2-NDFL for individual entrepreneurs - what kind of certificate is this, how to get it and whether it is needed without employees

A document such as a 2-NDFL certificate may be required to confirm the total amount of income a person received for the year. However, this document is intended for issuance to employees, not entrepreneurs. But there are exceptions to this rule. In the article we will consider when a 2-NDFL certificate for individual entrepreneurs can be issued and how to issue this document.

If an individual applies to the tax office to receive deductions, then he is required to provide a certificate in form 2-NDFL. In addition, this document is also requested by banking organizations if an individual applies for a regular or mortgage loan. If a person works as an ordinary employee, then he usually does not have any difficulties in providing such a certificate. But what should an entrepreneur do in this case? Who can issue him such a certificate? The answer to this question will depend on how the entrepreneur works (

The individual entrepreneur works only as an entrepreneur

Another situation may arise when a person carries out only entrepreneurial activities and does not work anywhere as an ordinary employee. And he can also contact the bank to get a loan, but not as an individual entrepreneur, but as an ordinary individual. In this case, bank employees will ask him for a certificate of income, like an individual (2-NDFL).

Then the entrepreneur has nowhere to get a 2-NDFL certificate, so he can only provide a certificate in free form. To avoid any additional questions from bank employees, you should clarify in advance which form the document should be provided in. This obligation to draw up and issue a certificate of income in a special form exists only for tax agents. But entrepreneurs calculate and pay taxes on their income to the budget independently.

Important! An entrepreneur cannot issue a 2-NDFL certificate to himself, so he can confirm his income with other documents.

What kind of document you can use to confirm your own income will depend on what type of taxation the entrepreneur is in. As a rule, entrepreneurs on the OSN (general taxation system) or the simplified taxation system (simplified taxation system) can provide copies of income declarations to a bank or other organization upon request. These include a 3-NDFL declaration or a simplified tax declaration. Such documents replace the 2-NDFL certificate for entrepreneurs who do not have employees.

In addition, the following may serve as additional documents confirming the income of an individual entrepreneur:

• Book of income and expenses;
• bank account statements;
• cash receipt orders;
• cash receipts;
• contracts;
• other documents.

Deadlines and penalties for late submission of certificates

A completed form 2-NDFL is an annual reporting format, the deadline for submission of which is April 1 of the year following the reporting year. If the employee’s income is not subject to personal income tax, then the report is submitted by March 1 of the year following the reporting year.

The deadlines for filing accounting and tax documentation change almost every year. Therefore, in order to avoid penalties, it is worth monitoring the relevance of deadlines and rules for filing papers.

Amount of fines for violating deadlines and providing incorrect data in the 2-NDFL report:

• According to paragraph 1 of Art. 126 of the Tax Code of the Russian Federation Federal Law No. 146 of July 31, 1998 (as amended on August 3, 2018), if a businessman is late in submitting a certificate to the local Federal Tax Service, then the first one will be fined ㅡ 200 rubles for each document. For example, failure to submit certificates for 15 people faces a sanction of 3,000 rubles (15 people * 200 rubles).
• In paragraph 1 of Art. 126.1 of the Tax Code of the Russian Federation of the same law specifies the amount of the fine for providing false information in documentation - 500 rubles per certificate. But if the entrepreneur independently noticed and provided the corrected paper, then no sanction is imposed.

It is difficult for the head of a small enterprise, without experience, to provide a correctly completed form to the authority that requires it the first time. Therefore, before submitting a certificate confirming a businessman’s income, it is worth discussing the issue in advance with the employees of the inspection authority.

Entrepreneur works for UTII

Separately, we should consider the situation when an entrepreneur works for UTII. In this case, he faces certain difficulties, since he does not have to submit tax information on his income. He pays tax not on his income, but on imputed income. In addition, individual entrepreneurs on imputation do not have to keep a book of income and expenses. The entrepreneur will also not be able to provide a 2-NDFL certificate, since he is exempt from paying tax.

Therefore, to confirm his income, he can provide documents such as a primary document or a cash book . If the bank is not satisfied with these documents, then the only way out of the situation will be to issue a certificate of income in any form, on your own. However, before you issue it, you should find out in what form the certificate should be provided.

To simplify the situation, an entrepreneur can keep a register in which he will note all receipts and expenses. However, it should be taken into account that the register must contain all the required indicators:

• Title of the document;
• full name of the individual entrepreneur;
• the start date of maintaining the register, the end date, as well as the period for which it was compiled;
• grouping accounting objects in chronological or systematic order;
• indication of values ​​and units of measurement;
• names of officials responsible for maintaining this register;
• Full name and signature of the responsible person.

Rules for filling out the certificate

Electronic signature for individual entrepreneurs - why is it needed and how to make it

The help contains 5 sections, including:

• Section No. 1 - displays information about the employer; Entrepreneurs must indicate the OKTMO code, the code of the municipality in which they carry out business activities;
• Section No. 2 - contains basic information about the individual who receives income;
• Section No. 3 is the main block that declares the income of an individual entrepreneur received for the reporting period of interest. It is necessary to indicate monthly profit amounts;
• Section No. 4 - information is provided subject to the availability of tax deductions. In fact, there is a duplication of the 3rd section;
• Section No. 5 - indicates the total amount of income of the taxpayer.

Filling

Peculiarities:

• You must fill out the form by entering information about the reporting period for which the document is being generated;
• mandatory entry of information about the serial number assigned by the tax agent;
• mandatory display of the date of issue in a special line.

Note! The tax service code is determined in a standard way - the first 4 digits in the entrepreneur’s identification number.

A sample certificate in form 2-NDFL for entrepreneurs who additionally provide employment under a rental agreement can be downloaded here.

A sample certificate for an individual entrepreneur who issued the document to himself can be downloaded here.

Help 2-NDFL for individual entrepreneurs

Simplified taxation system

The simplified tax period is a calendar year. Based on its results, it is necessary to submit a tax return to the Federal Tax Service.

The simplified tax system declaration is submitted to the tax authority:

• Individual entrepreneur at the place of residence (no later than April 30 of the following year);
• LLC at the location (no later than March 31 of the following year).

If the organization or individual entrepreneur did not conduct actual activities, a zero declaration must be submitted to the Federal Tax Service.

Learn more about the simplified tax system declaration.

Note! The deadlines for paying taxes and filing reports for some individual entrepreneurs and organizations have been postponed due to the coronavirus epidemic. Read the article for details.

Tax deduction when purchasing an individual entrepreneur apartment

One of the documents that is provided when applying for a tax deduction when purchasing an apartment is a 2-NDFL income certificate. An entrepreneur has the right to purchase an apartment as an individual entrepreneur or as an individual. The last option will be the most optimal, since in this case the person receives the following rights:

• receive a deduction from the costs of purchasing an apartment;
• in the case of selling an apartment, deduct the expenses spent on its purchase, regardless of the tax period, in full.

An entrepreneur will be able to receive a property deduction when purchasing an apartment in the following cases:

1. The apartment was purchased at our own expense. To purchase an apartment, a person must use his own income, including income from business activities. In this case, it will not matter what taxation system the individual entrepreneur is on.
2. An individual must have income from which personal income tax is withheld (13%). Due to this, he will be given a tax deduction. Income can be presented as revenue from business activities if the entrepreneur applies the OSN. If he pays tax according to the simplified tax system and UTII, then he will already need to have other income subject to personal income tax. For example, it could be:

• wages other than business activities;
• GPA payments;
• income from winnings, renting out property as an individual.

Important! If there is no income subject to personal income tax at a rate of 13%, then the entrepreneur’s wife has the right to use the deduction for acquired property.

What are the penalties for being late?

If the deadline for submitting the declaration is violated, you will have to pay a fine:

1. If the declaration is filed late, but the tax is paid on time in 2020, the deadline is July 15, then the fine is 1,000 rubles.
2. In case of delay and payment of tax, the fine will be from 5 to 30% of the unpaid tax, but a minimum of 1000 rubles. You will also have to pay a fine for complete or partial non-payment of tax in the amount of 20-40% of the debt in case of deliberate violation of deadlines and a penalty in the amount of 1/300 of the key rate for each overdue day. Currently this rate is set at 5.5%

For those who are late for the first time or in cases where the taxpayer has extenuating circumstances, for example, he was in the hospital, then the fine is halved. To avoid paying fines and penalties, follow the deadlines established by law and submit your declaration on time.

Useful links:

1. “>Order of the Federal Tax Service of Russia dated October 2, 2018 No. ММВ-7-11/ [email protected]
2. Appendix No. 2 to the Order of the Federal Tax Service of Russia dated October 2, 2018 No. ММВ-7-11/ [email protected]
3. Link to enter the taxpayer’s personal account.

about the author

Klavdiya Treskova - higher education with qualification “Economist”, with specializations “Economics and Management” and “Computer Technologies” at PSU. She worked in a bank in positions from operator to acting. Head of the Department for servicing private and corporate clients. Every year she successfully passed certifications, education and training in banking services. Total work experience in the bank is more than 15 years. [email protected]

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Answers to common questions

Question: What should an entrepreneur who uses PSN or Unified Agricultural Tax do? Can he count on receiving a tax deduction when buying an apartment?

Answer: No, the use of tax regimes such as a patent or unified agricultural tax exempts an entrepreneur from paying income tax. This means that an entrepreneur will not be able to receive a tax deduction when buying an apartment. Such a right arises only when an entrepreneur has income subject to income tax at a rate of 13% as an individual. Also, the wife of an individual entrepreneur can take advantage of the right to deduction, and she must also have income subject to personal income tax.

Content

• You need to submit 4 reports to the tax office
• Two reports must be submitted to the Pension Fund
• Only one report is submitted to the Social Insurance Fund

Accordingly, individual entrepreneurs need to clearly know which reports need to be submitted, where and when. It is imperative to monitor this point, since no one wants to pay fines.

The reports that individual entrepreneurs submit on their employees are submitted to three authorities:

• Tax;
• Russian Pension Fund;
• Social Insurance Fund.

Now about each in order.