Individual entrepreneurs in their activities are faced with the need to fill out various documents. Most of them - certificates, declarations, reports - are sent to the tax office. Almost all documentation is filled out on the basis of confirmed data, however, there are several forms based on information received from an individual entrepreneur.
Declaration 4-NDFL
An individual entrepreneur submits a 4-NDFL declaration based on assumptions about the amount of income in the next calendar year. In certain cases, the document is required to be submitted to the tax office. The submission procedure is in most cases voluntary, but many entrepreneurs are wondering whether 4-NDFL must be submitted to the Federal Tax Service. During the existence of the enterprise, the individual entrepreneur must send a document to the tax office at least once.
The information provided by the taxpayer is used by inspectors to calculate the amount of advances that will need to be paid over the next year. Tax payments on income received and payments on calculated advances differ from each other.
Where are the reports submitted?
The declaration must be sent to the tax authority, which is located at the place of registration of the entrepreneur.
If an individual entrepreneur has difficulties determining the correct code of the Federal Tax Service, to which he should send the completed form, then a special service from the tax service portal will come to his aid. There you need to indicate your registration address, after which the required code will be displayed.
If an individual entrepreneur operates in a region other than his registered registration, then he must still submit the form to the inspectorate where he was registered.
Declaration 4-NDFL: who submits it?
This is one of the most pressing issues affecting individual entrepreneurs who have just started their activities. So, who submits 3-NDFL/4-NDFL declarations? The form is filled out in the following cases:
- In the case of receiving the first income from an enterprise, that is, when registering an individual entrepreneur, a 4-NDFL declaration is filled out.
- Who should surrender - entrepreneurs whose income has decreased by 50% at the end of the calendar year.
- Entrepreneurs whose income increased by 50% over the past calendar year.
The legislation of the Russian Federation clearly defines the rules for filing the 4-NDFL declaration - who submits the report and within what time frame. The established rules are not subject to changes or other interpretations.
Due dates
The legislation establishes certain time frames within which all forms must be submitted, including the 4-NDFL declaration 2016. Those who submit the declaration - namely individual entrepreneurs - must draw up the document within a certain time frame; As a rule, there are no difficulties with this. The report is provided within the following deadlines:
- The completed form for new entrepreneurs is submitted within five days of the month following the month in which the first profit was received.
- Existing individual entrepreneurs file a declaration after an increase or decrease in profits. This usually happens at the beginning of the next tax period.
How to fill it out correctly
The document consists of one sheet and is easy to fill out. Despite the fact that 4-personal income tax is just a forecast, mistakes cannot be made in it. The declaration consists of three parts:
- Top part. The TIN is indicated here, and in the “correction number” item you should put 0 if you are submitting it for the first time, or 1 if the documents have already been submitted.
- Body of the document. Here you indicate the year, full name, number of the department to which the document is submitted, as well as the taxpayer category code. You should always put the number 720 in this field, which indicates that you are an individual entrepreneur. Below is the amount of estimated income in numbers, without abbreviations, additions, brackets or strikethroughs.
- Validation check. Here everything is done according to the model - fill in your full name and enter the appropriate code.
- Work marks. This part of the sheet does not concern you - tax officials will make notes here.
To understand the listed points, we provide a sample of filling out 4-NDFL - using it, you can do everything correctly. There is nothing complicated about filling it out - the main thing is to know your individual tax number and the number of the department to which you are submitting the document (you can find it out at the tax office or on the website by selecting a territorial department). Fill out the paper as accurately and correctly as possible, because it is on this basis that you will have to make advance payments for tax collections.
The difference between 4-NDFL and 3-NDFL
- The 3-NDFL declaration is drawn up on the basis of income already received for the past calendar year, while the 4-NDFL is drawn up on the basis of estimated income.
- Taxation standards are taken as the basis for filling out 3-NDFL. Its completion is mandatory for those citizens who received a certain income on which tax was not paid: for example, the amount from the sale or rental of real estate.
- Declaration 3-NDFL is drawn up for an individual to receive property or social tax deductions.
In some cases, declarations in forms 3-NDFL and 4-NDFL are compared with each other - for example, when it is not possible to calculate an advance based on the information provided in 4-NDFL.
This might also be useful:
- Tax calendar for 2021 for individual entrepreneurs
- Production calendar for 2021
- Increasing the minimum wage in 2021
- Act of joint reconciliation of taxes and fees with the Federal Tax Service
- What taxes does the individual entrepreneur pay?
- Tax system: what to choose?
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Procedure for filling out the declaration
To register 4-NDFL, there is a form established by law in which all the necessary data is entered. The declaration form is very simple, filling it out should not cause problems. To avoid errors when filling out, it is advisable to study samples of the completed form in advance - they are usually placed on the appropriate stands at the tax office.
The 4-NDFL declaration is drawn up according to standard rules:
- The TIN number is indicated at the top of the form.
- The adjustment number is entered at the top of the 4-NDFL form. Who submits the declaration for the first time, Fr.
- Tax period is the date after which the individual entrepreneur plans to receive the specified income.
- The tax service department number is indicated in the “provided to the tax authority” field.
- OKTMO code.
When filling out a declaration, an individual entrepreneur indicates his personal information, passport data and the amount of income that is planned to be received by the next tax period. The amount is calculated by the entrepreneur independently without providing third-party documents confirming the likelihood of receiving it.
New self-employed entrepreneurs can calculate their likely income based on the revenue received in the first month of operation.
For those individual entrepreneurs who have been working for a long time, it is advised to calculate the estimated income based on the amount indicated in the 3-NDFL report for the past tax period. This method is one of the most popular and widespread. The form indicates a smaller amount if the entrepreneur believes that the company’s income will decrease next year, and vice versa: if the income is expected to increase, it is recommended to include a larger amount in the declaration.
In addition, when filling out the declaration, it is advisable to take into account the following features:
- The tax inspector calculates advance payments only if the amount indicated in the declaration is one and a half times more or less than the amount given in form 3-NDFL.
- Calculation of advance payments based on actual income for the previous tax period is carried out if the difference between the indicators indicated in the 3-NDFL and 4-NDFL declarations is 50% up or down.
Some nuances
Now that you know what 4-NDFL is for individuals and when it needs to be submitted, let’s look at certain nuances of filing declarations that every individual entrepreneur working on a general scheme should be familiar with. So, this paper is submitted to calculate advance payments. They must be done:
- 50% of the advance payment amount is due by July 15.
- 25% of the advance payment amount is due by 15.10.
- The remaining 25% is due by January 15.
It is strictly not recommended to delay these deadlines, since sanctions will be applied to you. The calculation is made on the basis of a forecast and, if necessary, is adjusted, so you will not receive a real fine or penalty, but still there is no need to delay, otherwise you will come under the close attention of inspectors. Note that, according to Article 22 of the NKRF, forced collection of the advance payment is possible.
Attention:
If an individual entrepreneur works for OSNO and is not a personal income tax payer, then there is no need to submit a declaration.
Please note that if, under certain circumstances, an obligation to pay personal income tax arises, the entrepreneur is obliged to submit the form to the territorial office of the tax office. As a rule, the tax authority itself reminds entrepreneurs of the need for payments, but sometimes letters are lost or arrive at a different address, so carefully monitor compliance with deadlines so as not to violate the requirements of tax legislation.
What happens if you don’t submit reports at all? In this case, the tax code, and in particular Article 119, comes into force, and a fine is imposed on the entrepreneur. There is one trick here - since the amount of the fine is tied to the amount of tax, and in fact there is no tax in 4-NDFL, the amount of the fine will be zero (the tax office actually sends out similar letters demanding to pay 0.00 as a fine).
Of course, such sanctions will scare few people, but still there is no need to spoil relations with regulatory authorities and once again come to their attention - just submit your declaration by the end of April (or a month after receiving income) and pay advance payments on time. Using this link you can fill out the 4-personal income tax form yourself, and here is a completed form as an example.
How to submit a 4-NDFL declaration
A 4-NDFL declaration can be submitted to the Federal Tax Service in one of three ways:
- By an individual entrepreneur personally or through a representative in paper form in two copies. One of them remains with the individual entrepreneur, the second is transferred to the tax office.
- Via mail with a description of the attachment. The entrepreneur has a receipt and an inventory of the investment in his hands. The date of submission of the declaration will be considered the date indicated on the receipt.
- In electronic form through EDF operators or the official website of the Federal Tax Service of Russia.
If the declaration is submitted by an individual entrepreneur through a representative, then a notarized power of attorney is issued to the latter.
Some tax office branches, when submitting a declaration in paper form, require its equivalent in electronic form indicating a barcode. The Tax Code of the Russian Federation does not specify such requirements, however, the inspector may refuse to accept documents for this reason. You can always appeal a refusal to a higher authority of the Federal Tax Service.
Who hands it over and in what cases?
The following categories of business entities (those who have chosen the general taxation system) are required to submit a declaration to the regulatory authorities at the place of registration:
- Individual entrepreneurs who have just registered as business entities.
- Individual entrepreneurs who have been carrying out their commercial activities in any business area for a long time, and their income has either decreased by half or increased by 50%.
- Individuals who provide services to Russian citizens and taxpayers. This category includes lawyers, notaries, etc.
The subject can personally submit a completed and certified declaration to the regulatory authorities or send it by mail. It is possible to submit a report by e-mail, but after a pre-filled application (this can be done on the official website of the Federal Tax Service of Russia).
If you are interested in how to fill out the 3-NDFL declaration, read this material. Detailed information on how to correctly calculate personal income tax is provided here.
Sanctions for failure to submit a declaration
Individual entrepreneurs are obliged by the Tax Code and the Federal Law of the Russian Federation to submit a declaration in form 4-NDFL within the time limits established by law to the local tax inspectorate. Despite the exact deadlines for delivery, violators do not face any liability in the form of penalties. This is explained by the fact that business entities in this reporting form do not indicate data on the income received during the tax period and tax liabilities, since only probable values of income are entered into Form 4-NDFL. In this regard, the maximum fine for an individual entrepreneur who has not submitted a declaration or has overdue the deadline for submitting it is 200 rubles.
The form is submitted within five days after the end of the month in which the individual entrepreneur received income from his activities. The declaration indicates the income expected to be received for the subsequent tax period. The amount of income and, accordingly, probable tax is calculated by the individual entrepreneur independently based on the efficiency of his business.
