Enterprises and individual entrepreneurs are required to submit income data for their employees to the Federal Tax Service Inspectorate every year. Information is provided for the past calendar year and have the form 2-NDFL.
In particular, it may be necessary to issue certificates of this form directly to the employee to provide it later at the place of demand. For example, to the bank during the loan processing procedure. It also provides for the use of 2-NDFL certificate deduction codes.
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Enterprises or individual entrepreneurs under the law are required to reflect only those employee incomes that they paid directly. The income paid to the employee in the 2-NDFL certificate is displayed with a specific code. Moreover, accounting is conducted for all income that the employee received at the enterprise, and if the employee received them at different rates, it will be necessary to fill out the appropriate section separately for each rate.
The tax service of the Russian Federation ordered the update of the tables and decryption of the codes of deductions and income. These codes should be used when filling out certificates in the current 2017 year. So, for example, 114 deduction code in the 2-NDFL certificate was changed. About it below.
Special attention is required at the time the amendments enter into force. The order began to operate at the end of 2016, namely on December 26. Thus, when issuing certificates for the last year, it is necessary to use updated codes. That is, a deduction code of 126 instead of 114 is already applied.
Correctness of filling in inquiries
Unfortunately, the Tax Code does not teach the correctness of filling out certificates, therefore, enterprises and individual entrepreneurs should be guided by the annexes to the order, the first of which contains a list and decryption of income codes, and the second - deduction and decryption codes for them.
It should be noted that the FTS for the first time revised the codes for the income statement from 2015. The deduction codes in the certificate 2-NDFL must affix all tax agents. Therefore, in this article we will consider in more detail what exactly has changed.
What has changed in revenue codes?
The bulk of the income codes did not change, but the value of some of them was updated. In particular, several new 2-NDFL codes were added. For example, two completely new codes have been introduced, which must be indicated in the certificates to many enterprises or individual entrepreneurs. In particular, in the 2-NDFL certificate, the deduction code 2002 is applied if the employee was given a bonus that is directly related to the production results and, in fact, is an integral part of the salary. About the deduction code 126 information will be presented later.
Code 2003 - to display the remuneration and bonuses paid at the expense of the net profit received by the enterprise.
The name has been changed for some of the new codes. For example, in codes 1532, 1533 and 1535, the whole essence of the change was reduced to eliminating the concept of futures transactions, and a clarification was made that financial instruments are derivative.
Code 1532 - reflects the income from operations related to financial instruments, namely, stock indices, securities or other instruments that are traded on the market. The deduction code 501 in the reference 2-PIT is often used. We will consider it below.
Code 1533 - income related to financial instruments not related to stock indices, securities or other instruments that are traded in the market.
Code 1535 - with various financial documents that are traded on the market, but these are not securities.
In the reference 2-NDFL, the deduction code 2641 - now has the following decoding: “Material gain obtained by purchasing various kinds of financial documents.
The increase in the "military" component
In addition to all this, the “military” component of the code 2000 was increased. To the taxable payments made by the military, the Tax Service, in addition to the monetary content, also added monetary allowance. It is now also not exempt from tax. This should be taken into account when filling out Form 2 – PIT.
Code 3010 has changed name. Previously, it looked like an article indicating income from wins paid by the organizers of sweepstakes, lotteries and other games at risk (including slot machines). Now it looks like "Income in the form of winnings that were received on the sweepstakes and the bookmaker."
The Federal Tax Service also removed several income codes from the list. The current list does not contain codes 2791 (reflection in the form of income of agricultural products issued to their employees by agricultural enterprises that used the Unified Agricultural Taxes) and 1543 (income from operations carried out on a personal investment account).
Introducing Revenue Codes
In parallel with this, new 2-personal income tax codes were introduced. The bulk are incomes that are generated from operations with financial instruments, for example, securities. It is worth noting that they took into account the cross-coefficient of their turnover in the common market.
In this article we will consider some of them, although the accountant should study the entire list in detail, since in 2017 the vast majority of individual entrepreneurs and organizations will have to use them in income statements.
Code 1544 - reflects the income of an individual from operations with various types of securities that are traded on the market and are recorded on an individual account.
Code 1545 - income from operations with various types of securities that are not traded on the market, but are accounted for on a personal investment account. In what cases is deduction code 403 applied in the certificate 2-NDFL? We will talk about this later.
Code 1547 - with various securities that are not traded on the market but are reflected in a personal investment account.
Code 1551 - income generated by interest on a loan received from repurchase transactions, while they are recorded on a personal investment account.
Code 1552 - reflects income formed by interest that was received in the tax period in the aggregate of loans and recorded on a personal investment account.
Code 1554 - income that was received during the exchange of securities that were transferred to repos and recorded on a personal investment account.
Changes regarding deduction codes
In this part of the Federal Tax Service made a little more amendments.
First of all, it should be noted that the service excluded from the list 114 the deduction code in the certificate 2-NDFL. Other codes were excluded. All deductions from 114-125 are no longer used. Instead of these items, range codes 126-149 were approved. We will consider their decoding in this article a little below.
The revision of these deductions was made in accordance with the Federal Law, which delimited the amount of deductions for children depending on their number:
- The size of the deduction for the first-born is one thousand four hundred rubles.
- The size of the deduction for the second child is one thousand four hundred rubles.
- The amount of deduction for the third (subsequent) child is three thousand rubles.
- The amount of deduction for a child with a disability group and a child under 24 years old is twelve thousand rubles. What does the deduction code 127 in the 2-NDFL certificate mean now? This question interests many.
There was also a separation of deduction codes for parents and for guardians, trustees and adoptive parents. This turned out to be necessary, since a parent receives a deduction of twelve thousand rubles for a disabled child, and a guardian or adoptive parent of six thousand.
Who are you supposed to?
It should be remembered that deductions are granted only to that category of workers whose income is taxed with income tax of 13%. In order to exercise the right to a tax deduction, an employee must draw up a written statement to which all necessary papers are attached (birth certificate). Accordingly, if the applicant has several children, then copies must be removed from all certificates (birth certificate of a child who had died by then or an adult child is no exception).
In certain situations, the employee must provide additional documents, such as evidence that the second parent has died if a deduction is made for a single parent; or a certificate confirming that the child is being educated if a tax deduction is made for an adult child, but undergoing training.
Classification of new codes
Consider the most popular deductions. They are divided into standard, social, investment, property.
So what are standard deductions? This range is 104-105, 126-149. The deduction code 105 in the 2-NDFL certificate is used quite often.
Codes 105 and 104 are considered personal deductions in the amount of five hundred rubles. and three thousand rubles, which are provided to those who have a lot of merits to the country (to combatants, liquidators of accidents at nuclear power plants, and holders of state awards). Codes 126-149 will be considered in detail at the end of the article.
Let's talk about property deductions (311-312).
What does deduction code 311 mean in the 2-NDFL certificate? This is the amount that the taxpayer spent in building his house.
To obtain a deduction, you can purchase land provided for private housing, and land with residential buildings on them. That is, 311 is the property deduction code in the 2-NDFL certificate.
Code 312 belongs to this category - deduction for interest paid for a mortgage on housing, which includes interest that is paid on mortgage lending.
Codes 320 through 328 relate to social deduction codes. These are the costs of training, treatment, insurance and contributions to the FIU.
- code 320 - deduction for the education of his or her underage brother or sister;
- code 321 - deduction for the education of their children under the age of majority;
- code 324 - deduction for their treatment or treatment of their children under the age of majority;
- code 325 - deduction for insurance premiums for yourself or your children;
- code 326 - deduction for treatment, which is expensive;
- deduction code 327 in certificate 2-NDFL - when the taxpayer pays pension contributions to the Non-State Pension Fund in the tax period;
- code 328 - deduction for funded contributions to the FIU.
Professional codes range from 403 to 405.
- deduction code 403 in the statement 2-NDFL is the sum of expenses incurred and confirmed by documents; they are directly related to the work and services of the GPA (civil contract);
- code 404 - deduction for royalties;
- code 405 - deduction for the cost of creating an author's work.
There are also codes for non-taxable income in the range from 501st to 510th.
- deduction code 501 in certificate 2-NDFL - the value of gifts received from individual entrepreneurs and organizations is taken into account here; but this also needs to be documented; code is used frequently;
- code 502 - deductions for gifts issued at work and prizes received at competitions;
- codes 503, 504 - deductions for material assistance for medicines;
- code 505 - deduction for prizes for participation in advertising campaigns;
- code 506 - deduction for material assistance to a disabled person;
- code 507 - deduction for material assistance to the participant of the Second World War;
- code 508 - deduction for financial assistance at the birth of a child;
- code 509 - deduction for income from products issued by the agricultural producer;
- code 510 - deduction for additional funded contributions to the FIU, which was paid by the employer.
Investment deductions are less popular, but also used. Mostly those people who are professionals in investment.Code 601 - income in the form of dividends.
Other amounts that reduce the tax base are also taken into account. This is the deduction code 620 in the certificate 2-NDFL.
New 200 range codes decreasing base
We draw attention to the fact that the codes of the range 205-207, as well as the codes 209, 210 and 220 reflect losses from operations with various securities with financial value. Accordingly, their names were updated.
Also, the Federal Tax Service approved several new codes. One of them is 208.
Code 208 - reflects the amount of losses from operations with instruments that are traded in the market; their underlying asset is also securities. The loss incurred by the indicated operations performed in the tax period is taken into account.
Code 221 — costs incurred as a result of operations on a personal investment account — is excluded from the list of deduction codes, however, a number of new ones have been added ranging from 225 to 241. These codes reflect deductions for actions with securities and other financial instruments, and differ from codes in references 2-NDFL 2016
Also, the Federal Tax Service introduced completely new types of deductions. These codes are in the range from 250th to 252nd and determine the deductions associated with the individual investment account and operations on it. It is in connection with these changes that code 617 (reflecting income from operations performed on a personal account) was removed from the list of income and deduction codes.
Codes 250-252 reflect the amount that can reduce the size of the tax base on the basis of the Tax Code.
Standard deduction codes and their interpretation
So, a new range of standard deductions for children. Let us consider in more detail the new codes and their decryption.
Deduction code 126 - reflects the deduction made on the first child who has not yet reached adulthood, also on children studying full-time, or graduate students, residents, interns, cadets who are under 24 years old. It is provided to the parent or his spouse, the adoptive parent, in the care of which this child. The deduction amount is 1400 rubles.
The deduction code 127 in the certificate 2-NDFL - reflects the deduction provided for the second child (minor), also for children studying full-time, or graduate students, residents, interns, cadets who are not 24 years old. It is provided to the parent or his spouse, the adoptive parent, in the care of which this child. Replaced the 115 deduction code in the certificate 2-PIT in the new year. The deduction amount is 1400 rubles.
Code 128 - reflects the deduction made on the third (and next) child under the age of majority, also on children under 24 years of age, if they are full-time students, study in residency, graduate school, internship or are cadets. It is provided to the parent or his spouse, the adoptive parent, in whose care the child is. The deduction will be 3000 rubles.
Code 129 - deduction for a child with a disability group, as well as for children under 24 years of age, if they are full-time students, study in residency, graduate school, internship or are cadets. It is provided to the parent or spouse of the parent, the adoptive parent, in whose care the child is. The deduction is 12,000 rubles.
Code 130, 131, 132, 133 - reflects the deduction provided for the first, second, third and subsequent minor child, for a child with a disability group, also for children under 24 years of age, if they are full-time students studying in residency, graduate school, internship or are cadets. It is provided to the adoptive parent, trustee, guardian, or spouse of the adoptive parent, guardian, trustee. The deduction code 126 is used much more often 130.
Code 134 - a double deduction for a first-born child who has not reached the age of majority, also for children under 24 years of age, if they are full-time students, study in residency, postgraduate study, internship or are cadets. Provided to the parent or adoptive parent, if he is the only one. The deduction is calculated in the amount of 2800 rubles.
Code 135 - a double deduction is made for the first-born child who has not reached the age of majority, also for children under 24 years of age, if they are full-time students, study in residency, graduate school, internship or are cadets. Provided to the foster parent (guardian or guardian), if he is the only one. The deduction amount is 2800 rubles.
Code 136 - reflects the deduction (double) for the second child (minor), also for children under 24 years old, if they are full-time students, study in residency, postgraduate study, internship or are cadets. It is provided to the parent (adoptive parent), if he is the only one. The deduction will be 2800 rubles.
Code 137 - reflects the deduction (double) for the second child, who is still a minor, also for children under 24 years of age, if they are full-time students, study in residency, graduate school, internship or are cadets. Provided to the foster parent, guardian or guardian, if one is the only one. The deduction is 2800 rubles.
Code 138 - double deduction for the third (next) child under the age of majority, also for children under 24 years of age, if they are full-time students, study in residency, graduate school, internship or are cadets. Provided to the parent or adoptive parent, if he is the only one. The deduction amount is 6000 rubles.
Code 139 - a double deduction for the third (and each subsequent) child who is a minor, also for children under 24 years of age, if they are full-time students studying in residency, graduate school, internship or are cadets. It is provided to the adoptive parent, trustee, if he is the only one. The deduction is 6,000 rubles.
This is not the whole interpretation of the deduction codes in the 2-NDFL certificate.
Codes 140 through 149 are double deductions provided for the first, second, third minor child, or having a disability group, also for children under 24 years of age, if they are full-time students studying in residency, graduate school, internship or are cadets. It is provided to the parent or adoptive parent (one to choose from) if there is an application from the second parent or parent, who is the adoptive parent, to refuse to file a tax deduction.
From this article we learned about the introduction of new tax deduction codes in the 2-NDFL certificate.