The tax agent submitted a personal income tax calculation to the tax authority, during which a desk audit revealed errors related to the calculation and payment of tax, as well as the fact that income tax amounts withheld from individuals were untimely transferred to the budget.
Result: the case was sent for a new trial to the appellate court, since the court did not evaluate all the companies’ arguments
The basis for
The decision was made based on the inspection's conclusion that, in violation of paragraph 1 of Article 210 of the Tax Code of the Russian Federation, the tax base in the income declaration of Form 3-NDFL for 2016 was underestimated, as a result of an incorrect calculation of the income received from the redemption of promissory notes of PJSC Sberbank of Russia.Result: having examined the case materials, analyzed the evidence and arguments collected in the case
Contested non-normative
a legal act was adopted by the tax authority based on the results of consideration of the materials of the on-site tax audit. The basis for the assessment of value added tax, penalties and the application of tax sanctions for incomplete payment of tax in the form of a fine was the conclusion of the tax authority that the Entrepreneur understated the tax base due to the failure to include in it income received from the rental of non-residential premises All judicial practice on this topic »Taxable income
Maintaining personal income tax certificates-2 and personal income tax cards-1
Tax deduction codes for personal income tax are needed by companies to fill out 2-NDFL certificates. In 2018, the tax deduction codes were adjusted: the standard deductions for children changed. The article contains a table with personal income tax deduction codes that are valid in 2018.
Tax deduction codes for personal income tax 2018, what are they?
Tax deduction codes are directly related to personal income tax. If an employee receives income at his place of work, the employer pays income tax on it. However, there are a number of deductions that allow you to reduce the tax base for personal income tax, as a result of which the amount of the tax itself is reduced.
There are different deductions, but the most familiar to most workers is the standard children's deduction. They are available to employees who have children under 18 years of age, or children of full-time students under 24 years of age. But these are not the only deductions.
There are also these:
- standard deductions for heroes of the Russian Federation, veterans, participants in the liquidation of the Chernobyl accident, disabled people and other categories of persons who have achieved achievements for the country;
- property;
- social;
- investment deductions;
- professional.
Since January, documents for personal income tax deductions have been updated. See what documents will now be needed in the article
To indicate in the 2-NDFL certificate what type of tax deduction was made in 2018, personal income tax deduction codes have been introduced. The deduction code in personal income tax certificate 2 is a three-digit number indicating a specific type of deduction.
Each such code corresponds to one specific deduction.
For example:
Code 126 indicates a standard tax deduction for the first child under 18 years of age (or a full-time student of any educational institution under 24 years of age) in the amount of 1,400 rubles. parents or adoptive parents.
Code 130 - if the same deduction is made to the child’s guardian or trustee.
Code 311 is already a property deduction for personal income tax. This deduction is made to an employee who purchased housing within the Russian Federation
Code 320 is a social deduction that is made to an employee who has paid for his training.
When filling out 2-NDFL, the accountant indicates the personal income tax deduction codes in section 4 of the document.
All codes are collected in a special table, where they are divided into sections, which will be discussed below.
Important! You cannot indicate in 2-NDFL the total amount of all deductions, even if they relate to one employee. For each deduction in 2018, a different code has been developed.
Tax deduction codes for personal income tax 2018 table with explanation
According to the Decree of the Government of the Russian Federation dated October 24, 2017 No. ММВ-7-11/820@, changes were made to the table of tax deduction codes.
Thus, from January 1, 2018, a new code 619 will be in effect. It means a tax deduction provided to an employee on the occasion of his receiving income from operations on an individual investment account.
The table itself has retained its appearance and structure. It consists of sections, each of which includes a group of personal income tax deduction codes related to a specific type. To make it easier to find the code you need, first familiarize yourself with the sections of the table. Then you won't have to flip through the whole thing.
|
Code group |
Section name |
|---|---|
|
Standard deductions for children (Article 218 of the Tax Code of the Russian Federation) |
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Investment deductions specified in Art. 214.1 Tax Code of the Russian Federation |
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Deductions for REPO transactions, Article 214.3 of the Tax Code of the Russian Federation |
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Investment deductions specified in Art. 214.4 Tax Code of the Russian Federation |
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Investment deductions specified in Art. 214.9 Tax Code of the Russian Federation |
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Property tax deductions regulated by Art. 220 Tax Code of the Russian Federation |
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Social deductions related to training, in accordance with paragraph 2, paragraph 1, article 219 of the Tax Code of the Russian Federation |
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Social deductions related to treatment and health insurance |
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Social deductions related to additional pension insurance, paragraphs 4 and 5, paragraph 1, article 219 of the Tax Code of the Russian Federation |
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Professional tax deductions specified in Article 221 of the Tax Code of the Russian Federation |
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Social deductions related to material assistance, gifts, prizes, Article 217 of the Tax Code of the Russian Federation |
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Tax deduction from dividends under Article 214 of the Tax Code of the Russian Federation |
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Investment deductions specified in Article 219.1 of the Tax Code of the Russian Federation |
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Other amounts that reduce the tax base in accordance with the provisions of Chapter 23 of the Tax Code of the Russian Federation |
Opposite each deduction code included in the table, a decoding is given. Here's what it looks like in the example:
Attention! If you have made a deduction for personal income tax, but cannot find the corresponding code for it in the table, put code 620 in the 2-NDFL 2018 certificate. Just check first with Chapter 23 of the Tax Code of the Russian Federation
It’s worth special mention about individual personal income tax deduction codes, in particular we are talking about personal income tax deduction codes for children in 2018, and some others.
Codes of standard tax deductions for personal income tax in 2018 for children, table
Back in 2017, the personal income tax deduction codes for children changed radically. The usual 114-122 were abolished, and 126-149 were introduced instead. This is due to the fact that the deduction amounts are now different for trustees, guardians, adoptive parents and parents. To separate these categories of citizens, a new series of standard child deduction codes was approved.
Draw your attention to! When you provide one parent (guardian, trustee) with several child deductions at once, enter each of them separately in 2-NDFL with its own code.
For example: code 130 – 1400 rubles for the guardian (for the first child); 131 – 1400 rubles for the guardian (for the second child).
Table of codes for children's personal income tax deductions in 2018 with explanation
|
Type of child deduction |
First child (1400 rubles) |
Second child (1400 rubles) |
Third and all subsequent children (3000 rubles) |
If the child is disabled (12,000 rubles) |
If the child is disabled (6000 rubles) |
|---|---|---|---|---|---|
|
Parents, parent's spouse and adoptive parent |
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|
Standard single |
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Double deduction if single parent |
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|
Adoptive parents, guardians, trustees |
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|
Standard single |
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Double deduction if the adoptive parent, guardian, or caregiver is single |
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Double deduction when the second spouse refused the deduction in favor of the first |
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Deduction code 620 in certificate 2-NDFL 2018, what is it?
Very often questions arise when indicating deduction code 620 in the 2-NDFL certificate. This is a universal code that serves as a lifeline for deductions that do not fit into the main existing codes.
Code 620 means “Other amounts that reduce the tax base in accordance with the provisions of Chapter 23 “Personal Income Tax.”
That is, it turns out that when deductions are not indicated in Appendix 2 to the order of the Federal Tax Service of Russia dated September 10, 2015 No. MMV-7-11/387 and in the Decree of the Government of the Russian Federation dated October 24, 2017 No. MMV-7-11/820@, the accountant can safely enter in the certificate 2-NDFL code 620. The Tax Code of the Russian Federation allows for such manipulations.
Will they be fined in 2018 for incorrectly entered personal income tax deduction code?
No matter how carefully they pay attention to the documents, no one has canceled the human factor, so there is a high risk that in 2-NDFL you will indicate the deduction code incorrectly.
Firstly, to prevent this from happening, carefully look at the table of personal income tax deduction codes with explanations presented above.
Secondly, if you make a mistake, the Federal Tax Service does not have a clear provision on fines in this situation, which means there is an opportunity to justify yourself.
However, for providing a 2-NDFL certificate with an error, in accordance with clause 1 of Article 126 of the Tax Code of the Russian Federation, you may be fined 500 rubles for each document.
Check the relevance of income and deduction codes for personal income tax in 2019. To fill out 2-NDFL, download tables with a breakdown of all income codes and deductions.
All employers are required to keep records of income and deductions provided to employees during the year. In this case, the company is a tax agent and is obliged to submit information about the income of employees in Form 2-NDFL to the tax office (clause 2 of Article 230 of the Tax Code of the Russian Federation).
2-NDFL for 2018 must be submitted to the tax office on a new form. It is different from the certificate that agents will issue to “physicists.” In the article we provide a sample of the new form.
2-NDFL certificates for 2018 must be submitted to the inspectorate no later than April 1, 2019. In cases where the tax agent cannot withhold tax from income paid, certificates must be submitted before March 1, 2019.
Employees can request a document at any time. Certificates must be filled out separately for each employee, coding all income and deductions in them with the appropriate codes.
Read on to learn how to work with codes when filling out 2-NDFL certificates. We will talk separately about income codes and deduction codes.
Personal income tax codes in 2019: decoding, table
Last year, the Federal Tax Service made changes to the codes (order dated October 24, 2017 No. ММВ-7-11/820@).
Codes have been added to the list:
- 2013 – compensation for vacation not taken;
- 2014 – amount of severance pay;
- 2301 – the amount of fines and penalties for non-compliance with consumer requirements in accordance with the Law of the Russian Federation dated 02/07/1992 No. 2300-1;
- 2611 – forgiven debt, which was written off from the balance sheet;
- 3021 – interest on outstanding bonds of Russian companies.
Children's personal income tax deduction codes: table
| Who can receive a deduction / Which child is counted | First | Second | Third and next child | Disabled person |
|---|---|---|---|---|
| The child’s mother and father, their spouses, adoptive parents | ||||
| One size | 126 | 127 | 128 | 129 |
| Double size | ||||
| - single parent | 134 | 136 | 138 | 140 |
| - one of the parents refused the deduction | 142 | 144 | 146 | 148 |
| Adoptive mom and dad, guardians, trustees | ||||
| One size | 130 | 131 | 132 | 133 |
| Double size | ||||
| - sole adoptive parent, guardian, trustee | 135 | 137 | 139 | 141 |
| - one of the guardians (adoptive parents) refused the deduction | 143 | 145 | 147 | 149 |
Tax officials interviewed explain that the changes were required in order to know for sure what amounts employees’ incomes consist of. Previously, such payments were coded in 2-NDFL certificates under code 4800 “Other income”.
Personal income tax deduction codes in 2019: explanation, table
For deductions, a new personal income tax code has been introduced since 2018 - 619. This code must be reflected in the certificate if there is a positive result from transactions on an individual investment account.
Please note that in the new certificate 2-NDFL
standard, social and property tax deductions are indicated in Section 3 of the form. Here you do not need to indicate deductions that the employee received independently by submitting the 3-NDFL declaration. Enter each deduction on a separate line.
Some local tax authorities promise that they will not fine a company if it confuses old codes with new ones. And yet, formally, certificates with errors are unreliable data. This means that inspectors can issue a fine of 500 rubles per document (Clause 1 of Article 126.1 of the Tax Code of the Russian Federation).
The Federal Tax Service has not yet given an official answer as to whether there will be fines for incorrect codes in 2-NDFL. Therefore, there is no need to completely eliminate risks. Although there are chances to avoid the fine.
Submit objections to the audit report to the tax authorities. The letter can be formatted in a free style; there are no approved forms. In the letter, explain to the tax authorities that the company transferred personal income tax to the budget on time, so there is no arrears. We can also say that due to incorrect codes in the certificate, the interests of the employees were not harmed.
Inspectors will accept objections to the act and will consider them along with all inspection materials. If they do not take your position into account and decide to fine you, then file a complaint with the Federal Tax Service. At this stage, the complaint will be reviewed by management specialists, and if they uphold the inspector’s decision, then the company has a chance in court. Most often, judges accept the position of the organizations; in fact, the error did not worsen the situation and did not lead to a liability to the budget. This means that the mistake is not so significant, the judges can cancel the fine or reduce it, even below the minimum limit.
If you do not intend to argue and spoil your relationship with the inspectors, then submit a clarification. In the “Adjustment number” field, write “01” for the initial clarification, “02” for the second, etc. Show the new date of adjustment, and specify and fill out the remaining details in the same way as for a regular certificate. There is no need to put a stamp on the document. The main thing is to certify the document with the signature of the director or other responsible employee. And send the reports to the inspectorate at the place of registration, otherwise there will be a fine. Tax officials believe that if a company submitted 2-NDFL to the wrong place, it means it has not fulfilled its obligation.
Income code - vacation pay has an individual 4-digit number - is required for affixing in the 2-NDFL certificate. Let's consider what it could be, whether it will change in 2019 and why vacation pay needs to be allocated as a separate code in the 2-NDFL certificate.
Why should vacation time be taken into account separately from basic earnings?
Vacation payments to an employee are one of the forms of social guarantees provided for in Art. 114 Labor Code of the Russian Federation. But they cannot be considered as wages, since during vacation the employee de facto does not work.
The difference between payments for time worked and for annual rest is significant, since they provide for different points for calculating the taxable base for personal income tax:
- earnings for days worked - the last day of the month of its accrual or the day of termination of the working relationship (clause 2 of Article 223 of the Tax Code of the Russian Federation);
- vacation pay - the day of the expense transaction for their payment (subclause 1, clause 1, article 223 of the Tax Code of the Russian Federation).
That is, the tax agent is obliged to calculate and withhold personal income tax at the time of payment of vacation pay, and he has the right to transfer the withheld amount to the budget until the last day of the month in which the payment was made.
This judgment was officially confirmed by the Russian Ministry of Finance in its letter dated January 17, 2017 No. 03-04-06/1618.
Thus, a separate reflection of the vacation pay code in the 2-NDFL certificate is required so that tax authorities can monitor compliance with the deadlines and amounts of tax transfers.
The current personal income tax code in 2019 for vacation pay and for its compensation
For a complete list of income codes in the 2-NDFL certificate, see the article "List of income codes in the 2-NDFL certificate (2012, 4800, etc.)"
What accrual period for vacation pay income code should be in the 2-NDFL certificate?
Another question that concerns an accountant in the “Salaries and Personnel” section is how to correctly calculate personal income tax for a time period, taking into account the employee’s tax deductions.
As you know, vacation is paid according to the average earnings for the entire vacation period at once. If in a situation where the vacation period falls within the framework of one month, everything is clear, then what to do with “rolling” vacations, the end date of which does not fall in the month when they were paid?
The answer to this question has been repeatedly given by both tax authorities and the Ministry of Finance, including in the letters that we mentioned earlier: regardless of the start and end dates of the vacation, the period for receiving income will be the month in which the vacation pay was actually paid.
Read about reducing the tax base for individuals.
Results
In the 2-NDFL certificate, payments to vacationers must be separated from wages and accounted for under a separate income code. This will allow you to comply with the requirements of tax legislation regarding the procedure for tax accounting and filling out reports.
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