflected in the amount minus withholding tax. In this regard, we believe that the organization may not calculate PTA from the amount of such income, and also not take this income into account when forming accounting profit, from which the conditional income tax expense is calculated.

Contents of operations

Debit	Credit	Sum, rub.	Primary document
Accounting entries for May
Funds received as income from participation in LLC (100 000 — 9000)	51	76-3	91 000	Bank statement current account
Other income recognized	76-3	91-1	91 000	Accounting reference

———————————

If the period for payment of the distributed profit of the company is not determined by the charter or the decision of the general meeting of the company's participants, the specified period is considered equal to sixty days from the date of the decision on the distribution of profit among the company's participants (clause 3 of Article 28 of Federal Law No. 14-FZ).

N.V. Chaplygina Consulting and Analytical Center for Accounting and Taxation

30.08.2013

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What are the criteria for revenue recognition?

Recognition of income from participation in the activities of other companies in accounting can be carried out subject to the following criteria and conditions:

the basis for confirming the right to receive payments is an agreement (contract, agreement) or other relevant document;
the amount of funds received can be calculated;
The result is an increase in the economic benefits and advantages of the company.

Important! These criteria must be met at the time of making a decision regarding the direction of dividend payments (for a JSC), or from the moment the participants decide to distribute net profit (for an LLC).

Operating costs include payment for an extract from the register of members of the company and travel expenses for participation in the meeting.

Characteristics of dividends as part of income from participation in other companies

A dividend is defined as a payment made by a corporation to its shareholders. Typically these payments are made in cash (called "cash dividends"), but sometimes companies also issue stock dividends, whereby additional shares are distributed to shareholders. Stock dividends are also known as stock splits.

The term dividend comes from a Latin term meaning “a thing to be divided.” In other words, companies divide their profits among shareholders.

Companies have been paying dividends to shareholders for over 400 years. The first company to ever pay dividends was the Dutch East India Company in the early 1600s.

One of the most obvious advantages of owning a thriving business is that you can always enjoy your share of the profits that the company generates. Whether it's a private family company that started from scratch, or shares of a multinational conglomerate that the owner holds in a brokerage account. When a business decides to send out a portion of its after-tax income in the form of a check or direct deposit, it is a dividend payment.

Companies sell shares to shareholders to raise money, which they then use to finance existing operations and expand their business. Essentially, a dividend is a reward provided to shareholders for owning shares of stock in a corporation. Thus, dividends are a key way to attract investors to buy their shares.

Dividends are important because basic financial theory states that firms exist solely for the purpose of paying dividends, either now or at some point in the future.

During periods of rapid growth, many firms do not pay dividends, preferring to retain profits and use them for expansion. The owners allow the board of directors to adopt this policy because they believe that the options available to the company will result in much larger payouts in the future. A classic illustration is Starbucks, the world's largest coffee chain. For decades, management has invested every possible amount into opening new locations. Once the company reached a certain level of maturity with less location capabilities, the first dividend was declared.

To calculate the amount of tax on dividends paid, the formula is used:

N = K * Sn * (D1-D2),

where N is the amount of tax, t.r.;

K – the ratio of the amount of dividends to be distributed in favor of the recipient to the total amount of accrued dividends;

Сн – rate, %;

D1 – the total amount of dividends to be distributed to all recipients, t.r.;

D2 – the amount of dividends received by the organization itself that is engaged in distribution.

Example No. 1 of dividend calculation.

JSC Sorto for 2021 accrued dividends in the total amount of 1000 tr., including on shares of Russian founders: 600 tr., foreign founders - 400 tr.

Dividends were paid in April 2021.

Calculation:

subtract the amount of dividends in relation to foreign founders from the total amount: 1000-400 = 600 tr;
amount of tax on dividends to Russian founders: 600 * 0.13 = 78 rubles;
amount of tax on dividends for foreign companies: 400 * 0.15 = 60 tr.
dividends for Russian founders: 600-78 = 522 tr;
dividends for foreign founders: 400-60 = 340 tr.

Example No. 2. Example of filling out line 2310.

Values for the credit of account 91-1 of account 91 in accounting:

on the credit of account 91-1, analytical account for recording income in correspondence with account 76, subaccount 76-3 - 5,460,000 rubles;
income from participation in other organizations from the financial results report for 2021: 6432 tr., for 2021 - 7280 tr.

Calculation:

the amount of income from participation in the management companies of other companies for the reporting period (2018) is 5,460 rubles.

Income Features

These types of income include amounts that are associated with participation in the capital (authorized, joint stock) of other companies. Among them are:

dividends (excluding tax withheld by the tax agent) (letter of the Ministry of Finance of the Russian Federation dated December 19, 2006 No. 07-05-06/302);
property that is received upon leaving the company or upon its liquidation.

Income from participation in other companies are:

an independent type of income, provided that they relate to other types of activities (clause 7 of PBU 9/99);
a component of revenue, provided that they relate to ordinary activities (clause 5 of PBU 9/99).

Dividends received: accounting entries

If your company is a member of another organization, then it may be the recipient of dividends. On the date of receipt of such income, the accountant will make the following entries:

Dt 51 Kt 76 - income received from participation in another company;
Dt 76 Kt 91 - dividends received are reflected in income.

The received portion of the subsidiary’s undistributed income should be separately reflected in the organization’s financial performance statement on line 2310 “Income from participation in other organizations.”

In tax accounting, it should be borne in mind that income tax has already been withheld from dividends received from a Russian company (clause 3 of Article 275 of the Tax Code of the Russian Federation). Therefore, these revenues do not increase the tax base.

Profit to be distributed among the founders of a business company is calculated according to its accounting data.

Thus, in order to make an informed decision on the accrual and payment of dividends based on the results of a specific period, the co-founders of the LLC must first certify its reporting, which clearly confirms the presence of a sufficient amount of net profit.