The procedure for accounting for personal income tax under the simplified tax system “Income minus expenses” in 2019
The special simplified regime involves a legitimate reduction in the fiscal burden on the company. A number of taxes from which simplifiers are exempt are listed in Art. 346.11. Among these benefits, income tax does not appear, that is, LLC/IP under the simplified tax system are obliged, as agents, to calculate, withhold and pay personal income tax to the state on the income of their employees on a general basis (clause 5 of Article 346.11). In this regard, many accountants ask a logical question: is personal income tax included in expenses under the simplified tax system?
After all, in essence, such a tax is transferred by the employer not from his own money, but from the funds of employees. To answer, first of all, let us turn to the requirements of Art. 346.16, which defines the procedure for recognizing expenses by simplifiers. The list is closed, which means that the tax base can be reduced only by those costs that are listed in paragraph 1 of this article. Separately, personal income tax in Art. 346.16 is not mentioned, and the norm sub. 22 also cannot be applied in this case (letter of the Ministry of Finance No. 03-11-06/2/5880 dated 02/05/16), since the amounts of agent personal income tax according to Art. 226 are withheld only at the time of actual payment from employee remuneration.
Nevertheless, personal income tax is still included in expenses under the simplified tax system, but in a special manner. Let’s look at how exactly, using a specific example below.
Personal income tax under the simplified tax system “Income”
If a company applies a simplified regime with the “Income” object, stat. 346.14 does not provide for a reduction in the tax base when calculating tax payments using the simplified tax system. The procedure for calculating tax is to apply the rate established by the legislation of the Russian Federation in relation to income recognized upon the fact. The directly received amount of the budget obligation can be reduced by a number of amounts, among which personal income tax does not appear (clause 3.1 of Article 346.21 of the Tax Code).
Conclusion - a company using the simplified tax system, withholding personal income tax from employees’ salaries, is a tax agent in terms of fulfilling obligations to pay income tax. Thus, the employer company transfers to the state not its own money, but the funds of individual taxpayers. For this reason, personal income tax on employee income cannot be attributed to the company’s costs directly, but only as part of labor costs after the actual payment of wages to the staff. Along with the above simplifications, it is necessary to reflect all operations in KUDiR in chronological order. If the issuance of salaries and the transfer of personal income tax are carried out on different days, it is recommended to enter information in different entries indicating the dates and numbers of primary documents (statements, payment slips, etc.).
How personal income tax is taken for employees as expenses under the simplified tax system in 2019
In accordance with sub. 6 clause 1 art. 346.16. simplifiers have the right to include in their expenses staff salaries, hospital benefits - personal income tax is accepted as expenses under the simplified tax system in 2021 as part of wages. The rules for attributing expenses for remuneration of employees to enterprise costs are contained in paragraph 1 of Art. 252. And in Art. 255 provides the procedure for recognizing such costs. For example, these are not only the amounts of earnings themselves, but also various allowances, compensations, bonuses, disability benefits, and other incentive/incentive payments in accordance with labor and collective agreements.
To understand all of the above, we will give an example of how personal income tax is taken into account in expenses under the simplified tax system.
Let's say for 1 sq. In 2021, the company accrued salaries to staff in the amount of 200,000 rubles. The payroll was calculated, withheld and transferred to the personal income tax budget in the amount of 26,000 rubles.
For 1 sq. accordingly, personal income tax is not included separately as expenses under the simplified tax system “Income minus expenses,” but the entire salary of 200,000 rubles. Moreover, when applying tax deductions, the entire accrued salary is still taken into account. According to paragraph 2 of Art. 346.6 of the Tax Code of the Russian Federation, in relation to the recognition of labor costs, it is required to act in accordance with the procedure defined in Art. 255 NK. And it clearly states that labor costs include any accruals to employees in cash and in kind, provided for by Russian legislation or local regulations of the employer (Letter of the Ministry of Finance No. 03-11-09/225 dated June 25, 2009).
We include personal income tax in simplified expenses
I am registered as an individual entrepreneur and transferred to a simplified taxation system with the object of taxation being income minus expenses. Can I include personal income tax withheld from my employees' salaries into my expenses? As the Department of Tax Administration of the Russian Federation for Moscow explains in its letter dated September 30, 2003 No. 21-08/54655, taxpayers who apply the simplified taxation system and who have chosen income reduced by the amount of expenses as an object of taxation have the right to include in labor costs the amounts calculated , withheld and transferred to the budget of personal income tax. DEPARTMENT OF THE MINISTRY OF THE RUSSIAN FEDERATION FOR TAXES AND FEES IN MOSCOW LETTER dated September 30, 2003 N 21-08/54655 Taxpayers applying the simplified taxation system in accordance with Chapter 26.2 of the Tax Code of the Russian Federation (hereinafter referred to as the Tax Code of the Russian Federation) and choosing object of taxation, income reduced by the amount of expenses must be guided by the procedure for determining expenses enshrined in Article 346.16 of the Tax Code of the Russian Federation. This list of expenses is exhaustive and is not subject to broad interpretation. In accordance with subparagraph 22 of paragraph 1 of Article 346.16 of the Tax Code of the Russian Federation, when determining the object of taxation, the taxpayer has the right to reduce the income received by the amounts of taxes and fees paid in accordance with the legislation of the Russian Federation on taxes and fees. When considering the issue of including in the organization's expenses the personal income tax calculated and withheld from employees, one should be guided by the following. By withholding personal income tax from the income of employees in full compliance with the provisions of Article 24 of the Tax Code of the Russian Federation, the organization in this case acts not as a taxpayer, but as a tax agent. Thus, the organization, as a tax agent, transfers personal income tax to the budget for individual taxpayers. In this regard, the amounts of calculated, withheld and transferred to the budget of personal income tax are not expenses of the organization and cannot be included in expenses that reduce the received income of the taxpayer organization, in accordance with subparagraph 22 of paragraph 1 of Article 346.16 of the Tax Code of the Russian Federation. The amounts of personal income tax calculated, withheld and transferred to the budget are for the taxpayer-organization an integral part of the income accrued to individuals for the reporting (tax) period. Therefore, the indicated amounts of calculated, withheld and transferred to the budget of personal income tax, taxpayers applying the simplified taxation system and choosing income reduced by the amount of expenses as an object of taxation, have the right to include in labor costs in accordance with subparagraph 6 of paragraph 1 of Article 346.16 Tax Code of the Russian Federation. It should be borne in mind that labor costs are accepted in relation to the procedure provided for calculating corporate income tax in Article 255 of the Tax Code of the Russian Federation, and subject to their compliance with the criteria specified in paragraph 1 of Article 252 of the Code, according to which expenses must be justified (economically justified costs, the assessment of which is expressed in monetary form) and documented (costs confirmed by documents drawn up in accordance with the legislation of the Russian Federation). In addition, any expenses are recognized as expenses, provided that they are incurred to carry out activities aimed at generating income. For the purposes of calculating the single tax, taxpayer expenses for wages in accordance with the provisions of Article 255 of the Tax Code of the Russian Federation include any accruals to employees in cash and (or) in kind, incentive accruals and allowances, compensation accruals related to working hours or working conditions, bonuses and one-time incentives accruals provided for by the requirements of the legislation of the Russian Federation, expenses associated with the maintenance of these employees, provided for in employment agreements (contracts) and (or) collective agreements. Thus, labor costs include various charges provided for by the Labor Code of the Russian Federation, as well as expenses provided for by labor and (or) collective agreements. According to the provisions of Article 346.17 of the Tax Code of the Russian Federation, expenses incurred by a taxpayer applying a simplified taxation system (using the cash method of accounting for income and expenses) are recognized as expenses incurred after their actual payment. At the same time, in accordance with subparagraph 1 of paragraph 3 of Article 273 of the Tax Code of the Russian Federation, labor costs (including income tax withheld from the income of a taxpayer - an individual) are taken into account as expenses at the time of debiting funds from the taxpayer’s current account, payments from the cash register, and in case of another method of debt repayment - at the time of such repayment. Deputy Head of the Department of the Ministry of the Russian Federation for Taxes and Duties in Moscow L. Ya. Sosikhina
When personal income tax is considered an expense under the simplified tax system
It is not enough to know whether personal income tax is included in expenses under the simplified tax system. You also need to understand at what point simplifiers can recognize costs. According to paragraph 2 of Art. 346.17, companies using the simplified tax system have the right to recognize expenses only after they have actually been paid. In relation to expenses for personnel wages, the moment of repayment of obligations is considered to be the day the accrued amounts are issued from the cash register or written off from the employer’s current account. Consequently, personal income tax when calculating the simplified tax system “Income minus expenses” can be taken into account in the amount of labor costs after actual settlements with employees and transfer of income tax to the state treasury (Letter of the Federal Tax Service of the Russian Federation for Moscow No. 16-15 / [email protected] dated 14.09 .10).
Note! When filling out the KUDiR, taxpayers should separately reflect the amounts for wages minus personal income tax and the amount of transferred personal income tax. If these transactions occurred on the same day, the summation of indicators is allowed.
Is personal income tax included in expenses under the simplified tax system?
Current as of: April 21, 2021
Organizations and individual entrepreneurs using the simplified taxation system are not exempt from the duties of tax agents for personal income tax (clause 5 of article 346.11 of the Tax Code of the Russian Federation). That is, when paying salaries to their employees, employers on the simplified tax system (as well as employers on the OSN/UTII) must calculate, withhold personal income tax and transfer it to the budget. At the same time, simplifiers have a question: can this agency personal income tax be taken into account when calculating tax under the simplified tax system?
Enterprises and individual entrepreneurs who have chosen a simplified taxation regime must be guided by the requirements of Chapter 26.2 of the Tax Code when recognizing income and expenses. The procedure for calculating LLC personal income tax under the simplified tax system does not differ from the mechanism for calculating, withholding and subsequent transfer of income tax to the budget by companies using the OSNO (general taxation system). After all, clause 5 stat. 346.11 does not relieve simplifiers from the need to perform the duties of tax agents in relation to personal income tax.
But is it possible to take such amounts into expenses when calculating tax according to the simplified tax system? Let’s figure out on the basis of what legislative norms agency personal income tax on the income of individuals is taken into account in the costs of the simplifier.
List of taxes from which companies are exempt when operating on the simplified tax system. included in the stat. 346.11 Tax Code. For organizations, this is, first of all, such budget fees as profit, property, VAT (except for customs). And for individual entrepreneurs, there is an exemption from the accrual and payment of personal income tax in terms of revenue from activities, VAT, and property. At the same time, the obligation to transfer insurance premiums and agency taxes remains.
Personal income tax is withheld from employee salaries for subsequent transfer of amounts to the state. According to the legislation of the Russian Federation, payment of tax from the financial sources of the enterprise is not allowed. How is personal income tax included in expenses under the simplified tax system? After all, based on the essence of the tax, this is not the money of the agent-enterprise, but of the taxpayer-employee.
M.V. Proshkin works at Zvezda LLC. The organization applies a simplified system with the object of taxation being income minus expenses. The employer pays the employee monthly compensation for renting an apartment in the amount of 25,000 rubles. So, on July 27, 2015, the organization transferred 21,750 rubles to his account, and personal income tax withheld from income in the amount of 3,250 rubles. - to the budget.
No. As part of labor costs, you can take into account payments provided for by law or labor (collective) agreement (clause 2 of article 346.16 and article 255 of the Tax Code of the Russian Federation). Since compensation for rental housing is not specified in the employment or collective agreement and is not provided for by law, then 21,750 rubles paid to M.V. Proshkin, and 3250 rubles. Personal income taxes transferred to the budget will not affect the tax base of the organization.
Notes on the law
In accordance with subparagraph 22 of paragraph 1 of Article 346.16 of the Tax Code, entrepreneurs operating on a simplified taxation system can take into account in the category of expenses all amounts of fees and taxes that are paid in accordance with current legislation. It is worth noting that the letter of the Ministry of Finance No. 03-11-06/2/64442, which was published on November 9, 2021, considered the question of whether it is possible to include personal income tax, which is withheld from employee salaries, as expenses.
In particular, this department pointed out that expenses can include those taxes that are paid from the own funds of companies and entrepreneurs, and personal income tax does not belong to this category, and therefore it cannot be included in expenses based on on the specified legislative act, because its payment is carried out at the expense of the employees, and not the organization itself.
Section 346.16. Procedure for determining expenses
It is worth noting the fact that, in accordance with subparagraph 6 of the same article, in the costs under the simplified taxation system, any expenses that are calculated for wages are taken into account and are recognized in the calculated amount, and since the calculated wage amounts include Personal income tax, then in this case it can initially be recognized as an expense in the process of calculating tax according to the simplified tax system.
Participation in public procurement
With a simplified taxation system with the object “income minus expenses” for expenses incurred by the organization during participation in public auctions. purchases cannot be included in expenses in order to reduce the tax base under the simplified tax system. Such expenses include payment for the services of electronic platforms, as well as fees for assistance in documenting the process. This position is adhered to by the Ministry of Finance of the Russian Federation in its letter dated January 24, 2021 No. 03-11-06/2/4241.
The decision of the ministry is based on the fact that in paragraph 1 of Art. 346.16 of the Tax Code of the Russian Federation already contains a closed list of expenses that are allowed to be accepted on the simplified tax system, and there are no costs for supporting the public procurement process.
The same position applies to an electronic signature certificate. The Ministry of Finance in its letter dated August 8, 2014 No. 03-11-11/39673 informs that the costs of purchasing this certificate cannot be included in the organization’s expenses in order to reduce the tax base under the simplified tax system.
