Paying advance payments of income tax is an obligation common to many large businesses. At the same time, its implementation involves the organization’s bookkeeping rather complicated calculations related, firstly, with the calculation of the actual value of the relevant transactions, and secondly, with the determination of the frequency of making advances to the budget. How can both these problems be solved?
Who should pay income tax advances?
All the firms that, in principle, are subject to payment of the corresponding fee, should transfer to the state advances on income tax. These are all Russian legal entities (LLC, JSC), foreign organizations (in the form of representative offices operating in the Russian Federation on the basis of an international treaty or having governing bodies in the Russian Federation) that do not use any of the alternative taxation schemes - for example, STS, UTII or USCH, as well as non- tax payers on gambling business. In addition, residents of the Skolkovo center are exempted from fulfilling such an obligation as paying income taxes.
Terms of tax and advances
The fee in question should be paid one year before the deadline for submitting a declaration to the Federal Tax Service on it. Advance payments for the tax in question can be made quarterly or monthly. In the first case, they must be transferred to the budget also before the submission of declarations, in the second - before the 28th day of the month that follows the past. Data on the amount of the fee to be paid to the state is reflected in the declaration, which must be transferred to the Federal Tax Service after the reporting period.
Calculation of advances for income tax: what to look for
The manner in which advances on income tax should be calculated and paid is stated in the provisions of Art. 285, 286, 287 of the Tax Code of the Russian Federation.
So, in accordance with the provisions of the Code, Russian enterprises must pay an appropriate fee to the budget both at the end of the year and in advance payments. Those can be transferred to the state in 3 versions.
First, income tax advances are paid based on the results of the 1st quarter, six months and 9 months, if the average quarterly revenue of the company does not exceed 10 million rubles.
Secondly, the corresponding payments are transferred monthly to those firms that have notified the Federal Tax Service about a similar method of settlements with the state.
Thirdly, if the company has a monthly revenue of more than 10 million rubles on average, or if it has not notified the FTS that it wants to pay income tax advances according to the second scheme, then the corresponding payments to the budget must be paid after 1 quarter, six months, 9 months and the results of each month.
Consider the practical nuances of calculating the advance for the collection in question.
How to calculate the average revenue?
If a company claims to transfer profit tax advances according to the first scheme, then its revenue, as we noted above, should not exceed an average of 10 million rubles per quarter. But how should the accountants of the company determine the appropriate indicator and be sure that if acceptable figures are received, they will be correct?
Experts recommend taking into account in the revenue structure only those revenues that are generated through the sale of manufactured goods, rendered services, as well as property rights. The turnover should not include, in particular, non-operating income, as well as those listed in the provisions of Art. 251 of the Tax Code of the Russian Federation. In this case, revenue must be calculated without VAT and excise taxes.
In addition, the date on which revenue is determined depends on whether the method of fixing income is adopted by the organization - cash or accrual. Consider the specifics of the respective approaches in more detail.
Methods for determining revenue: cash and accruals
What is the cash method? It involves fixing the revenue of the enterprise only after it delivers goods or renders services in accordance with prepayment. Or after the payment is received for goods delivered and services rendered.
In turn, the accrual method involves the recognition by the firm of income, regardless of whether virtually all stages of the legal relationship with the participation of the parties have been implemented. That is, revenue can be recorded by the company immediately after receiving an advance payment. Or immediately after she delivers the goods or provides a service and begins to expect payment in accordance with the contract.
Calculation of Average Revenue: Formula
As for the actual determination of the average turnover, the data for the previous 4 quarters is taken, summed up, and then divided by 4. If the result is less than 10 million rubles, then payment of the advance tax on profit can be carried out in accordance with the first scheme. However, after the end of the reporting quarter, the calculation of the average amount of revenue must be carried out again.
How to calculate quarterly payments?
Another task of the accountant is to calculate the actual income tax payments, which must be transferred to the budget. The amount of the corresponding transaction is determined on the basis of figures reflecting the actual profit of the company, which is calculated on an accrual basis, but taking into account those payments that have already been transferred to the state earlier.
If it is necessary to pay income tax for the quarter, advance payments for the corresponding period are determined based on the product of the amount of the tax base and the approved collection rate, however, the final contribution figure is determined based on the difference between the reporting payment and what was paid to the budget in the previous period .
It will also be useful to consider what the current collection rate in question is.
Income tax rate
The basic rate determined by the state for the tax in question is 20% of revenue. Moreover, the corresponding percentage of income tax is divided into 2 parts - 2% is transferred to the federal budget, 18% - to the regional. The subjects of the Russian Federation also have the right to lower the corresponding indicator. But to a certain extent - the regional percentage of income tax should be equal to or exceed the figure of 13.5%.
How to calculate monthly payments?
Next, consider how the company should calculate monthly payments. What are the main nuances of this procedure? If the company pays a monthly income tax to the budget, advance payments are calculated according to the following scheme.
The determination of the amount of the fee in question depends on which particular quarter in question.
If income tax is calculated in the 1st quarter, then it is necessary to take into account 2 indicators:
- the amount of the monthly payment of income tax, which is subject to transfer to the budget in the 1st quarter;
- the amount of the fee that was paid to the state in the 4th quarter of last year.
The tax legislation of the Russian Federation requires an accountant to determine 1 indicator as equal to the 2nd.
If income tax is accrued in the 2nd quarter, then 2 indicators are also taken into account:
- monthly payment for the 2nd quarter of the current year;
- quarterly payment determined based on the results of the 1st quarter of the current year.
The accountant determines the value of 1 indicator as corresponding to 1/3 of the size of the 2nd.
If income tax is charged in the 3rd quarter, then the third indicator, in turn, is taken into account:
- monthly payment made in the 3rd quarter;
- quarterly payment, which is determined by the results of the 1st quarter;
- quarterly payment, which is determined by the results of six months.
The accountant calculates the value of the first indicator, based on the difference between the third and second, which is divided by 3.
If income tax is calculated in the 4th quarter, then, again, 3 indicators are taken into account:
- monthly payment transferred to the state in the 4th quarter;
- quarterly payment for half a year;
- quarterly payment for 9 months.
The value of the first indicator is determined by a scheme similar to the one that we examined above: first, the accountant subtracts the second from the third indicator, and then divides the result by 3.
Quarterly payment example
Let us now consider how income tax can be calculated in practice . An example of calculating the quarterly payment for the corresponding collection will be very simple. Advance for tax for the 1st quarter is determined by making the proceeds — let it be equal to 100 thousand rubles, and the rate established for the collection — let it be standard and equal to 20%. Payment, therefore, will amount to 60 thousand rubles.
In turn, the advance payment for tax for the 2nd quarter will be determined as the difference between the current amount of the fee and the one paid in the previous period. For example, if for the 2nd quarter the company must contribute 100 thousand rubles to the state, then in fact it will have to pay 40 thousand rubles.
Example of calculating a monthly payment
In turn, the calculation of the monthly tax advance payment may involve the use of a more complex formula. For example, if we need to calculate a payment in the 1st quarter, then, as we noted above, it should be equal to what was determined for the 4th quarter of the previous tax year. In turn, the second indicator is defined as the difference between quarterly payments for 9 months and half a year divided by 3. If the value of the first indicator is 100 thousand rubles, and the second, for example, 70 thousand, then the monthly payment in the 1st quarter is identical to that that was calculated for the 4th quarter of the previous tax year, will amount to 10 thousand rubles.
Profit tax advance calculation: nuances
Consider some of the nuances that characterize such a procedure as the payment of income taxes according to the advance scheme.
First of all, experts recommend paying attention to the fact that if an accountant detects in the current quarter a smaller amount of profit than in the previous quarter, or if a loss is detected, the state must somehow transfer the fee under consideration. However, the corresponding payments will have the status of overpayment, and they can be set off in repaying future obligations, and in some cases - return from the budget.
Another nuance is characteristic of the reflection of data on monthly payments in the declaration. According to experts, there is no need to fix the relevant transactions for the 1st quarter of this year. The fact is that such payments are identical to those that are paid to the budget in the 4th quarter of the previous tax year and fit into the declaration for 9 months.
Above, we noted that the determination of the amount of revenue taken into account when choosing a scheme for paying the fee to the budget to a large extent depends on whether the organization uses the method of fixing income - cash or accrual. The nuance in this case is that with the cash method, the advances received must be included in the revenue structure. Income tax is thus calculated taking into account prepayments for goods and services. Which by the time of receipt of the corresponding amounts from the counterparty may not even be provided to him. In turn, the accrual method does not need to take into account the advances received in the revenue structure. In this case, income tax is determined only after the company has completed all stages of legal relations with the counterparty related to the supply of goods or the provision of services.