Tax payments are an integral part of our lives. There are many nuances in this area, for example, when preparing a declaration, establishing a temporary payment procedure and so on. Literacy in these matters will help to avoid many unpleasant situations, so it would be nice to consider what an advance payment means. This concept, at first glance, does not seem so complicated, but there are several points here, the knowledge of which would be useful.
Down Payment Concept
Advance payment in taxation represents the amount of fees for certain types of activities, property and so on. The timing of payments and the procedure for the deduction of preliminary payments of duties is determined by Article 287 of the Tax Code of the Russian Federation.
It may be noted that there is a choice of the method of advance payment of income taxes. So, the accountant has the right to calculate the amount from the accounting of actual income for the past period or to make fees, the amount of which is determined based on the constant values of income and expenses of the previous year.
Advance Payment Types
Regardless of the form of the tax system (simplified or basic), this type of payment is mandatory. Conventionally, there are several types of this concept:
- Deductions for profit. These amounts may be paid monthly or quarterly. Moreover, in the first case, payments must be made no later than the 28th day. Advance payments for income tax are paid quarterly for 3 months, half a year or 9 months. For the last period, payment is not made, and the duties accrued during this time are entered into the general annual report. At the same time, all payments are recalculated, and if the income is actually higher than that accepted when deducting advance fees, an additional payment is made. In case of a negative difference on the part of the state (tax authorities), a refund is made.
- Advance payments for land tax. The deduction process can also be carried out at the end of each quarter and in general order at the end of the year.
- Customs duties. Here you can also make payments in advance, this type of payment is relevant for the constant import of goods. In this case, you can make an advance payment to the account of the customs organization, and when submitting the declaration, employees will write off the necessary amount from the funds deposited. It is believed that this is very convenient - you do not need to go through the payment procedure every time and so on. However, in practice, there are some negative aspects of prepayment. For example, customs may delay the introduction of advance fees, and in some cases, this structure may write off these funds to the federal budget. This can happen in situations such as the wrong choice of the way to manage advances, the absence of a statement by the person who contributed the funds, and others.
- Excise payments. This type of taxation is also referred to as advance taxes introduced by amendments to chapter 22 of the Tax Code of the Russian Federation of July 14, 2011. According to this document, manufacturers must make payments no later than the 15th day of each reporting period. The amount of payments is determined by the total amount of alcohol used to obtain alcoholic beverages, and excise tax rates.
Advance payment is considered a convenient form of tax payment. This calculation method saves time and facilitates the preparation of accounting documents.