Calculation of personal income tax - formula, example of calculating income tax

What is subject to personal income tax?

An individual’s income is not only a salary. These include prizes in competitions, dividends received, bonuses and incentives at work and not necessarily in the form of money. Gifts in kind are also subject to personal income tax.

Income tax is calculated as follows:

Personal income tax = (Taxable income - Deductions) * 13% (or 9%,15%,30% and 35%)

Taxable income is all types of earnings not listed in Article 217 of the Tax Code of the Russian Federation. Here is a list of income on which income tax is not taken:

state benefits for unemployment, childbirth;
pensions;
payments for children;
compensation for damage to health, etc.

Example of calculation from accrued salary

The staff of LLC "Chamber No. 6" includes 4 employees. At the same time, in January 2021, Ragin A.E. was paid a bonus in the amount of 3,200 rubles, Gromov I.D. was on sick leave for 4 days, Khobotov E.F. went on vacation for 3 days, and Makhova A.A. is on maternity leave.

Data for calculating tax for January 2021:

Gromov I.D. and Khobotov E.F. use a standard tax deduction for children in the amount of 1,400 rubles.

Of all types of income accrued in January 2021 to employees of the organization, only child care benefits are not subject to personal income tax. Calculation of personal income tax for January 2020 for the organization:

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23,200 × 13% + (18,000 - 1,400) × 13% + (19,000 - 1,400) × 13% = 7,462 rubles.

Employees' taxable income is summed up, standard deductions are subtracted, and the resulting tax base is multiplied by a rate of 13%.

Income tax rate

First of all, the rate is affected by residency status . Resident - a person who has been in Russia for more than 183 days and does not leave it during this period. Otherwise, the payer will be recognized as a non-resident.

13% of income is deducted from residents' salaries . However, there are also more specific rates. For example, 35% - for winnings over 4,000 rubles, for interest on deposits and coupons on bonds, and so on. Personal income tax of 30% is taxed on income from certain securities. The lowest rate of 9% is available for mortgage-backed bonds that were issued before 01/01/2007, and for the income of the founders of the mortgage-backed trust.

For non-residents, 30% is deducted from their income, but there are exceptions . For example, a rate of 15% is relevant for non-residents who receive dividends from domestic companies. Foreigners can claim 13% personal income tax under the following conditions:

they are highly qualified specialists;
they are crew members of sea vessels flying the flag of the Russian Federation;
they are refugees;
they are participants in the state program for the resettlement of compatriots;
they work for hire under a patent.

What is income tax

This is a type of direct federal tax that is withheld from an employee's wages.
It is calculated as a percentage of the amount of earnings. This tax is paid on any type of profit received by an individual in a calendar year. The tax rate may vary depending on the status of the taxpayer: resident and non-resident of the Russian Federation. At the same time, the law provides for deductions - a reduction in the tax base for certain categories of citizens.

Let's look at the key aspects related to personal income tax in more detail.

Regulatory framework

The main provisions related to the payment of income tax are regulated by:

Budget Code of the Russian Federation;
Chapter 23 of the Tax Code of the Russian Federation;
By Order of the Federal Tax Service No. SAE-3-04/706;
By Order of the Ministry of Taxes and Duties No. BG-3-04/583;
By Order of the Ministry of Finance No. 145n.

From what income is it paid?

Wage;
Dividends received;
Winnings and cash prizes in lotteries (worth more than 4,000 rubles);
Income from the sale of property;
Profit from renting out real estate;
Sale of shares and other securities.

Doesn't hold

Alimony and pension payments;
Scholarships;
Any types of financial assistance;
Severance pay due upon dismissal;
Compensation payments;
Remuneration for donation;
Travel expenses;
Compensation for personal injury.

Where are the withheld funds transferred?

Income tax goes to the local and regional budget. The distribution is made according to the following principle:

Subjects of the federation - 85%;
Municipalities - 15%;
Urban districts - 5%.

Tax deductions for personal income tax

It is not necessary to pay the full tax. The legislator allows the use of the right to receive deductions to reduce the tax base. You can reduce the tax payable in different life situations: buying a home, paying for treatment or education, and so on. Here are the most common options:

standard deductions, for example, deductions for children - 1,400 rubles for 1 and 2 children, 3,000 rubles for subsequent ones, or a deduction for Heroes of the USSR and the Russian Federation, participants of the Second World War, blockade survivors, disabled people, and so on - 500 rubles;
You can get a property deduction for purchasing a home or paying mortgage interest;
You can claim a social deduction for training yourself, brothers, sisters, children or treatment;
professional deductions are relevant for individual entrepreneurs, notaries, lawyers, etc.

For example, an employee receives 60,000 rubles per month. Without additional conditions, personal income tax on salary will be 7,800 rubles. And if an employee has 4 children, then the income tax for the month will be:

(60,000 - 1,400*2 - 3000*2) * 13% = 6,656 rubles.

It is impossible to “go into the red” within a year. Only the amount of personal income tax that was paid is accepted for deduction. In addition, many deductions are limited in amount. For example, in 2021, Ivan Sidorov paid for university tuition for 150,000 rubles. He will accept only 120,000 rubles for deduction. This is the maximum for training costs.

The deduction can be used in two ways. The first is to reduce the current personal income tax payable. The second is to apply to the Federal Tax Service and withdraw the income tax paid for the previous year. Then the tax office, after conducting a desk audit, will return the amount due to the account in a lump sum.

How to calculate personal income tax?

After we have considered the main points and decided on the main concepts, we can move on to answering the initial question: “How is personal income tax calculated?” It is important to understand that such a calculation must be made as accurately and accurately as possible in order to avoid sanctions from supervisory authorities. To do this, there are special formulas, we will get acquainted with them below.

In general, income tax calculation has three stages:

determining the total income that will be taxed, clarifying the rate for each type;
calculation of the tax base for the entire tax period (do not forget that each rate for each type of income requires its own base);
direct calculation made using a formula.

Article No. 225 of the Tax Code of the Russian Federation states that the formula for calculating personal income tax is as follows:

Tax rate x Tax base = Personal income tax amount

Let's take a closer look at how to calculate personal income tax for one month from the salary of a working resident of Russia. First, let's calculate the financial (tax) base - it will be equal to the amount of income taxed at a rate of 13%, accrued from the beginning of the year, minus the amount of deductions (for example, property or social). Now you can proceed directly to calculating the tax itself for the month. You can find it out in the following way: from the personal income tax amount from the beginning of the year, you must subtract the personal income tax calculated from the employee’s salary from the beginning of the year until the month preceding the billing month.

To calculate income tax for a non-resident of the country, the formula must be changed. Let us remind you that labor income for persons with non-resident status is taxed at a 30% rate. It turns out that for them the amount of personal income tax will be equal to the tax base multiplied by 30%.

Two more formulas can be equally applicable if it is necessary to calculate the tax on the amount “in the hands” of the employee. This is important if at the time of employment it was agreed that the salary would be paid in this way. There are two options for calculating income tax in this situation:

Amount "in hand": (100% - 13%) = Amount of salary accrued to the employee
Amount "in hand" x 13%: (100% - 13%) = Personal income tax amount

You also need to know that income tax is usually calculated in whole rubles. Amounts containing less than fifty kopecks will be rounded down, more than fifty kopecks will be rounded up, to the “full” ruble.

Video - Personal income tax calculation features and difficult points

Income tax withholding

Article 226 of the Tax Code of the Russian Federation obliges the employer to deduct income tax from employee salaries. Calculation occurs monthly on an accrual basis. In practice, personal income tax calculation is done on the day the salary is paid - on the last day of the month. First of all, tax is deducted, and then other payments: alimony, loan repayment, etc.

Within a month, the deduction amount may exceed the personal income tax base. Then the income tax is equal to or less than zero. Excess tax is carried over to the next month, but only within the year. At the end of the year, excessively withheld personal income tax is not carried over to the next year. The exception is property deductions.

Legislative tax base

Personal income tax

Tax on monetary income of individuals is a mandatory tax deduction and is withheld from the salary or income of all working citizens with official employment. The deduction is made from the very first salary received.

As a rule, personal income tax applies to any type of income, but there are exceptions. The legal deduction rate is considered to be from 13 to 35% and will directly depend on the amount of monetary profit. Withholding is carried out simultaneously with calculations and accruals of wages to the employee.

It is important to know that in a number of cases the standard personal income tax rate is 13%. The legislative tax base is the main component of income tax and is considered the foundation of all calculations on the amount of income tax of citizens of the Russian Federation. It also represents the cost and physical characteristics of the taxable person.

The entire process of accrual and deduction of personal income tax, as well as the timing of payments, are regulated by state legal norms.

These include:

Codified legislative acts establishing the taxation system.
Federal Law on the “Budget Code of the Russian Federation”.

All funds received from citizens' incomes go to city, regional or state budgets.

Deadlines for transferring personal income tax

The terms vary depending on the method of salary payment:

in cash - the day the tax is transferred is equal to the day the money is received from the bank;
non-cash payment - the next business day after the salary is transferred to the employee;
other sources, including the issuance of income in kind - the next working day

It is important to distinguish between the concepts: transfer and withhold personal income tax. The transfer is usually made the next day after the salary is paid, and is withheld on the same day.

Personal income tax is transferred to the Federal Tax Service, where the company is registered. Branches transfer the tax to the tax office where they are registered.

Procedure for paying personal income tax in 2021

Income tax on wages is paid the next day after the settlement with the employee was made. Personal income tax on vacation and sick pay is transferred to the budget on the last day of the billing month.

What will happen for late calculation of personal income tax?

This offense is fraught with the following legal consequences:

A fine of 20% for late transfer of income tax to the budget, without good reason;
A fine of 100,000-300,000 rubles for evasion of personal income tax committed on an especially large scale;
Arrest for six months or imprisonment for up to 2 years for the act discussed above.

Do I need to pay personal income tax to part-time workers?

Yes need. The only exception to this rule is informal employment. However, administrative liability is provided for this type of work activity.

Do working pensioners pay income tax?

If a pensioner is officially employed, income tax is necessarily calculated from wages. Please note that you do not need to pay any taxes on the pension you receive.

What to do in the event of the death of an employee

According to current legislation, the death of an individual exempts him from paying tax. The basis for this is clause 3 of Article 44 of the Tax Code.

Is personal income tax withheld from the minimum wage?

Yes, it is being held. Income tax is calculated as a percentage of the amount of earnings, while the legislator does not establish a minimum and maximum salary.

Personal income tax from advance

The Labor Code in Article 136 of the Labor Code of the Russian Federation establishes the payment of wages at least once every half month. The first part is known as an advance - salary for half the month worked. The second part is the rest of the salary for the second half. The interval between issues cannot be more than 15 days .

Employee income is subject to personal income tax. At first glance, it seems that income taxes need to be withheld twice a month. The first is from an advance payment, the second is from the remaining salary. But that's not true. There are two reasons.

Firstly, Letter of the Federal Tax Service No. BS-4-11/ [email protected] dated 05/26/14. It directly states: income tax is withheld from the full salary upon final payment once a month. That is, personal income tax is not paid on the advance .

Secondly, Letter of the Ministry of Finance No. 03-04-06/33737 dated July 10, 2014. The ministry shares the position of the tax authorities. Personal income tax can only be deducted from the full salary. Advance payments are not subject to income tax .

For example, an employee’s salary is 50,000 rubles. Advance - half the salary. As a result, he will be given 25,000 rubles in advance. From the second part, 6,500 rubles of tax will be withheld and 18,500 rubles will be handed over.

But there are exceptions to this rule:

the advance was issued on the last day of the month - income tax is withheld and transferred the next day;
the employee has a personal income tax debt - the amount must be withheld from the advance payment in favor of repaying the debt, while personal income tax is not charged on the advance itself;
the employee was given income in kind or he received a benefit - this income is subject to personal income tax, which must be withheld from the next cash payment, even if it is an advance, and personal income tax is not charged on the advance itself.

How to calculate personal income tax from salary

The employer does the calculations, and the employees receive the amount in hand minus payments to the budget.

The tax amount is determined by the formula (monthly income) * 13%. Bonuses, sick leave, vacation pay, advances, and salaries are taken into account.
If the employee is entitled to benefits (for minor children), then the base is reduced monthly.

Note that this happens as long as the cumulative total of earnings for the year does not exceed 350,000 rubles . From this moment on, tax deductions cease to apply.

The calculated amount is deducted from the salary.

Personal income tax “due” on the advance share is charged at the time of issuance of the main part.

The taxpayer can receive a personal income tax refund for treatment and training. It is necessary to submit supporting documents to the accounting department or the Federal Tax Service inspectorate.

A practical example of how to calculate 2-personal income tax. Accountant Ivanov has two minor children. His salary is 65,000 rubles. It is necessary to calculate contributions to the state from January to August of the current year.

The amount of deductions is 2800 rubles (for 2 children). The base is 65000-2800=62200 rubles. The tax for January-May is 62200*13%*5=40430 rubles. In month 06, Ivanov’s income exceeded 350 thousand rubles - deductions ceased to apply. For June-August the tax amount is 65,000*13%*3=25,350 rubles. Total for January-August = 65,780 rubles.