In what budget is personal income tax for individuals credited in 2021?

In the Russian Federation, there are two categories of taxpayers - organizations with the status of tax agents and individuals. Both of them bear obligations established by the state. We are talking about paying income tax on all income they receive, except for those excluded from the category of mandatory cuts by law. Many people are interested in the question regarding personal income tax: is it a federal or regional tax?

Despite the fact that employers pay tax for their employees, a situation may arise when a citizen must do this himself. A personal visit to the tax office and payment of income tax will be required in the event of a large win or sale of real estate. Also, information about income tax will be useful for those who are planning to open their own business.

In this material we will understand what tax rates and base are, what objects are listed as taxable and find out where personal income tax is transferred - to the regional or federal budget.

Personal income tax: federal or regional tax?

Objects subject to personal income tax

According to Russian legislation, there are two main objects that are subject to personal income tax. First of all, this is the profit that a resident of Russia receives during the reporting period, regardless of where its source is located - within the country or outside it.

Another object is the profit of non-residents of the country, who, without changing, draw it from Russian sources. In addition to labor income, this includes:

1. Money paid for work under an official agreement.
2. Income from the sale of your property, shares in organizations, shares, and so on.
3. Funds received for the exploitation of the author's rights to intellectual or other property.
4. Renting out property located in Russia.

By law, you must independently declare your income:

1. Persons conducting private practice (lawyers, private detectives, notaries).
2. Persons who received unearned income from the sale or rental of property.
3. Citizens whose income is transferred from sources outside the country.
4. IP-schniks.
5. People who received remuneration from a source that does not have the status of a tax agent.
6. Heirs of the authors of inventions, works of science or art, receiving rewards.
7. Citizens who have won money in risk-based games (lotteries).

An important point is that the annual deadline for self-declaring income is April 30th.

Who and how is personal income tax transferred to the budget?

Payers of income tax, according to Art. 207 of the Tax Code of the Russian Federation, individuals (residents and non-residents) who receive income from sources in the territory of the Russian Federation are recognized. The transfer of personal income tax to the budget is either carried out by them independently upon receipt of one-time or systematic revenues, or is entrusted to tax agents - the sources of payment of permanent income.

The rules for calculating and paying income tax are reflected in Chapter. 23 Tax Code of the Russian Federation. Tax agents pay personal income tax for employees no later than the day following the day they actually received income in the form of wages, and no later than the last day of the month in which vacation pay and disability benefits were paid (clause 6 of Article 226 of the Tax Code of the Russian Federation).

Read more about these deadlines in the article “When to transfer income tax from salary?”

Tax payment by individual entrepreneurs and other individuals is made until July 15 of the year following the reporting year.

Income that is not subject to taxation

Despite the fact that personal income tax is imposed on any funds that fit the definition of “income,” the Tax Code of Russia includes a specific list of income that is not taxed. Whether this income is received by a resident or non-resident of the country does not matter in this case. The list of such income includes:

1. Cash benefits for pregnancy and childbirth, alimony.
2. Pension accruals for persons who have reached the legally established age for retirement or who have been recognized as disabled by an examination.
3. Compensation for damage to employee health.
4. Gifts worth less than 4,000 rubles received by an employee or former employee (pensioner) from the employer.
5. Financial assistance in the amount of less than 4,000 rubles received by an employee or former employee (pensioner) from the employer.
6. Financial assistance to low-income families whose status is confirmed by the state.
7. Payment from the employer's net profit for medical care for its employee or his family members.
8. Rewards for blood donors.
9. Compensation for damage to employee health.
10. Compensation for the cost of vouchers to sanatoriums and other institutions related to the health of citizens (except for tourists).
11. Expenses for improving the professional qualifications of an employee.
12. Payment for retraining, education or professional training of an employee.
13. Scholarships received by students of higher educational institutions.
14. Grants for educational or scientific activities.
15. Compensation in connection with dismissal, the amount of which is not more than three times the average monthly salary (six times the amount for residents of the Far North).
16. Financial assistance to the family of a deceased employee.
17. Financial assistance paid to citizens affected by a natural disaster or other emergency situation.
18. Funds donated to victims of terrorist attacks.
19. Compensation to an employee for the cost of paying interest on a loan for construction or purchase of real estate.

Personal income tax – what is it?

Individuals receiving income (cash) are required to give up part of it in favor of the state budget at a set rate. This alienated part is considered an income tax, which is direct and basic for the entire population of Russia.

Please note that this tax is paid not only by individuals, but also by legal entities.

The calculation of the amount due for payment to the state treasury is made on the basis of two basic values:

• tax (financial) base;
• tax rate.

Let's talk about these important concepts.

Characteristics of the tax base

For each type of income (object of taxation), such a characteristic as the tax base is used. It is necessary to measure such an object, to express it quantitatively. Essentially, the tax base is the set of incomes on which direct taxes are levied. At the end of each tax period (month, three months, year or other time frame), the tax base is determined.

There is a system - tax accounting, which summarizes data to determine the tax base. Each organization in the status of a tax agent independently creates such an accounting system. This is a necessity established by law. All paying organizations are responsible for the timeliness, reliability and transparency of tax information. According to the Tax Code of the Russian Federation, there are two methods of accounting for the tax base: cash and cumulative. In the first case, actual income that has already been received is taken into account. The accumulative method takes into account not the money itself, but the rights to it. That is, if the organization has not yet received funds, but has the right to receive them, this fact will be taken as income.

According to Article 210 of the Tax Code of Russia, three forms of income of payers are included in the tax base: material, natural and monetary

In this case, for each form the financial base will be calculated separately, since each type of income has its own rates. The tax base is a value that helps in calculating the amount of income tax. To calculate it, you need to multiply the base by the tax rate.

Tax rates in the Russian Federation

The tax rate is the amount of tax assessments multiplied by the unit used to measure the tax base. This is a mandatory element and the main criterion for calculating any tax established by law.

Table 1. Tax rates in the Russian Federation

Personal income tax: which budget is included in, who should pay

One of the main tax fees levied on citizens of our country is personal income tax.

In what budget this payment from the pocket of each Russian is credited is of interest to many, since all of us, of course, would like to see what favorable changes the money spent will contribute to.

In addition, which budget to send personal income tax to is a predetermining question for each employing organization that withholds tax from its employees, and other organizations that need to independently pay tax on the income they receive.

Personal income tax: which budget is it included in?

To which budget is personal income tax credited?

The income tax levied on individuals has one interesting feature that distinguishes it from most other levies.

Thus, it belongs to the category of federal taxes, that is, relevant for all residents of the country who receive money on its territory.

However, contrary to all the usual norms, the money collected from it does not go to the Federation budget, but directly to the treasury:

Even being a payment established at the Federal level, personal income tax subsequently goes to the budgets of regions and cities, as well as other localities

There is a list of income on which you are required to pay this tax fee, which you may not have previously been aware of. We advise you to study it carefully so as not to face legal consequences later.

Income is the total amount of funds received by a person, coming from certain sources. So, we are talking about money earned:

• when selling real estate that was owned by a citizen for less than 5 years from the date of its acquisition from the previous owner;
• on leasing any property, not necessarily real estate;
• from income whose sources are located outside the borders of our country;
• subsequently participating in any drawings (except for those cases when the organization raffling off the funds assumes the responsibilities of a tax agent);
• in the form of payment for work performed (also if the organization that provided the work did not assume the functions of a tax agent);
• Other income.

For the income indicated above, the same rate applies as for wages - 13% for residents and 30% for non-residents.

Of course, many will be outraged when they hear that they must contribute funds to the treasury even from cash prizes won. However, this is the law, and we, as law-abiding citizens, are obliged to follow it. In the end, the funds transferred to the state will subsequently go directly to the improvement of our country.

Tax payments are made in an official manner by entering the correct budget classification codes in the relevant documentation

How to pay personal income tax to the state

You can pay the fee due to the treasury in a single payment according to the current budget classification code (BCC). These codes need to be known to every employer, entrepreneur or ordinary citizen who contributes funds to the country’s treasury.

So, further in the table we reflect the current encodings.

Table 1. BCC for payment of income tax

Budget classification codeFor what income

Literacy regarding issues related to taxation is necessary not only for tax agents, but also for ordinary citizens, therefore, carefully read the article and study in more detail the information that interests you in it

A tax deduction is an obligation of the state to a citizen to partially compensate him for taxes paid or to allow him not to pay them on part of the income received.

But this opportunity is not provided for all variations of taxes, but only in strictly limited cases. And, by the way, now you can apply for a tax deduction through Gosuslugi, literally without leaving your home.

How to do this, read the special article.

Conclusion

In which budget the personal income tax is credited, how exactly it is paid, and from what income a share should be allocated to the state - all these questions should be clarified by every citizen of our country, as well as every organization, in order not to break the law when paying taxes. Remember that refusal to pay subsequently implies a certain punishment, primarily represented by sanctions such as a fine and late fees.

The payment of taxes and their further use by the state is a system that has existed for many years, established in such a way that citizens’ money goes to their general needs. Therefore, by avoiding paying fees, you are hurting yourself first.

– Personal income tax: accounting and accrual

Source: https://yr-expert.com/ndfl-v-kakoj-byudzhet-zachislyaetsya/

We correctly calculate the amount of personal income tax

To avoid imposing a fine for an incorrectly paid amount, it is worth figuring out how to calculate personal income tax. Some will say that the employer does this for most citizens, but at any time you may need to declare income on your own - when you receive winnings, money from the sale or rental of property.

Any payer can calculate the amount of tax

The first step is to quantify the income subject to tax. Next, find out the tax rate for each type of income and calculate the tax base. It was already mentioned above that depending on the type of income, a specific rate is applied, and each rate has its own financial base. The last step, when the named quantities are known, is simple calculations. You need to use the formula specified in the Tax Code of the Russian Federation: multiply the tax base by the tax rate, as a result the total amount of personal income tax will be determined.

What regulations regulate personal income tax?

What articles should you study:

Money calculated and withheld

An employee's income tax goes through two stages before ending up in the government treasury. Every month, at the end of the reporting period, the accounting department accrues personal income tax. The funds will be transferred to the budget later, at the time the employees actually receive their wages. It turns out that in the first order the tax agent calculates (withholds) the amount allocated for the transfer, and in the second order he performs the calculation itself. In the accounting department of any company, settlement journals are kept, and each transaction has its own. They include information about the employee: his income, rates, accrued and withheld amounts.

The fact of the impossibility of transferring tax funds due to insurmountable reasons is also described in law. If a tax agent company finds itself in this situation, it is obliged to submit to the inspectorate the appropriate papers documenting what is happening as soon as possible.

Personal income tax: document for reporting

Individual entrepreneurs and large companies that are legal entities still hire employees. This means that they are tax agents and must submit to the tax office the necessary documents, which indicate the labor taxes calculated and actually transferred to the state treasury. In this case, the main document is a certificate called 2-NDFL, which provides information on whether the tax agent has fully fulfilled its obligations to the Russian Federation.

Such a certificate in the accounting department is filled out for each employee separately; the basis for the specified data will be the fact that the employee receives wages or other income from the employer.

Important point! Each tax rate requires the completion of its own 2-NDFL certificate. If an employee receives a salary subject to 13% tax, and he also received money from the sale of a car, form 2-NDFL is filled out twice for him, each certificate reflects its own type of income and its taxation. In the example we indicated, the first certificate, about salary, will be prepared by the employer, the second, about personal income, will be prepared by the payer himself. The document must be prepared in two copies and submitted to the tax office for consideration no later than April 1 (at the end of the reporting period of the year). An example of filling out form 2-NDFL can be found in our article.

How and where to pay personal income tax for a separate division?

As stated in paragraph 7 of Art. 226 of the Tax Code of the Russian Federation, branches and departments of the parent company need to pay tax to the budgets of the municipalities where these divisions are located.

To decide where to pay personal income tax from several branches located within the same municipality with several Federal Tax Service Inspectors, you need to select one inspectorate where the branch is registered and pay tax for this territory.

If the company does not do this, then it will have to pay separately for each territory where there is a Federal Tax Service authority. Similar rules apply to branches of foreign companies paying taxes in Russia.

What happens if you don’t pay personal income tax?

The Russian Tax Code clearly establishes sanctions that will be applied to both the tax agent and the individual in the event that personal income tax is paid late or the transfer of funds to the state treasury is completely ignored.

Timely payment of taxes is controlled by law

Thus, tax agents who delay in transferring funds may receive a fine of 20% of the tax amount itself. The state will “charge” the same interest on top if the money is not transferred at all or the calculation is incomplete. Also, arrears and penalties may be withheld from the defaulter. But there is a nuance - if labor income is paid to employees in kind, it is impossible to collect taxes from them, and delay in tax payment, accordingly, cannot happen either. Another point is that the tax agent did not withhold personal income tax from the employees’ income. In this case, he will also face a fine, but without a penalty.

As for individuals, they may also receive a fine of 20% of the tax amount in case of incomplete payment or non-payment. But the law provides for another penalty for deliberate underestimation of taxable income. If an individual specifically indicates a smaller amount in the declaration, he will be subject to a fine of 40% of the actual amount. The law also exempts individuals from fines in case of late payment. But penalties for personal income tax for late payment will be charged.

Didn't manage to submit your declaration on time? Do you want to know what the consequences are for failure to submit reports on time? Read more about the statute of limitations for tax offenses and how to reduce the amount of the fine in our article.

Where to pay personal income tax for employees to tax agents?

Tax transfer is carried out by enterprises within the established time limits according to budget classification codes depending on the category of income of the taxpayer. After this, the Treasury independently distributes payments to the appropriate budgets according to the classifier of territorial entities.

The following BCCs are currently in effect:

• 18210102010011000110 - tax on income paid by the employer;
• 18210102020011000110 - tax on income of entrepreneurs, notaries, lawyers;
• 18210102030011000110 - tax on income paid on the basis of Art. 228 Tax Code of the Russian Federation;
• 18210102040011000110 - tax on the income of foreigners using a patent in their work activities.

Budget for personal income tax: regional or federal?

Income tax is a very significant fee for any country, not only Russia. Due to these payments, the state treasury receives very significant cash injections, which can be compared with revenues from income taxes or VAT. Let’s figure out what level the personal income tax in Russia should be assigned to.

The tax system of our country involves three types of taxes: federal, regional and local. Which classification the tax will be assigned to depends on the level of the government agency introducing mandatory payments. According to Article No. 23 of the Tax Code of the Russian Federation, the tax on labor income is federal. The principle of this classification is based on the fact that personal income tax is a fixed tax, the payment of which is carried out in the same and unchanged way in all settlements of the country without exception. This is the difference between taxes classified as federal and regional. The latter are legislatively prescribed very imprecisely, and local authorities can establish specific features and nuances of such payments, based not only on federal laws, but even on their own regulations.

However, personal income tax does not go entirely to the federal budget. According to the law, only 85% of the total tax funds paid goes to the budget of Russian constituent entities. An exception is made for taxes paid by foreigners who work in Russia under a patent - in this case, the money is credited to the subject budget 100%.

The remaining 15%, according to the Budget Code of Russia, must be credited to local budgets; then they will be distributed depending on the administrative structure of this subject. So, if the subjects have rural settlements divided into municipal districts, the former will receive two percent of the amount, the latter – thirteen percent. If the territory of the subject includes urban settlements, then ten percent of personal income tax will be transferred to their budget, the municipal districts within them will receive the remaining five percent.

How is personal income tax distributed between budgets?

How the distribution of the amount received by the state in the form of taxes will be distributed is determined by the Budget Code of the Russian Federation.

There is no direct relationship between who introduces the tax and which budget it will be credited to.

Tax revenues from personal income tax, which is a federal tax, do not go to the federal budget.

Who pays personal income tax? Personal income tax payers

The distribution of income from personal income tax between budgets is established by the Budget Code of the Russian Federation and depends on who the taxpayer is.

As a general rule, 85% of personal income tax is credited to the budget of the constituent entities of the Russian Federation. An exception is the tax paid by a foreign citizen working in Russia on the basis of a patent.

In this case, the tax in full goes to the budget of the constituent entity of the Russian Federation (clause 2 of Article 56 of the Budget Code of the Russian Federation).

The remaining 15% of the amount is credited to local budgets (clause 2 of Article 58 of the Budget Code of the Russian Federation). Further distribution depends on what administrative units there are on the territory of the subject.

In subjects with territorial division into urban districts, the entire remaining amount is credited to the budgets of these districts.

If there are urban settlements on the territory of a subject, then 10% of the personal income tax amount is transferred to their budget, and 5% to the budgets of the municipal districts within them.

In subjects with rural settlements, divided into municipal districts in the following percentage ratio: 2% for settlements, 13% for municipal districts.

Source:

Payment “to addresses” and federal payments

There is no connection between the registration address of individuals and the transfer of personal income tax withheld from wages. However, most often the employer makes the payment based on the territorial affiliation of the company where the employee is employed.

Example. Individual entrepreneurs conducting two or more areas of activity, in one of them will report to the tax office at the place of their registration, in another - to a third-party inspectorate, according to the geolocation where the business is actually carried out. Then the personal income tax for employees will be distributed between different tax inspectorates if the employees are employed in different areas.

Is personal income tax counted towards other taxes?

We found out that income tax is federal. In this regard, the following questions may arise:

1. Is it possible to cover the arrears associated with personal income tax by overpaying another tax, also federal?
2. Is it possible to offset the excess of the transferred personal income tax (overpayment) into other missing payments?

If we consider organizations that have the status of tax agents (including individual entrepreneurs), the answers to both questions are negative. We are talking about specific labor income of employees, and personal income tax should be withheld from them. Even if within two to three months the employer makes overpayments or underpayments related to the same person, the tax agent may face fines. The law in this case is adamant - tax is withheld directly when specific money is paid to a specific person.

The above issues are simpler for an individual entrepreneur who pays income tax for himself. Individual entrepreneurs working under the general taxation system also pay VAT (this is also a federal tax), therefore, when submitting a corresponding application to the tax office at their place of residence, they will have the opportunity to make recalculations between these taxes. Such a scheme will help individual entrepreneurs recover overpayments.

Video - Regional and local taxes

Summarizing

Every person living in Russia and having income subject to personal income tax is required to pay this tax. Since income tax is federal, all payments and their order are specified and carefully monitored by the tax office. This fact indicates the impossibility of evading tax deductions - this will not only poison life and work, but is also fraught with fines and penalties.

Understanding all the features of personal income tax payments, it is quite simple to protect yourself from troubles and numerous visits to the tax office. This material describes and reflects important points that may be useful to a person receiving income in the Russian Federation. The tax is calculated using a simple formula, and to make the calculations, you do not need to have any special professional knowledge. The country's tax code explains in detail everything about the nuances of income taxation, and filling out a certificate in form 2-NDFL does not take much time.