Article 11 of the Tax Code of the Russian Federation: institutions, concepts and terms

As article 11 of the Tax Code of the Russian Federation points out, the institutions, concepts and terms of family, civil and other branches of the legislation that are used to clarify issues related to the performance by their entities of payers and agents are applied in the sense in which they are interpreted in them. This rule is considered general. It is defined in paragraph 1 of Art. 11 of the Tax Code. For certain categories other provisions may be established. Further we consider in detail some categories that the norm clarifies.

Key Definitions

In paragraph 2 of Art. 11 of the Tax Code of the Russian Federation it is established that when explaining issues relating to the performance by entities of the duties of payers and agents, the following categories are used:

1. Organization. They are legal entities established under the current legislation of the Russian Federation, as well as foreign companies and other corporate associations endowed with civil legal capacity and formed in accordance with regulatory acts of foreign countries. Organizations also include international structures, their representative offices and branches.
2. Individuals They are citizens of the Russian Federation, foreigners and subjects without citizenship.
3. Individual entrepreneurs. They are individuals who have passed state registration in the prescribed manner and carry out economic activities without forming a legal entity. Heads of farm (peasant) households are also referred to IP.

Also in paragraph 2 of Art. 11 of the Tax Code of the Russian Federation states that individuals who carry out business without forming a legal entity and do not have the appropriate registration violate the requirements of the law. Such entities cannot invoke the fact that they are not IP.

Art. 11 of the Tax Code of the Russian Federation: institutions, concepts and terms associated with foreign entities

A foreign structure without a legal entity is recognized as an organizational form that is created according to the legislation of the corresponding state. It may be partnership, fund, partnership, trust and other types of trust management or collective investments. These structures operate in the interests of participants, shareholders and other persons or other beneficiaries. Article 11 of the Tax Code of the Russian Federation (paragraph 2) also defines foreign financial intermediaries. They are foreign stock exchanges and depository clearing organizations included in the list approved by the Central Bank in coordination with the Ministry of Finance.

Financial sphere

Art. 11 of the Tax Code of the Russian Federation (current version) gives the following definitions:

1. Bank - a commercial and other credit organization operating in accordance with the Central Bank license.
2. The source of payment of income is an individual or organization from which remuneration is received in cash or in another form.
3. Arrears - the amount of the fee / tax not deducted within the period established by law.

Registration

The legislation requires all entities engaged in economic activities to register with the control body. In Art. 11 of the Tax Code of the Russian Federation defines the certificate of registration. It is a document that confirms the entry of relevant information into the database of the Federal Tax Service. Registration is carried out at the location of a Russian company, international organization, at the address of a foreign company in the territory of the Russian Federation through a representative office or branch, as well as at the place of residence of an individual. In addition to evidence, the law provides for the issuance of a notice. It also confirms the fact of registration of the subject for certain reasons, with the exception of those for which a certificate is issued.

Nuance

If a citizen does not have a place of residence in the territory of the Russian Federation, it can be determined at his address. Accordingly, it recognizes the address where it is temporarily located: the name of the region, region, settlement, street, house and apartment number (if any). Moreover, at the place of stay, he must be registered in the prescribed manner.

Separate Division

Article 11 of the Tax Code of the Russian Federation (latest edition) determines that it is represented by a representative office or branch, geographically separated from the main company, at the location of which jobs of a stationary type have been created. Recognition of a subdivision as separate is carried out regardless of whether information on its formation is present in the constituent and other organizational and administrative documentation or not, as well as the powers vested in it. A place of work will be considered stationary if it is created for a period of more than a month.

Deflator coefficient

In accordance with Art. 11 of the Tax Code of the Russian Federation it is established annually for the next calendar period. The deflator coefficient is calculated by multiplying the indicator of the previous year by the amount of change in consumer prices for services, products, work. It is established, unless otherwise provided by law, by the federal executive body, which carries out regulatory regulation in the field of analysis and forecasting of social and economic development. In the calculation, statistical reporting data are used. Odds should be published in the official publication no later than November 20 of the year in which they are established.

Additionally

Article 11 of the Tax Code of the Russian Federation establishes that categories such as the payer, the object of taxation, the base, the reporting period and other specific categories of industry legislation are used in the meanings explained by the relevant norms. In the framework of relations that arise in connection with the collection of fees and duties when moving objects across the border, the definitions established in the legislation of the Customs Union and industry regulations of the Russian Federation, and in the unresolved part of them, are applied to the Tax Code.

Comments

In accordance with the general rule established by article 11, the Tax Code of the Russian Federation uses the definitions of other legislative acts with the interpretation in which they are given in these documents. For example, in Art. 38 contains explanations of categories such as services, products, work. However, the definition of advertising in the code is missing. In this regard, when applying it, it is necessary to rely on the corresponding Federal Law No. 38. The situation is similar with separate units, the definition of which is given by Article 11. The Tax Code does not clarify what a representative office or branch is. In this case, you should contact the Civil Code. In Art. 55 indicates that the representative office protects the interests of the main enterprise. The branch implements all its functions or a certain part of them. They include, among other things, a representative office. The legislator draws the attention of subjects that information about separate divisions must be included in the constituent documentation. However, under Art. 11 of the Tax Code of the Russian Federation, a subsidiary will be considered as such, even if its creation is not indicated in the local acts of the company.

Workplaces

In order to avoid an ambiguous interpretation of this provision, the norms establish certain signs of a separate division. As one of them, Art. 11 of the Tax Code indicates the availability of a stationary type of workplace. It must be adequately equipped to enable appropriate activities. The form in which the work is organized, the period of stay of a particular employee in the area of ​​his professional duties for registering a separate unit to the legal records will not be.This provision is confirmed by judicial practice. A place of work created for a period of more than a month is recognized as stationary. If the company operates in areas located at an address different from the organization’s address, regardless of whether they are located in the leased premises or at the property owned by the company, this work leads to the formation of a separate unit. Such an explanation is given in the letter of the Ministry of Finance.

Employment contract

TO the creation of a separate division, the definition of which is provided by Article 11 of the Tax Code of the Russian Federation, leads to the conclusion of a contract with a homeworker. In accordance with Art. 57 of the Labor Code as the mandatory conditions included in the labor contract are:

1. Place of business. In the case when an employee is hired to perform duties at a representative office or branch located in another territory, he is the address of a separate unit.
2. Date of commencement of activities.
3. Mode of operation.
4. Labor function.
5. The conditions that determine the nature of work in necessary cases.
6. The procedure for remuneration.

Home workers

As them in accordance with Art. 310 shopping malls are the entities that have concluded a contract to perform work at home using materials, mechanisms and tools provided by the employer or purchased by a citizen independently at his own expense. According to paragraph 1 of Art. 17 LCD, the living space is intended for living. However, the legislation allows its use for conducting business or professional activities by persons registered in it in the prescribed manner. Moreover, their work should not infringe on the interests of other entities, neighbors in particular. In addition, the dwelling must comply with the established sanitary, fire and other requirements.

Features of registration

The territorial branch of the Federal Tax Service at the location of the enterprise or at the address of its activities takes a decision in accordance with the documents submitted, on the basis of which the company operates outside its territory, including the contract concluded with the employee, on registering it. This situation occurs if the payer has difficulty determining the place of registration. The specified position is determined in paragraph 9 of Art. 83 Tax Code.

Meanwhile, the Ministry of Finance expressed the opinion that if the company does not create a place for work of a stationary type in order to fulfill professional duties by an employee, then there is no need to register with the department of the Federal Tax Service at the address of the activity. This conclusion also follows from the Labor Code and the Constitution. So, according to the Labor Code, a worker is a place where a citizen needs to arrive or where he must be in order to fulfill his duties. Moreover, according to the Labor Code, it is indirectly or directly under the control of the employer. The constitution, in turn, guarantees the inviolability of the home, as well as non-interference in private life. Thus, by virtue of Art. 24 and 25 of the Constitution of the Russian Federation, guaranteeing the inviolability of the home and non-interference in personal life, the home of the homeworker where he works, cannot be directly or indirectly controlled by the employer. The courts came to similar conclusions.

Normal changes

In accordance with the Federal Law No. 94 of Art. 11 was supplemented by a paragraph on deflator coefficients. They are established, unless otherwise specified by law, by the executive federal body implementing regulatory regulation, according to statistical reporting. At the same time, indicators should be published in the official publication, Rossiyskaya Gazeta. Odds are set for the coming year. So, for example, for 2015, by order of the Ministry of Economic Development, the following indicators were determined for applying the provisions:

1. Ch. 23 (personal income tax) - 1.307.
2. Ch. 26.2 (USN) - 1.147.
3. Ch.26.3 (UTII) - 1,798.
4. Ch. 26.5 (patent tax system) - 1,147.
5. Ch. 31 (property tax of individuals) - 1.147.

It is also necessary to mention the new definitions introduced in the norm. In particular, the following concepts are explained:

1. Foreign structure without the establishment of a legal entity. It recognizes an organizational form formed in accordance with the laws of the relevant state and having the right to carry out activities for profit in the interests of shareholders, participants, principals and other entities or other beneficiaries.
2. Foreign financial intermediary. They may be a foreign stock exchange, a depository clearing company. Moreover, they should be included in the list, which is agreed with the Ministry of Finance and approved by the Central Bank.
3. Public companies. They are domestic and foreign enterprises that act as issuers of securities that have passed the listing procedure and have been put into circulation either on one or several exchanges of the Russian Federation, operating in accordance with a license, or on sites listed on foreign financial intermediaries.

These amendments were introduced by Federal Law No. 376 in part 1 and part 2 of the Tax Code of the Russian Federation in terms of taxation of income of controlled foreign organizations and companies.