Payment for another legal entity: how to apply, sample

The supplier of the company requested that the payment for the consignment be transferred not to his current account, but to his landlord. He explains this by saying that he must pay off the lease debt, but today he does not have free funds. Can a company in such a situation pay for another legal entity? Yes, such a request is not unusual today. Indeed, the legislation allows business entities to pay their obligations not only directly. It is quite possible that another organization will transfer funds for the debtor.

Legal basis

The right of the debtor to transfer obligations to pay for it to a third party is provided for by the Civil Code. This is stated in article 313. A reservation was made right there that this is lawful if any other laws or conditions of a paid obligation do not require the debtor to execute them strictly independently. Such conditions, for example, may be included in the contract. But most often there are no obstacles to attracting a third party to pay.

How safe is it in terms of audits of the paying organization? Will inspectors of the Federal Tax Service Inspectorate have claims that the company paid for another legal entity? Practice shows that with competent execution of the operation, the questions of the inspectors usually do not exist. And if they arise, they are very quickly “closed” with supporting documents.

How to make a payment for another legal entity?

The legislation did not provide for any special form or type of document that would draw up the considered settlement procedure. However, it requires an agreement between the parties. To do this, the company whose obligations will be paid must send a letter to the head of that organization (or to the entrepreneur), which, at his request, will make the payment.

The letter is compiled in free form, however, it is mandatory to include the following data:

• name of three persons:
  • the debtor for whom payment will be made;
  • payer (i.e. the addressee of the letter);
  • the person who receives the money (the creditor of the debtor);
• name of the obligation to be paid by the payer;
• payment parameters: amount, purpose, details for the transfer.

It is recommended that the company that makes up the specified letter describe all circumstances and parameters in as much detail as possible. And the addressee of the letter, that is, the payer organization, should get its original.

So, the main document for making payment for another legal entity is a letter, a sample of which is shown in the following image.

Reflection in tax accounting at the payer

The company paid for the obligations of its counterparty, and now this operation must be reflected in accounting. First, consider whether this will have any tax consequences for the payer.

If the company is located on DOS, then in some cases it may accept VAT from the transferred amount. The operation will not entail other tax consequences. To offset the VAT, the following conditions must be met:

• the company transferred funds for its supplier in advance;
• the contract, on the basis of which the company and the supplier conduct business, contains an advance condition;
• the supplier instructed to pay for its obligations (the letter mentioned above) and issued an invoice;
• there is a payment document on the transfer of funds to the counterparty creditor.

For the payer who applies the simplified tax system, the accounting of the transaction will depend on the nature of the payment.If he had a debt to the person for whom he paid for the delivered goods or services, then he will be considered repaid (in full or in part). In the event that the payer took a loan from his counterparty at interest, they can be written off to expenses within the transferred amount.

Payer Accounting Operation

How to reflect in the accounting payment for another legal entity? Postings will depend on how the payment is credited. The most common situations are:

• Payment for your supplier: Dt 60 - Kt 51;
• payment for the person who took the loan: Dt 66 (67) - Kt 51;
• payment for a “friendly” company that is not a counterparty (for example, both organizations belong to the same person): Dt 76 - Kt 51.

Tax payments

You can pay for another person not only for obligations that arose under his contract with counterparties. Recently, tax and other mandatory payments can be transferred in the same way. Previously, the tax service considered this option unacceptable - the taxpayer was required to pay his own taxes. An exception was made only in very rare cases, for example, his successor could pay taxes for a reorganized person.

However, at the end of 2016, the Tax Code was amended to cancel this rule. So paying tax for another legal entity in 2017 is quite commonplace. Thus, it is possible to pay tax payments, insurance premiums, state duty, both current charges and debts for past periods.

Who can pay taxes for whom?

The law today does not establish any restrictions on who and under what conditions can pay tax for another person. The taxes of the company can be paid by any other organization, entrepreneur or just an individual.

New rules make it possible to avoid sanctions for late payment of mandatory payments. For example, today is the last day of tax payment, and the company does not have enough funds in its accounts. A year ago, such circumstances would lead to the fact that she would have to pay late fees. Now, anyone can fulfill the obligation of the company, for example, the director from his personal account.

How to fill out a payment order?

Filling out a document for paying tax for another legal entity has several features:

• in the payer field, indicate the name of the organization (or the name of the individual) that makes the payment;
• in the fields “Payer's TIN” and PPC indicate the details of the organization for which tax is paid;
• in the field “Purpose of payment” you should first indicate the payer's TIN and PPC (if any), and then through two slashes (//) the name of the organization for which payment is made, tax name, period, type of payment and other important data;
• in the field "101" the code "01" is put down - this means that the person for whom payment is made is legal.

An example of how to fill out a “payment order” to pay for another legal entity his taxes is shown in the following image.

In the above example, an individual K.I.

To summarize

So, payment of a third-party obligation is a completely normal and safe operation. It does not entail any negative consequences either for the payer or for the one for whom he pays. It does not matter if the payer and the debtor are in a contractual relationship or not. However, this is very convenient, since it allows you to avoid unnecessary operations, delays in the performance of obligations and related troubles. Thus, it is possible to pay not only under contracts with contractors, but also pay taxes.