How to notify the Federal Tax Service about the choice of a unit for paying personal income tax in 2021?

New norm of the Tax Code of the Russian Federation

From January 1, 2021, paragraph 7 of Art. 226 of the Tax Code of the Russian Federation, which regulates the specifics of calculating personal income tax by tax agents, as well as the procedure and timing for their payment of tax, is in effect in a new edition.

A new paragraph was introduced into this paragraph. "b" clause 16 of Art. 2 of Law No. 325-FZ of September 29, 2019, which introduced numerous changes to the Tax Code of the Russian Federation.

According to it, tax agents who have several separate divisions on the territory of one municipality can transfer personal income tax in two ways:

1. At the location of one of these detachments.

2. At the location of the organization itself.

Condition: if the company and its separate structures are located on the territory of one municipality. In this case, the tax agent himself chooses such isolation, taking into account the procedure established by clause 2 of Art. 230 Tax Code of the Russian Federation.

REFERENCE
The tax agent must notify the tax authorities with which he is registered at the location of each separate division no later than January 1 of the choice of the Federal Tax Service.
The notice cannot be changed during the year. Exception: the number of separations has changed or other changes affecting the procedure for submitting information about the income of individuals and personal income tax amounts.

For this purpose, the form for notification of the selection of a tax authority, the procedure for filling it out and the electronic format for submission were approved by Order of the Federal Tax Service of Russia dated December 6, 2019 No. ММВ-7-11/622.

According to the order, the new form of notification comes into force on January 1, 2021.

Thus, from 2021, organizations with separate entities can choose the procedure for paying and submitting personal income tax reports through their division.

Also see “A separate division of an organization: what is it?”

In addition, if an organization has several separate divisions in another municipality (not the one where the head office is registered), then among them it can also choose a responsible one.

Let us note that until 2021, such tax agents paid personal income tax and submitted reports at the place of registration of both the parent organization and each separate division.

KEEP IN MIND
Also, starting from 2021, the threshold for the minimum number of employees has been reduced - from 25 to 10 people - at which tax agents are required to submit tax reports (2-NDFL certificates and 6-NDFL calculations) in electronic form.

Also see Business Units: Ways of Living and Tax Implications.

What departments and what income are we talking about?

A separate division of an organization is considered to be one that is territorially isolated from it and has stationary jobs created for a period of more than 1 month.
A division acquires the status of a separate unit regardless of whether it is mentioned in the constituent documents and whether it is assigned powers (paragraph 21, paragraph 2, article 11 of the Tax Code of the Russian Federation). For information on how to register a separate division, read the article “Registration of a separate division - step-by-step instructions.”

Russian organizations that have separate divisions must transfer personal income tax both at the place of registration of the organization itself and at the location of the division (paragraph 2, paragraph 7, article 226 of the Tax Code of the Russian Federation). The amount of tax to be transferred by division is determined by the income accrued and paid to the employees of this division (paragraph 3, paragraph 7, article 226 of the Tax Code of the Russian Federation).

This applies to payments under both employment and civil contracts. But you need to keep the following in mind. It is necessary to pay personal income tax to the tax department provided that:

someone working under an employment contract is considered an employee of this OP (this is directly written in the employment contract, staffing table, work book);
the GPC agreement was concluded directly with the division (in this case, the actual location of the activity does not matter).

Where to pay personal income tax if an employee works in different departments for a month, works remotely or from home? You will find answers to these questions in the Ready-made solution from ConsultantPlus. Trial access to the legal system is free.

When should I notify the inspectorate about choosing a unit to pay personal income tax?

The organization must notify the inspectorate of its choice no later than the 1st day of the tax period.

Taking into account the fact that in 2021 holidays are from January 1st to January 10th, tax authorities must be notified on the first working day, January 11th, 2021.

At the same time, you can pay personal income tax taking into account the selected division starting from 2021.

If an organization plans to continue to transfer personal income tax in subsequent years and submit tax reports in the same manner as in 2021, for example, at the place of registration of the responsible OP, then next year there is no need to submit a notification to the Federal Tax Service.

Closing a separate division

Many reasons can lead to the closure of a separate division. The most common of them is optimizing the organization’s work by eliminating unprofitable branches or representative offices.

Closing a separate division, information about which is indicated in the constituent documents, requires the submission of documents, such as:

notification (form No. S-09-3-2);
application (Form No. P13001);
Charter as amended (new edition);
owners decision.

When closing a division, information about which is not included in the charter, such an expanded list of papers is not required.

Who must pay personal income tax at the location of the unit

If a separate division has a current account and the authority to pay taxes, then it can pay personal income tax independently (Article 19, paragraph 3 of Article 29 of the Tax Code of the Russian Federation). If not, the parent organization pays (clause 1, 7, article 226 of the Tax Code of the Russian Federation, letter of the Federal Tax Service dated 04/07/2015 No. BS-4-11 / [email protected] ).

What to do if the personal income tax for a unit is included in the inspection of the head office, see here.

Where you need to pay personal income tax if separate divisions are located in the same municipality (or in the cities of Moscow, St. Petersburg, Sevastopol) in the territories of different tax authorities, you can find out from the Ready-made solution from ConsultantPlus. You can get trial access to K+ for free.

Income tax for a closed separate division

The procedure for making an advance payment when closing a unit is established directly in Article 288 of the Tax Code of the Russian Federation. Paragraph 8 of clause 2 of this article states: tax payment is carried out in the generally established manner, starting from the reporting (tax) period following the reporting (tax) period in which the separate division was liquidated. It turns out that advance payments for the period in which the division is closed seem to still need to be paid with distribution. Even if the division was not liquidated in the last month of the quarter. However, it is not.

As we already mentioned, the essence of monthly advance payments is that they are calculated on the basis of the previous quarter and are counted towards the advance payment for the current quarter. If the division was closed during the quarter, then it will no longer be possible to calculate the amount of the advance payment of income tax payable to the budget of the region where the liquidated division was located based on the results of the reporting period in which it was closed. After all, such a division worked for an incomplete reporting period, and it is impossible to determine the share of profit for this quarter attributable to it.

Therefore, the payment of monthly advance payments at the location of the unit must be stopped immediately after its closure. Moreover, monthly payments paid for the quarter in which the liquidation of the OP took place will be considered overpaid (see letters of the Ministry of Finance of Russia dated 08.10.06 No. 03-03-04/1/624 and dated 02.24.09 No. 03-03- 06/1/82). Companies that pay monthly advances based on actual profits apply the same rules, but adjusted for the size of the tax period: the advance payment for the month in which the enterprise was liquidated is no longer required to be transferred to its location.

The issue of submitting declarations at the location of closed units is resolved in a similar way. This obligation terminates in the reporting period in which the tax authority notified the taxpayer of the deregistration of the organization at the location of the liquidated division (letter of the Ministry of Finance of Russia dated March 5, 2007 No. 03-03-06/2/43). This means this. If an organization receives a notice of deregistration of a separate division (form No. 1-5-Accounting, approved by order of the Federal Tax Service of Russia dated 08/11/11 No. YAK-7-6 / [email protected] ) before the obligation to submit a declaration for that reporting ( tax) period in which the decision to liquidate was made, then the declaration for this period is no longer submitted to the tax authority at the location of the liquidated OP (see also letter of the Federal Tax Service for Moscow dated April 13, 2010 No. 16-15/038587).

Which form to use

According to the order, the new form of notification of the selection of a tax authority for a separate division comes into force on January 1, 2020. Her KND is 1150097.

The notification form consists of 2 sheets - a standard title page and a sheet with a list of the organization/its divisions entered by the checkpoint and the corresponding Federal Tax Service codes.

Further, you can use the direct link for free notifications 2021:

NOTICE ABOUT CHOICE OF TAX AUTHORITY 2020

How to fill out a notification

In general, the rules are no different from filling out other tax forms. This can be done both on paper and electronically. The same applies to sending it to the Federal Tax Service.

So, in the absence of any indicator, a dash is placed in all familiar places in the corresponding field. The same applies to the situation when, to indicate any indicator, it is not necessary to fill out all the information.

Notification field	How to fill out
Checkpoint of an organization/separate unit	The checkpoint of the parent organization or the selected separate branch, through which the calculated and withheld tax amounts will be transferred, as well as 2-NDFL certificates and 6-NDFL calculations will be submitted
OKTMO code	Code of the municipality on the territory of which the organization or the selected separation is located, as well as separate divisions for which the tax will be transferred, presentation of 2-NDFL and 6-NDFL. If the OKTMO code has 8 characters, the empty spaces on the right are not filled.
Reason for presenting notification (code)	“1” – if you submit a notification in connection with a decision to switch to paying tax to the regional budget at the location of the organization or selected division “2” – if you submit a notification in connection with a change in the number of units “3” – if you submit a notification in connection with the refusal to switch to paying tax to the regional budget at the location of the organization or selected division “4” – if you submit a notification in connection with other changes affecting the procedure for submitting 2-NDFL and 6-NDFL
(indicate other changes that affect the procedure for submitting certificates in form 2-NDFL and calculations in form 6-NDFL)	Indicates changes that affect the presentation of these reports. Fill in if the number “4” is indicated in the “Reason for notification (code)” field.

In the last section of the notification, checkpoints are provided for the organization and all separate divisions located on the territory of one municipality, in respect of which the organization or its chosen separate division will pay personal income tax and report.

Please note: the number of fields “Checkpoint of organization/separate subdivision” and “Tax authority code” must correspond to the number of separate subdivisions located on the territory of the same municipality with the organization or selected subdivision.

Income tax when opening a separate division

In accordance with paragraph 1 of Art.
288 of the Tax Code of the Russian Federation, taxpayers - Russian organizations that have separate divisions, calculate and pay advance payments to the federal budget at their location without distributing these amounts among separate divisions. And the payment of advance payments to be credited to the revenue side of the budgets of the constituent entities of the Russian Federation is made by taxpayers - Russian organizations at the location of the organization, as well as at the location of each of its separate divisions. Submit a message about choosing a separate division and submit income tax reports Submit for free

This is the general rule for paying income tax on separate divisions. But how exactly to apply it when opening and liquidating divisions: when to transfer the first payment and the last one, taking into account the distribution, and how to fill out declarations correctly? Let's figure it out.

The rules for determining the amount of monthly advance payments are fixed in clause 2 of Art. 286 of the Tax Code of the Russian Federation and are “tied” to the amount of the quarterly advance payment for the previous period, which in turn is determined on the basis of profit calculated on an accrual basis from the beginning of the year. It turns out that monthly advance payments of a newly created separate division can be calculated only after the end of the reporting period in which this division was created.

Therefore, the obligation to pay monthly advance payments at the location of the new unit arises for the organization only from the month following the reporting period in which the OP appeared. For example, if a division was created in July, August or September (i.e. in the 3rd quarter), then you will need to start transferring advance payments to its location from the 1st month of the 4th quarter, i.e. from October. This must be done before October 28 (clause 1 of Article 287 of the Tax Code of the Russian Federation).

At the same time, you need to remember that the calculation of advance payments is recorded in Appendix No. 5 to sheet 02 of the income tax return (approved by order of the Federal Tax Service of Russia dated October 19, 2016 No. ММВ-7-3 / [email protected] ). This means the following. In order to start paying advance payments from the first month of the quarter following the quarter in which the OP was created, you must fill out the corresponding annex in the declaration based on the results of the quarter in which the unit was created. If we continue our example, then, when reporting for 9 months of 2021, the organization will have to include in the income tax return Appendix No. 5 to sheet 02, in which line 030 will reflect the tax base for the organization as a whole, and lines 040 and 050 will determine the share of the tax base attributable to a separate division (parent organization), and on lines 120 and 121 will indicate the amount of monthly advance payments to be transferred in the fourth and first quarters.

The situation is different with the payment of advance payments from taxpayers for whom the reporting period is a month, two months, three months, and so on until the end of the calendar year (paragraph 2, paragraph 2, article 285 of the Tax Code of the Russian Federation). Since they calculate the advance payment based on the actual profit received, then the tax with distribution must be paid from the month in which the division was created (letter of the Ministry of Finance of Russia dated February 22, 2006 No. 03-03-04/1/137). If a division of such an organization was created in September, then the advance payment for September will need to be distributed between the budgets of the constituent entities of the Russian Federation. Accordingly, it is necessary to calculate advance payments in the situation under consideration in Appendix No. 5 to sheet 02 of the income tax return submitted as part of the return for the same period (January–September in our example).

In conclusion, let us remind you what date must be indicated for the purpose indicated above. The date of creation of a separate division is taken from the corresponding field in the section “Information about a separate division”, which is in the form of a message about the creation of a separate division (form No. S-09-3-1, approved by order of the Federal Tax Service of Russia dated 06/09/11 No. ММВ-7- 6/ [email protected] ).