The Housing Code of the Russian Federation provides for the possibility of paying remuneration to the chairman and members of the board of the HOA. And if, for example, in the case of concluding an employment contract with the chairman of the HOA, the procedure for paying insurance premiums and personal income tax from the chairman’s salary does not raise any special questions, then in the absence of employment contracts, the relevance of such issues increases significantly.
In this article we will examine the issues of the size and frequency of payment of remuneration, the method of receiving it, the obligation to pay insurance premiums and personal income tax and the determination of the person obliged to make such payments (and the corresponding deductions). Additionally, we will discuss the issue of indexing pensions for members and chairmen of the HOA board who are pensioners, and also consider the issue of paying bonuses to the chairman and members of the HOA board.
Taxation of remuneration of the chairman of the homeowners association
This is stated in subparagraph 1 of paragraph 2 of Article 251 of the Tax Code of the Russian Federation (Letter of the Federal Tax Service of the Russian Federation for Moscow dated May 30, 2008 N 21-07/). In accounting, such receipts are reflected in account 86 “Targeted financing”, to which separate sub-accounts are usually opened by type of receipts. For profit tax purposes, targeted income is not taken into account (clause 2 of Article 251 of the Tax Code of the Russian Federation). Do you think this is wrong? I'm just looking for a logical answer for myself.
Unless of course nothing changed when it was working. Perhaps there are other options, like the HOA - with the chairman there, the issue is resolved somehow differently. quote: Originally written by SwD: There is no one to maintain an employment contract - work books, and related organizational issues. The payment should be no less than the minimum wage. Emnip contributions to funds under contract can be deducted from the cooperative tax (no more than 50% of the tax - I don’t remember the name offhand).
An experienced teacher in the field of practical accounting, taxation and the specifics of the activities of non-profit organizations with more than 30 years of experience.
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— Validation of work on the maintenance and repair of common property. Requirements for work performance certificates. New form of act.
Taxation of housing cooperatives (HOA) in - questions and - answers
How to apply?
The procedure will be as follows:
- Notify the owners of the meeting (at least 10 days before it is held).
- At the meeting, residents get acquainted with the acts and cost of work on improvement of the house and surrounding area.
- Calculate the amount of remuneration (a certain percentage of the estimates).
- Hold a vote on whether the owners agree with the amount. It is necessary to draw up a protocol about this.
- The protocol with the consent of the HOA members is the basis for receiving money.
Note: at least half of the residents must take part in the voting. If the required number could not be collected, absentee voting can be held.
Personal income tax taxation of remuneration of members of the board and audit commission of the homeowners association
How to organize remuneration payments to the chairman of the board of an apartment building?
Moreover, the tenant may not even know what legal relations this person has with the owners of the premises in the apartment building. Therefore, the tenant cannot be considered as a tax agent and is not required to pay additional taxes.
With such an organization of legal relations, the receipt of funds under the article “Remuneration to the Chairman of the Board of MKD”, with proper organization of separate accounting, is not subject to taxation on the basis of “subparagraph 9 of paragraph 1 of Article 251” of the Tax Code of the Russian Federation. The management organization is not a tax agent for personal income tax and a payer of insurance premiums, since it is not recognized as a source of payments and does not accrue remuneration.
Legislative regulations
All issues related to construction management fall under the jurisdiction of housing legislation . Therefore, it is not surprising that regarding payment one should also refer to this regulatory act.
Thus, Article 147 of the Housing Code tells us exactly how the leader is elected, which is also important for the overall picture of events.
The amount of payments also falls under the jurisdiction of housing legislation and is regulated by Article 145, namely part 2.
It is this norm that tells us exactly how the chairman’s monetary remuneration for performing any action is formed.
Now that we have established all the aspects that relate to the remuneration of the head of the board and have come to the conclusion that his work is paid through remuneration, it is time to figure out exactly how this remuneration is calculated, in what order, by whom specifically and in what amount.
Let us turn to this information in order to clearly understand how honest your homeowners association manager is with you.
You can find out in what cases it is necessary to inspect the financial and economic activities of an HOA by regulatory authorities from our article.
Taxation of HOA income
If services for the maintenance of the common property of an apartment building are provided to the owners of the premises of an apartment building HOA on the basis of contracts and the Charter, then these payments must be recognized as taxable income. When classifying a mandatory payment as non-taxable income, it should be understood that these funds are transferred to the settlement account of the HOA as a transit payment under agreements concluded by the owner, represented by the chairman of the HOA, with performers of services, works and suppliers of goods.
It is also reported that the ministry has planned to conduct training for council members of apartment buildings. Dear Colleagues! I think many of you will be interested to know whether it is possible to request from the Federal Tax Service of the Russian Federation information about the integrity of counterparties (including prospective ones) in terms of their compliance with tax obligations. This information allows you to give an objective assessment of the reliability of the prospective partner.
“Housing Code of the Russian Federation” dated December 29, 2004 N 188-FZ (as amended on July 6, 2018) 2.
Article: About the chairman of the board of the HOA (Kozyreva S.N.) (“Housing and communal services: accounting and taxation,” 2013, No. 3) Separately, it should be said about the remuneration of board members. Determining the remuneration of members of the HOA board, including its chairman, is within the exclusive competence of the general meeting of HOA members (clause 11, clause 2, article 145 of the Housing Code of the Russian Federation). It is assumed that the general meeting may not establish remuneration for board members at all, in which case they are considered to perform their duties on a voluntary basis.
Remuneration for the chairman of the homeowners association: taxes and insurance premiums.
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How is this reflected in the accounting records? Since the performance of his functions by the chairman is in no way connected with the production and subsequent sale of any type of product, does not have labor relations, and is not related to the provision of services, purchase and sale of goods, no special acts are required to be maintained for this item of expenditure. The partnership accountant issues remuneration to the head of the HOA as part of other expenses for maintaining the apartment building. Important! If necessary, such preparation of documents can be justified by Article 11 of the Labor Code of the Russian Federation, since no employment contract was concluded with the Members of the Board and the Chairman of the HOA. If any dispute arises regarding the calculation of remuneration to the chairman, you can seek legal advice. He will look at the situation specifically for a particular partnership and help you understand the current situation.
Who installs?
According to Article 145 of the Housing Code, the amount of remuneration for all members of the board, including the chairman, is determined by the decision of the owners. A certain percentage of expenses is approved, which will go towards payment.
Subsequently, a specific amount is determined monthly at the HOA meeting based on this percentage and the expenses incurred. Since wages must be paid monthly, it is advisable to carry out this procedure once a month.
Note: These expenses should be included in the financial plan for the year along with the rest.
Calculation of insurance premiums and personal income tax from the remuneration of the chairman of the homeowners association
- on one's own;
- with the help of a credit institution;
- or regional operator.
Do I need to pay insurance premiums? This must be done. There are two options for paying it:
- The chairman himself does this by submitting documents.
- Payments are made by the HOA, and wages are reduced by the amount of contributions.
How exactly this happens must be written down in the Charter.
In case of non-payment, the inspection authorities will be able to charge fees. As a rule, payments are transferred once a year based on its results.
What to do if the partnership does not pay? Owners are not always willing to pay for labor to maintain premises and territory in good condition. Sometimes they do not think that the expenditure of time and effort requires certain compensation. It also happens that residents simply do not attend meetings at which payment issues are discussed.
When can an official be paid for his efforts?
The chairman’s efforts can be paid in cases where they carefully fulfill a number of obligations . Among them:
- first, the chairman fulfills his duties in full and draws up an act of work performed on their basis;
- the document must specify the time frame of work, the amount of expenses, the final results and what the chairman himself directly did;
- after completion, the act is handed over to the members of the HOA board; if they cannot consider it at the moment, a decision and discussion on the document can be held at a house-wide meeting;
- after checking all the data, the percentage of remuneration is calculated from the amount of money spent, all management members and residents must agree with it;
- if it was not possible to reach an agreement, the certificate of work performed will be revised and carefully checked;
- after a positive decision, minutes of the meeting will be drawn up, according to which the chairman will be able to withdraw the payment assigned for his work from the current account of the partnership.
Important! The money is collected from a bank branch or from a regional operator, it all depends on where the partnership opened the account.
To receive a reward, you will need to provide a sheet of paper based on the results of the meeting .
The amount of remuneration for the chairman of the homeowners association, insurance premiums and taxes
But for this it is necessary that the amount of payments be previously determined and included in the Charter. The remuneration paid to the chairman of the HOA is compensation for efforts aimed at maintaining and improving the house, as well as the surrounding area.
It is calculated as a share of the work performed for improvement or repair. The percentage amount is determined by the apartment owners at their general meeting and then included in the Charter.
The amount of remuneration for organizing specific work is also approved at the HOA meeting. If remuneration is not paid for some reason, it is possible to appeal to the housing inspectorate or to court. Such payments are additional costs. But at the same time, they encourage people to take better care of the property at home. And this is important and beneficial for all residents, and in the long term can lead to cost savings.
How is it determined?
Payments for performing duties are a percentage of the cost of work carried out in the house. Thus, the greater their volume and the chairman’s time spent, the more money he will receive. But often it is only symbolic.
The amount depends, among other things, on:
- the number of apartments existing in the building;
- how many responsibilities the chairman has.
Officially members of the board cannot work in the HOA under an employment contract (we discuss the nuances of concluding an employment contract between the chairman and the HOA in this material). But often the chairman actually performs the duties of an accountant (as well as other specialists). This, of course, should be reflected in the amount of remuneration. It can range from several thousand to several tens and even one hundred thousand rubles.
The basis for payment of remuneration will be the minutes of the meeting.
What taxes does the homeowners association pay?
- In what form does he receive payment?
- How is it determined?
- Who installs?
- Where are the conditions stated?
- How to apply?
- What taxes are subject to?
- Do I need to pay insurance premiums?
- What to do if the partnership does not pay?
Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique. If you want to find out how to solve your particular problem, please use the online consultant form on the right or call.
It's fast and free! In what form does he receive payment? The chairman, like all other members of the board, is not paid a salary, but a reward for the work he has done.
Where are the conditions stated?
The main conditions are specified in the Charter of the partnership.
The lowest and highest possible percentage are not established by law. The amount of payment for specific work must be recorded in the minutes of the meeting.
If information about the percentage of payments was not included in the Charter initially (or the amount changes), you will have to formalize its change. For this, it is also necessary to hold a meeting. On it, HOA members vote to add (or change) this item. A protocol is drawn up. If more than half of those eligible to vote took part and the result is positive, the information is written down in the document.
