Compensation for a telephone to an employee, personal income tax

To quickly resolve production issues, enterprises need cellular communications more than ever. Like any type of expense, these must be clearly regulated for proper control and accounting. At the same time, we mean that compensation implies the return of part of the money to the employee for using his own phone for work purposes. In addition, the employee, on his own behalf, enters into an agreement with the cellular operator. If all these actions are undertaken by an organization, then this is already a corporate cellular communication. Then there is no need for compensation for cellular communications. In this article we will look at what compensation is provided for mobile communications for employees.

Compensation for mobile communications to employees: legislative framework

The validity of this expense item is stated in Article 164 of the Labor Code, which prescribes compensation in monetary terms for expenses that the employee incurred as a result of the work process. Article 188 of the Labor Code stipulates the following cases of additional payments to employees:

• for the use of personal property (in this case, a mobile phone);
• depreciation of this property.

Important! If the cost of a mobile phone is less than 40 thousand rubles, then depreciation is not charged on it, and the cost of the phone is written off at a time as the material costs of the enterprise.

Among other things, the enterprise must separately pay the costs for using cellular communications. Articles 41 and 45 of the Labor Code of the Russian Federation state that the collective agreement, as well as local regulatory acts, must describe in detail issues regarding this type of payment. Their size must be discussed bilaterally between the employee and the enterprise and included as a separate clause in the employment contract or additional agreement.

The legislation clearly defines the requirements for the economic justification for including such compensation in expense items. Otherwise, the company may be subject to administrative liability.

If the employer does not reimburse such expenses

The use of personal property of subordinates for work purposes involves the provision of compensation in accordance with Art. 188 Labor Code of the Russian Federation. At the same time, Article 235 of the labor legislation states that the employer is obliged to fully compensate for the damage caused (if any). The calculation of the amount of compensation is based on market prices prevailing in the region during the period of material damage. If the employee does not object, the employer may offer an in-kind form of compensation - repair or replacement of damaged property.

The procedure and period for compensation for telephone conversations must be determined and fixed by agreement of the parties. Information should be reflected in writing, for example, in an employment contract, additional agreement, etc.

If the employer does not agree to compensate for the costs associated with the use of a personal mobile tariff for the needs of the organization, then he must provide his subordinates with corporate communications. Failure to comply with the terms of the refund agreement can be appealed in court.

Justification for cellular expenses

In addition to documentary evidence of this type of cost, it must be economically justified. The tax legislation does not enshrine the concept of economic feasibility; there are no clear regulations on how to conduct one’s financial and economic activities. The taxpayer independently assesses the economic efficiency, necessity and rationality of reimbursing employees for cellular communications.

If, during an inspection, the tax authorities encounter controversial issues, then inspectors are more likely to rely on a subjective assessment of the enterprise’s economic activities. Organizations whose employees regularly go on business trips and work issues are primarily resolved over the phone will not raise doubts. To quickly resolve work issues, a landline connection (if there is one) may not be enough, therefore, when defending the inappropriateness of using an additional cellular connection, such an argument will not be enough.

If an organization clearly represents and can confirm the increase in income due to the use of cellular communications, the control tax authorities will not be able to make claims regarding this cost item. Otherwise, it may not be taken into account at all; as a result, the tax base of the enterprise will increase, and various penalties may be applied to it.

Answers to common questions about how cell phone compensation is paid

Question No. 1: Is compensation for mobile communications subject to personal income tax?

Answer: No, compensation payments to workers are not subject to personal income tax, but provided that the employer has set a limit on calls on a mobile phone.

Question No. 2: How to control that employees do not exceed the limits set by the employer for the use of mobile communications and do not believe that if they are exceeded, their rights are violated?

Answer: It is necessary to specify the rules for using mobile communications in the job description. Then, if the limits are exceeded, and compensation for mobile communications will partially come from the employee’s funds, he will not consider that his rights have been violated.

Documents to confirm expenses for cellular communications

Any item of expense must be documented, especially something as “intangible” as compensation for cellular communications. To legally account for the costs associated with its payment, the Ministry of Finance of the Russian Federation, in a letter dated July 27, 2006 No. 03-03-04/3/15, compiled the following list of necessary documentation.

BASIC: income tax

When calculating income tax, include the costs of paying for mobile communication services as other expenses (subclause 25, clause 1, article 264 of the Tax Code of the Russian Federation). At the same time, the organization must have documents confirming the production nature of telephone conversations. This is the requirement of paragraph 1 of Article 252 of the Tax Code of the Russian Federation.

Situation: what documents confirm the production nature of an employee’s conversations on a mobile phone? The organization independently entered into an agreement with a cellular operator.

The list of documents confirming the production nature of telephone conversations is not defined by law. Despite this, the courts are inclined to believe that the organization is obliged to prove the connection between the costs of paying for communication services and its production activities (see, for example, resolutions of the Federal Antimonopoly Service of the Moscow District dated January 19, 2009 No. KA-A40/12732-08, Western Siberian District dated May 4, 2005 No. F04-2733/2005 (10928-A27-40) and East Siberian District dated May 27, 2005 No. A58-1983/03-F02-2300/05-S1).

Controlling agencies recommend confirming the production nature of telephone conversations:

• contracts with a mobile operator for the provision of services;

• detailed accounts of mobile operators;

• job descriptions that state when performing what duties an employee can use mobile communications;

• orders of the head of the organization on approval of the list of employees who, due to the duties they perform, require mobile communications.

The listed documents are given in letters of the Ministry of Finance of Russia dated June 23, 2011 No. 03-03-06/1/378, dated June 5, 2008 No. 03-03-06/1/350, dated July 27, 2006 No. 03- 03-04/3/15. The above list is also referred to by some arbitration courts (see, for example, decisions of the FAS Moscow District dated September 2, 2008 No. KA-A40/8318-08, Volga District dated September 22, 2005 No. A65-23196/2004-CA1 -32).

Advice: there are arguments that allow organizations to take into account the costs of paying for mobile communication services for tax purposes without detailed invoices. They are as follows.

The Tax Code of the Russian Federation does not contain a list of mandatory documents that can be used to confirm expenses incurred. Moreover, the fact of expenses can be confirmed by any document, even indirectly indicating this (clause 1 of Article 252 of the Tax Code of the Russian Federation). Neither tax legislation, nor communications legislation, nor accounting legislation contain requirements for mandatory decoding of conversations made, receiving detailed invoices and drawing up a report on each call. In addition, the content of the negotiations constitutes a communication secret protected by law (Article 63 of the Law of July 7, 2003 No. 126-FZ). This means that the organization is not obliged to confirm the production nature of these expenses by detailing the accounts.

Thus, the organization has the right to justify the costs of paying for mobile communication services, in particular, by the concluded agreement with the mobile communication operator, payment documents, organizational and administrative documents of the head of the organization, etc. This conclusion is confirmed by judicial practice (see, for example, the definition of the Supreme Arbitration Court RF dated September 3, 2008 No. 11211/08, resolution of the Federal Antimonopoly Service of the West Siberian District dated July 2, 2008 No. F04-3910/2008(7317-A81-14), Moscow District dated June 3, 2009 No. KA-A40 /4697-09-2, dated February 24, 2009 No. KA-A40/12268-08, dated July 9, 2008 No. KA-A40/5861-08 and dated July 19, 2007 No. KA-A40/5441- 07, Ural District dated December 8, 2008 No. Ф09-9153/08-С3, Northwestern District dated January 15, 2009 No. A56-6560/2008, Volga District dated May 23, 2008 No. A55-10554/07 , dated May 16, 2008 No. A55-13148/07, Central District dated March 6, 2009 No. A35-4080/07-C8).

The tax inspector may ask who exactly and for what production purpose this or that employee spoke on a mobile phone. Therefore, prepare in advance additional information confirming the production nature of the negotiations. This could be contracts with counterparties, business correspondence, certificates on the status of mutual settlements, etc.

Tax inspectors have no right to demand reports on the content of telephone conversations (paragraph 8 of the letter of the Ministry of Taxes and Taxes of Russia dated May 22, 2000 No. VG-9-02/174).

Advice: in the internal documents of the organization, stipulate the obligation of employees to prepare reports on business calls made during the month using the provided mobile connection.

Such reports can be compiled based on transcripts provided by the telecom operator. The employee must justify each call indicated in the transcript. In this case, the tax inspectorate will not be able to accuse the organization of not confirming the production nature of the expenses.

If the organization uses the accrual method, then reduce the tax base as bills for payment for telecom operator services are presented or on the last day of the month (subclause 3, clause 7, article 272 of the Tax Code of the Russian Federation). If the organization uses the cash method, write off expenses only after they are actually paid to the operator (clause 3 of Article 273 of the Tax Code of the Russian Federation).

Do not take into account the cost of personal conversations between employees when calculating income tax (with the exception of cases when an employee compensates for the organization’s expenses for paying for his personal telephone conversations). They are not related to the activities of the organization and are not economically justified (see, for example, letter of the Federal Tax Service of Russia for Moscow dated October 19, 2005 No. 20-12/75319).

An example of how expenses for mobile communication services are reflected in accounting and taxation. The organization applies a general taxation system

In March, Alpha LLC entered into an agreement with a mobile operator for the provision of services on a 100% prepayment basis. The operator provided the organization with 2 subscriber numbers. By order of the head of Alpha, the following have the right to use mobile communications:

• Commercial Director;
• Chief Accountant.

The organization determines income and expenses using the accrual method. In March, Alpha transferred an advance payment of 5,000 rubles to the operator’s current account. In April, the operator issued an itemized invoice and invoice to the organization. The total cost of telephone conversations in April was 4,720 rubles. (including VAT - 720 rubles). Based on the decryption of the invoice, the organization’s accountant determined that the cost of personal telephone conversations amounted to 590 rubles. (including VAT - 90 rubles). Of them:

• for the commercial director - 236 rubles. (including VAT - 36 rubles);
• for the chief accountant - 354 rubles. (including VAT - 54 rubles).

Employees do not reimburse the cost of personal telephone conversations.

Alpha calculates contributions for insurance against accidents and occupational diseases at a rate of 0.2 percent. The organization charges insurance premiums for compulsory pension (social, medical) insurance at general rates.

The following entries were made in the organization's records.

In March:

Debit 60 subaccount “Settlements for advances issued” Credit 51 – 5000 rub. – prepayment for the provision of mobile communication services for April is listed.

In April:

Debit 26 Credit 60 – 3500 rub. (4720 rub. – 720 rub. – (590 rub. – 90 rub.)) – reflects the cost of office telephone conversations for April;

Debit 19 Credit 60 – 630 rub. (720 rub. – 90 rub.) – VAT on mobile communication services is taken into account;

Debit 68 subaccount “Calculations for VAT” Credit 19 – 630 rub. (720 rubles – 90 rubles) – accepted for deduction of VAT on the cost of business telephone conversations;

Debit 73 Credit 60 – 590 rub. – the cost of personal telephone conversations is reflected, which is not subject to reimbursement at the expense of employees;

Debit 19 Credit 73 – 90 rub. – VAT on mobile communication services is taken into account;

Debit 91-2 Credit 73 – 500 rub. – reflects the cost of personal telephone conversations that are not reimbursed by employees;

Debit 91-2 Credit 19 – 90 rub. – VAT is written off from the cost of personal telephone conversations;

Debit 60 Credit 60 subaccount “Settlements for advances issued” – 4720 rubles. – the prepayment amount has been credited;

Debit 70 Credit 68 subaccount “Personal Income Tax Payments” – 77 rubles. (RUB 590 × 13%) – personal income tax is charged on the cost of personal calls from employees;

Debit 91-2 Credit 69 subaccount “Settlements with the Pension Fund” – 129.80 rubles. (590 rubles × 22%) – pension contributions are accrued;

Debit 91-2 Credit 69 subaccount “Settlements with the Social Insurance Fund for social insurance contributions” – 17.11 rubles. (590 rubles × 2.9%) – social insurance contributions in case of temporary disability and in connection with maternity in the Federal Social Insurance Fund of Russia are calculated from the cost of personal negotiations of employees;

Debit 91-2 Credit 69 subaccount “Settlements with FFOMS” – 30.09 rubles. (590 rubles × 5.1%) – contributions for health insurance to the Federal Compulsory Medical Insurance Fund are calculated from the cost of personal conversations between employees;

Debit 91-2 Credit 69 subaccount “Settlements with the Social Insurance Fund for contributions to insurance against accidents and occupational diseases” - 1.18 rubles. (590 rubles × 0.2%) – contributions for insurance against accidents and occupational diseases are calculated from the cost of personal conversations between employees.

When calculating profit tax for April, Alpha’s accountant included 3,677 rubles in other expenses. (4000 rub. – (590 rub. – 90 rub.) + 177 rub.). The accounting reflects a permanent tax liability:

Debit 99 subaccount “Continuous tax liabilities” Credit 68 subaccount “Calculations for income tax” - 118 rubles. (RUB 590 × 20%) – reflects a permanent tax liability for expenses that do not reduce taxable profit.

Unspent advance amount of 280 rubles. (5000 rubles - 4720 rubles) is counted towards payment for mobile communication services in the next month.

Renting a mobile phone from an employee

Renting a personal mobile device from an employee is a fairly common practice. This kind of relationship can be documented in two ways:

• conclude a rental agreement for a mobile device (Articles 606-625 of the Civil Code of the Russian Federation), in which it is necessary to specify the rental period, as well as the amount and terms of payment. You can avoid additional red tape with the execution of the contract and write down all these points in the employment contract or additional agreement;
• conclude an agreement for the free use of the employee’s property (in this case, a mobile phone) and/or assign an amount of compensation for this use.

Her calculation

Clarifying the amount of payment to a subordinate who uses personal mobile communications for work purposes requires negotiations, the result of which should be the exact amount of compensation. The final point is to reflect the agreement reached in the employment contract or additional agreement.

If the use of personal communication for work purposes is not an isolated case for the organization, then it is more appropriate to reflect the procedure for calculating and providing compensation in the collective agreement. To ensure control and prevention of violations by employees, the manager must include in the job description information about the monthly mobile communication limit and the possible consequences of overspending.

Compensation payments can be calculated and transferred only after the issuance of an appropriate order stating the amount, timing and procedure for provision. As a sign of familiarization, the subordinate must sign.

• How to determine the exact amount of compensation due? If an employee uses an unlimited tariff with a fixed payment, then the employer can transfer exactly this amount to him monthly. More appropriate for organizations is per-second billing and reduced cost of long-distance calls.
• The next calculation and payment option requires regular provision of a detailed report on calls and the cost of each. In this case, the accountant first determines the duration of the actual time spoken, and then transfers the due amount of compensation.

If the organization has established a monthly limit, then each subordinate should be aware of this, since excess expenses will have to be paid independently.

Order on compensation for mobile communications to employees

Telecom operator account details

The details of the invoice by the telecom operator is a real document, on the basis of which one can judge how much the employee actually said, and for what he should actually be compensated. However, no one can legally oblige you to provide this document.

The issue remains controversial due to different opinions:

• The Ministry of Finance, together with the Tax authorities, advocates for the inclusion of detail in the mandatory list of documents;
• Some arbitration courts say there is no need for this document when determining the feasibility of including compensation for the use of cellular communications in the cost price.

How is mobile compensation calculated?

If an employee uses a personal mobile phone for business purposes and uses an unlimited communication service, the employer pays him a fixed amount of compensation every month.

Unlimited tariffs are not profitable for company owners, since they involve making calls exclusively within the region of residence of the service user. If the employer needs the employee to call clients or partners in other cities, he will have to incur additional costs. Therefore, it is advisable for employers to choose tariffs with per-second billing and low prices for long-distance communication.

The most common way to reimburse expenses for cellular communications is to pay for the actual paid time for mobile communication according to the tariffs of the telecom operator. To do this, the employer requires the employee to provide him with a report at the end of each month detailing the calls made by the employee and their cost.

Is compensation subject to personal income tax and contributions?

Compensation for the use of cellular communications for work purposes is not subject to:

• personal income tax;
• contributions for compulsory health insurance;
• accident insurance contributions.

There is an omission here that personal calls were not taken into account for expenses. If there was a use of a cell phone (SIM card) in addition to the work process for personal purposes, the amount of compensation that falls on the time when the employee made personal calls should be subject to personal income tax.

Things are different when a lease agreement for a personal mobile phone is concluded. The amount of rental payments will be subject to personal income tax, since it is additional income for the employee.

Example! The company entered into a rental agreement for a mobile device with an employee. The amount of monthly rental payments is 500 rubles. The contract specifies a fixed amount of compensation for the use of cellular communications - 1,500 rubles. In this case, 500 rubles will be subject to personal income tax (13%) and the tax amount will be 65 rubles. Transfers to insurance funds are also made from it.

What documents confirm mobile communications expenses?

In order for an employee to guarantee reimbursement for mobile communications costs, it is necessary to ensure that all the documents listed below are available. Otherwise, the employer will have the right to refuse payment, and the law will be on his side. The following documents will be needed:

• an employment contract, which states the employer’s obligation to compensate the employee’s expenses for cellular communications (or an annex to the employment contract - this makes it easier to change the conditions for making payments in the future if the cost of mobile operator services changes);
• an order from the employee’s superiors on mandatory reimbursement of the employee’s expenses for mobile communications;
• an agreement with a mobile operator for the provision of communication services;
• details of calls from the servicing mobile operator;
• a statement by the employee that he has incurred certain expenses for mobile communications for business purposes;
• employee report on all calls from a mobile phone (you must provide information about the interlocutor, the time the call was made, its duration and cost).

Reflection of expenses in accounting documentation

An accountant includes certain expenses in cost items only if they were aimed at making a profit. Otherwise, the tax authorities will exclude them from the cost price.

Compensation for cellular communications assumes that the contract with the operator is concluded in the name of the employee. Thus, he pays for communication, submits the relevant documents to the employer, and he reimburses him for the money spent.

Regardless of the tax regime, compensation for cellular communications is reflected in tax accounting as payment for communication services.

The following accounting entry corresponds:

These costs will be included in the cost price. If the organization does not pay VAT. Otherwise, compensation for cellular communications cannot be accepted for consideration due to the lack of an invoice from the cellular operator to a specific organization.

Organizational expenses for the purchase of mobile phones

To provide employees with mobile communications, an organization can not only compensate them for telephone calls, but also independently enter into a contract with a cellular operator.

The procedure for concluding contracts for the provision of mobile communication services is defined in Section II of the Rules, approved by Decree of the Government of the Russian Federation of May 25, 2005 No. 328.

Under the agreement, the mobile operator provides the organization with a certain number of subscriber numbers (SIM cards) and periodically issues invoices for the payment of calls.

"Glavbukh" advises

To control the expenditure of funds, it is advisable to develop rules for the use of company mobile phones.

In them you can set: – a limit on expenses for business telephone conversations; – prohibition on conducting personal telephone conversations;

– procedure for reimbursement of expenses for personal negotiations, etc.

Based on these rules, an organization can qualify personal negotiations as causing material damage and withhold the corresponding amounts from employees (Article 232 of the Labor Code of the Russian Federation).

When issuing SIM cards, employees must be familiarized with these rules upon signature.

Debit 20 (23, 25, 26, 29, 44...) Credit 60 – reflects the cost of mobile communication services (based on documents presented by the telecom operator).

An organization can pay with a telecom operator in cash or using express payment cards (clauses 43 and 44 of the Rules approved by Decree of the Government of the Russian Federation of May 25, 2005 No. 328).

Debit 60 Credit 51 – paid for mobile communication services.

Situation: how to reflect settlements with a mobile operator using an express payment card in accounting

As a rule, such cards are purchased by an employee who enjoys the right to use mobile communications.

Debit 71 Credit 50 – an advance was issued for the purchase of an express payment card (based on a cash receipt order).

Debit 60 Credit 71 – paid for the services of the mobile operator (for the amount of the nominal value of the card);

Debit 20 (23, 25, 26, 29, 44...) Credit 71 – expenses associated with the purchase of an express payment card are reflected (the difference between the real and nominal value of the card).

An example of reflecting settlements with a mobile operator using express payment cards in accounting

In March, Kondratiev was on a business trip. To carry out urgent telephone conversations, he purchased an express payment card for mobile communication services. The nominal value of the card is 500 rubles. When purchasing it, Kondratyev paid the seller 520 rubles.

Upon returning from a business trip, he attached the used card and a cash receipt in the amount of 520 rubles to the advance report.

Debit 60 Credit 71– 500 rub. – paid for the services of a mobile operator;

Debit 26Credit 71–20 rub. – expenses associated with the purchase of an express payment card are reflected;

Debit 71Credit 50–520 rub. – the employee is reimbursed for the overexpenditure according to the advance report.

Debit 91-2 Credit 60 – reflects the cost of personal telephone conversations that are not reimbursed by employees.

Debit 73 Credit 60 – reflects the cost of personal telephone conversations, subject to reimbursement at the expense of employees.

The cost of personal negotiations not reimbursed by employees is their income in kind (subclause 1, clause 2, article 211 of the Tax Code of the Russian Federation).

Withhold the tax amount when paying any sums of money to an employee (clause 4 of Article 226 of the Tax Code of the Russian Federation).

The procedure for calculating other taxes and contributions depends on what taxation system the organization uses.

The organization applies a general taxation system

When calculating income tax, include the costs of paying for mobile communication services as other expenses (subclause 25, clause 1, article 264 of the Tax Code of the Russian Federation).

This is the requirement of paragraph 1 of Article 252 of the Tax Code of the Russian Federation.

Situation: what documents confirm the production nature of an employee’s conversations on a mobile phone. The organization independently entered into an agreement with a cellular operator

The list of documents confirming the production nature of telephone conversations is not defined by law.

Despite this, the courts are inclined to believe that the organization is obliged to prove the connection between the costs of paying for communication services and its production activities (see, for example, resolutions of the Federal Antimonopoly Service of the Moscow District dated January 19, 2009 No.

No. KA-A40/12732-08, West Siberian District dated May 4, 2005 No. F04-2733/2005(10928-A27-40) and East Siberian District dated May 27, 2005 No. A58-1983/03- F02-2300/05-S1).

– by orders of the head of the organization on approval of the list of employees who, due to the duties they perform, require mobile communications.

After purchasing mobile phones for the needs of the organization, the accounting department must record expenses in the manner prescribed by law, taking into account that the cost of the purchased products will gradually decrease. Accounting must record expenses that are aimed at purchasing cell phones and SIM cards for them, according to article PBU 6/01.

We invite you to familiarize yourself with: Donation agreement with encumbrance (sample)

At the same time, they can be attributed to either ordinary or other expenses on the organization’s balance sheet. The purchase algorithm for the organization’s account will also depend on its cost. For example, phones whose price is over 40,000 rubles. will be classified as fixed assets. Therefore, in this case, depreciation charges will be charged on them, which should cover all the costs of maintaining the phones in working condition.

To confirm the basis for compensation, which relates to all expenses for the use of mobile communications, the head of the enterprise must perform a number of actions:

• approve by local act the list of positions that require the operational use of mobile communications;
• develop rules for using corporate mobile communications.

Moreover, such acts can be included as annexes in the collective agreement.