How is material benefit reflected in Form 6-NDFL?

When does material gain arise?

Material benefit (MB) represents income received by an individual (Article 212 of the Tax Code of the Russian Federation):

from saving on interest for the use of borrowed funds issued to him by a legal entity or individual entrepreneur at a low interest rate;
purchase of securities (securities) at a price below the market price;
acquisition of goods (works, services) from interdependent persons.

Read more about each of these types of income here.

ConsultantPlus experts spoke in detail about the nuances of personal income tax taxation of material benefits. Get free demo access to K+ and go to the Ready Solution to find out all the details of this procedure.

Benefit from saving on interest: personal income tax calculation

Who, if not the employer, can accommodate a valuable employee by providing him with a loan on more favorable terms than the loans offered by banks? However, while allowing the employee to save on interest in this way, it should be remembered that in doing so he receives an economic benefit, which is subject to personal income tax. At the same time, the obligation to calculate the appropriate amount of tax, withhold it from the taxpayer’s income and transfer it to the budget rests with the employer, since in this case he is the tax agent for personal income tax.

According to paragraph 1 of Art. 210 of the Tax Code, when determining the personal income tax base, all income of an individual is taken into account, including in the form of material benefits. The types of financial benefits taken into account as income for personal income tax purposes are listed in Art. 212 of the Tax Code. Among other things, in paragraphs. Clause 1 of this article names the material benefit from savings on interest for the taxpayer’s use of borrowed (credit) funds received from organizations or individual entrepreneurs.

Note! If certain conditions are met, the benefit from interest savings received by the employee is not recognized as income for the purpose of calculating personal income tax. To do this, firstly, the employee must be provided with a targeted loan for the construction or purchase of housing (land for housing) or refinancing such a loan received earlier. Secondly, the employee must have the right to apply a property deduction in the amount of money spent on this housing and aimed at repaying interest on a targeted loan, confirmed by a corresponding notification from the Federal Tax Service (subclause 1, clause 1, article 212 of the Tax Code of the Russian Federation).

The procedure for determining the tax base when an individual has such income is established by paragraphs. 1 item 2 art. 212 of the Tax Code of the Russian Federation. If the loan is provided in rubles, it is recognized as an excess of the amount of interest calculated on the basis of 2/3 of the current refinancing rate of the Bank of Russia over the amount of interest calculated under the terms of the agreement. In this case, the refinancing rate established by the Bank of Russia on the date of actual receipt of income by the taxpayer is taken into account.

If the loan is provided in foreign currency, the comparative indicator should be the amount of interest determined on the basis of 9 percent per annum. However, entrepreneurs and Russian organizations that are not credit institutions do not have the right to issue loans in foreign currency due to currency legislation (Article 9 of Law No. 173-FZ of December 10, 2003). Therefore, in employer-employee relations such a situation is excluded.

Determination of the tax base when receiving income in the form of financial benefits from savings on interest on a loan, as well as the calculation, withholding and transfer of personal income tax due to the direct instructions of clause 2 of Art. 212 of the Tax Code is assigned to the tax agent, that is, in the situation under consideration - to the employer. It should be borne in mind that income in the form of material benefits from savings on interest is subject to personal income tax at a rate of 35 percent. Among other things, this means that they are not subject to reduction by the amount of tax deductions for this tax provided for in Art. Art. 218 - 221 of the Tax Code (clauses 3, 4 of Article 210 of the Tax Code).

6-NDFL and material benefit: which lines to fill out

If there is a fact that an individual received MV in the reporting period in 6-NDFL, you will need to fill out the following lines in section 1:

about the applied tax rate (page 010);
accrued income (line 020).

IMPORTANT! If the MV rate differs from 13%, a separate block of lines 010–050 is filled in. If not, income in the form of CF is given together with other income taxed at this rate.

Read about the changes that have occurred in MV taxation since 2021 here.

Section 2 reflects:

date of actual receipt of income (line 100) and its amount (line 130);
date and amount of tax withholding, as well as the deadline for its transfer (lines 110, 140, 120).

If the tax agent does not pay any cash income to the person who received the MV, in section 1 you will have to fill out another line 080, indicating the impossibility of withholding personal income tax.

In the next section, we will dwell on the nuances of filling out line 100, reflecting the date of receipt of income in a situation with CF.

How to fill out a report correctly

Additional profit received under a loan agreement between an employer and an employee must be reflected throughout the entire period of validity of this agreement under all taxation systems. And since the report is submitted quarterly, profits are also reflected quarterly.

In section 1 of the report, you must separately fill in lines 010 – 050. To do this:

Line 020 indicates the amount of funds received by a specific employee in a given reporting period. Amounts are indicated for subsequent periods on an accrual basis;
line 040 indicates the amount of personal income tax calculated from material benefits;
in line 070 you must indicate the value where personal income tax is included on income received, withheld from the beginning of the calendar year until the end of the current reporting period for the entire period of use. Typically this value is lower than what is indicated on line 040;
line 080 indicates personal income tax for the year, which is calculated on 31/12 of the current year, but cannot be withheld this year.

Now you need to correctly reflect the material benefit and correctly fill out all the lines of section 2. You must indicate:

In line 100, the last day of the calendar month when the employee received income;
in line 110 the day on which the tax was withheld;
in line 120 – the next date after the withholding.

On a note! The income received by the employee in December and the tax accrued on it do not need to be shown in reporting either for the current year or in the 1st quarter of the next calendar year.

Date of receipt of income if there is material benefit

When income is received in the form of MV, it is recognized as the date of receipt of income and is reflected on line 100 of the 6-NDFL calculation:

The day of acquisition of goods (work, services) and purchase of securities (subclause 3, clause 1, article 223 of the Tax Code of the Russian Federation).
The day of payment for the value of securities, if their payment occurred after the transfer of ownership of them to the taxpayer (subclause 3, clause 1, article 223 of the Tax Code of the Russian Federation).
The last day of each month during the period of using borrowed money (subclause 7, clause 1, article 223 of the Tax Code of the Russian Federation).

We will show you how to fill out lines 100–140 according to MV below with an example.

Read about the rules for filling out line 100 in the article “Procedure for filling out line 100 of form 6-NDFL.”

Filling example

Matvygoda in 6-personal income tax for 2021

Interest-free loan of 30,000 rubles. issued to the employee on August 1, 2016.

Matvygoda accrued for August - September 2021 is 841.08 rubles, personal income tax calculated from it is 294 rubles, including:

for August - 172.60 rubles. Personal income tax from it is 60 rubles. (RUB 172.60 x 35%). The tax was withheld and transferred on 09/05/2016;
for September - 164.38 rubles. Personal income tax from it is 58 rubles. (RUB 164.38 x 35%). The tax was withheld and transferred on 10/05/2016;
for October - 169.86 rubles. Personal income tax from it is 59 rubles. (RUB 169.86 x 35%). The tax was withheld and transferred on November 3, 2016;
for November - 164.38 rubles. Personal income tax from it is 58 rubles. (RUB 164.38 x 35%). The tax was withheld and transferred on December 5, 2016;
for December - 169.86 rubles. Personal income tax from it is 59 rubles. (RUB 169.86 x 35%). No tax withheld.

In total, since the beginning of the year, personal income tax has been withheld from financial benefits in the amount of 235 rubles. (60 RUR + 58 RUR + 59 RUR + 58 RUR).

March 2021

Personal income tax, Tax reporting

Results

Material benefits can be of different types (from savings on interest, when purchasing goods and services and securities at a price below the market price).
To fill out 6-NDFL when reflecting material benefits, additional calculations will be required to determine its value and the amount of tax corresponding to it. MV may be subject to rates that differ from the generally accepted rates. To correctly fill out 6-NDFL with data on MV, it is important to correctly determine the date of receipt of income corresponding to the financial benefit and the deadline for transferring personal income tax from it. You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

Example of filling out a report

Date of actual receipt of income in 6 personal income tax

For clarity, reflecting material benefits in 6 personal income tax, an example of filling out the report is given below:

Employee P. In the 1st quarter, he received income under a loan agreement:

January – 854 rubles;
February – 726 rubles;
March – 698 rubles.

Tax was charged on material benefits:

January – 854 * 35% = 299.8 rubles;
February – 254.1 ruble;
March – 244.3 rubles.

The monthly salary of this employee is 45,000 rubles. Payment occurs every month - on the 07th. He receives no other income. Therefore, salary taxes for January can only be withheld in February. The same thing happens every subsequent month.

Financial assistance: how to reflect 6 personal income taxes and is there a need for it?

The information is reflected as follows:

Section 1 for January:

100 – 31.12.2021;
110 – 07. 01. 2017;
120 – 08. 01. 2021.

Section 2 for January:

130 – 45 000;
140 – 5,850 (personal income tax withheld from salary and financial benefits).

Section 1 for February:

100 – 31. 01. 2017;
110 – 07. 02. 2017;
120 – 08. 02. 2021.

Section 2 for February:

130 – 45 854;
140 – 6 149, 8.

Section 1 for March:

100 – 28. 02. 2017;
110 – 07. 03. 2017;
120 – 08. 03. 2021.

Section 2 for March:

130 – 45 726;
140 – 6 104, 1.

The remaining information on material benefits in 6 personal income taxes will already be reflected in the report for the 1st half of the year and for 9 months. A sample report is presented below.

Financial assistance is not subject to taxation

The Tax Code provides for cases when the employer does not withhold tax and does not reflect the following payments in Form 6-NDFL:

one-time assistance to family members of a deceased employee;
payments to persons affected by a natural disaster or emergency, as well as family members of the deceased;
payments to victims of terrorist attacks on the territory of the country, as well as family members of the victims;
one-time assistance upon retirement due to the death of a relative.

Cash settlement limit under the loan agreement

If the subject of the loan agreement is cash, then the borrower and the lender must comply with the cash payment limit, which is equal to 100,000 rubles. in accordance with clause 6 of Bank of Russia Instructions No. 3073-U dated October 7, 2013 (hereinafter referred to as Instructions No. 3073-U). That is, this is the maximum amount of cash that the parties to the transaction can transfer to each other.

This limit applies to settlements under one agreement (clause 2 of Instructions No. 3073-U):

between organizations;
between the organization and the individual entrepreneur;
between IP and IP.

Note! The cash settlement limit does not apply to settlements under a loan agreement with an individual who is not engaged in entrepreneurial activities (clause 5 of Instructions No. 3073-U). Therefore, an organization (IP) can borrow any amount of cash from its employee (or any other citizen), and vice versa.

For violating (exceeding) the cash payment limit, guilty persons may be fined under Article 15.1 of the Code of Administrative Offenses of the Russian Federation:

legal entity - in the amount of 40,000 rubles. up to 50,000 rubles;
officials - in the amount of 4,000 rubles. up to 5,000 rub.

More important details

If repayment of the loan and interest on it is made from the employee’s salary, the employer should not forget that, according to Art. 138 of the Labor Code of the Russian Federation, the total amount of all deductions for each payment of wages cannot exceed 20 percent.