How to calculate income tax
The tax period for income tax is one year. Therefore, the tax is calculated at the end of the year. However, during this period the company must pay advance payments.
The tax amount is calculated as follows:
Tax base x Tax rate.
The tax base is the profit for the reporting (tax) period. It is determined by the cumulative total from the beginning of the reporting (tax) period. The tax base is determined separately for the main tax rate and for each special rate.
At the same time, the Tax Code of the Russian Federation provides for the specifics of tax calculation in some cases, for example, companies with separate divisions calculate income tax according to special rules. There are nuances when calculating tax by newly created organizations.
Companies must pay their annual income tax to the budget no later than March 28 of the following year.
Advance payments are paid:
- based on the results of each quarter and monthly within this quarter;
- only based on the results of each quarter (advances are not paid within the quarter);
- at the end of each month, based on the actual profit received.
The procedure for calculating advance payments depends on the order of their payment.
05.02.2021We pay personal income tax and contributions for taxis for employees
A taxi for traveling to work and the office is the dream of every employee. But for employers, travel of employees to the office and back at the company’s expense is too expensive.
05.02.2021What differences in accounting and tax accounting did the new procedure for accounting for inventories lead to?
The new inventory accounting procedure has led to an increase in the number of discrepancies with tax accounting. For example, there are more situations where the cost of inventories in tax and accounting does not match. There are other differences too. Small businesses that maintain simplified accounting are in the most advantageous position. They are given the right to choose accounting policies.
05.02.2021Auditor inspection plan for 2021
At the beginning of January, representatives of several departments spoke about how the number of control activities had changed last year and how many audits were planned for the new year, 2021. The magazine "Raschet" studied the data to answer a question that interests many businessmen: which departments will inspect the business and with what frequency?
05.02.2021Corrective or adjustment invoice: when to prepare them?
If the price of the shipped goods has changed in the invoice due to the correction of an error made in it, but the contract price has not changed, then the seller does not need to issue an adjustment invoice.
05.02.2021What documents does the Federal Tax Service have no right to demand during a VAT filing with a refund?
Tax authorities believe that to confirm the right to a VAT refund, you need everything: from primary documents to analytical accounting registers; the more papers, the better. The court decided that this contradicts the Tax Code.
05.02.2021Rostrud requires unscheduled training in all organizations
The law requires training in labor safety. One of the reasons for unscheduled training is the adoption of new regulations on labor protection. More than ten of these were accepted in 2021, and almost all companies, one way or another, fall under unscheduled briefing.
05.02.2021Collective agreement: what does an employer need to know?
A collective agreement is not mandatory and is concluded at the initiative of both parties. If a collective agreement has been drawn up in an organization, it is important to comply with it.
05.02.2021The situation in the Russian business environment in 2020
The self-isolation regime and the need to move business remotely blocked the activities of many entrepreneurs. They were not prepared for the need to rebuild business processes as quickly as possible and transfer employees to remote work. As a result, their revenue has decreased significantly.
05.02.2021How Rostrud will fine for admitting employees without checking new POTs
Since 2021, 40 new labor protection rules have come into force. In a letter dated January 20, 2021 No. 87-TZ, Rostrud once again reminded that the employer must conduct unscheduled training for employees. For allowing employees to work who have not undergone training, the employer faces a fine.
05.02.2021Instead of 2-NDFL, we issue employees a new certificate from form 6-NDFL
There are no more 2-NDFL certificates. Instead, the company must now issue employees a Certificate of income and tax amounts of an individual, and submit information to the Federal Tax Service as an appendix to Form 6-NDFL.
05.02.2021How to pay tax with separate divisions?
The company uses the simplified tax system and has separate divisions. How to pay tax in this case?
05.02.2021Clients VS banks: 3:0
Imposed services, additional commissions, “barrier tariffs” - many bank clients face this. Some of them do not know that the bank does not always have the right to increase the loan rate, even if the agreement gives it this right. In courts, based on customer claims, banks have to justify themselves for such actions. And sometimes the courts find the changes illegal.
04.02.2021Who and when can submit the “zero” RSV - Calculation of insurance premiums?
The organization does not conduct business activities and does not accrue or pay wages to individuals. The Ministry of Finance spoke about whether she needs to submit “zero” reporting on contributions and how to fill it out in a letter dated January 26, 2021 No. 03-15-05/4460.
04.02.2021When are funds received from a 100% owner included in income?
We all know that funds received from the owner are not subject to income tax if he owns 50% or more of the authorized capital of the company, not to mention all 100%. There shouldn't be any doubts here. But, as can be seen from a recent court decision, there is an exception if the owner turns out to be not entirely “suitable”.
04.02.2021How to track the completion of the electronic register in the Social Insurance Fund for the assignment of benefits?
From January 1, 2021, benefits are paid directly from the Social Insurance Fund. However, this does not mean that employers are relieved of the responsibilities associated with their appointment and payment. They must prepare and send to the Fund the documents necessary to pay benefits to the employee.
04.02.2021Summing up the bankrupt results of the year
Data for 2021 showed a reduction in the number of company bankruptcies; the figure decreased by almost 20% compared to 2021. How many companies have closed, on whose initiative the enterprises were declared bankrupt, and will there be a jump in the number of insolvency filings after the restrictions are lifted, did Calculation magazine find out?
04.02.2021What to do if you do not agree with the tax amount from the inspectorate?
Soon we will all have to start putting into practice the innovations that have been introduced this year regarding the transport tax. We don’t submit a tax return, but we calculate it ourselves and pay it on the new deadline. And only then misunderstandings may begin when in the paper received from the tax office we see the amount of tax that it calculated. There could be several options for action.
04.02.2021When do you need to submit an updated RSV?
If you find an error in the submitted calculation of insurance premiums due to which the premiums were underpaid, be sure to submit an amendment. Several situations have been established when an employer is required to submit an updated DAM.
04.02.2021How much will the state fee be charged if the court reduced the penalty?
The price of the claim includes the penalties, fines, penalties and interest specified in the statement of claim. This leads to an increase in the amount of the state duty that must be paid to consider the case in court. But if the penalty is collected in a smaller amount, is it necessary to recalculate the legal costs in proportion to its reduced amount? The Supreme Court decided on this issue.
04.02.2021The company gives employees discounts on its products: what about personal income tax?
Employees can buy company products at a discount.
Is this income subject to personal income tax? 1 Next page >>
Determination of income when calculating tax
Income for the purposes of Chapter 25 of the Tax Code of the Russian Federation is an economic benefit received both in cash and in kind. Taxable income is divided into non-operating and income from sales.
At the same time, the code contains a closed list of income not subject to profit tax, which is given in Art. 251. These include, in particular, advances received, targeted financing, pledge or deposit and others.
The moment of recognition of income depends on the method of recognizing income and expenses that the taxpayer uses. So, if the company has chosen the accrual method, then income is recognized on the day of transfer of ownership upon the sale of property (except for real estate) or the date of transfer of the results of work performed, services provided, as well as property rights (clause 3 of Article 271 of the Tax Code of the Russian Federation).
Non-operating income is recognized depending on the type of income in the manner established in paragraph 4 of Art. 271 Tax Code of the Russian Federation.
If the organization uses the cash method, then income should be taken into account at the time of receipt of money or other property (clause 2 of Article 273 of the Tax Code of the Russian Federation).
Determination of income tax expenses
Expenses for profit tax purposes are expenses that meet the requirements of paragraph 1 of Art. 252 of the Tax Code of the Russian Federation, namely:
- economically justified and aimed at making a profit;
- documented.
An organization's expenses should be related to the nature of its activities, and not to profit. They are taken into account regardless of the presence or absence of income from sales in the tax period (letter of the Ministry of Finance of the Russian Federation dated December 28, 2017 No. 03-03-06/1/87897).
The Tax Code of the Russian Federation does not contain a specific list of documents that need to be used to confirm expenses. It is important that they make it clear what costs have been incurred. Documents confirming expenses must be drawn up in accordance with the requirements of domestic legislation or business customs on the territory of a foreign state, if expenses are incurred abroad (Clause 1 of Article 252 of the Tax Code of the Russian Federation). Expenses are confirmed by primary accounting documents, the forms of which are approved by the head of the company.
Expenses are divided into non-operating and expenses associated with production and sales. The list of the latter is enshrined in paragraph 1 of Art. 253 Tax Code of the Russian Federation. These include, among other things, the costs of manufacturing goods, their storage and delivery, and the maintenance of fixed assets. These costs can be direct and indirect. Direct ones are reflected for the purpose of calculating profit tax as goods, works or services are sold, and indirect ones are written off at a time in the current period.
The composition of non-operating expenses is prescribed in Art. 265 Tax Code of the Russian Federation. The code includes, for example, interest on loans, expenses for bank services, and legal expenses. That is, non-operating expenses are those expenses that are not directly related to the production or sale of goods, works, and services.
Please note: the Tax Code of the Russian Federation establishes a list of expenses that are not taken into account when taxing profits. It is enshrined in Art. 270 code. These include, for example, contributions to trade unions (Clause 20, Article 270 of the Tax Code of the Russian Federation).
Tax accounting of income
Tax base for income tax according to Art. 313 of the Tax Code of the Russian Federation is determined on the basis of tax accounting data.
Tax accounting is a system for summarizing information to determine the tax base based on data from primary documents, which are grouped in accordance with the procedure established by the Tax Code of the Russian Federation.
Tax accounting makes it possible to generate complete and reliable information about the accounting procedure for the purpose of calculating income tax for ongoing business transactions. In addition, tax accounting provides the necessary information to internal and external users.
The tax accounting system is organized by taxpayers independently, and it is necessary to observe the principles of consistency in the application of tax accounting norms and rules. The adopted accounting policy must be approved by the relevant order or order of the head of the organization.
Accounting policy for tax purposes in accordance with clause 12 of Art. 167 of the Tax Code of the Russian Federation is applied from January 1 of the year following the year of its approval, and is mandatory for separate divisions of the organization, if such divisions are created. Newly created organizations must approve their accounting policies no later than the end of the first tax period. The adopted accounting policy is considered to be applied from the date of establishment of the organization.
If changes are made to the tax legislation of the Russian Federation, as well as if the taxpayer chooses other methods and methods of accounting proposed by the Tax Code of the Russian Federation, it is necessary to make changes to the accounting policy of the organization.
If changes to the accounting policy are related to changes in the legislation of the Russian Federation, the decision to make changes should be made no earlier than the moment the changes in legislation come into force.
If the taxpayer has decided to change the accounting methods and methods used, then the decision to change the accounting policy is made from the beginning of the next tax period. The order to make changes must be signed no later than December 31 of the current tax period.
The taxpayer has the right to make changes to the accounting policy for tax purposes during the tax period only in two cases: when the legislation on taxes and fees changes, as well as in the event of the start of a new type of activity, which was drawn to the attention of specialists from the Ministry of Finance of Russia in the Letter dated April 14, 2009 N 03-03-06/1/240.
Article 313 of the Tax Code of the Russian Federation establishes that tax accounting data must reflect, in particular, the procedure for generating the amount of income. Tax accounting data is confirmed by primary accounting documents, including an accountant’s certificate, analytical tax accounting registers, as well as calculation of the tax base.
The Letter of the Federal Tax Service of the Russian Federation for Moscow dated December 27, 2007 N 20-12/124747 states that the primary accounting documents in tax accounting are copies of the primary documents used in accounting.
Article 9 of the Federal Law of November 21, 1996 N 129-FZ “On Accounting” determines that business transactions must be documented by supporting documents, which serve as primary documents on the basis of which the organization maintains accounting records.
Primary documents are accepted for accounting if they are compiled according to unified forms of primary accounting documentation. If any form of a document is not provided for in the albums of unified forms, the organization can independently develop the necessary document.
The form of the document developed independently must contain the following mandatory details:
- Title of the document;
— date of preparation of the document;
— name of the organization on behalf of which the document was drawn up;
— content of a business transaction;
— measuring business transactions in physical and monetary terms;
— names of positions of persons responsible for carrying out a business transaction and the correctness of its execution;
- personal signatures of these persons.
When carrying out foreign economic activities, documents drawn up in accordance with the requirements of foreign states, whose representatives are counterparties, are used to confirm business transactions. Such documents must contain details reflecting the essence of the transaction. Foreign documents must contain the same mandatory details that are provided for Russian primary documents. Attention was drawn to this in the Letter of the Federal Tax Service of Russia for Moscow dated April 13, 2007 N 20-12/035154. The Letter also noted that, in accordance with Art. 68 of the Constitution of the Russian Federation, the state language throughout its territory is Russian. In this regard, the organization has the right to submit documents drawn up in accordance with the legislation of a foreign state and confirming expenses, provided that they are translated into Russian.
If the accounting registers do not contain enough information to determine the tax base for income tax, the taxpayer has the right to supplement the applicable accounting registers with additional details, thereby forming tax accounting registers, or maintain independent tax accounting registers.
Analytical tax accounting registers according to the definition contained in Art. 314 of the Tax Code of the Russian Federation, are consolidated forms of systematization of tax accounting data for the reporting (tax) period, grouped in accordance with the requirements of Chapter. 25 of the Tax Code of the Russian Federation without distribution (reflection) among accounting accounts.
For the forms of analytical tax accounting registers, mandatory details are also provided: the name of the register, the period (date) of its compilation, transaction meters in kind (if possible) and in monetary terms, the name of business transactions and the signature (deciphering the signature) of the person responsible for compiling the specified registers
After the entry into force of Ch. 25 of the Tax Code of the Russian Federation, the Ministry of Taxes of Russia has developed Recommendations “Tax accounting system recommended by the Ministry of Taxes of the Russian Federation for calculating profits in accordance with the norms of Chapter. 25 of the Tax Code of the Russian Federation."
According to these Recommendations, accounting should be organized in such a way as to ensure continuous reflection in chronological order of the facts of economic activity, which, in accordance with the procedure established by the Tax Code of the Russian Federation, entail or may entail a change in the size of the tax base.
Taxpayers can independently determine the procedure for document flow and the sequence of operations for the formation of tax accounting indicators, as well as forms for presenting data on paper. Registers can be maintained both on paper and in electronic form and (or) any computer media.
If errors are detected, corrections may be made to the analytical tax accounting registers, which must be justified and confirmed by the signature of the responsible person who made the correction, indicating the date.
For tax accounting of income, the following tax accounting registers recommended by the Russian Ministry of Taxes can be used:
— a register for recording transactions of disposal of property, work, services, rights, which is part of the registers for accounting for business transactions. The register is formed to summarize information on disposal operations of the taxpayer’s property, the sale of works, services, rights and the formation of the amounts of corresponding income from sales to be included in the tax base in the manner established by Chapter. 25 Tax Code of the Russian Federation. Maintaining a register should provide the ability to group information according to the conditions under which the taxpayer receives income and by type of income received;
— income accounting register for the current period, which is part of the reporting data generation registers. The register is formed to summarize information about operations for generating income of the reporting (tax) period in order to identify the amounts of income (including non-operating income) of the reporting (tax) period used when filling out the income tax return.
Income tax rates
The basic rate for income tax is 20 percent (clause 1 of Article 284 of the Tax Code of the Russian Federation). This rate is divided into two parts:
- 3 percent goes to the federal budget;
- 17 percent go to the regional one.
In addition, the Tax Code of the Russian Federation provides preferential rates for certain incomes and certain categories of organizations.
Dividend rates:
- a zero tax rate applies to payments to a Russian organization that owns a 50 percent or higher stake in the authorized capital for 365 consecutive days;
- a rate of 13 percent applies to other Russian organizations;
- Dividends paid to foreign companies are taxed at a rate of 15 percent.
In relation to profits from the sale of a share in the authorized capital of a Russian organization that has been owned for more than 5 years, a 0 percent income tax rate is applied.
In addition, a zero rate for income tax is applied by agricultural producers, educational and medical organizations (Articles 284, 284.1 of the Tax Code of the Russian Federation).
Reduced rates may be established by regional law.
