Income tax for the 3rd quarter of 2021 deadline for submitting the declaration

Who is the income tax payer?

Payers of income tax are the following persons:

• All Russian legal entities that are subject to the general taxation system;
• Foreign enterprises that operate through permanent representative offices in Russia;
• Foreign enterprises that are recognized as tax residents of the Russian Federation according to an international treaty;
• Foreign enterprises, their actual location is on the territory of the Russian Federation, unless other conditions are provided for by an international treaty.

The tax base

In order to calculate the taxable base when paying income tax, it is necessary to multiply the tax rate by the difference between the income and expenses of the enterprise. If the amount of income is less than the amount of expenses, then the tax base is equal to zero. The enterprise's profit is determined on an accrual basis from the beginning of the calendar year. The income tax legislation provides for different rates, so an enterprise must calculate income separately for each type of activity.

Income tax rate

In accordance with the Tax Code of the Russian Federation, the income tax rate is 20%, of which 2% is transferred to the federal budget, and 18% is transferred to the local budget of the Russian Federation.

For certain categories of legal entities, income tax to the local budget may be reduced, namely:

• For legal entities – residents (participants) of special economic zones and free economic zones;
• For enterprises that are participants in regional investment projects;
• for legal entities that have received the status of resident of the territory of rapid socio-economic development or the free port of Vladivostok

Tax period for transferring income tax

The tax period for income tax is the calendar year. After the end of the tax period, the final payment for income tax is paid, taking into account all advance payments during the year, and a tax return for income tax is submitted.

There are also reporting periods for income tax, which are divided into two groups:

• quarterly reports;
• monthly reports.

The enterprise independently chooses what reporting period it will have for income tax and it must be indicated in the regulatory documents of the enterprise. Depending on which reporting period the company chooses, then at the end of this reporting period it must not only transfer advance payments for income tax, but also submit a tax return for income tax.

What does a completed declaration form look like?

Let us consider and provide a sample of filling out an income tax return for the 3rd quarter (9 months) of 2021 for different situations of paying advances.

If we pay advances every quarter

Every quarter, organizations on OSNO can pay advances if their sales income the previous 4 quarters did not exceed 15 million rubles . For this year 2021, a special limit has been introduced - 25 million rubles. This method of calculating advances is also used:

An example of filling out an income tax return for 9 months of 2020 can be found here:

We note the importance of filling out lines 210 – 230 of Sheet 02: they reflect advance payments accrued for the first half of 2020 (pages 180 – 200 of Sheet 02 of the half-year declaration). If you do not indicate them, then the tax payable will be indicated in the declaration in the amount of all 9 months.

If we pay advances every month and pay extra at the end of the quarter

Those who are not included in the list of quarterly payers must pay advances on profits every month.

What a completed income tax return for 9 months of 2021 looks like with this procedure for paying profitable advances, please see the link:

When filling out the declaration, pay attention to the following nuances:

• we enter the data in subsection 1.2, and not in subsection 1.1;
• the differences in filling out declarations for monthly and quarterly advances are in filling out lines 210 – 230, 290 – 310, 320 – 340 of Sheet 02;
• if advances in the 1st quarter are different from advances in the 4th quarter, fill out two subsections 1.2.

If we pay advances every month, based on actual profit

You can switch to this payment method at your own discretion.

There are features of filling out an income tax return for 9 months of 2021 when paying advances based on actual profit. Thus, a declaration for a period that is not the end of a quarter (January, January-February, January-April, January-May, etc.) consists of a title page, subsection 1.1 and Sheet 2. In quarterly declarations (January-March, January -July, January-September) add appendices 1 to Sheet 2.

Thus, the income tax return for 9 months of 2020 when calculating advances based on actual profit is similar to the income tax return when quarterly .

If an organization has specific features when calculating income tax that are reflected in other sheets and sections, then these should also be filled out.

What are the deadlines for remitting income taxes?

Income tax payments are divided into the following categories:

What you need to consider when filling out a profit declaration for the third quarter of 2021

The material is an overview of decrees, decisions, as well as explanations from tax authorities.

Organizations must submit income tax returns for the third quarter of 2021 no later than October 22, 2021 (October 20 is a day off). Let us recall some points that should be taken into account when determining the completion of this declaration, and also recall which regulatory legal acts and clarifications regarding the calculation of income tax were issued/received in July - September 2021.

If you operate in a rural area, check whether you have the right to a benefit under Decree No. 345

From August 19, 2018, even more organizations <*> can take advantage of the benefit under Decree No. 345 (apply a reduced income tax rate of 6%). Thus, the List of settlements and territories outside settlements belonging to rural areas includes rural settlements from all 22 districts of the Minsk region <*>.

If you produce and sell innovative products, check the new List

From July 2021, organizations that provide preferential benefits to profits (applying an exemption from income tax) received from the sale of goods of their own production that are innovative must use the list set out in the new edition <*>.

If there was fuel savings on some days of the month, and overconsumption on others, determine the norm for the month

Expenses for fuel and lubricants are normalized for income tax purposes <*>.

In accordance with paragraph 82 of Instruction No. 133, data on the presence of fuel residues in vehicle tanks at the end of the reporting month must be confirmed by a certificate of removal of residues on a monthly basis . Consequently, as representatives of the Ministry of Taxation explain <*>, for tax accounting purposes, the result of fuel use (savings, overconsumption) can be reflected on the basis of the act of removing the residues in the car tank as a whole at the end of the reporting month.

If the driver reimbursed the cost of the fuel he drained, take it into account in non-income and non-expenses

Based on sub. 3.7 art. 128 of the Tax Code, the amount of compensation by the driver for the cost of missing fuel (due to drainage) is included in non-income when taxing profits. On the date of receipt of compensation, as explained by <*> specialists of the Ministry of Taxation, the cost of the missing fuel (within the amount of compensation) is taken into account in non-expenses <*>.

If you reward an employee for maintaining a trade secret regime, take the reward into account in costs

According to <*> IMTS specialists, these expenses are related to the activities of the organization. In this regard, according to paragraph 1 of Art. 130 of the Tax Code, such expenses are included in expenses taken into account when taxing profits. If, to ensure the trade secret regime, as explained by the Internal Revenue Service specialists, fixed assets or intangible assets are acquired, then their depreciation can also be taken into account when taxing profits.

If you pay a premium for fuel savings, remember the restrictions

The following clarifications have been received on this issue<*>.

In general, the specific amounts of employee bonuses are determined in accordance with their personal contribution to overall work results and are not limited to maximum amounts. However, there are still some restrictions. Among them are bonuses for fuel economy <*>:

— the total amount of funds allocated to pay bonuses to employees should not exceed 80% of the amount of fuel and energy savings;

— the maximum amount of bonus to a specific employee should not exceed 50% of his tariff rate (official salary) for the time actually worked in the reporting quarter.

If you pay extra for work at night, keep in mind that there is only a “lower” limit on the amount of such additional payment

The maximum amount of additional payment for work at night when it is included in costs (non-expenses) is not limited, as representatives of the Tax Inspectorate explain<*>. Its size must be no less than 20% of the employee’s hourly tariff rate (salary) <*>.

If you pay financial assistance, take into account the bank commission in the costs

Bank commissions for crediting various types of payments to the card accounts of both employees and pensioners (former employees) are taken into account as expenses when taxing profits as expenses associated with payment for services of third-party organizations, <*> representatives of the Tax Inspectorate explain.

If you want to apply an investment deduction for inseparable improvements to leased property, apply it as for fixed assets

IMTS specialists justify this answer <*> as follows. Based on the norms sub. 12.2 Instructions No. 37/18/6 the tenant’s capital costs for inseparable improvements to the leased property, if they are not reimbursed by the lessor, are classified as depreciable fixed assets.

Therefore, in this case, it is necessary to use the procedure for applying the investment deduction established for fixed assets. Namely, the investment deduction:

- calculate from the original cost, and not just from the cost of work and materials;

- include in costs in the month from which depreciation on these fixed assets began, and not in the period when the cost of investments in reconstruction increased the initial (revalued) cost of fixed assets in accounting <*>.

If customs has returned overpaid amounts in the amount of security for payment of customs duties, do not include these amounts in non-income

On this issue, IMTS specialists explain <*> the following. The money paid as an advance is the property of the person who made the advance; it does not form the cost of the purchased imported raw materials and is neither a cost nor an extra expense for him <*>. Accordingly, the return of the above amounts by customs authorities at the request of the organization when calculating income tax is not taken into account .

If you use ilex (including during non-working hours), take into account the costs of use when taxing your profits

MNS specialists explain <*> that in our age of cosmic speeds and technological progress, modern technologies, which, without a doubt, include the ilex information system, help accountants, lawyers, and managers make the right management decisions in any accessible place and at any convenient time. Therefore, if you use ilex, then the costs for using it can be taken into account when taxing profits, regardless of the time of day of its use.

Check whether all sections of the income tax return for the third quarter are completed

A special feature of the declaration for the third quarter is that in section II it is necessary to calculate and reflect the amount of 2/3 of the amount of income tax for the third quarter of 2021, payable to the budget in the fourth quarter. Please note that this section is filled out only if there is a profit in tax accounting for the third quarter (a positive indicator in line 24 of Section I of Part I of the same declaration) <*>.

Don't miss the deadlines for paying income taxes for the third quarter

The calculated income tax for the third quarter must be paid no later than October 22, 2021.

The advance payment for the fourth quarter must be paid no later than December 22, 2021 <*>.

In conclusion, we would like to remind you that from October 29, 2021, fines for non-payment or incomplete payment of income tax will be applied in a new amount. In particular, from this date, for this violation, the organization will be subject to a fine of 40% of the unpaid amount, but not less than 10 BV <*>. Currently, the fine for such an offense is 20% of the unpaid amount, but not less than 10 BV <*>.

Methods for calculating income tax

When calculating profits, you can use different methods for calculating income tax. Let's look at each one separately:

The first method is the accrual method , in this method the income and expenses of the enterprise are taken into account only in the period in which they are incurred, regardless of when the funds were credited to the account or debited from the account to pay for the goods;

The second method is the cash method , in this method the enterprise’s income and expenses are taken into account when they actually arrived or were debited from the enterprise’s account. That’s why it’s called cash: money received into the account necessarily reflects income, money sent from the account to pay for goods, services or work immediately reflects expenses. This method can be used by legal entities that are subject to the general taxation system and whose revenue for the previous 4 quarters did not exceed 1 million rubles for each period.

Since the cash method has certain limitations, almost all enterprises use the accrual method.

Income tax return for the 3rd quarter

Regardless of how the company generates its reports monthly or quarterly, one form is used when filling out the income tax return. This is the form we will take to reflect the data in the 3rd quarter.

When filling out the income tax return for the third quarter, in a certain line that is located on the title page, you must indicate the coding of this period. This coding is different for all taxpayers, namely:

• 15 - for a declaration generated quarterly for a consolidated group of taxpayers;
• 33 - for a declaration created quarterly by an ordinary taxpayer;
• 43 - for a declaration generated monthly by an ordinary tax payer;
• 65 - for a declaration created monthly for a consolidated group of taxpayers.

In addition to the title page, it is also necessary to fill out certain sections, namely:

Section 1.1 of Section 1 – reflects the amount of tax that must be paid in the reporting period;

Sheet 02 – displays summary data for tax calculation;

Appendix No. 1 and No. 2 to sheet 02 - data on income and expenses that are involved in calculating tax are reflected

All other sections are filled out as needed; in the 3rd quarter there is no need to include in the declaration sections that are filled out during annual reporting.

Profit declaration 3rd quarter 2021: example of filling out

Let's show an example of creating a report based on the following data:

A production company that uses OSNO pays income tax in monthly advance payments and submits a tax return to the territorial Federal Tax Service on a quarterly basis.

The “Income Tax” declaration for the 3rd quarter of 2021 is drawn up based on the following data:

On the basis of Law No. 172 of 06/08/2020, the company was exempt from paying an advance on tax on income tax for the 2nd quarter of 2021. At the same time, tax reporting for the half-year was compiled according to general rules, indicating the full amount of accrued tax - the Federal Tax Service independently recorded the advance amounts for 2 quarter 2021 that were not due. Accordingly, the declaration for 9 months of 2021 is filled out as usual.

The preparation of the declaration begins with the formation of appendices 1 and 2 to sheet 02, then sheet 02 and section 1 are filled out:

The income tax return for the 3rd quarter of 2021 for Uralservice LLC will be generated as follows:

Features of entering data for the 3rd quarter

When filling out an income tax return with monthly payments, the declaration must reflect the accrual of advance payments for the next quarter, and the main feature of this period is that it is also necessary to reflect advance payments for the first quarter of the next year.

To do this, in sheet 02 you need to use not only lines 290–310, usually filled out in the interim report, but also lines 320–340, the name of which directly indicates the inclusion in them of the amounts of advances accrued for the 1st quarter of the next year.

List of sections of the profit declaration

The income statement is a very voluminous report. However, not all sheets must be completed. There are specific sections that are filled out only by those who performed the operations indicated there.

Let's put in the table a complete list of sheets, sections and appendices of the income tax return:

Income tax payers submit returns in any case. Even:

• do not carry out activities;
• tax payable is 0.

Here is the minimum composition of the income tax return:

This is relevant for zero declarations and those organizations that do not have separate divisions and specific operations reflected in separate sections of the declaration.