Penalty - a penalty charged to the debtor for each day of delay in payment. This is a penalty method , which is designed to encourage the debtor to pay off his debts as soon as possible. Most often, interest is charged for non-payment of utilities and taxes. The second case is especially relevant for a legal entity. It happens that the company does not have the means to pay taxes or deliberately hides them. The accrual of interest, as well as the increase in any other obligation, should be reflected in accounting. Penalty charging transactions will be considered in the article.
Where should the penalty be taken into account?
Penalty is a commitment that is increasing every day. Accordingly, its value should be shown in the balance sheet liability. On the basis of what is the first reporting form drawn up? Of course accounting accounts. It turns out that as soon as an obligation of this kind arises, it must be entered into the debit and credit of two different accounts, i.e., to compose tax and sanction entries. Accounting services, or rather, the people who provide them, can easily cope with this task.
To reflect interest on unpaid taxes and fees account 99 is used, which is created to collect the amount of profit and loss of the enterprise. This is where the accountant writes down the amount of the tax liability increased as a result of the fine. Correspondence will enter account 68 “Calculation of interest on taxes”. Accounting entries so far will be limited to one entry: Dt 99 Ct 68.
PBU about penalties
Accounting recognizes interest as a other expense that does not in any way participate in determining the tax base when calculating income tax. To make sure that obligations of this kind should indeed be reflected on account 99, paragraph 83 of PBU and the Instructions for the Application of the Standard Chart of Accounts allow.
Sanctions for violation of the tax legislation of the Russian Federation contribute to the loss of the enterprise; penalties for late payments of taxes and fees should also be included here. When making amounts to debit 99 of the account, it becomes necessary to indicate the amount in the financial statements: in line 2460. It turns out that the amount of the penalty reduces the company's net profit, while not changing the indicator in line 2300. Therefore, postings on fines and penalties for taxes do not affect tax accounting data.
Account Details 99
The Profit and Loss Account is used to collect information and derive the final result about the financial activities of the enterprise. It has an active-passive structure. The debit indicates the amount of loss, and the loan - income. The account is closed before annual reporting. The final balance for one of the parties is written off as “Retained earnings (uncovered loss)”. Analytical accounting on the account is created in such a way that then transfer all the necessary data to the financial statements.
In addition to 68 accounts, the 99th corresponds with many accounts. For example, 90, 91, 51, 01, 20, 41, 43 and others. The general result is written off here, both from factors positively influencing economic activity, and negative (loss, damage to goods and materials, state of emergency results, delays in loans and borrowings, interest on taxes).
Accounting entries are made on the principle: an increase in liabilities in a loan, an increase in funds in a debit. Each time receiving income, it is written off at the end of the month by account assignment Dt 99 Kt 91.1 (90). In case of loss, the account is credited.
How are fines paid?
The forfeits are of sufficient size in monetary terms to prompt the debtor to pay the bills as soon as possible. Reflection in accounting for the payment of interest occurs with the entry Dt 68 “Fines” Kt 51. Another account may also act as a creditor. For example, “Cashier” or “Settlements on short-term loans”, if the penalty was paid at the expense of funds received in debt. As you can see, the accrual of interest is unprofitable for the enterprise: when it is paid off, the payment obligation decreases, but the loss is not covered by anything.
Accounting entries for accounting taxes and fees
To reflect liabilities for mandatory payments to the budget, account 68 is provided. Analytical accounting is built from subaccounts that describe each tax or fee that must be paid by the company on a specific date. Active-passive account. The tax and other payments to the budget are charged using the correspondence of loan 68 with the debit of the account to which they relate. For example, income tax is recorded by posting Dt 99 Ct 68 using the appropriate sub-accounts.
For tax on property, vehicles, resources used in the process of economic activity, accounts are used for their accounting (01, 20, 91). If taxes are levied on individuals, accounts for settlements with them 70, 75 are involved in correspondence.
What types of taxes are fined?
The company undertakes to timely pay the bills submitted by the state (in particular, the tax inspectorate). Everything that a legal entity owns and from which it earns income is taxed. VAT, income tax, excise taxes - such amounts "go" to the federal budget. Payments for the use of land, property and natural resources usually go to the local or regional state piggy bank.
Each of the taxes existing for a legal entity must be paid on time. Therefore, it doesn’t matter what type of payment the tax penalty was charged. Postings are made identical. Overdue is equally punishable every day for any of the mandatory contributions to the budget.
Failure to pay federal taxes
Federal mandatory payments include VAT, personal income tax, income taxes, mining, excise taxes, state duties. Their value will not please every entrepreneur, and even more so the amount of accrued penalty. But nothing remains after receiving a notice of sanction, except to reflect the increased obligation in accounting and pay it as soon as possible.
At the end of each year, accounting and tax reporting is generated, which contains information on the company's income. How to post interest income tax penalty? To do this, use the following record: Dt 99 Kt 68 "Penalty". To analyze the profit before tax recovery, you can additionally use the posting Dt 91.2 Kt 68 “Penalty”. This will not affect the calculation of the tax base, and it will help to assess the total amount of income received from economic activity in order to develop the enterprise.
Similarly, any other tax penalty is charged. The accounting entries for this operation always consist of a credited account 68 and a debited account 99 (possibly with a simultaneous reflection on account 91.2).
Account Assignments for Other Fines
Not only a delay in payment, but also violations of tax legislation can lead to a fine before the tax service. Administrative responsibility provides, among other things, sanctions that may be imposed on the enterprise. Consider the main postings for fines and penalties for taxes in the table:
Various account assignments for forfeitsDt | Ct | Description of the business transaction |
99 | 68 | Accrued interest for non-payment of VAT |
99 | 68 | The tax service fined for violation of tax laws |
99 | 68 | Accrued fine for late payment of personal income tax |
99 | 68 | Reflects the amount of the penalty for non-payment of income tax |
91.2 | 68 | The amount of interest for excise tax is reflected in the expenses of the enterprise |
68 | 51 | Tax liabilities settled from the current account |
68 | 66 | Taxes paid using borrowed funds |
As you can see, the relationship between the accounts is very simple, regardless of which tax arises for late payment. The accounting department makes postings on penalty interest after receiving a notification from the tax office. The receipt sent is sufficient reason to record Dt 99 Ct 68.
Features of reflection of interest
After the accrued interest on taxes (transactions Dt 99 Kt 68, Dt 91.2 Kt 68) the company liabilities increase every day. It is necessary to check if the reason for the delay in payment is an error in accounting, bank transfer or other persons that could affect the incorrect calculation and delay in paying taxes to the budget.
Even if the management of the enterprise does not agree with the sanctions imposed on it, the accounting still reflects the accrual of a tax penalty. Accounting entries in the event of evidence of unfairly presented forfeits are canceled by reversal.
Charging penalties is a strict measure designed to discipline the debtor and remind him of urgent obligations. Everything related to the tax service is extremely important for any enterprise. The accrual of interest and its payment must be recorded in the accounting data, and the reasons for their presentation are clarified.