Calculation of the amounts of income paid to foreign organizations || Tax calculation of the amounts of income paid to foreign organizations and taxes withheld

What payments to foreign organizations are included in the report?

How to determine other income of non-resident companies

Calculation of amounts of income paid to foreign organizations - form, deadline and procedure for submission

Calculation sections: where to start filling out tax accrual data

Section 3 structure

Section 3: Completion Procedure

Filling out section 2

How to fill out section 1 and title page

Results

What payments to foreign organizations are included in the report?

A Russian company becomes an income tax agent in case of payments to foreign companies:

• Interest and dividends on placed funds on repurchase transactions, securities, including municipal and state securities (subclause 1, clause 4, article 282 of the Tax Code of the Russian Federation, clause 6, article 282.1 of the Tax Code of the Russian Federation, clause 5, article 286 of the Tax Code of the Russian Federation, art. 310.1 Tax Code of the Russian Federation).
• Distributed profits (dividends) from participation in domestic organizations (clauses 1, 3 of Article 275 of the Tax Code of the Russian Federation).
• Income to a non-resident without a registered representative office in Russia related to (clause 1 of Article 309 of the Tax Code of the Russian Federation): intellectual property rights;
• sale of real estate and financial instruments (including property rights in the form of shares and shares of enterprises), consisting of more than 50% of it;
• real estate rental, leasing operations;
• levying penalties in connection with violation of contractual obligations;

For an example, see here.

• sale of shares in rental-type mutual funds or real estate funds;
• other income.

IMPORTANT! Clause 1 Art. 310 of the Tax Code of the Russian Federation states that only legal entities can act as fiscal agents for foreign corporations. This means that individual entrepreneurs are not required to withhold and remit tax, as well as submit calculations for the payment of remuneration to non-residents (letter of the Ministry of Finance dated March 27, 2012 No. 03-03-07/9).

Clause 2 art. 310 provides for the exemption of certain categories of payments to non-residents from withholding tax. In such cases, the Russian organization does not become an intermediary in the transfer of tax amounts and does not submit the corresponding reports.

Responsibility of the enterprise for failure to submit a calculation

For a number of reasons and problems that have arisen within the organization, a company may miss the deadline for submitting the calculation or not generate it at all.

• In the event that the tax agent does not present the reporting document on time, the tax office has every right to impose a fine provided for in the Tax Code. Its size is absolutely uncritical and amounts to 200 rubles. for each document received from the company on time.

In addition, such a violation also provides for administrative liability. Tax specialists will apply to the court, and the head of the company and other responsible officials will be prescribed an administrative fine of 300 to 500 rubles, which will have to be paid from personal income. This is stipulated in the Code of Administrative Offenses of the Russian Federation (clause 1, article 15.6).

• Many international agreements provide for the exemption of income paid to foreign companies from paying income taxes to the treasury. But in such situations, the company still remains a tax agent. Therefore, it cannot fail to submit to the tax authorities the calculations necessary to perform control functions. If you ignore submitting the document, a fine will inevitably follow, the amount of which is indicated above.

How to determine other income of non-resident companies

Tax legislation does not explain the composition of other income of non-resident organizations, which creates a certain ambiguity in the case of payments that are difficult to classify as one of the categories of paragraph 1 of Art. 309 of the Tax Code of the Russian Federation.

Over the past years, explanations from tax authorities and decisions of courts of various instances have formed two main judgments on this issue:

Due to the vagueness of the wording of the term “other similar income,” we recommend checking the practice of judicial proceedings in order to avoid a dispute with tax authorities about the legality of taxation of a particular foreign company.

For more information about the income included in the calculation, see the material “Tax agent for income tax when paying income to a foreign organization.”

Delivery methods

Calculation of income paid to foreign organizations can be submitted to the inspection:

• on paper (for example, through an authorized representative of the organization
  or by
  mail
  );

• in electronic form via telecommunication channels
  .
  If the average number of employees for the previous year (in newly created or reorganized organizations for the month of creation or reorganization) exceeds 100 people, then in the current year calculations can only be made in this way. This also applies to organizations that are classified as the largest taxpayers
  . They must submit tax reports electronically via telecommunications channels to interregional inspectorates for the largest taxpayers.

This is stated in paragraph 3 of Article 80 of the Tax Code of the Russian Federation.

Attention:

Tax liability is provided for failure to comply with the established method
of submitting tax reports in electronic form The fine is 200 rubles. for every violation. This is stated in Article 119.1 of the Tax Code of the Russian Federation.

Russian organizations that made payments to foreign companies without permanent representative offices in Russia are income tax agents (clause 1 of Article 289 of the Tax Code of the Russian Federation). The agent is obliged to withhold and remit tax on the taxable income of the foreign counterparty, although the agent himself may not even be a payer of income tax. The agent must report payments on a special form called Tax Calculation of Amounts Paid to Foreign Organizations for Income and Taxes Withheld. In the article we will tell you what kind of calculation this is, when it is due, and we will give an example of how to fill it out.

Calculation of amounts of income paid to foreign organizations - form, deadline and procedure for submission

The obligation to provide calculations of amounts paid to non-resident companies is enshrined in clause 4 of Art. 310 of the Tax Code of the Russian Federation and arises in the reporting period in which such payment was made.

The report is submitted at the place of registration of the Russian organization before the 28th day of the month following the end of the reporting quarter. When submitting annual reports, there is a deadline of March 28. If a company pays income tax using advance payments once a month, then the deadline for submitting the report is the 28th day of the month following the reporting month. You can submit the calculation to the Federal Tax Service both in paper and electronic form.

The form and procedure for filling out the calculation are regulated by the order of the Federal Tax Service of Russia “On approval of the calculation form for income paid to foreign companies and withheld taxes and the procedure for filling it out” dated 03/02/2016 No. ММВ-7-3/115 (hereinafter referred to as the Procedure for filling out).

Composition of the calculation

The calculation of the amounts of income paid to foreigners consists of:

• title page;
• Section 1 “The amount of corporate income tax payable to the budget for payments made for the last quarter (month) of the reporting (tax) period, according to the tax agent”;
• Section 2 “Amount of tax on income paid”;
• Section 3 “Calculation (information) on income paid to foreign organizations and taxes withheld.” This section, in turn, includes:
• subsection 3.1 “Information about the foreign organization - recipient of income”;
• subsection 3.2 “Information on income and calculation of the tax amount”;
• subsection 3.3 “Information about the person who has the actual right to income.”

It is worth paying special attention to section 3. It is filled out (with a unique number assigned) in relation to each foreign organization that is the recipient of income and separately in relation to each indicator on line 010 “Identification of the income recipient” of subsection 3.1 of each foreign organization. In addition, it is necessary to take into account that if in the last quarter/month of the reporting/tax period the tax agent did not pay the foreign organization the income to be reflected in section 3, only section 1 and section 2 are included in the calculation for this reporting/tax period (Letter Federal Tax Service of Russia dated April 13, 2016 No. SD-4-3/ [email protected] ).

Details about filling out the calculation can be found in the Procedure, approved. By Order of the Federal Tax Service dated March 2, 2016 N ММВ-7-3/ [email protected] (hereinafter referred to as the Procedure).

Calculation sections: where to start filling out tax accrual data

The report form includes a title page and three sections:

• the calculated amount of income tax to be paid;
• calculation of taxes on payments to non-residents;
• calculation of remuneration paid to non-resident companies and amounts of withheld tax.

The calculation must be completed on an accrual basis from January 1 of the next year. The currency of payment of remuneration is also the main one for filling out the report. In this case, amounts in Russian rubles are rounded to whole numbers, and amounts in foreign currency are left without rounding.

Since each subsequent section performs a decryption function for the previous one, the report should be filled out from the end. In this case, there is no need to fill out section 3 if non-residents did not receive payments during the reporting period (letter of the Federal Tax Service “On filling out tax calculations” dated 04/13/2016 No. SD-4-3/6435).

Deadlines for submitting calculations of amounts paid to foreign companies

If a Russian enterprise has amounts paid to foreign organizations, the deadline for submitting tax calculations for them depends on what period is recognized as the reporting period for income tax. This can be 1 quarter, half a year, 9 months and a year, but if the organization pays monthly

On the fulfillment of the obligation to provide information to the tax authority when paying income to foreign organizations from sources in the Russian Federation.

Question:

How to correctly prepare a tax calculation of the amounts of income paid to foreign organizations and taxes withheld. We received a notification from the tax office that we did not submit this calculation for 2020. Their notice states that we must provide information only on interest paid on the loan for 2020. But we paid the French organization income under the license agreement, under the technical/maintenance agreement and the service agreement. The tax office did not say anything about this. What should we do? Just do it by percentage?

We did not withhold or pay tax on the income of a foreign company; there is a Convention between the Russian Federation and France. Also a question about filling out the calculation: what income code should I put - payment of interest on the loan - 11? How to determine the code of the actual right to income - under the contract, % are paid monthly, the last day? A symbol of income? Do I need to fill out a separate section 3.2 for each month? Do we need to fill out section 1 in our case?

Answer:

no, you need to reflect all the income that needs to be reflected.

In your case, this is interest on the loan, license fees and payments for services for conducting seminars, since they were provided on the territory of the Russian Federation. Do not include maintenance, since the services were provided outside the Russian Federation.

Since the calculation is for 2020, it is submitted according to the old form, which has only 2 sections. In your case, section 1.

Interest income code - 04

For license fees - 05

For services in the Russian Federation - 18.

The type of income symbol is reflected in section 2 - when paying to banks. Questions about sections 3.2. and 1 are not relevant in your case, since they are in a new form.

Rationale

Section 3 structure

The number of sections 3 is determined based on all non-resident counterparties to whom payments were made, broken down by recipient (line code 010). If payments to the same counterparty refer to different codes, then fill out a separate section for each code.

For example, in the reporting period, a foreign company was paid by the Russian depositary a discount on securities and an amount on one of the grounds specified in clause 1 of Art. 309 NK. Section 3 for such a non-resident will be filled out twice.

The section contains 3 subsections:

If subsection 3.1 is filled in by recipient attribute codes, then subsection 3.2 should contain a breakdown by recipient number and for each case of transfer of funds.

What the law says

All tax agents are required, after the end of the established reporting period within which they made payments, to submit special calculations to the territorial offices of the tax authorities. The current procedure for drawing up is clearly regulated by Article 289 of the Tax Code of the Russian Federation.

The agent must provide information about the amounts that were paid to foreign organizations. Those persons who, in accordance with the law, may be subject to obligations to calculate or withhold taxes in favor of the budget of the Russian Federation may be recognized as actual agents. These same persons have the authority to prepare tax calculations.

Article 289. Tax return

In accordance with the provisions of Article 286, if the taxpayer is a foreign company that receives income from domestic sources on an ongoing basis, then the obligation to remit taxes can be imposed only on those companies that have a permanent establishment in the territory of the Russian Federation.

Article 286. Procedure for calculating tax and advance payments

The tax agent is responsible for determining the current tax amount after each payment.

Section 3: Completion Procedure

Subsection 3.1 reflects the identification data of the income recipient. The peculiarities of filling it out is the ability not to fill in the address of the organization (line 040) for banking structures if they have a SWIFT code. And in lines 050–080 you need to enter data only if it is provided by a non-resident.

Structure of section 3.2. provides for an unlimited number of blocks from lines 010–190 for entering data on each transfer of remuneration using the unique non-resident number assigned in subsection 3.1. In this case, line 030 “Income symbol” is filled in only when settlements with non-resident banks have taken place.

Line 040 “Amount of income” generally involves indicating the full amount of the payment. But in certain paragraphs 3 of Art. 280 of the Tax Code of the Russian Federation and paragraph 1 of Art. 268 of the Tax Code of the Russian Federation, in cases it must be reduced by the amount of regulated expenses confirmed by documents provided by the non-resident. If a specific remuneration is not subject to tax on any basis, then in line 070 “Tax rate” the symbolic designation “99.99” must be displayed, and lines 080–140 must be left blank.

The procedure for filling out the calculation provides for the submission of section 3.3 only if there is information that the beneficiary of the payment is a person other than the recipient.

Filling out section 2

Section 2 accumulates the data specified in Section 3, with the only exception: this section should not contain information about those payments for which the beneficiary is an individual.

The structure of Section 2 represents tax data on each remuneration, which must be reflected in a breakdown by income code from Appendix No. 2 to the Filling Out Procedure. In the case where the tax was not paid in the reporting period, but is payable or was paid in the future, you should pay attention to:

• if a foreign company received payment in Russian rubles, then the amount of tax on it is reflected in line 050 “Tax due at the end of the reporting period”, regardless of whether the tax was paid before the date of submission of the calculation;
• if payment is made in foreign currency, the amount of tax paid on the date of filing the tax calculation falls into line 050, and unpaid amounts should not appear either in line 050 of section 2 or in line 040 of section 1 (clauses 4.5 and 5.7 of the Filling Out Procedure).

Section 1

In section 1 of the calculation, reflect the amount of income tax due to be paid to the budget on income that was paid in the last quarter or month. Distribute these amounts according to budget classification codes. Do not include in section 1 information about paid income if an individual has the actual right to it (in line 020 of subsection 3.3 of section 3 the code “2” or “4” is indicated).

OKTMO and KBK codes

In the “OKTMO Code” field, indicate the code of the territory where the tax agent is registered. It can be determined in one of three ways. First: according to the All-Russian Classifier, approved by order of Rosstandart dated June 14, 2013 No. 159-st. Second: using the “Find out your OKTMO” service. And finally, the third way is to look at the website of the Federal Tax Service of Russia. Cross out the cells remaining empty.

On line 020, indicate the budget classification code (BCC) by which the tax agent must transfer the tax to the federal budget.

Payment deadline

The deadline for paying the income tax that the tax agent withheld from the income of a foreign organization is no later than the next working day after the payment of income (Article 246, paragraphs 2 and 4 of Article 287, paragraph 1 of Article 310, paragraph 6 of Art. 6.1 Tax Code of the Russian Federation). For each income payment and each BCC, indicate the amount of tax and the deadline for its payment in section 1 separately.

Amount of tax payable to the budget (in rubles)

Enter here the amount of tax to be paid to the budget in rubles. It happens that the tax agent did not remit the tax in the last quarter or month, since the deadline for payment fell on the next reporting (tax) period. In this case, the order in which line 040 will be filled out will be as follows.

If a foreign organization received income in rubles, still indicate the amount of tax withheld on line 040 of section 1 for the expired reporting (tax) period. If the income is paid in foreign currency, it is important whether the tax agent paid the tax before submitting the calculation to the inspectorate. If at this moment the tax is transferred to the budget, enter its amount in line 040 of section 1 for the expired reporting (tax) period. If the tax is not transferred, put dashes in line 040 of section 1 of the calculation for the expired reporting (tax) period.

How to fill out section 1 and title page

The first section of the report contains summarized data on the amounts of accrued tax, divided by BCC. The section structure allocates a block of four lines for each KBK. The organization submitting the calculation must fill out such a block for each payment of remuneration in accordance with section 3. Similar to section 2, data on payments of which the beneficiary is a private person will not be included here.

The title page displays the identification data of the tax agent, adjustment number, reporting period and year. Data about the reorganized enterprise (form and INN/KPP) are filled in only if there has been a reorganization of the tax agent.

Check the calculation before sending using the control ratios issued by the Federal Tax Service. Details here.

Title page

The title page is filled out by the tax agent, except for the section “To be filled out by a tax authority employee.”

When filling out the “Adjustment number” field, “0” is automatically entered in the primary calculation; in the updated calculation for the corresponding period, you must indicate the adjustment number (for example, “1”, “2”, etc.).

The “Reporting (tax) period (code)” field is filled in in accordance with the codes given in the directory. For example, when submitting a report for the first quarter, the code “21” is indicated, for January – “35”, etc.

The “Reporting year” field automatically indicates the year for the tax period for which the calculation is presented.

When filling out the “Submitted to the tax authority (code)” field, the code of the tax authority to which the calculation is submitted is reflected. It is selected from the directory. By default, the field is automatically filled with the code that was specified when the client registered in the system.

In the field “at location (accounting) (code)” you need to select where the calculation is submitted: if the calculation is submitted by an ordinary organization, then the code “214” is indicated, if the largest taxpayer, then “213”, etc.

In the “full name of the organization” field, the full name of the tax agent is indicated in accordance with the constituent documents.

Attention! The fields “Form of reorganization (liquidation) (code)” and “TIN/KPP of the reorganized organization” are filled in only by those organizations that are reorganized (liquidated) in the reporting period.

The “Contact telephone number” of the tax agent is indicated in a separate field.

When filling out the “On ____ pages” field, the number of pages on which the report is compiled is indicated. The field value is filled in automatically and recalculated when the composition of the calculation changes (adding/deleting sections).

When filling out the field “with supporting documents or their copies on ___ sheets”, the number of sheets of supporting documents and (or) their copies (if any) is reflected. Such documents may be: the original (or a certified copy) of a power of attorney confirming the authority of a representative of a tax agent (if the calculation is submitted by a representative of a tax agent), etc.

1- if the calculation is submitted by a tax agent,

2 – if the calculation is submitted by a representative of the tax agent. In this case, the name of the document confirming the authority of the representative is indicated and a copy of the specified document is attached.

Also, in the “I confirm the accuracy and completeness of the information” field, the date is automatically indicated.