New norm of the Tax Code of the Russian Federation
From January 1, 2021, paragraph 7 of Art. 226 of the Tax Code of the Russian Federation, which regulates the specifics of calculating personal income tax by tax agents, as well as the procedure and timing for their payment of tax, is in effect in a new edition.
A new paragraph was introduced into this paragraph. "b" clause 16 of Art. 2 of Law No. 325-FZ of September 29, 2019, which introduced numerous changes to the Tax Code of the Russian Federation.
According to it, tax agents who have several separate divisions on the territory of one municipality can transfer personal income tax in two ways:
1. At the location of one of these detachments.
2. At the location of the organization itself.
Condition: if the company and its separate structures are located on the territory of one municipality. In this case, the tax agent himself chooses such isolation, taking into account the procedure established by clause 2 of Art. 230 Tax Code of the Russian Federation.
REFERENCE
The tax agent must notify the tax authorities with which he is registered at the location of each separate division no later than January 1 of the choice of the Federal Tax Service.
The notice cannot be changed during the year. Exception: the number of separations has changed or other changes affecting the procedure for submitting information about the income of individuals and personal income tax amounts.
For this purpose, the form for notification of the selection of a tax authority, the procedure for filling it out and the electronic format for submission were approved by Order of the Federal Tax Service of Russia dated December 6, 2019 No. ММВ-7-11/622.
According to the order, the new form of notification comes into force on January 1, 2021.
Thus, from 2021, organizations with separate entities can choose the procedure for paying and submitting personal income tax reports through their division.
Also see “A separate division of an organization: what is it?”
In addition, if an organization has several separate divisions in another municipality (not the one where the head office is registered), then among them it can also choose a responsible one.
Let us note that until 2021, such tax agents paid personal income tax and submitted reports at the place of registration of both the parent organization and each separate division.
KEEP IN MIND
Also, starting from 2021, the threshold for the minimum number of employees has been reduced - from 25 to 10 people - at which tax agents are required to submit tax reports (2-NDFL certificates and 6-NDFL calculations) in electronic form.
Also see Business Units: Ways of Living and Tax Implications.
Read also
28.10.2019
Before the division closes
Some time ago, tax officials explained that 2-NDFL certificates must be submitted in time before the closure of a separate division - to the inspectorate at the place of its registration.
For example, in the letter dated March 2, 2016 No. BS-4-11/ [email protected], the Federal Tax Service’s reasoning was as follows.
The Tax Code of the Russian Federation provides that certificates in form 2-NDFL for employees of a separate division are submitted to the tax authority at the place of registration of this separate division. If the company was liquidated (reorganized) before the end of the calendar year, the last tax period for it is the period from the beginning of this year until the day the liquidation (reorganization) was completed (clause 3 of Article 55 of the Tax Code of the Russian Federation). The same rule should be applied when liquidating (closing) a separate division. The tax period will be considered the period from January 1 to the date of liquidation (closure) of the separate division. 2-NDFL certificates for the closing separate division must be submitted to the inspectorate at the place of its registration for the specified (last) period.
But if, after the liquidation of a separate division, any payments were made to dismissed employees (for example, a bonus based on the results of work for the year), information about such income is submitted to the tax authority at the location of the organization.
How to issue a 2-NDFL Certificate for employees of separate divisions of the company
(Letter of the Federal Tax Service of the Russian Federation dated October 14, 2010 No. ШС-37-3/13344
“On the submission of certificates of income of individuals”
)
In accordance with paragraph 1 of Art.
226 of the Tax Code of the Russian Federation tax agents
from whom or as a result of relations with whom the taxpayer received income are required to withhold from the taxpayer and pay the amount of tax calculated in accordance with
Art.
224 Tax Code of the Russian Federation .
According to paragraph 7 of Art. 226 Tax Code of the Russian Federation
the total
amount of tax
calculated and withheld by the tax agent from the taxpayer, in respect of which it is recognized as a source of income,
is paid at the place of registration of the tax agent with the tax authority
.
Tax agents are Russian organizations with separate divisions
, are obliged to transfer calculated and withheld tax amounts to the budget
both at their location and at the location of each of their separate divisions
.
The amount of tax payable to the budget at the location of the separate division
, is determined based on the amount of income subject to taxation accrued and paid to employees of these separate divisions.
The Ministry of Finance of the Russian Federation in letter dated March 29, 2010 No. 03-04-06/55 indicated that the amounts of personal income tax calculated and withheld from the income of employees of a separate division must be transferred to the tax authorities at the place of registration of the corresponding separate division, regardless of whether is it a separate balance sheet or not?
.
At the same time, payment of personal income tax on income received by employees of a separate division that does not have a separate balance sheet is made by the parent organization
.
In contrast to the procedure for transferring personal income tax from the income of employees of a separate division, the Tax Code of the Russian Federation does not contain special instructions where the Certificate in form 2-NDFL should be submitted in these cases.
Clause 2 art. 230 Tax Code of the Russian Federation
It is established that tax agents submit to the tax authority at the place of their registration
information on the income of individuals of this tax period
and the amounts of taxes accrued and withheld in this tax period annually no later than April 1 of the year following the expired tax period in Form No. 2-NDFL " Certificate of income of an individual for 20___", approved by order of the Federal Tax Service of the Russian Federation dated October 13, 2006 No. SAE-3-04/ [email protected]
The Federal Tax Service of the Russian Federation believed that the specified information
in relation to income received by employees of separate divisions of Russian organizations,
they are submitted to the tax authorities at the place of registration of the parent organization
.
Moreover, this information can be provided both by the parent organization itself and by the corresponding separate divisions.
When an employee transfers
during the same tax period
from one separate division to another,
tax officials considered it appropriate for information about its income and taxes withheld from them
to be presented as a whole by the parent organization
(letter of the Federal Tax Service of the Russian Federation dated March 13, 2008 No. 04-1-05/ [email protected] ).
However, the Ministry of Finance reasoned completely differently.
As the financial department indicates, the obligation of tax agents to provide information on the income of individuals to the tax authority at the place of their registration corresponds with the obligation of tax agents to pay the total amount of tax
, calculated and withheld by the tax agent from the taxpayer, in respect of whom he is recognized as the source of payment of income,
at the place of registration of the tax agent with the tax authority
.
Thus, information about income
individuals - employees of separate divisions must be
presented to the tax authority at the location of the separate division
, to which personal income tax is transferred from the income of such employees of separate divisions.
If an employee of an organization works for a month both in a separate division and in the parent organization, information about the income of such an employee must be submitted, respectively, to the tax authority at the location of the separate division and to the tax authority at the location of the parent organization.
, to which transfers of personal income tax were made, calculated and withheld from the employee’s income for work in a separate division and for work in the parent organization (letter of the Ministry of Finance of the Russian Federation dated March 29, 2010 No. 03-04-06/55, dated August 28, 2009 No. 03-04-06-01/224).
The Federal Tax Service of the Russian Federation finally agreed with the Ministry of Finance and in the commented letter also stated that information on income
individuals can be represented by a tax agent - a Russian organization with separate divisions -
to the tax authorities at the location of its location
, and
as a separate division of the organization
-
at the location of the separate division
in which income is accrued and paid to the employees of this division.
At the same time, the tax authorities explained how to issue a Certificate in form 2-NDFL in the specified cases
.
In clause 1.1 of section 1 of the Income Certificate
for an individual, for tax agents - organizations, the taxpayer identification number (hereinafter referred to as
TIN
) and the reason code for tax registration (hereinafter referred to as
KPP
)
If information on income is filled out by an organization for employees of its separate division
, in this paragraph, after the TIN, the checkpoint at the location of the separate division of the organization is indicated through the separator “/”.
In clause 1.3 of section 1 of the Help “OKATO Code”
the code of the administrative-territorial entity on the territory of which the organization
or a separate division of the organization
.
If during the calendar year the individual about whose income the Certificate is being filled out received income from work in several separate divisions
located on the territory of different administrative-territorial entities, then
several Certificates are filled out about his income
(according to the number of administrative-territorial entities in whose territory there are separate units in which the individual received income).
For example
, when filling out a Certificate of income received by an individual
in the parent organization
, in clause 1.1 of section 1 of the Certificate, the TIN of the organization is indicated, the checkpoint at the location of the organization,
in clause 1.3
the OKATO code is indicated at the location of the organization.
When filling out a Certificate of income received by an employee from working in a separate unit
the same organization, in clause 1.1 of section 1 of the Certificate, the TIN of the organization is indicated, the checkpoint at the location of the separate division of the organization, in clause 1.3 of section 1 of the Certificate, the OKATO code is indicated at the location of the separate division of the organization.
In this regard, tax authorities believe that for the period of work of employees in the parent organization, income certificates should be submitted indicating the KPP and OKATO of the parent organization, and for the period of work of employees in a separate division, the KPP and OKATO of this separate division should be indicated in the income certificate.
An incorrect checkpoint has crept into the personal income tax payment slip
You should not worry about the fact that the accountant indicated in the payment order that personal income tax should be transferred to a separate division of the checkpoint of the head office. If you submit an application to the tax office to clarify the payment, you will not face penalties or interest. Let's explain in more detail.
Tax agent organizations that have separate divisions transfer the personal income tax calculated and withheld from the income of individuals both to the inspectorate at the location of their location and to the inspectorate at the location of each division (clause 7 of Article 226 of the Tax Code of the Russian Federation). In this case, the payment slip must include the details of the inspection office with which the unit is registered, OKATO of the municipality in which this unit is located, as well as its checkpoint. The Ministry of Finance of Russia draws attention to this in letter dated July 3, 2009 No. 03-04-06-01/153.
Thus, such details of the payment order as the department checkpoint must be present in the document. But an error in filling it out will not lead to negative consequences. The fact is that, even if you made a mistake in indicating the checkpoint, you still fulfilled your obligation to pay personal income tax.
The obligation to pay tax is considered fulfilled from the moment the taxpayer presents to the bank a payment order for the transfer of funds to the budget from the organization's current account. At the same time, there must be sufficient funds in the organization’s current account on the day of payment (subclause 1, clause 3, article 45 of the Tax Code of the Russian Federation).
The list of situations in which the taxpayer’s obligation to pay tax is considered unfulfilled is contained in subparagraph. 4 p. 4 art. 45 of the Tax Code of the Russian Federation, and this list is closed. It mentions the following reasons:
- withdrawal by the taxpayer or return by the bank to the taxpayer of an unexecuted order;
- withdrawal by the taxpayer-organization for which the personal account was opened, or return by the Federal Treasury body to the taxpayer of an unexecuted order;
- return by the local administration or federal postal organization to an individual of cash accepted for transfer to the budget;
- incorrect indication by the taxpayer in the order to transfer the tax amount of the Federal Treasury account number and the name of the recipient bank, which resulted in the non-transfer of this amount to the budget;
- if on the day the taxpayer submits an order to the bank to transfer funds to pay tax, this taxpayer has other unfulfilled demands that are presented to his account (personal account) and, in accordance with civil legislation, are fulfilled as a matter of priority, and if on this account (personal account) account) there is not enough balance to satisfy all requirements.
These rules apply not only to taxpayers, but also to tax agents (Clause 8, Article 45 of the Tax Code of the Russian Federation). Therefore, an incorrect checkpoint for a separate division of your organization in a payment order does not indicate non-payment of personal income tax. And if your company paid the tax in full and on time, then the tax authorities have no grounds for charging penalties and fines (Articles 75, 123 of the Tax Code of the Russian Federation).
Arbitration practice on the issue under consideration is in favor of taxpayers. Thus, in the resolution of the Federal Antimonopoly Service of the Moscow District dated March 18, 2009 No. KA-A40/11099-08, the arbitrators came to the conclusion that the incorrect indication of the organization’s checkpoint in the payment order cannot be the basis for considering the obligation to pay tax not fulfilled. The judges noted that the erroneous indication of the checkpoint number in the payment order did not lead to non-payment of tax to the budget, since the payment documents were accepted for execution by the bank and the funds were received into the budget.
True, in this case the issue was considered related to the incorrect indication of the organization’s checkpoint in the payment order for the transfer of income tax. But this does not affect the essence of our question.
To avoid misunderstandings with tax authorities, we advise you to clarify the purpose of the payment. Clause 1 of Art. allows you to do this. 45 of the Tax Code of the Russian Federation. This provision of the Code states that if an error is detected in the execution of a payment order for the transfer of tax, the taxpayer has the right to submit to the tax authority at the place of his registration an application about the mistake made with a request to clarify the basis, type and identity of the payment, the tax period or the status of the payer. The application must be accompanied by documents confirming payment of the tax and its transfer to the budget to the appropriate account of the Federal Treasury.
Based on this application, the tax authority makes a decision to clarify the payment on the day the taxpayer actually pays the tax to the budget to the appropriate account of the Federal Treasury. In this case, tax authorities must recalculate the amount of penalties accrued on the amount of tax for the period from the date of its actual payment to the day the tax authority makes a decision to clarify the payment.
Personal income tax by individual
Income tax is paid both at the location of the parent organization and at the location of its divisions.
Personal income tax, which must be paid for separate units, is calculated and withheld from the amounts of income of employees of these separate units, drawn up both under labor and civil law contracts (clause 7 of Article 226 of the Tax Code of the Russian Federation).
If an employee has workplaces both in the main office and in a separate division, then personal income tax must be transferred to the appropriate budgets both at the location of the organization and at the location of each separate division, taking into account the time actually worked by such employee. The calculation is made on the basis of the working time sheet, taking into account the information from the employee’s location certificates for the corresponding billing period.
Similarly, personal income tax is transferred for each separate department, taking into account the time worked, if the employee works in several “separate departments” during the month.
Example.
Work in several separate divisions On April 8, 2021, the employee, with his consent, was transferred from the parent organization to a branch located in another city. The employee’s monthly salary is 48,000 rubles. For April, he was accrued wages:
- for work in the parent organization in the period from April 1 to April 7 – 12,000 rubles;
- for work in a branch during the period from April 8 to April 31 – 36,000 rubles.
Personal income tax on income accrued to the employee in the parent organization in the amount of 1,560 rubles. (RUB 12,000 × 13%) must be transferred to the budget at the place of registration of the parent organization.
Personal income tax on income accrued at the branch in the amount of 4,680 rubles. (RUB 36,000 × 13%) – to the budget at the place of registration of the branch.
Thus, the amount of tax payable at the location of the divisions is determined based on the amount of income paid to the employees of these divisions.
