What is a free form income statement and in what cases may it be required? Usually this is a certificate that contains information about the totality of all income, certified by the employer, that is, the company or enterprise in which the person worked (continues to work) in the state or on the basis of an employment contract. Most often, such a certificate is requested by credit institutions (banks, microfinance organizations) before considering an application for a loan or microloan, in the case when the person applying for a loan finds it difficult to confirm all of their cash income with documents of the established tax service standard. It is known that part of employers prefers to avoid paying taxes related to their employees, hiding part of their salary, taking data into the “shadow”.
Typically, such a statement includes monthly accrual data.
Free form - income statement can be filled out at random - nonetheless, it requires the presence of certain criteria in the document. It should be presented on the official color form of the organization with its details, if possible, should be the original print. At the end, the document is signed by the management and chief accountant of the company, the time of its issuance is affixed. Income figures are shown in rubles, even if received in a different currency. There is enough information for the last six months, although the employer provides data for the last 12 months (reporting year) as a standard.
How is the certificate filled out
A sample income statement in free form is presented below.
In the absence of the chief accountant for the state or the performance of his duties by the head of the company, instead of the signature of the chief accountant, information about this is posted, or a senior official in the employer's organization signs for the chief accountant.
Where a free form income statement is required
The demand for such a document has now increased significantly not only due to the fact that banks, having lost a significant number of borrowing customers due to a sharp deterioration in their financial situation and the inability to provide loans to them according to the criteria of the regulator, go to many concessions, trying not to miss customers and still continue retail lending operations. Thus, a statement of income in free form is included in the package of documents of the borrower, mandatory for underwriting. This is the name of the process of considering a loan application in order to analyze the creditworthiness of a client for a fundamental decision and determine its conditions for the client.
In addition, the free form of income statement is acceptable for the employer in the case of hiring a new employee, and information on income on letterheads of organizations with the official stamp and signatures of management will be taken by the consulates of foreign countries that analyze income information before issuing a visa Russian citizen. Recently, such certificates began to accept and government agencies. So, for example, in order to resolve the issue of accrual of benefits, Sobesy was always asked to provide a certificate in the form 2NDFL. But now they are satisfied with a less formalized type of document.
For the sample, you can use the certificate provided in the first section of this article, or find the official websites of Russian credit organizations working with the population and download sample certificates there.
Difficulties for employers
Usually, it is technically difficult for the employer to fill out such a certificate, but often the head or owner of the company refuses the employee to write such a certificate, because he is afraid to disclose data that does not coincide with the official information provided to the tax office. Often the figures of nominal (for tax inspection) and real (handed over to the employee) wages, including bonuses, incentives and other allowances, differ many times, and sometimes ten times. This explains the dislike of employers to a free-form income statement.
Nuances for individual entrepreneurs
For individual entrepreneurs, things are a little different. For them, the document confirming income is the form 3NDFL (tax return), this applies to both a simplified and the usual tax system. This document has all the requirements similar to tax declarations. Specify they can be in the Tax Code.
In the Russian legal system, in addition to this document, there is no other form that can confirm the financial situation of an individual entrepreneur. True, if at the same time he is an employee of some organization or works under an employment contract, then his employer can provide a separate document (income statement in free form) on the organization’s form for the amount of his income under these labor agreements.
An individual entrepreneur himself can issue similar certificates for his employees, but he cannot write such a document to himself, if such a document appears, it will be declared invalid and will not be accepted by any authority. Sometimes only credit institutions can take such a document, but more often - when an individual entrepreneur has all his accounts in this bank and the financial institution knows all its background.
We advise people involved in individual business to make more than two copies of tax reporting in advance, so that after passing 2 copies to the tax office, after checking, register the remaining copies with them and use ready-made certificates of creditworthiness if necessary.
