Personal income tax, or personal income tax, is an abbreviated name for the tax withheld from the income of individuals when they are paid.
Personal income tax accounting is carried out on account 68.01 in the context of analytics: tax, penalties, fines for violation of tax legislation on personal income tax (NDFL).
According to the Tax Code of the Russian Federation, the calculation and withholding of income tax must be carried out by the person who pays the income to the individual, the so-called source of payment.
From the point of view of tax legislation, the source of payment of income to individuals is the tax agent. His responsibility is to transfer personal income tax to the budget from the amount of remuneration paid no later than the day following the transfer of funds to the employee, with the exception of two cases:
- sick leave payment;
- vacation pay payments.
For these cases, the deadline for paying income tax is the last day of the month in which vacation pay or sick leave benefits were paid.
Personal income tax calculation: tax agent entries (basic)
First, let’s clarify: personal income tax is a tax on personal income. From the name itself it follows that the payers of this tax are individuals:
- residents of the Russian Federation;
- non-residents of the Russian Federation receiving income in the Russian Federation (Article 207 of the Tax Code of the Russian Federation).
Who is a resident for personal income tax, read the article “Tax resident of Russia for personal income tax purposes.”
On the website of the Federal Tax Service of the Russian Federation there is a Service for confirming the status of a tax resident of the Russian Federation.
The procedure for calculating and paying personal income tax is regulated. 23 Tax Code of the Russian Federation. Following the rules set out in this chapter, an organization paying income to an individual is obliged to calculate, withhold and transfer personal income tax to the budget on accrued income, and to pay the individual income minus personal income tax (clause 1 of Article 226 of the Tax Code of the Russian Federation). Thus, when paying income to an individual, an organization becomes a tax agent for personal income tax (Article 226 of the Tax Code of the Russian Federation).
If you have access to ConsultantPlus, find out how a tax agent calculates personal income tax. If you don't have access, get a free trial of online legal access.
Correctly determining the tax withholding date is important for filling out the 6-NDFL report. Read more about this in the article “Date of tax withholding in form 6-NDFL” .
Tax accounting is carried out on account 68, subaccount “NDFL”. Accruals are reflected on the credit of this account in correspondence with accounts selected depending on the situation. Let's take a closer look at them.
Here are the main cases that a company may encounter when paying income to an individual.
Salary in accounting
The accrual and payment of wages, as well as deductions from it, are reflected in account 70 “Settlements with personnel for wages”.
This follows from the chart of accounts approved by order of the Ministry of Finance of Russia dated October 30, 2000 No. 94n. When calculating salaries, the accountant uses the credit of account 70. When paying wages, when withholding personal income tax, alimony and other things, the accountant uses the debit of account 70. Analytics on account 70 must be maintained for each employee of the company.
Insurance premiums should be reflected in account 69 “Calculations for social insurance and security”, and personal income tax - in account 68 “Calculations for taxes and fees” subaccount “Personal Income Tax”.
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How to calculate personal income tax under an employment contract (formula)
The main type of income for which an organization becomes a tax agent for personal income tax is accruals under an employment contract.
As a rule, such payments are: wages, bonuses of various types, allowances, compensation in excess of the norm related to the employment contract.
In what cases are bonuses not subject to personal income tax, read the article “Are bonuses subject to personal income tax?”
From all these payments, minus the deductions provided (Articles 218, 219, 220 of the Tax Code of the Russian Federation), tax is withheld: monthly in the amount of 13% for residents and 30% for non-residents, except for those listed in Art. 227.1 Tax Code of the Russian Federation.
The formula for calculating personal income tax is as follows:
Personal income tax = (Dex – Deductible) × St,
Where:
- Personal income tax - the amount of tax to be withheld;
- Doh - the amount of employee income for the month, including bonuses, allowances, etc.;
- Deduction - the amount of deductions (children's, property, social) provided at the request of the employee;
- St - tax rate (13% for residents, 30% for non-residents).
Postings are made:
- Dt 44 (20, 26) Kt 70 “F.I.O. employee" - wages accrued;
- Dt 70 “F.I.O. employee" Kt 68 "Personal Income Tax" - personal income tax is accrued (withheld);
- Dt 70 “F.I.O. employee" Kt 51 (50) - wages issued;
- Dt 68 “Personal Income Tax” Kt 51 - Personal income tax is transferred to the budget.
The article “Calculation of personal income tax (personal income tax): procedure and formula” can also help you calculate personal income tax.
The procedure for calculating personal income tax on material benefits (example)
When receiving a low-interest or interest-free loan from an organization, the employee receives a material benefit in terms of savings on interest.
IMPORTANT! From 2021, new conditions for personal income tax assessment of this type of financial benefit have been introduced. Read more here.
It matters in what currency the loan agreement is drawn up.
If it is issued in rubles, then the threshold rate is 2/3 of the current refinancing rate established by the Central Bank of the Russian Federation on the date of receipt of income (clause 2 of Article 212 of the Tax Code of the Russian Federation).
IMPORTANT! From 2021, the refinancing rate is equal to the key rate (directive of the Central Bank of the Russian Federation dated December 11, 2015 No. 3894-U). See its sizes for different periods here.
If the loan is issued in foreign currency, then the established threshold value is 9% per annum (clause 2 of Article 212 of the Tax Code of the Russian Federation).
If interest is less than the threshold values or is not charged at all, personal income tax is withheld from the difference at a rate of 35%.
It is better to consider the postings for calculating personal income tax using a specific example.
The organization issued a loan to employee Ivanov I.I. (resident of the Russian Federation) for a period of 1 year in rubles at a rate of 3% per annum with interest paid at the end of the loan term. Loan size - 500,000 rubles.
Dt 73 “Ivanov I. I.” Kt 50 - 500,000 rub. — the loan amount was issued to Ivanov on January 15, 2021.
Income from the amount of the benefit from 2021, regardless of the date of payment of interest, is determined monthly on the last day of the month. Let's calculate the amount of interest on the loan for January 2021. There was no partial repayment of the loan in January. The number of days for which material benefits are calculated from 01/16/2021 to 01/31/2021 is 16.
500,000 × 0.03 × 16/365 = 657.53 rubles.
Dt 73 “Ivanov I. I.” Kt 91 - 657.53 rub. — interest accrued for using the loan for January 2021.
Let's calculate personal income tax on the amount of material benefit (at a Central Bank rate of 6.25%).
2/3 × 6.25% = 4.17% - threshold, taking into account the current refinancing rate.
4.17 – 3 = 1.17% - interest on material benefits.
500,000 × 0.0117 × 16 / 365 = 256.44 rubles. - material benefit for January 2021. Let's calculate personal income tax (35%) from it: 256.44 × 0.35 = 90 rubles.
If Ivanov were a non-resident of the Russian Federation, then the tax would be withheld at a rate of 30% (clause 3 of Article 224 of the Tax Code of the Russian Federation).
Dt 70 (73) “Ivanov I. I.” Kt 68 “NDFL” - 166 rubles. — Personal income tax on material benefits for January 2021 is withheld from the employee’s salary (or other income).
Dt 68 “NDFL” Kt 51 - 166 rubles. — Personal income tax from savings on interest for January 2021 is transferred to the budget.
Is it necessary to charge personal income tax if a third party paid the tax for an individual, ConsultantPlus experts explained. Learn the material by getting trial access to the system for free.
Calculation of personal income tax on travel expenses
Travel expenses in terms of daily allowance and unconfirmed costs for renting residential premises, in accordance with clause 3 of Art. 217 of the Tax Code of the Russian Federation are standardized for personal income tax purposes. Daily allowances in excess of the norm and expenses for renting residential premises that are not documented are subject to personal income tax at a rate of 13%.
The norms for daily allowance are set within the following limits: for business trips in Russia - no more than 700 rubles. per day, for business trips abroad - no more than 2,500 rubles. in a day.
Read about similar restrictions that apply to daily allowances regarding the calculation of insurance premiums in this article.
When an organization pays daily allowance to an employee by internal order above the established norm, the following entries are made:
Dt 71 "F. Acting employee" Kt 50 (51) - an advance was issued to the accountable person for travel expenses.
Dt 44 (20, 26) Kt 71 “F. Acting employee”—travel expenses are accrued.
Dt 70 "F. Acting employee" Kt 68 "Personal Income Tax" - personal income tax is charged on amounts for business trips that exceed the norm. The date of receipt of such income from 2021 is considered to be the last day of the month in which the corresponding advance report was approved (subclause 6, clause 1, article 223 of the Tax Code of the Russian Federation). Previously, it was taken into account on the date of approval of the advance report.
Dt 68 “NDFL” Kt 51 - paid by personal income tax to the budget.
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Personal income tax withheld from temporary disability benefits, benefits for caring for a sick child, as well as from vacation pay must be transferred no later than the last day of the month in which the income was paid. For example, an employee goes on vacation from March 6 to March 23, 2019. Vacation pay was paid to him on March 1. In this case, the date of receipt of income and the date of withholding personal income tax is March 1, and the last date when personal income tax must be transferred to the budget is March 30, 2021.
As a general rule, personal income tax must be paid in 2021 no later than the day following the day the employee (individual) was paid income. So, let’s say the employer paid the salary for January 2021 on February 9, 2021. The date of receipt of income will be January 31, 2021, the tax withholding date will be February 9, 2021. The date no later than which personal income tax must be paid to the budget, in our example, February 12, 2021 (since the 10th and 11th are Saturday and Sunday).
Accrual of personal income tax on dividends paid
Dividends are the income of the founders. If the founder is an individual, then his income is subject to personal income tax at a rate of 13%. Accounting for paid dividends for founders who are employees of the organization can be kept in both account 70 and account 75, but if the founder is not an employee of the organization, then only account 75 is used.
Dt 84 Kt 75 “F. Acting founder”—dividends accrued.
Dt 75 "F. Acting founder" Kt 68 "Personal income tax" - personal income tax is accrued (withheld) from dividends.
Dt 75 "F. Acting founder" Kt 51 - dividends were paid to the founder minus personal income tax.
Dt 68 “NDFL” Kt 51 - paid by personal income tax to the budget.
Find the KBK for paying personal income tax on dividends paid in this article.
Profit distribution
The amount that a JSC or LLC can allocate for distribution between participants or shareholders is listed in account 84 “Retained earnings (uncovered loss).” In fact, these are funds remaining at the company’s disposal after all expenses, including payment of taxes on income (profit, simplified tax system or UTII). The distribution order is regulated:
- for LLC - by law dated 02/08/1998 No. 14-FZ;
- for JSC – by Law of December 26, 1995 No. 208-FZ.
The company must pay dividends within certain periods:
- JSC - with a nominal holder, trustee is settled within 10 working days from the date of determination of persons entitled to receive dividends, and 25 working days - with other recipients;
- LLC - within 60 days from the date of the decision or within the period established by the Charter of the company.
Let's look at how dividend payments to the founders of an LLC and shareholders of a JSC are reflected in accounting.
Purchasing works and services from an individual
Another situation that may arise is the purchase of work or services (for example, rental of non-residential premises) by an organization from an individual. By virtue of Art. 226 of the Tax Code of the Russian Federation, in this case, the organization is obliged to withhold personal income tax from the amount of payments, pay it to the budget, and transfer the amount to the seller minus personal income tax at a rate of 13% (with the exception of income listed in Article 217 of the Tax Code of the Russian Federation).
In this case, the following transactions are made:
Dt 20 (26, 44) Kt 76 “F. AND ABOUT." (60) - services and work were purchased from an individual.
Dt 76 "F. AND ABOUT." (60) Kt 68 “Personal Income Tax” - personal income tax is accrued (withheld).
Dt 68 “Personal Income Tax” Kt 51 - Personal income tax is transferred to the budget.
Dt 76 "F. AND ABOUT." (60) Kt 51 - the amount for services and work to an individual is transferred minus personal income tax.
The main thing to remember is that personal income tax is taken from the income of a specific individual, and no matter what account is used when calculating it, it is necessary to conduct analytics on it for each individual from whose income personal income tax was withheld. It should also be remembered that tax-free income of an individual is established by law - all of them are listed in Art. 217 Tax Code of the Russian Federation.
Read more about non-taxable income in the article “Income not subject to personal income tax” .
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When paying funds to individuals who are not entrepreneurs, income tax must be withheld. The tax agent - the person transferring the withheld amount to the budget - can be either a company or an individual entrepreneur. How to take into account personal income tax, on which accounting account - we will explain in this article and provide postings with examples.
Results
Business entities paying income to individuals become tax agents for personal income tax and are required to withhold and transfer the calculated amount of tax to the budget. Personal income tax accounting is carried out using account 68, the personal income tax subaccount, in correspondence with the accounts corresponding to the transaction being carried out.
Sources:
- Tax Code of the Russian Federation
- Directive of the Bank of Russia dated December 11, 2015 N 3894-U
You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.
Vacation pay: how to reflect it in 6-NDFL, sample filling
Form 6-NDFL was introduced by the Russian Tax Service on October 14, 2015 by order MMV 7/11/450. According to this order, all tax agents (companies, enterprises, institutions, etc.) paying individuals monetary remuneration for work and making other payments from which income tax is withheld are required to submit a declaration in Form 6-NDFL starting from 2019.
- accrued vacation pay (28,000+14,000 = 42,000 rubles) are reflected in the first section of form 6-NDFL in line 020,
- the accrued tax (3640+1820 = 5460 rubles) is reflected in the first section on line 040,
- withheld tax (RUB 5,460) is reflected on line 070.
- in the second section, transactions are not displayed, since the deadline for paying personal income tax to the budget for vacation pay falls on the 1st working day, 01/09/17.
