Making a profit is a natural desire of both a single citizen and huge transnational corporations. No less natural is the desire of the state to tax all these categories of potential taxpayers.
It is for this purpose that income tax is used. First, we will consider enterprises, since in their case this tax is calculated and charged according to much more complex algorithms than in relation to ordinary citizens.
Who is the taxpayer?
Which legal entity is legally recognized to be obliged to pay this type of tax fee? In principle, there are not many options here:
- Organizations of domestic origin, registered and operating in the Russian Federation.
- All foreign companies registered in Russia. They can conduct business both through intermediaries and receive income from their representative offices, which are located in our country.
What is recognized as subject to taxation?
As you might guess, the object that is subject to tax on the profits of the organization is the income received by a particular company for the reporting period.
What is meant by income in a particular case? This concept is quite versatile, it depends on the type and affiliation of the enterprise, but in practice there are practically no differences:
- For domestic organizations, everyone is profitable total income from which the sum of all expenses incurred by them (net income) is deducted.
- Foreign companies or their representative offices pay income tax based on exactly the same formula.
- In both cases, article 309 of the Code should be guided.
Important! At the beginning of the article, we mentioned that it is often quite difficult to decide with enterprises on the issue of calculating income tax. This is largely due to the simple fact that there is a huge group of those revenues to the budget of organizations that can in no way be considered profit. Mistakes in this regard are often made by novice accountants.
To clarify the situation somewhat, first we list those types of cash and property receipts that are not recognized as income in our legislation.
What income should not be taken into account when determining the tax base?
Some types of income (earmarked income) may not be taken into account, but excluded are supplies of goods subject to excise duty. In addition, targeted payments for assistance to non-profit organizations are not taxed. Important! At the same time, funds should be spent solely on their activities.
It should be noted that this definition includes only gratuitous transfers that were credited to the account of the enterprise both by decision of the judiciary and local authorities, other legal entities or individuals.
It should be noted that the law obliges the recipients of these payments to keep separate records of this kind of income, without mixing these funds with their income, and to have in their hands all the accounting reports with which the organization can confirm the targeted spending of funds.
What else does not include income tax? Company expenses. Thus, this tax is levied only on the net income of the organization.
What relates to earmarked income for carrying out activities?
In accordance with the legislation of our state, these include all entrance and membership fees, as well as donations. They can be spent on repairs or major reconstruction of the property fund of the enterprise, which will be carried out by partnerships or similar organizations. Important! Among other things, taxes on the development of scientific and technical state institutions are not taxed. This is especially true of the Russian Technological Development Fund.
Income is also not considered to be the receipt on the balance sheet of a non-profit organization of material goods received by inheritance. If the organization has the right to finance from the local or federal budget (to carry out its activities), then the funds received as a result of such transfers can also not be considered profit.
When an organization receives money or tangible property intended for charitable activities, these assets are not considered income. But! Only in the case when all the funds received really went to the conduct of socially significant charity. In all other situations, corporate income tax may be claimed.
Other exceptions
Contributions to pension funds of both state and commercial types are also not profitable. But! On the last occasion, the law has an important explanation. It says that such transfers are not recognized as profit only if at least 97% of these amounts are invested in the formation of a pension fund in non-governmental institutions. Other pension savings and contributions to the pension fund (state co-financing agreement) are taxed.
In the case when the owners of the enterprise also invest in it, which are then spent on the activities declared in the constituent documents, this money is not subject to fees. Of course, only if the accounting department of the enterprise can provide all the necessary documents confirming the targeted spending of this money.
The deductions from the budgets of law firms for the needs of the Federal Law Office are also not recognized as income. In addition, voluntary contributions from law firms aimed at supporting similar organizations in the regions of the country cannot be considered profit. Money can be spent on the maintenance of a working law office, bureau or college.
Also, finances and material resources that trade union organizations receive as part of their agreements cannot be recognized as net profits.
All funds received by organizations included in the ROSTO structure (and spent as directed) are also not subject to this tax. They can be used for military-patriotic education of the younger generation, used for the equipment of clubs and circles. Finally, all funds and material and technical support that religious organizations receive as part of charity and state funding are also not classified as profits.
A bit about vehicles
Separately, it is necessary to talk about vehicles, since often with this item the most difficulties arise.
So, if a company that provides auto insurance services receives funds from insurance associations (Russian Association of Insurers) to carry out its direct activities, it is also exempted from the obligation to pay income tax on these amounts.
Target capital
If a non-profit organization receives money for the formation of its own target capital, then tax on these amounts is not paid.Important! In the formation of this fund, the company should be fully guided by the Federal Law "On the procedure for the formation and use of target capital of non-profit organizations." If at least one of the requirements enshrined in this law is not met, the tax inspectorate has the right to demand the payment of the fee in court.
Important!
In the event that a complete reorganization of the company was carried out, the value of the property that was transferred to the successor of the company that was reorganized is not included in the tax base!
However, this provision needs to be supplemented by our legislators, because in this area disputes between the Federal Tax Service and successor companies are extremely common. Here it is necessary to take into account the validity of the reorganization: if it is proved in court that the owners are trying to evade taxes in this way, they will have to bear full personal responsibility, up to and including criminal prosecution.
On the preparation of a tax return
Regardless of the type of organization and the activities it is engaged in, its representatives must submit to the branch of the Federal Tax Service at the place of registration the correspondingly prepared documentation in which the profit tax will be calculated. Filling out the declaration should be carried out according to the template, which must be provided at any local branch of the Federal Tax Service.
If this is not done, the tax service reserves the right to demand the provision of all necessary securities in a judicial proceeding, and / or to demand payment of fines and penalties due to it. Reporting should be carried out in the manner prescribed by Article 83 of the Code.
Note that according to the results of the reporting period, the declaration should be provided only in a simplified form. Those non-profit organizations (see above) that do not have obligations to pay this fee provide a simplified declaration at the end of the tax (!) Year. However, sometimes they can pay income tax for six months. These cases are also regulated by the Code.
Regardless of the type of enterprise, these documents must be submitted by them no later than the 20th. This rule was introduced this year.
And how is profit tax calculated in other cases? Down payments cause trouble for payers most often. If the taxpayer performs the payment of taxes to account for the profits already made, then the declaration must be submitted within the time limits stipulated by the deadlines for the repayment of such payments. This is how the advance income tax is levied.
Special moments
Important! If your organization has several (or even one) separate subdivisions, then when submitting a declaration it is important to share the total profit and funds received by each of these structural divisions.
In addition, in this case, income tax for the quarter is also paid. The deadline for submitting a declaration is no later than the 21st day of the last quarterly month (first two payments). Subsequently - no later than the 20th day. That's how income tax is paid. These dates were kept this year.
If the company participates in projects approved in the decree “On the Skolkovo Innovation Center,” the fifth paragraph of Article 284 of the Code, which provides for a zero tax rate, is used, but at the same time, the organizations mentioned must submit to the Federal Tax Service not only a profit statement, but and Notification, in which information should be displayed on the total amount of income received.
Tax rates for organizations
So what is the income tax rate? We inform you that since January 2014 it has been exactly 20%. It is necessary to understand where and in what proportions this money collected from local organizations goes:
- 2% is transferred to the state budget;
- 18% goes to the budget of the region in which the organization paying the tax is registered.
About taxpayers. Individuals
And now we will consider those issues that ordinary citizens have about the taxes we are considering.
First, who pays income tax in this particular case?
- all individuals who have been recognized tax residents our country;
- individuals who are residents of other states, but who profit from sources located in the Russian Federation.
It should be noted that the residents of our state are persons who have been on the territory of Russia for at least 183 days, and at least 6 months out of this period, a person must be in the country permanently. At the same time, breaks should not be used for going to treatment and training.
Who is required to declare their income on their own?
And now let's look at the question of who, and in what cases, is obliged to independently submit income information to his department of the Federal Tax Service. So, the income tax return is filled out personally with the following categories of citizens:
- All individual entrepreneurs.
- All persons engaged in private legal practice.
- Individuals must report on remuneration received from tax agents.
- If you are selling any valuable property, then information about this must be provided to the Federal Tax Service.
- All individuals who won in lotteries or casinos.
- Heirs of writers, scientists, other persons engaged in mental work, according to the results of which royalties are paid to his descendants.
- In case of donation of money or property in especially large amounts, income tax is also paid.
Exceptions
Regardless of the actual length of stay in the country, the armed forces of the Russian Federation, as well as all employees of public services who work outside our state, are recognized as residents of our state.
What income categories are not taxed?
Some categories of profits do not impose duties on deductions for the benefit of the state. However, their number is relatively small:
- If income was received from the sale of property that has been in your property for more than three years.
- All cash and tangible assets received in succession.
- Funds that were received by an individual (on the basis of a gift agreement) from members of his family or closest relatives.
- Other income.
If you read carefully, you probably were struck by the fourth point. And really, what kind of income is recognized as “other” and is not subject to taxation? Alas, you will not find an sensible answer to this question even on the resource of the Federal Tax Service itself, and therefore the courts are littered with lawsuits from individuals who are suing tax officials just because of the unreasonably vague wording of domestic laws. Remember how hard any tax return is, especially its completion? Income tax is a real paradise for lawyers, as there are always a lot of cases in this area.
What is taxed?
As with enterprises, any comprehensive income is recognized as the tax base. If we are talking about residents of our country, then they can receive their income both from sources within the state, and from those located outside it. If an individual does not have the citizenship of the Russian Federation, only that income that a citizen receives from sources in our country is taxed.
By the way, when is the tax return filed? Income tax in the case of individuals is also paid at the end of the tax year. Submission of documents - no later than the 28th day.
Tax rates for “physicists”
Remember how we talked about some complexity in calculating the size of payments in relation to organizations? We take our words back, because for individuals there are just five (!) Interest rates. We will deal with each of them individually.
Tax rate at 9 %
This type of taxation (very gentle) can be used in the following cases:
- A fee with such a rate is taxed on income received in the form of dividends on deposits and securities.
- If you make a profit on mortgage-backed bonds issued before January 2007.
- If you are the founder of a trust management for mortgage deposits and loans. Again, such a profit tax calculation can only be used provided that participation certificates were issued before January 2007.
13% tax rate
This most standard contribution is most often used in relation to individuals who are tax residents of our state. For example, it is precisely these taxes that are set out in the income statement when you received income from the sale of any of your valuable property.
In addition, a rate of 13% is used in relation to those citizens who are not tax residents of our state. This happens in the following situations:
- If a foreign citizen carries out legal labor activity on the territory of the Russian Federation.
- The aforementioned category also includes the income of foreign citizens recognized as valuable specialists.
- When working, people who entered the state program to help compatriots abroad, having moved to a permanent place of residence in the Russian Federation.
- In addition, it is this interest rate that is used in relation to the income of people who constantly work on ships and aircraft, who spend most of their time in other countries.
When is the 15% and 30% rate applied?
There are few cases. Such tax is levied only on the income of those persons who receive dividends from domestic companies, but themselves are not tax residents of our country. For all other profits earned on the territory of the Russian Federation, income tax payments are made at a rate of 30%.
35% tax rate
Since this contribution is considered the maximum possible, it is applied only in strictly defined cases. Let's discuss them:
- Upon receipt of winnings on shares held for advertising purposes.
- If the yield of the deposit in the bank exceeds a certain indicator.
- In the event that the borrower received funds in an amount exceeding the “ceiling” established by the agreement, the surplus tax is levied at an increased rate.
- The same fee is established for agricultural partnerships that use the means of equity shares and attracted investments, and their sizes exceed the maximum established.
To summarize
In this article, we talked about what kind of income tax organizations pay and which individuals. We hope you find this information useful. Once again, we remind that changes to the Tax Code are constantly being introduced. We strongly recommend that before the end of the tax year visit the official website of the Federal Tax Service and get acquainted with all the news.
