Advance payments for income tax - what is it?

Who pays

The obligation to pay and calculate advance tranches for income tax falls on all economic entities that have chosen OSNO as the main tax regime. In simple words, those who pay advances on income tax are the same organizations that do not have the right to switch to preferential (simplified) SSS.

Depending on the category of taxpayer, officials have identified three methods for calculating advance amounts.

Method 1. Quarterly. Only the following categories of subjects are entitled to use this method:

• commercial companies whose revenue for the previous 4 quarters did not exceed 15 million rubles for each quarter. Either the revenue did not exceed 60 million rubles for the previous 12 months;
• budgetary institutions. It is important to note that libraries, theaters, museums, and concert organizations are excluded from this list;
• foreign companies that operate in Russia through permanent representative offices;
• beneficiaries under trust management agreements;
• economic entities participating in simple partnerships, but only in relation to income received from participation in simple partnerships;
• other categories of entrepreneurs and organizations named in paragraph 3 of Article 286 of the Tax Code of the Russian Federation.

Method 2. Monthly with additional payment per quarter. This option for calculating advance payments from the Federal Tax Service is used by all other economic entities that are not included in the above list (clause 3 of Article 286 of the Tax Code of the Russian Federation). For example, a company pays monthly advances on income tax if revenue exceeded 60 million in 2021 or over the previous 4 quarters exceeded 15 million rubles in each of four periods.

Method 3. Monthly, based on actual profit. Any organization on OSNO has the right to apply this calculation. To switch to this system of settlements with the budget, you will have to submit an application to the territorial office of the Federal Tax Service.

Now let's look at how to calculate advances on income tax and pay them to the budget for each calculation option.

The essence of the concept

Modern labor, tax and civil law relations cannot be implemented without the transfer of advance amounts between the parties. Depending on the industry of application, this concept acquires various distinctive characteristics. To avoid confusing legal consequences, an advance payment should always be separated from other types of partial prepayment established by current regulations.

Main characteristics of the advance:

• Presented with material value
• Precedes the implementation of the obligation itself, but does not guarantee its fulfillment
• Forms part of the underlying future payment agreed between the parties

The use of this type of partial prepayment in various sections of law (tax, customs, civil, labor) gives it functions inherent in each of the industries.

We pay quarterly

If your company has the right to calculate and pay quarterly advance payments for income tax in 2021, then when making calculations you should take into account specific features.

First, you need to determine the amount of tax liability for the reporting period. Calculate using the formula:

Where:

• APotch.pr. - this is an advance transfer of money for the reporting period;
• NBotch.pr. — tax base, calculated on an accrual basis for the period;
• St – tax rate provided for by the Tax Code of the Russian Federation.

Now we calculate the amount of the advance payment to be transferred to the state budget:

Where:

• AP to pack — the amount of funds required to be paid to the Federal Tax Service as an advance payment of income tax in 2021 for the quarter;
• APotch.pr. — the amount of the advance transfer for the reporting period, calculated on an accrual basis;
• APpredsh.pr. — advances paid for previous quarters within one reporting period.

Thus, the tax payable to the budget is reduced by the advance amounts paid. If the result of the company’s activities for the year was a loss, then the tranche for the 4th quarter of the year is zero.

Use ConsultantPlus instructions for free to correctly fill out tax payments. Forms and samples are attached.

What is an advance payment

Before proceeding to a detailed analysis of the schemes for calculating advance payments, let us define this concept itself. An advance payment is a preliminary tax payment within the period provided for by the Tax Code of the Russian Federation. Late advance payment will result in the accrual of penalties.

Attention! It should be remembered that late payment of tax advances cannot serve as a basis for serious administrative sanctions, such as the imposition of fines, since such delay does not relate to violations of the Law on Taxes and Fees.

Example of calculating quarterly payments

The conditions under which we calculate advances for income tax are as follows: PPT.ru LLC - on OSNO. The tax base for 9 months of 2021 is 9,000,000 rubles. The amount of advances paid for the 1st half of 2021 is 1,200,000 rubles.

We calculate the total amount:

APotch.pr. = 9,000,000 × 20% = 1,800,000 rub.

We calculate AP to unitary enterprise. = 1,800,000 – 1,200,000 = 600,000 rubles.

As the example of calculating advance payments for income tax shows, PPT.ru LLC is obliged to transfer to the Federal Tax Service a tranche for the 3rd quarter in the amount of 600,000 rubles.

Who can apply the simplified tax system

Organizations and individual entrepreneurs can switch to this taxation system. To do this, you need to meet certain conditions, namely:

1. the average number of employees should not exceed 100 people;
2. the income limit of an organization or individual entrepreneur should not exceed 150,000,000 rubles;
3. the residual value of fixed assets should also not exceed 150,000,000 rubles;
4. the share of participation of other persons in the authorized capital of the organization should not exceed 25%.

At the same time, there is a whole list of conditions that exclude the use of a simplified taxation system. This list is given in Article 346.12 of the Tax Code of the Russian Federation. Absolutely all requirements must be met. Failure to comply with at least one requirement leads to the abolition of this tax regime.

How to calculate monthly payments

If the economic entity does not meet the requirements of clause 3 of Art. 286 of the Tax Code of the Russian Federation, then in addition to quarterly payments, you will have to pay monthly advances. They reduce the total amount payable to the budget in the same way.

The procedure for calculating advance payments for income tax on a monthly basis has not changed:

1. The monthly tranche of the first quarter of the year is equal to the monthly payment of the 4th quarter. the previous year. For example, the January 2021 advance tax is equal to a monthly tranche of Q4. 2021
2. Transfers in the second quarter are similar to 1/3 of the amount of advance paid for the 1st quarter. That is, the payment for April or May 2021 is equal to 1/3 of the advance for 1 sq. 2021
3. Monthly tranches for the 3rd quarter are determined as 1/3 of the difference between the advance for the first half of the year and the 1st quarter. For example, the amount for July 2021 is calculated using the formula: (AP for the 1st half of the year - AP for the 1st quarter of 2020) / 3.
4. Monthly calculation for 4 quarters. are calculated similarly to the third quarter: the calculation of advance tranches (for example, for October or November 2020) is determined as the difference in advances for 9 months and 1 half of the year, divided by three.

All companies that are not included in the list of clause 3 of Art. are required to apply the payment procedure. 286 Tax Code of the Russian Federation. For example, an enterprise whose revenue for the previous 4 quarters exceeded an average of 15 million rubles (or more than 60 million rubles for the previous 12 months). The organization is obliged to independently switch to monthly payment.

IMPORTANT!

The Federal Tax Service is not obliged to notify taxpayers about the correct procedure for calculating advance transfers. If the company loses the right to quarterly tranches, then there will be no special notification from the Federal Tax Service about the transition to monthly payments. Likewise, the company will not receive any letters if it has the opportunity to pay fiscal obligations quarterly.

Method 1. Looking back at the previous quarter

Let's start with the method when advance payments are calculated based on the tax rate and profit calculated on an accrual basis from the beginning of the year until the end of the reporting (tax) period . During the reporting period, taxpayers calculate the amount of the monthly advance payment (paragraph 2 - 5 clause 2 of article 286 of the Tax Code of the Russian Federation). Let us remind you that tax reporting periods are the first quarter, six months and nine months of the calendar year (clause 2 of article 285 of the Tax Code of the Russian Federation). In other words, the advance payment (AP) is paid based on the results of the first quarter, half a year and nine months, plus monthly advance payments (AAP) within each quarter. In this case, the AP is calculated based on the actual profit received, and the EAP is calculated based on the estimated profit, the size of which is determined based on the results of the previous quarter.

If the monthly advance payment amount calculated in this way is negative or equal to zero, these payments are not made in the corresponding quarter. Monthly advance payments due during the reporting period are paid no later than the 28th day of each month of this reporting period (paragraph 3, paragraph 1, article 287 of the Tax Code of the Russian Federation).

Note! According to payment terms, monthly advance payments are distributed in equal shares in the amount of 1/3 of the payment amount for the quarter. If the payment amount is not divided among three payment terms without a balance, then the balance is added to the monthly advance payment at the last payment date.

Advance payments based on the results of the reporting period are paid no later than the deadline established for filing tax returns for the corresponding reporting period (paragraph 2, paragraph 1, article 287 of the Tax Code of the Russian Federation). The income tax return (its form and the procedure for filling it out are approved by Order of the Federal Tax Service of Russia dated December 15, 2010 N ММВ-7-3/ [email protected] ) must be submitted to the tax office no later than 28 calendar days from the end of the corresponding reporting period (p 3, Article 289 of the Tax Code of the Russian Federation) (If the 28th falls on a day recognized as a day off and (or) a non-working holiday, then in accordance with clause 7 of Article 6.1 of the Tax Code of the Russian Federation, the payment deadline is postponed to the next working day following it ) - no later than April 28, July 28, October 28.

When filling out sheet 02 “Calculation of corporate income tax” of the declaration, it is necessary to take into account the following features (clause 5.11 of the Procedure for filling out the declaration). The amount of monthly advance payments payable in the quarter following the reporting period for which the declaration is submitted is indicated on lines 290 - 310 (In the declaration for the tax period, lines 290 - 310 are not filled out).

The amount of payments on line 290 is determined as the difference between the amount of calculated income tax for the reporting period reflected on line 180 and the amount of calculated income tax indicated on the same line of sheet 02 of the declaration for the previous reporting period. For example, in a declaration for nine months, line 290 indicates the amount of monthly advance payments for the fourth quarter, calculated as the difference between line 180 of the declaration for nine months and line 180 of the declaration for six months. Advance payments in the first quarter of the next tax period are paid in the same amount. In the declaration for the first quarter, line 290 indicates the amount of monthly advance payments due in the second quarter. The amount of monthly advance payments will be equal to the amount of calculated tax on line 180 of the declaration for the first quarter. Lines 300 and 310 indicate the amounts of monthly advance payments to the federal budget and the budget of a constituent entity of the Russian Federation, which are calculated similarly to the indicator on line 290.

Example 1. According to tax accounting data, Saturn LLC made a profit in 2011: - for the first quarter - 315,000 rubles; — for half a year — 540,000 rubles; — for 9 months — RUB 1,125,000; — per year — 1,800,000 rubles. The tax rate is 20%, including to the federal budget - 2%, to the budget of a constituent entity of the Russian Federation - 18% (Article 284 of the Tax Code of the Russian Federation). The following is due for payment to the budget based on the results of the reporting (tax) period: - for the first quarter - 63,000 rubles; — for half a year — 108,000 rubles; — for 9 months — 225,000 rubles; — per year — 360,000 rub. Let us calculate and display in the table the amount of monthly advance payments of the organization for 2011 (In the declaration for the nine months of 2010, line 290 indicates the amount of monthly advance payments in the fourth quarter in the amount of 27,000 rubles. Advance payments in the first quarter of 2011 are paid in the same amount G.)

(rub.)

——————————— <*> Sum of indicators on lines 180 and 290 of the declaration for the previous reporting period (63,000 + 63,000 = 126,000, 108,000 + 45,000 = 153,000, 225,000 + 117,000 = 342,000). <**> The difference in the indicators of line 180 declarations for the current and previous reporting periods0 = 45,000, 225,000 - 108,000 = 117,000).

As follows from the table, the organization had to make payments within the following terms:

(rub.)

Advance payments in the first quarter of 2012 are paid in the same amount as in the fourth quarter of the previous tax period, that is, they are equal to the figure in line 290 of the declaration for nine months. They amount to 117,000 rubles.

In this example, at the end of the six months, the organization has an overpayment of income tax, which is subject to offset against upcoming payments for this or other taxes, repayment of arrears and penalties, or return to the organization in the manner established by Art. 78 Tax Code of the Russian Federation. At the same time, the offset rules also apply to advance payments (Clause 14, Article 78 of the Tax Code of the Russian Federation). If the taxpayer does not have arrears on other taxes (fees, penalties, fines), it is more appropriate for him to offset the overpayment against upcoming payments to the budget. Based on a written application from the taxpayer, such a decision is made by the tax inspectorate within 10 days from the date of receipt of the application from the organization or from the date of signing the joint reconciliation act (clause 4 of article 78 of the Tax Code of the Russian Federation). In accordance with paragraph 9 of Art. 78 of the Tax Code of the Russian Federation, the tax authority is obliged to inform the taxpayer in writing about the decision made to offset the amounts of overpaid tax or to refuse to offset the tax within five days from the date of adoption of the corresponding decision. It is quite obvious that the tax authority “finds out” about the overpayment from the declaration. Therefore, in order not to delay the offset, it is more advisable to submit the application together with the tax return. Note that the organization will not have time to receive a decision on offset by the first deadline for paying the advance payment (otherwise it would have to submit a declaration in the first days after the end of the reporting period, which is unlikely in practice). Therefore, in the first term, the taxpayer must transfer the entire amount of the advance payment (if he does not do this, he will face penalties), and in the second term (having a decision on offset in hand), the amount of the advance payment can already be adjusted.

In relation to example 1, it will look like this.

(rub.)

So, we have looked at the method of paying monthly advance payments. Note that for organizations whose profits “jump” throughout the year (for example, due to the seasonal nature of their activities), this method is not practical. The Tax Code provides for the possibility of switching to making advance payments at the end of each month based on the actual profit received. This will be discussed further.

How to calculate advances based on actual indicators

If the organization has decided to pay to the budget based on the actual profit received, it will have to submit a corresponding application to the inspectorate. This format of interaction with the budget is suitable for economic entities whose activities are seasonal.

In this case, the calculation of monthly advance payments is based on the actual profit for the reporting month. Moreover, the organization will have to submit monthly declarations.

Reporting periods are recognized as one month, two months, three, and so on. The amount payable to the budget is calculated as the tax base multiplied by the liability rate. The advance amount is calculated as the difference between the accrued payment and what has already been paid.

How to deal with overpayment

Often, the result of activity during the reporting period is a loss: over a certain period of time, the company’s income is significantly less than its costs. For example, PPT.ru LLC in the 1st quarter. 2021 made advance tax payments in the amount of RUB 300,000. During 2 quarters In 2020, the amount of monthly transfers to the budget was also 300,000 rubles. But the amount of tax liability payable for the 1st half of 2021, calculated on an accrual basis, amounted to only 450,000 rubles. Consequently, PPT.ru LLC is now overpaid in advance payments for income tax in the amount of 150,000 rubles. It is used either to offset other payments, or to submit an application for a refund.

Example of payment for the supply of goods

The Buyer purchases the goods on the terms of making a partial (full) advance payment to the Supplier.

Payment procedure:

• 
  50% of the full amount of the cost of the goods - within 5 days from the date of signing this agreement

• the balance of the amount (50%) – at the time of actual receipt of the goods

Delivery is carried out within 7 working days from the moment the Buyer makes an advance payment in the amount of 50% of the cost of the goods to the Supplier's account.

In addition to the provisions presented, the parties have the right to indicate a clause on the use of cash or non-cash payments.

Payment deadlines

According to the current fiscal legislation (Article 287 of the Tax Code of the Russian Federation), payment of advance payments for income tax is made no later than the established deadlines. Otherwise, the taxpayer will be punished. The last dates for transferring funds to the treasury depend on the method of calculation.

Current table for calculating advance payments of income tax in 2021 (payment deadlines):

Responsibility for non-payment of advance payments

According to the Tax Code of the Russian Federation, if the terms for payment of advance payments were violated or incomplete amounts of advance payments were paid, arrears are formed. A penalty is charged for the arrears. According to paragraph 4 of Article 75 of the Tax Code of the Russian Federation, the penalty is 1/300 of the refinancing rate of the Central Bank of Russia for each overdue calendar day. At the same time, for individual entrepreneurs the penalty is equal to 1/300 of the refinancing rate in any case. For organizations, the penalty is equal to 1/300 of the refinancing rate if the delay is less than 30 calendar days, and if the delay is more than 30 calendar days, then starting from the 31st calendar day, the penalty is calculated based on 1/150 of the refinancing rate. According to the clarifications of the Federal Tax Service of Russia dated December 28, 2009, penalties are calculated starting from the day following the last day of payment and ending on the day when the arrears are paid to the budget. The refinancing rate of the Central Bank of Russia is taken to be the one that is valid for the period of delay; accordingly, if it changes, it must be calculated separately for each period.

In the case of advance payments, only penalties are paid; no penalties are provided for advances.