On the procedure for paying fixed advance payments for personal income tax

Foreign citizens often come to Russia to work. If entry into the country is carried out under a visa regime, for official employment you will need to obtain a work permit. And for those who crossed the border of the Russian Federation in a visa-free regime, a patent is provided. In both cases, the employer is obliged to withhold personal income tax from the foreigner’s wages, as if a Russian were working for him. We suggest finding out how to withhold personal income tax from foreign workers in 2021 (working under a patent).

How is a fixed down payment calculated?

Calculation and payment of income tax (NDFL) to the budget of foreign citizens is carried out in accordance with the instructions of Art. 227.1 Tax Code of the Russian Federation. Paragraphs 2 and 3 of this article state that the migrant makes advance payments for the period of validity of the patent issued to him in the amount of 1,200 rubles per month . The payment amount is adjusted taking into account the following coefficients:

The migrant must pay fixed payments in the region in which he works under the patent. The duration of the patent is paid until the start date of the period for which the patent is issued/extended/reissued.

Let's consider a special case. Let’s say a foreigner filed a patent for the first time in 2021, made an advance payment taking into account the deflator coefficient, which was in effect throughout 2021. Then the Ministry of Internal Affairs extends the patent until 01/01/2019, and the document expires in 2021. It turns out that the validity period of the patent refers to different tax periods. In this case , the deflator that was in effect at the time of making the advance payment is used . There is no need to recalculate the amounts of fixed advance payments. See Letter of the Federal Tax Service dated January 22, 2021 No. GD-4-11/ [email protected]

Important! If the amount of the fixed contribution paid for a tax period turns out to be greater than the amount of personal income tax payable for a similar tax period (calendar year), the employer can take into account the resulting difference when reducing the amount of tax in the next month of the same tax period.

Convenience of tax on simplified tax system income 6%

The advantages of working on the simplified tax system (USN) income of 6% are obvious upon closer examination, and its use makes life easier for taxpayers, both financially and administratively.

Firstly, there is no need to keep track of expenses and, accordingly, collect various receipts, checks, etc., confirming your expenses. Moreover, not all expenses can be taken into account as expenses when determining the tax base.

If the share of expenses is small, and also if you are initially not ready to “get involved” in taking into account expenses, it is better, of course, to choose the object of taxation “income” of 6%. Tax is paid on the total amount of income received at a tax rate of 6%.

Tax authorities rarely check taxpayers who use the 6% special income regime. Moreover, 6% is the maximum tax rate for the simplified tax system “income”. By checking your local laws, you can find out what tax rate applies in your area. The fact is that regions are given the right to lower the tax rate to 0%.

Using this taxation system, you will need to make advance payments at the end of each quarter. If, after calculating the tax, the resulting tax amount is greater than the deductions amounting to the payment of contributions to pension and medical funds for an individual entrepreneur, as well as more than 50% of the amount of contributions paid for employees, if any, then it is necessary to make an advance payment of the simplified tax system.

The deadlines for paying advance payments in 2021 are as follows:

• Until April 30, 2021 for the 4th quarter of 2021.
• Until April 25 for the 1st quarter of 2021;
• Until July 25 for the 2nd quarter of 2021;
• Until October 25 for the 3rd quarter of 2021;
• Until April 30, 2021 for the 4th quarter of 2021.

Reduction of personal income tax for a fixed advance payment (personal income tax for foreign workers on patent)

Important! A foreign employee himself pays an advance payment for personal income tax (NDFL) at the time of obtaining a work patent for the first time or when re-issuing a document. The employer does not have the right to assume such a responsibility, in accordance with paragraph 1 of Art. 45 Tax Code of the Russian Federation, clause 1, art. 227.1 of the Tax Code of the Russian Federation, instructions of the Letter of the Ministry of Finance of Russia dated April 2, 2015 No. 03-05-05-03/18346.

In accordance with paragraph 1 of Art. 13.3 of the Federal Law of July 25, 2002 No. 115-FZ, the employer has the right to hire only foreign citizens who arrived in the Russian Federation on a visa-free basis, who are in Russia with the status of temporary residents and who, before official employment, have issued a patent (a document authorizing employment, approved by Order of the Federal Migration Service of December 8, 2014 No. 638).

The employer (and his accountant, in particular) needs to take into account the fact that the patent has a limited validity period, which is longer, the longer the foreigner has paid a fixed advance payment for personal income tax over a longer period (clause 5 of article 13.3 of the Federal Law of July 25, 2002 No. 115-FZ, clause 2 of article 227.1 of the Tax Code of the Russian Federation). Payment is made in proportion to full months. And the amount of the payment varies depending on the subject of the Russian Federation, on the territory of which the foreigner draws up a document and intends to find employment (clause 3 of Article 227.1 of the Tax Code of the Russian Federation).

The employer, at the time of paying wages to a foreign employee and calculating the amount of personal income tax, can take into account the advance payment made by his employee when registering/renewing a patent and reduce the amount of personal income tax. In this case, only the advance payment that was paid by the migrant during the validity period of the patent relating to the current calendar year is taken into account, i.e. current tax period . This is stated in Art. 216 of the Tax Code of the Russian Federation, paragraph 6 of Art. 227.1 of the Tax Code of the Russian Federation, in Letter of the Federal Tax Service of Russia dated March 16, 2015 No. 3N-4-11/4105.

Important! Since 2015, regardless of the length of stay of a foreign citizen in Russia, his income must be taxed (personal income tax) at a rate of 13% if he is employed on the basis of a patent. See paragraph 3 of Art. 224 Tax Code of the Russian Federation, Art. 227.1 Tax Code of the Russian Federation.

The registration of such a “deduction” for personal income tax is carried out in accordance with the following algorithm:

An application from a foreign employee for a deduction for personal income tax on account of advance payments made when registering/renewing a patent may look like this:

General Director of UniSand LLC

Emelyanenko P.R.

from Murodov Sodikjon Alizhonovich

STATEMENT

I ask you to reduce the personal income tax withheld from my salary for 2019 by the amounts of fixed advance payments I pay based on the submitted receipts for payment of the patent for the period of its validity in 2021.

Date July 15, 2021 Signature ______________ (S.A. Murodov)

How to calculate personal income tax on payments to a foreigner working under a patent

The personal income tax rate on the income of a foreigner working under a patent does not depend on whether he is a tax resident of the Russian Federation or not. In both cases, a rate of 13% applies. However, this amount is determined by different provisions of the Tax Code of the Russian Federation. Clause 1 of Art. applies to residents. 224 of the Tax Code of the Russian Federation, non-residents – clause 3 of Art. 224 Tax Code of the Russian Federation.

In this regard, the procedure for calculating personal income tax for a resident foreigner and someone who is not a resident will be different (clauses 3, 4 of Article 210, clauses 1 – 3 of Article 226, clauses 2, clause 1 , clause 6 of article 227.1 of the Tax Code of the Russian Federation):

• If a foreign worker is a resident of the Russian Federation, calculate the tax according to the general rules:

– the tax base is determined on an accrual basis from the beginning of the year and reduced by tax deductions;

– multiply the calculated base by 13% and subtract the personal income tax previously withheld in the current year;

• if a foreign worker is not a resident, personal income tax is calculated for each payment separately, tax deductions are not applied.

An example of reducing personal income tax due to advance payments for a patent

An employer from St. Petersburg signed a GPC agreement with a foreigner for the period of validity of the patent. The foreign employee's patent was issued for a period from April 1, 2019 to June 30, 2021 . The amount of the fixed advance payment was 3800 rubles. x 3 months = 11,400 rubles . The employee's salary is 42,000 rubles .

Certificate 2-NDFL: amount of fixed advance payments for foreign employees

Situation #1

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Situation No. 2

The procedure for submitting 6-NDFL once again prompts financial specialists to think about the nuances of filling out this reporting puzzle.

Salary advance in 6-NDFL is one of many issues that require separate clarification.

An advance is considered to be part of an employee’s earnings given to him by the employer:

• without fail;
• the force of legal requirements;
• deadlines established by the company itself (taking into account the requirements of labor legislation).

NOTE! The need for advance payment arises from the requirements of labor legislation. Art. 136 of the Labor Code of the Russian Federation requires the employer to pay wages every six months, otherwise he faces fines (Article 5.27 of the Code of Administrative Offenses of the Russian Federation) and material losses in the form of interest for late wages (Article 236 of the Labor Code of the Russian Federation).

For more information about the advance, see the article “Salary Advance in 2021 under the Labor Code.”

Study salary nuances using the materials posted on our website:

• “Payroll taxes in 2018-2019 - table of changes”;
• “Payment for shift work”, etc.

Thus, an advance is an element of an employee’s income that is subject to personal income tax and, as a result, has every reason to be included in personal income tax reports, one of which is form 6-NDFL. You will find out whether the advance is reflected in 6-NDFL in the next section.

There is no point in looking for a separate advance line in the report. There is no space allocated for information about the salary advance issued to employees and the personal income tax corresponding to this payment.

This seemingly flaw in the report is actually based on tax legislation, since:

• the employer is obliged to calculate personal income tax on the date of actual receipt of income (this approach is dictated by clause 3 of Article 226 of the Tax Code of the Russian Federation);
• it is necessary to withhold tax from the employee’s salary upon its actual payment (clause 4 of article 226 of the Tax Code of the Russian Federation);
• the date of receipt of income in the form of wages (including advance payments) is the last day of the month for which salary accruals were made (clause 2 of Article 223 of the Tax Code of the Russian Federation, see also letters of the Ministry of Finance dated January 15, 2019 No. 03-04-06/1192, dated 07/13/2017 No. 03-04-05/44802).

Thus, at the time of payment of the advance, it is not yet recognized as income, and therefore there is no need to withhold personal income tax from it.

For more details, see: “Is it necessary and when to pay personal income tax on an advance payment{q}”.

NOTE! Additional confirmation that information about the advance in 6-NDFL is not reflected in a separate line is the opinion on this matter of federal tax officials, expressed by them in letters dated January 15, 2016 No. BS-4-11/320, dated March 24, 2016 No. BS-4 -11/4999.

Study the variety of explanations from tax authorities on the registration of 6-NDFL using the materials on our website:

• “New explanations from the Federal Tax Service to line 080 of form 6-NDFL”;
• “New clarifications from the Federal Tax Service on bonuses: monthly, quarterly, one-time”;
• “Material assistance for the birth of a child in the amount of 50,000 rubles may not be reflected in 6-NDFL.”

Despite all of the above, advance payments took place in the reporting quarter, and the question of how to reflect the advance in 6-personal income tax remains open.

Let's explain with an example.

Common mistakes on the topic “Withholding income tax from foreign workers in 2021”

Error: The employer submitted an application to the Federal Tax Service to issue a personal income tax deduction for a foreign employee on account of the advance payments he made when “purchasing” a patent. Without waiting for notification of permission to make deductions, the employer reduced the personal income tax from the migrant’s next salary.

Until the Federal Tax Service Inspectorate sends a notification about the possibility of a tax deduction, the employer of a foreign employee does not have the right to reduce the amount of personal income tax from the migrant’s wages. Even if the notification does not arrive for a long period of time.

Error: An employer whose enterprise is registered in St. Petersburg hires a foreign citizen who has issued a patent in the Moscow region.

A foreign citizen must carry out labor activities in the territory of the region in which he issued the patent. If the work is found in another subject of the Russian Federation, the patent will have to be reissued.

An example of calculating the simplified tax system for income 6%

One of the conveniences of this tax system is, among other things, the simplicity of tax calculation. To do this, you do not need to have any special knowledge or education.

The calculation of tax on simplified taxation system for income of 6% is carried out using an extremely simple formula. For the convenience of readers, we have given two calculation examples.

1. Let's say your income for January, February, March, i.e. for the 1st quarter of the current year amounted to 500,000 rubles. 500,000×6% = 30,000 rubles.

2. We determine the amount of the deduction (these are your contributions that you should have paid during the first quarter of 2021):

• for compulsory pension insurance 7,338.50 rubles;
• for compulsory medical insurance 1,721 rubles.

Your total deduction for the 1st quarter of 2021 will be 9,059.50 rubles.

3. 30,000 - 9,059.50 = 20,940.50 rubles. This is the amount called the advance payment for the first quarter of 2019.

A. Sum up the income for the first quarter (500,000) with the income for the second quarter, let’s say it is equal to 400,000 rubles. 500,000 400,000 = 900,000×6% = 54,000 rubles.

B. Determine the amount of the deduction (these are payments to the funds for two quarters of 18,119 plus an advance payment for the first quarter of 20,940.50 rubles). This results in a deduction of 39,059.50 rubles.

We invite you to read: Calculation of house tax based on cadastral value

C. 54,000 - 39,059.50 = 14,940.50 rubles - the amount of the advance payment to the tax office for the first half of the year.

https://www.youtube.com/watch{q}v=ytcreatorsru

The advance payment for nine months and for a year is calculated in the same way. Just remember to pay your pension and health insurance contributions quarterly, and then you will have the right to deduct these amounts from your advance quarterly tax payments to the Federal Tax Service.

Let us explain the meaning of the numbers 1,721 rubles and 7,338.50 rubles indicated in paragraph 2 of the Example. In 2021, fixed contributions payable for pension and health insurance are determined by specific figures, unlike previous years, when contributions were calculated based on the minimum wage.

For fixed contributions in 2021, with an annual income of less than 300,000 rubles, the amount for pension insurance is 29,354 rubles, for health insurance contributions - 6,884 rubles. If we divide these amounts into equal parts for equal payment quarterly, we get 1,721 rubles and 7,338.50 rubles. Although, at your discretion, you can pay contributions not necessarily in equal installments.

In 2021, the amounts of fixed contributions for individual entrepreneurs for themselves, with an income of less than 300,000 rubles, were:

• for pension insurance – 26,545 rubles;
• for medical insurance – 5840 rubles.

With an income of over 300,000 rubles in 2021 and in 2021, the individual entrepreneur must, in addition to fixed contributions, transfer to the Federal Tax Service 1% of the difference between annual income and 300,000 rubles. The deadline for transferring the additional payment for pension insurance for 2021 and 2019 is until July 1, 2021 and until July 1, 2021, respectively.

If you have employees, then the contributions paid for them also go towards reducing the simplified tax system payments, but according to a different rule. For example:

1. Income for the 1st quarter amounted to 500,000 rubles. The tax, based on the tax rate of 6%, will be 500,000 x 6% = 30,000 rubles.
2. You paid fixed contributions for yourself during the 1st quarter in the amount of 7,338.50 1,721 rubles, as well as contributions for employees in the amount of 15,000 rubles.
3. Despite the fact that the total amount of contributions was 7,338.50 1,721,15,000 = 24,059.50 rubles, you can only reduce the tax by 50% of the calculated tax amount: 30,000 x 50% = 15,000 rubles.
4. The advance payment for the 1st quarter for individual entrepreneurs with hired employees will be 15,000 rubles.
5. Unlike an individual entrepreneur without employees, an individual entrepreneur with employees can reduce the simplified tax system tax by no more than 50% of the calculated tax amount (clause 3.1, article 346.21 of the Tax Code of the Russian Federation).

Tax amount=Tax rate*Tax base

Recalculation of personal income tax for previous months

It often happens that a foreigner has been working in a company for several months, and the notification from the Federal Tax Service has not yet been received. All this time, the accountant withholds and transfers income tax in full, without reducing it for advance payments on the patent. Then the notification finally arrives, and the accountant has a question: at what point should the personal income tax be reduced? Is it possible to recalculate the tax for all months worked in the organization, or should the reduction begin from the current month?

For the answer, we turn to paragraph 5 of Article 227.1 of the Tax Code. It says that when determining the total tax amount, it is necessary to take into account fixed advance payments “for the period of validity of the patent in relation to the relevant tax period.” This means that personal income tax for a given year should be reduced by fixed advance payments for the months that relate specifically to that year. And if the notification is received late, the employer has the right to recalculate the tax for previous months. This point of view was also expressed by the Federal Tax Service of Russia in letter dated September 23, 2015 No. BS-4-11/ [email protected] (see “The tax agent has the right to offset personal income tax advances paid by a foreign employee for the period of validity of the patent, regardless of the date of receipt of the notification” ).

Example 1

The foreign worker received a patent for the period from October 2015 to March 2021. At the same time, he paid fixed advance payments at the rate of 4,000 rubles. in one month. The total amount of advance payments was 24,000 rubles (4,000 rubles x 6 months).

In November 2015, a foreigner got a job at.

In November 2015, he earned 40,000 rubles. The personal income tax withheld and transferred amounted to 5,200 rubles (40,000 rubles x 13%).

In December 2015, he earned 45,000 rubles. The personal income tax withheld and transferred amounted to 5,850 rubles (45,000 rubles x 13%).

A notification confirming the right to a tax reduction for 2015 was received from the Federal Tax Service in December 2015. Trade's accountant reduced the personal income tax for December and retroactively recalculated the personal income tax for November. As a result, the November tax became equal to 1,200 rubles (5,200 - 4,000), and the December tax - 1,850 rubles (5,850 - 4,000).

The advance payment for the patent for October 2015 remained unaccounted for, since in October the employee was not yet working at Trade.

Fixed advance payments for January-March 2021 will be taken into account when reducing personal income tax for 2021 after receiving a notification relating to this year.

Registration procedure (where to apply, what documents are needed)

There are two ways to return personal income tax on a patent to a foreigner: through the employer or independently.

Through the employer

The employee must write an application addressed to the employer with a request to reduce income tax. The form of the application is not regulated by law; it is drawn up in free form with documents attached confirming the payment of advance payments.

Application example:

Based on it, the company applies to the tax office with an application (separately for each foreign employee), in which it asks to confirm the right to reduce personal income tax for a patent in the amount of advance payments paid by the foreigner. The application form is established in the Appendix to the Order of the Federal Tax Service of Russia dated November 13, 2015 No. ММВ-7-11/ [email protected] The employer is allowed to apply the deduction only upon receipt from the tax authority of a notification confirming such a right.

On one's own

A foreign citizen has the right to contact the tax office at the place of registration with a request for a refund of the amount of overpaid (collected) tax (fee, penalty, fine) independently. The form was approved by Order of the Federal Tax Service of Russia dated February 14, 2017 No. ММВ-7-8/182.

The application must be accompanied by:

• certificate 2-NDFL;
• declaration in form 3-NDFL;
• documents confirming payment of advance payments.

Patent advance payments for personal income tax are recognized as overpaid taxes only if on the date of transfer of funds the patent expired and was not subject to renewal (letter of the Ministry of Finance of the Russian Federation dated May 19, 2015 No. 03-04-07/28585, Federal Tax Service of the Russian Federation dated 06/01/2015 No. BS-2-11, [email protected] ). A citizen has the right to independently submit an application for a refund of payment to the tax authority electronically or in person after the expiration of the tax period.

Recalculation of personal income tax for previous years

It is possible that a foreign employee who started work this year will write an application for a tax reduction only next year. This option is also possible: notification of confirmation of the right to a tax reduction for this year will be received from the inspectorate only next year. Does this mean that in 2021 the employer will have to recalculate personal income tax for 2015 and submit an updated form 2-NDFL?

No, under such circumstances neither recalculation nor clarification will be necessary. The fact is that in paragraph 6 of Article 227.1 of the Tax Code of the Russian Federation there is the wording: “The calculated amount of tax is reduced during the tax period...”. From this we can conclude that reducing personal income tax outside the current tax period is impossible. Simply put, with the onset of the new year, the right to reduce tax on the amount of advance payments on a patent received for the previous year disappears. And if the necessary papers are collected, for example, in January, they will no longer be able to be used. The only thing that remains for the accountant is to request a notification from the inspectorate relating to the coming year.

Procedure and deadlines for making advance payments on personal income tax for individual entrepreneurs on OSNO

Some businessmen do not know how to work with the basic taxation system: how to take into account advances, how many reports need to be sent, what kind of personal income tax for employees and for what reason cannot be paid in advance, etc. This article will help you figure out the nuances like how to make advance payments on Personal income tax for individual entrepreneurs on OSNO and other similar aspects.

General information about this tax

There are two main taxes on OSNO: income tax and VAT. Individual entrepreneurs and legal entities pay different taxes on income received. The former pay personal income tax, the latter pay income tax.

The specifics of personal income tax payment to individual entrepreneurs are varied. It is believed that personal income tax is a tax that the employer deducts from the salaries of his employees. However, the individual entrepreneur still calculates and pays taxes on income earned in the course of business.

The tax is calculated based on the profit received as a result of business activities for a specific time period subject to tax.

It consists of:

• income from sales;
• amounts received without payment (discovered during inventory).

Profit accounting is carried out on the day the amount of money is credited to the entrepreneur’s account. When an individual entrepreneur receives an advance payment for the future provision of services or delivery of goods, this advance also represents a tax basis from the moment it is credited to the current account.

The formula for calculating personal income tax is as follows:

Personal income tax = (Income received – Tax deductions – Advance payments) x Rate

For a newly registered individual entrepreneur, there is a certain procedure:

1. An activity is being carried out that will lead to the receipt of the first income.
2. Based on the first profit, the expected amount for 365 days is calculated (the calculation takes into account the income and expenses of the individual entrepreneur on OSNO for personal income tax, namely, the applicable tax base for 365 days is determined).
3. Then this figure is entered into 4-NDFL and the declaration is submitted to the tax office (one month and 5 days are given for submission from the date of receipt of the first profit).
4. Taxpayers are sent 4-NDFL, service employees calculate the advance payment according to the tax and send a notification.
5. Advances are paid throughout the year according to these notifications.
6. At the end of the year, 3-NDFL is filled out and the final calculation of personal income tax for individual entrepreneurs is carried out on OSNO.

Personal income tax reporting for individual entrepreneurs whose work experience is more than a year and who have already submitted tax form 3-NDFL has a different form. From the above list of individual entrepreneurs, you do not need to perform actions from the first to third points. Federal Tax Service employees will calculate the advance according to data from 3-NDFL for the previous year.

If an individual entrepreneur hires employees, then payment of personal income tax for the employees is mandatory. However, in this case, the entrepreneur acts as a tax agent, and the employee acts as a payer.

At the same time, it is necessary to submit a 2-NDFL certificate for each employee to the Federal Tax Service. A businessman must pay personal income tax on the next day after his salary is paid to the taxpayer.

Transferring personal income tax in advance is prohibited; this payment will be considered incorrect and will be returned.

Personal income tax deducted from vacation and sick leave is credited in the allotted period ending on the last day of the month in which the payment was received. Personal income tax is not collected from the advance payment.

Tax payment deadlines

The accounting department of the Federal Tax Service calculates advance payments of individual entrepreneurs to OSNO. Tax authorities make calculations in accordance with the information provided by the individual entrepreneur about the estimated profit or are based on documentation for the previous year. Then a notification is sent with a calculation and, based on the notification, the individual entrepreneur pays the advance.

During the year, individual entrepreneurs pay personal income tax advances in accordance with the notification received from the regulatory tax authority. At the end of the year, a final calculation is drawn up, a declaration is submitted and either additional tax is paid or the excess money transferred during the year is returned.

A businessman is required to make advance payments throughout the year.

There are three mandatory payments with due dates:

• for a period of six months - paid until July 15;
• for the period of the third quarter - paid until October 15;
• for the fourth period - paid until January 15.

Documented costs may be considered expenses. Therefore, if an entrepreneur has large expenses, it is necessary to collect the maximum number of supporting documents. The rules established by law allow a profit reduction of 20%.

If the individual entrepreneur’s costs are small, then there is no need to collect a package of documents confirming this; you can simply use the right to reduce by 20%.

Advance payments

Such payments are made based on notifications from the tax organization. When calculating advance payments, service employees take into account the income indicated in the 4-NFDL declaration (in the case of the first year of work) or 3-NFDL (for the previous annual period).

Since 2021, a new form 3-NDFL has been in effect (order of the Federal Tax Service dated October 25, 2021 No. ММВ-7-11/ [email protected] ).

Sequence of payment of advances on personal income tax:

• January – June – you need to pay 50%;
• July – September – 25% is paid;
• October – December – the remaining 25%.

Starting from the second year of work, employees of a tax organization carry out professional tax deductions of advance payments based on the income that the individual entrepreneur received for the previous year.

If the entrepreneur has not received a notification, there is no need to independently calculate the amount of payments and pay personal income tax. Failure to pay the advance payment does not entail the application of penalties to the businessman.

It is worth considering an example of calculating tax advances. One year has passed since IE Kuznetsov started his business. Income for the first quarter was 150,000. Next, he fills out form No. 4, indicating the hypothetical amount of profit for one year.

Let the profit for 365 days be 500,000. The conclusion follows: Federal Tax Service employees use this amount when calculating the advance payment. 500,000 x 13% = 65,000, as a result, for the first half of the year you need to pay 65,000: 2 = 32,500.

At the end of the year, personal income tax goes to the budget. Advance payments must be made throughout this year. Tax officials determine the amount based on the data provided by the entrepreneur in the fourth personal income tax form.

Form 4-NDFL

The fourth form is a special document in which the expected information is entered. Here the entrepreneur needs to document the estimated amount he will receive for the next tax period.

Federal Tax Service specialists need this data to monitor the activities of individual entrepreneurs working for OSNO. In addition, with the help of this information, an advance on tax payments that will be paid to the state budget is calculated. By and large, this form is subjective and the information recorded in it is incorrect.

Form No. 4 is submitted during:

1. New individual entrepreneurs submit Form 4 within 5 days from receiving their first income. Registered individual entrepreneurs who have not started commercial activities do not file 4-NDFL.
2. Entrepreneurs operating on OSNO for several years file a 4-NDFL with a possible decrease or increase in profits by 50% or more in the next tax period. It is possible to submit a calculation along with declaration No. 3.

If you work without changing your profit, you do not need to send 4-NDFL. The amount of advance payments is calculated based on the information recorded in the 3-NDFL report.

If the profit received by an individual entrepreneur in the current year is higher than the information specified in Form 4 of the personal income tax, it is not necessary to send a document with an adjustment. The personal income tax payment amount will be adjusted based on annual results.

If the amount is less, to save money, you can submit a calculation with clarification in order to reduce the advance payments.

When an entrepreneur has been working for a long time, but realizes that his income is significantly more or less than what was originally recorded in document No. 4, he has the right to submit a new document. Then you need to take into account that it is possible to reduce or increase the amount by only half of the original.

The repeated document is submitted together with 3-NDFL. This adjusts the amount of advance payments for individual entrepreneurs.