Income tax payers. Object of taxation. The object of taxation for corporate income tax is profit. Organizational income tax in brief
Income tax is one of the mandatory OSNO taxes for legal entities (including foreign ones). IP, in turn, pay personal income tax (in more detail). Income tax is a federal tax, the amount of which directly depends on the financial activities of the organization (its profit).
Who is exempt from paying income tax
The following are exempt from income tax:
- Organizations that apply special tax regimes (STS, UTII, Unified Agricultural Tax), as well as pay taxes on the gambling business.
- Participants of the Skolkovo Innovation Center project.
- A number of foreign and international organizations (listed in clause 4 of Article 246 of the Tax Code of the Russian Federation).
- Organizations that meet certain conditions, subject to which the income received is subject to a zero rate, for example, conducting educational or medical activities (the list of income for which a 0% rate can be applied is established by Articles 284, 284.1, 284.3 of the Tax Code of the Russian Federation).
Object of corporate income tax
The object of taxation is the organization’s profit received at the end of the reporting (tax) period.
Note: Profit is the difference between income received and expenses incurred.
Income for income tax purposes
- Revenues from sales (revenue from the sale of goods, works and services, property rights).
- Non-operating income (other income not related to sales income). A complete list of non-operating income is given in Art. 249 of the Tax Code of the Russian Federation.
Note: the list of income not taken into account when calculating tax is given in Art. 251 Tax Code of the Russian Federation. This list is closed and, if some income is not indicated in it, they must be taken into account when calculating tax.
Expenses for income tax purposes
- Sales expenses.
- Non-operating expenses.
Sales costs, in turn, are divided into direct and indirect.
Direct expenses are taken into account as goods are sold in the cost of which they are taken into account (depreciation expenses, wages to employees involved in the production of goods, works and services, material expenses).
Indirect costs are taken into account in the period in which they were produced. These include all other expenses, except direct and non-operating expenses.
Note: the list of expenses not taken into account when calculating tax is given in Art. 270 Tax Code of the Russian Federation. This list is closed; the expenses listed in it cannot under any circumstances reduce the organization’s income.
note, in order to accept expenses to reduce income tax, they must be documented, justified and aimed at generating income. If at least one of the conditions is not met, the organization will be denied recognition of expenses.
Note: very often tax authorities question the validity of declared expenses due to unscrupulous counterparties. You can read in detail about checking counterparties.
Methods of accounting for income and expenses
The procedure for accounting for income and expenses in a particular period is determined by two methods:
- Accrual method. Income and expenses are recognized in the period in which they were incurred, regardless of the date of payment and receipt of funds.
- Cash method. Income and expenses are recognized in the period in which expenses were paid or funds (property, property rights) were received. Organizations can apply this method provided that for the four previous quarters, revenue did not exceed one million for each quarter (in the amount of 4 million rubles for 4 quarters).
Note: an organization can use only one of the specified methods; combination (for example, one method for income and another for expenses) is not allowed.
More details about the methods of accounting for income and expenses for income tax can be found in Art. 271-273 Tax Code of the Russian Federation.
Calculation of corporate income tax
Corporate income tax is calculated in the following form:
Tax payable to the budget = Tax base x Tax rate – Advance payments – Trade tax
The tax base
The income tax base is determined as the difference between income and expenses (profit). If expenses exceed income, the base is recognized as zero. And no tax is paid to the budget.
note, profit is determined by the cumulative total from the beginning of the year.
Note: if profits are taxed at different rates, then the tax base is calculated separately for each rate.
If an organization has a loss to be carried forward, it also reduces the tax base.
Tax rate
Basic rate – 20% . The tax paid at this rate is distributed to budgets in the following proportions:
- 3% - to the federal budget.
- 17% goes to the budget of a constituent entity of the Russian Federation.
Special tax rates
| Tax rate | Type of income |
|---|---|
| 30% | Income from the turnover of securities (except for dividend income) recorded in securities accounts in case of violation of the procedure for submitting information to the tax agent |
| 20% | Income of foreign organizations not related to activities through a permanent representative office (except for income specified in clauses 2,3,4 of Article 284 of the Tax Code of the Russian Federation) |
| Income from activities for the extraction of hydrocarbons in relation to organizations that meet the requirements of clause 1 of Art. 275.2 Tax Code of the Russian Federation | |
| 15% | Income in the form of interest on state and municipal securities |
| Income of foreign organizations received in the form of dividends from Russian companies | |
| 13% | Income of Russian organizations in the form of dividends from Russian and foreign companies |
| Income from dividends received on shares, the rights to which are certified by depositary receipts | |
| 10% | Income of foreign organizations not related to activities in the Russian Federation through a permanent establishment, from the use, maintenance or rental of mobile vehicles or containers in connection with international transportation |
| 9% | Income in the form of interest on municipal securities issued for a period of at least three years before January 1, 2007, as well as other income specified in paragraphs. 2 clause 4 art. 284 Tax Code of the Russian Federation |
| 0% | The list of organizations that have the right to apply a zero rate is named in Art. 284 Tax Code of the Russian Federation. |
An example of calculating income tax at the end of the year
The taxable income of Romashka LLC for 2018 was 35 million rub.
Expenses accepted as a reduction in income amounted to 15 million rubles.
The tax base will be 20 million rubles(35 million rubles – 15 million rubles)
Bid - 20 % .
The tax calculated based on the results of 2018 will be equal to 4 million rubles(20 million rubles x 20%).
Advance payments paid for the year amounted to 3 million rubles
The tax payable to the budget will be 1 million rub.(4 million rubles – 3 million rubles), of which:
- 30,000 rub. to the federal budget.
- 170,000 rub. to the budget of a constituent entity of the Russian Federation.
Income tax payable
The reporting period for income tax is quarter, half year And 9 months.
Note: for organizations that have chosen the method of paying advances based on actual profits (monthly), the reporting period is a month, two months, and so on until the end of the year.
The tax period for income tax is calendar year.
Organizations must make advance payments during the year based on the results of each reporting period (depending on the method of payment of advances).
Learn more about the calculation procedure, terms and methods of making advance payments.
Corporate income tax reporting
At the end of each reporting and tax period, organizations must submit a tax return.
note, that since 2017 a new tax return form for income tax has been applied.
If an organization pays quarterly advances, it submits a declaration 4 times(based on the results of each quarter for the year). When paying advances on actual profits, a declaration must be submitted 12 times a year(from January to November and per year).
Declarations based on the results of the reporting period are submitted to the Federal Tax Service no later than 28 days from the end of the reporting period. Declaration at the end of the year no later than March 28 next year.
Note: the declaration is submitted at the place of registration of the organization and its separate divisions. The largest taxpayers report at their place of registration.
Income tax payers are required to maintain tax and analytical accounting registers.
If during the tax period the taxpayer had no income tax transactions and there was no movement of funds through current accounts and cash, he can file
The object of taxation is the sale of goods (work, services), property, profit, income, expense or other circumstance that has a cost, quantitative or physical characteristic, the presence of which is linked by the legislation on taxes and fees to the taxpayer's obligation to pay tax. It is one of the mandatory elements of the tax. Moreover, each tax must have an independent object of taxation, determined in accordance with part two and taking into account the provisions of Chapter 7 “Objects of Taxation” of the Tax Code of the Russian Federation (TC RF).
The object of taxation is profit received by the taxpayer.
Profit is recognized as:
for Russian organizations - income received, reduced by the amount of expenses incurred, which are determined in accordance with the Tax Code of the Russian Federation;
for foreign organizations operating in the Russian Federation through permanent missions - income received through these permanent missions, reduced by the amount of expenses incurred by these permanent missions, which are determined in accordance with the Tax Code of the Russian Federation;
for other foreign organizations - income received from sources in the Russian Federation.
The object of taxation is the gross profit of an enterprise - this is profit from the sale of products, goods, works, services, fixed assets (including land), other property of the enterprise and income from non-sales operations, reduced by the amount of expenses for these operations.
Profit from the sale of products, goods, works, services is defined as the difference between the proceeds from sales without VAT and excise taxes and the costs of production and sales included in the cost of products, goods, works, services.
Enterprises engaged in foreign economic activity, when determining profit, exclude paid export duties from the proceeds from the sale of products, goods, works, and services.
When determining the profit from the sale of fixed assets and other property of an enterprise for tax purposes, the difference between the sale price and the initial or residual value of these assets and property, increased by the inflation index, is taken into account.
For fixed assets, intangible assets, low-value and wearable items, the cost of which is repaid by depreciation, the residual value of these funds and property is accepted.
Income tax is a form of withdrawal of part of the net income created by productive labor and goes to the federal budget and the budgets of the constituent entities of the Russian Federation. After determining the cost and adjusting the costs for tax purposes, the profit that is the object of taxation is determined.
Income tax payers include:
Enterprises and organizations, including budget ones, that are legal entities under the legislation of the Russian Federation, including credit, insurance organizations, enterprises with foreign investment established on the territory of the Russian Federation, international associations and organizations engaged in business activities;
Branches and other separate divisions of enterprises and organizations, including branches of credit and insurance organizations, except for branches and branches of Sberbank of the Russian Federation, which have a separate balance sheet and current account;
Branches and territorial banks of Sberbank of the Russian Federation, created in the constituent entities of the Russian Federation.
For enterprises related to the main activities of railway transport and communications, associations and enterprises for gasification and operation of the gas industry, the procedure for paying tax is established by the Government of the Russian Federation.
8. Tax base for income tax. The procedure for determining income and expenses when calculating tax.
Tax base is the monetary expression of profit subject to taxation. Therefore, the taxpayer’s income and expenses are taken into account in cash for tax purposes. When determining the tax base, profit is calculated on an accrual basis from the beginning of the tax period. If during the reporting period the taxpayer incurred a loss, then the tax base is recognized as zero.
Income tax is paid on the profit received by the organization. Profit is the difference between income received and expenses incurred.
Income subject to taxation is divided into two groups:
1) income from sales, representing proceeds from the sale of goods and property rights;
2) non-operating income – income of a non-productive nature:
– from equity participation in other organizations;
– penalties recognized by the debtor or subject to payment based on a court decision;
– rent, etc.
When calculating the tax base, income and expenses must be expressed in monetary form. Income received not from money, but from property, property rights, is recognized based on the transaction price.
If, based on the results of its activities, the organization received a loss, then the tax base is zero. Losses may be carried forward.
Profits from gambling business are not taxed
The following methods can be used to determine income: the accrual method and the cash method. The accrual method is used as a general method, the cash method - in specially provided cases.
Accrual method - income is recognized in the tax period in which it occurred, regardless of the actual receipt of funds or any other form of payment. Thus, for income from sales, the date of receipt of income is considered the day of shipment (transfer) of goods, regardless of the actual receipt of funds in payment for them.
Cash method - income is recognized in the tax period in which funds were actually received into bank accounts and (or) the organization's cash desk, other property (work, services) and property rights, and the debt was repaid in another way.
Expenses are recognized as justified and documented expenses incurred by the taxpayer to carry out activities aimed at generating income.
The following methods can be used to determine expenses: the accrual method and the cash method. The accrual method is used as a general method, the cash method - in specially provided cases.
Accrual method - expenses are recognized in the tax period in which they occurred, i.e., expenses incurred after they are actually paid.
Cash method - expenses are recognized in the tax period in which funds were actually received into bank accounts and (or) the organization's cash desk, other property and property rights, and the debt was repaid in another way. The cash method is used by organizations (with the exception of banks) that have, on average, over the previous four quarters, the amount of revenue from the sale of goods (work, services) excluding VAT of no more than 1 million rubles. for every quarter. The organization's expenses are divided into costs associated with the production and sale of goods and non-operating expenses. Expenses must be justified and documented.
9. The procedure for calculating and paying corporate income tax. Income tax rates.
Along with the general definition of a permanent representative office of foreign organizations, it is also necessary to take into account the specifics set out in international agreements between the Russian Federation and individual foreign states.
This kind of agreement has currently been concluded with no less than 60 foreign countries. In particular, Article 5 of the Agreement between the Government of the Russian Federation and the Government of the Finnish Republic of May 4, 1996 “On the avoidance of double taxation in relation to taxes on income and property” establishes that the expression “permanent establishment” means a permanent place of business activity through which the organization operates carried out in whole or in part.
The term "permanent establishment" includes in particular:
Control place;
Branch;
office;
Factory;
Workshop;
A mine, oil or gas well, quarry or any other place where natural resources are extracted.
The second condition for the status of a foreign organization as a taxpayer for income tax is the receipt of income from sources in the Russian Federation, in connection with the presence of this representative office.
This type of income includes:
· income received by a foreign organization as a result of carrying out activities on the territory of the Russian Federation through its permanent representative office;
· income of a foreign organization from the possession, use and (or) disposal of property of the permanent representative office of this organization in the Russian Federation;
· other income from sources in the Russian Federation, listed in the Tax Code of the Russian Federation, related to the permanent establishment.
Based on the Order of the Ministry of Taxes of the Russian Federation dated April 7, 2000 No. AP-3-06/124, in order to fulfill tax obligations, foreign organizations must fulfill the requirements for tax registration with the Russian tax authorities, in accordance with the Regulations on the peculiarities of registration with the tax authorities of foreign organizations ( hereinafter - Regulations).
By virtue of the current Regulations, foreign organizations, depending on the period of activity on the territory of the Russian Federation, are divided into two structural groups.
1. If a foreign organization intends to carry out or carry out business activities on the territory of the Russian Federation through a branch for a period exceeding 30 calendar days a year (continuously or cumulatively), it is obliged to register with the tax authority at the place of implementation of activities no later than 30 days from the date of commencement of its activities.
2. In the case when foreign and international organizations carry out activities in the Russian Federation for a period not exceeding 30 calendar days a year (continuously or cumulatively), then accounting is carried out by sending them relevant notifications.
In this case, you should pay attention to the following. When carrying out activities in several places in territories controlled by various tax authorities of the Russian Federation, you must register in each of these places. If the activities of a foreign company are carried out in several places in the territory controlled by one tax authority of the Russian Federation, which carries out registration of foreign organizations, then in this case the foreign organization is obliged to inform the tax authorities about each such place of activity by sending an appropriate message.
3. Payers of income tax from among foreign organizations also include organizations receiving income from sources in the Russian Federation. This category of taxpayers includes foreign companies and other legal entities with civil legal capacity, created in accordance with the legislation of foreign states. This category of taxpayers is not related to the presence or absence of a permanent establishment. They pay income tax on income received in the form of dividends, interest income on debt obligations of any type, fines and penalties for violations of debt obligations, directly by the Russian side.
In this case, tax payment and withholding occurs at the source of payment.
You can find out more about issues related to corporate income tax in the book of JSC “BKR-Intercom-Audit” “Organizational income tax”.
Any organization created in accordance with the legislation of the Russian Federation, i.e., duly registered with the tax authority, must by default apply the general taxation system - hereinafter referred to as OSN (Article 11 of the Tax Code of the Russian Federation). Accordingly, it is considered a payer of income tax.
At the same time, in accordance with the Tax Code, an organization can switch to a special tax regime - simplified tax system, UTII, unified agricultural tax - under which there is no need to pay income tax. However, they are not available to everyone. After all, in order to switch to a special regime, certain conditions must be met. And only if all conditions are met, the organization can notify the tax authorities that in the future it will apply the special regime from a certain point.
As for those who apply SST, their obligation to pay income tax does not depend on the goals of the enterprise. Therefore, commercial and non-profit organizations, as well as budgetary institutions, are recognized as taxpayers of corporate income tax (Article 50 of the Civil Code of the Russian Federation).
Which organizations are not payers of income tax?
As we have already said, the largest group of companies that are not income tax payers are special regime companies (clause 10 of Article 274 of the Tax Code of the Russian Federation). In other words, all those who apply the simplified tax system (clause 2 of article 346.11 of the Tax Code of the Russian Federation), UTII (clause 4 of article 346.26 of the Tax Code of the Russian Federation), unified agricultural tax (clause 3 of article 346.1 of the Tax Code of the Russian Federation), and also combine these modes. However, in some cases they will still have to pay income taxes on individual transactions. For example, simplifiers must pay income tax on income in the form of dividends received from a foreign organization, on interest on government securities (
As you might guess, the object of taxation for income tax is the profit of the organization. What is meant by profit? For most ordinary Russian organizations that are not members of a consolidated group of taxpayers (hereinafter referred to as the CTG), profit is income reduced by the organization’s expenses (Article 247 of the Tax Code of the Russian Federation). Moreover, both the company’s income and expenses must be recognized for profit tax purposes in accordance with the Tax Code of the Russian Federation. After all, not every company’s expenses can be taken into account as “profitable” expenses.
If expenses exceed income, then the result of the organization's activities will be a loss. If you make a loss, of course, you won’t have to pay income tax (there is no profit). In this case, you simply will not have an object of taxation. And the tax base will be considered equal to zero (clause 8 of Article 274 of the Tax Code of the Russian Federation).
By the way, the Tax Code provides for the transfer of received losses to future periods (Article 283 of the Tax Code of the Russian Federation).
Object of taxation for income tax for foreign companies and group members
Foreign organizations have their own specifics. If a foreign organization operates in Russia through a permanent representative office, then the same procedure is used to calculate profits: income received through the representative office is reduced by the amount of expenses incurred by this representative office (clause 2 of Article 247 of the Tax Code of the Russian Federation). Again, both income and expenses must be those that are taken into account when calculating income tax.
If a foreign organization does not have a permanent establishment in Russia, then its profit is determined as the amount of income received from sources in the Russian Federation (