In Art. 226 of the Tax Code of the Russian Federation, the specifics of calculating personal income tax by agents are determined, as well as the timing and procedure for paying it. This norm also defines the categories of obligated entities. Let us further consider in detail the provisions of Art. 226 of the Tax Code of the Russian Federation.
Basic Rules
According to paragraph 1 of Art. 226 of the Tax Code of the Russian Federation, Russian enterprises, their separate divisions, individual entrepreneurs, private lawyers and notaries, from whom, either as a result of relations with which the payer received income, are required to accrue, withhold and pay the amount of tax to the budget. When calculating, the rules of article 224 are taken into account. Personal income tax from the income of lawyers is charged, withheld and paid by legal consultations, bar associations and bureaus.
Terms
In paragraph 2 of Art. 226 of the Tax Code of the Russian Federation, it is established that the calculation of personal income tax is carried out in respect of all income of the payer, the source of which is a tax agent. There are exceptions to this rule. They relate to income from which withholding and payment is made according to the provisions of Articles 214.3-214.6, 228, 227, as well as Art. 226.1 of the Tax Code. The calculation as a general rule is carried out with the offset of tax amounts previously deducted to the budget. In the cases and in the manner established by Article 227.1, a decrease in the amount of fixed advances paid by the payer is also taken into account.
Features of the calculation
In paragraph 3 of Art. 226 of the Tax Code of the Russian Federation determines that the calculation of tax amounts is carried out by agents on the date of actual receipt of income by the payer. The calendar number is established in accordance with Article 223 of the Code. The calculation is made on an accrual basis from the beginning of the period with respect to all income to which the rate applies. It is established in paragraph one of Article 224 of the Code. The income accrued to the payer for the specified period is taken into account, while the amounts withheld in the previous months of the current reporting period are counted. An exception to the rule is income from equity participation in enterprises. Their calculation, as well as the calculation of tax amounts on income to which other rates apply, is made separately for each of them. At the same time, receipts from other agents and the personal income tax withheld by them are not taken into account.
Payment Specifics
In paragraph 4 of Art. 226 of the Tax Code of the Russian Federation establishes that agents should withhold the tax amount directly from the funds due to the payer, upon actual payment. In this case, a number of conditions must be taken into account. If the payment is made in kind or the payer receives income in the form of material benefits, the calculated amount is deducted from any income expressed in money. In this case, a restriction is established. Withholding personal income tax should not exceed 50% of the amount of cash income.
Exceptions
The provisions of paragraph four of Art. 226 of the Tax Code do not apply to agents who are credit institutions. The rules do not apply to withholding and payment of tax on income received by their customers as material benefits. It is determined by the 1st and 2nd sub. paragraph of the first 212th article of the Code. The exception is customers acting as employees of these credit institutions.
Agent Responsibilities
In paragraph 5 of Art. 226 of the Tax Code of the Russian Federation, the procedure for the subject's actions is determined if it is impossible to withhold the calculated personal income tax from the payer's income. In this case, the agent is obliged to inform the person receiving the income, as well as the tax inspectorate of the difficulties encountered. In accordance with paragraph 5 of Art. 226 of the Tax Code, the subject in the notification also indicates the amount that was not withheld. It also provides the amount of income from which no charge was made.
The notice provided for in paragraph 5 of Art. 226 of the Tax Code of the Russian Federation, shall be sent no later than March 1 of the year following the completed reporting period, within which obstacles appeared. The form of communication is approved by the executive body of the federal government, having the authority to exercise control in the field of taxation. The Code also establishes that agents that are Russian organizations that have separate divisions, companies included in the list of largest payers, as well as entrepreneurs registered at the address of their activities in connection with the application of the patent system or UTII, notify about the amounts of uncontrolled tax and the amount of relevant income under special rules (Articles 226, 230 of the Tax Code).
The timing
Paragraph 6 of Art. 226 of the Tax Code of the Russian Federation it is established that agents should transfer the amount of calculated and withheld personal income tax no later than the day following the date of payment of income. The subject can receive payment for temporary incapacity for work, including for the care of sick minors, and in the form of vacation pay. In these cases, in accordance with paragraph 6 of Art. 226 of the Tax Code of the Russian Federation, deductions to the budget are made no later than the last calendar day of the month within which the corresponding accruals were made.
Nuances
The total amount of tax calculated and withheld by the agent from the payer, for whom the former acts as a source of income, is paid to the budget at the address of the company’s registration (place of residence). This order is considered general. For some entities, special rules apply. So, Russian organizations that are indicated in the first paragraph of the commented article, having representative offices / branches, must transfer personal income tax to the budget both at the place of their location and at the location of each unit. In the latter case, the amount payable is determined by the amount of income subject to taxation, calculated and paid to employees, as well as according to the proceeds provided for under the terms of civil contracts drawn up with individuals on behalf of the main enterprise. Individual entrepreneurs registered at the place of business in connection with the use of the patent system or UTII, from the income of employees, must transfer the personal income tax amount to the budget at the accounting address.
Additionally
The total amount of personal income tax accrued and withheld from the income of the payer, amounting to more than 100 rubles, is transferred to the budget in accordance with the above rules. If the tax is less than 100 rubles, it is added to the deduction for the next month, but no later than the last month of the current period. It is not allowed to pay tax from agent funds. When drawing up contracts and transactions, it is forbidden to include clauses in the terms of agreements stipulating that the company accepts obligations to bear the costs associated with the deduction of personal income tax.
Comments
In practice, in most cases, the deduction of personal income tax is carried out not by the payers themselves (persons receiving income), but by agents (entities paying salaries, for example). As obligated persons under Art. 226 perform:
- Russian enterprises.
- Collegiums and bureaus, jur. consultation.
- Private lawyers and notaries.
- Individual entrepreneurs.
The law establishes that whenever these persons pay income to citizens, they are tax agents. This, in turn, means that they are required to accrue, withhold and direct the amount of personal income tax to the budget.
Special category of subjects
In some cases, individuals acting as a source of income are not agents and make personal income tax payments on their own (from their own funds). These entities include:
- Individual entrepreneurs deducting business income tax.
- Notaries and other private practitioners. They deduct tax on income derived from their work.
Individuals with receipts shall also deduct personal income tax on their own:
- Under civil law agreements concluded with other individuals who are not agents. For example, it could be a lease.
- From sources located outside the borders of the Russian Federation.
- From the sale of material assets owned by these persons.
- In the form of winnings paid by the organizers of sweepstakes, lotteries and other risk-based games (including the use of slot machines).
In addition, the duty to independently transfer personal income tax to the budget rests with payers whose income the agent was unable to withhold tax. Such a situation, for example, occurs when paid in kind. The above entities must submit a declaration to the tax authority located at their place of residence at the end of the reporting year.
Conclusion
The Code provides for the rules for determining, withholding and deducting personal income tax. Calculation of tax at a rate of 13% is carried out on an accrual basis. Calculation is carried out from the beginning of the period at the end of each month from all income falling under taxation. The law also provides for rates of 30, 9, 15 and 35%. Taxes on them are calculated separately for each income. Withholding is allowed only from cash actually paid to the entity. At the same time, income received by the payer from other sources is not taken into account. Accordingly, the taxes withheld by other entities are not taken into account in the calculation . Unnecessarily debited amounts must be returned by the agent to the payer upon his request. It is compiled in writing. Not withheld or partially written off taxes are collected by agents from individuals until the full repayment of the calculated amount. Terms for making transfers are provided for in paragraph six of the 226th article of the Tax Code.
Particular attention should be paid to the obligation to notify the supervisory authority of the impossibility of withholding from the income of the payer. In case of violation of the established requirements for the agent, sanctions may apply. The notification must indicate the amount of undue personal income tax, as well as the amount of income from which no debiting was made. The notice is also sent to the payer himself.