Form 4-NDFL is submitted by individual taxpayers who receive income from business activities or from private practice (in the field of notaries, legal profession). The document is needed to draw up an objective and most correct calculation of the amount of advance transfers of a business entity in the first year of its commercial activity, when switching to OSNO from other modes, and also if real income in the current period exceeded or was lower than predicted by more than 50%.
Essence of the report
Form 4-NDFL is required to be submitted by individual entrepreneurs using SOS. Of all tax returns, the 4-NDFL declaration is the smallest in volume, only one page. The declaration is submitted after receiving the first income of the year. In the document, the individual entrepreneur must indicate the income he plans to receive during the current year. Subsequently, based on these data, the Federal Tax Service Inspectorate calculates the amount of quarterly advance payments for personal income tax and sends them to the entrepreneur.
If in the future the actual income turns out to be more than 50% more or less than the income indicated in 4-NDFL, it is necessary to send a new form to the Federal Tax Service to adjust the amount of advance payments.
At the end of the year, the individual entrepreneur must submit a report on the OSN in form 3-NDFL.
Updated 4-NDFL declaration 2021
The declaration is drawn up according to a unified template, which is given in the order of the Federal Tax Service dated December 27, 2010 No. ММВ-7-3 / [email protected] Form 4-NDFL 2021 updated - changes were made by order dated January 09, 2019 No. ММВ-7 -11/ [email protected]
What were the amendments:
- the numeric combination of the barcode of the form has changed (it was 0340 5017, now it is 0340 6014);
- attention is focused on the fact that the seal is an optional element and is placed only if it is available;
- in 4-NDFL for 2021, when submitting a report by a representative of the taxpayer, you must indicate in one field the name and details of the document that gives authority to submit the declaration.
The amendments entailed the need to change the procedure for filling out the declaration and the format for its presentation. The updated report template and rules for its execution will become valid from April 5, 2019.
Deadlines for submitting 4-NDFL in 2021
In accordance with paragraph 7 of Art. 227 of the Tax Code of the Russian Federation, the report must be submitted no later than five working days after the end of the month in which the first income of the year was received. This rule applies to newly registered individual entrepreneurs. It doesn’t matter on what date the individual entrepreneur was registered; When filing 4-NDFL, you must start from the month you received your first income.
For example: an individual entrepreneur was registered with the Federal Tax Service on March 20, 2021, and the individual entrepreneur received his first income on October 4, 2021. It is from the last day of October that you need to calculate 5 working days and submit the 4-NDFL declaration no later than the 5th day. For individual entrepreneurs who have been engaged in entrepreneurial activity for more than a year, the Tax Code of the Russian Federation does not provide for exact deadlines.
Letter of the Federal Tax Service of the Russian Federation No. 04-2-02/685 dated November 14, 2006 contains a recommendation to submit 4-NDFL simultaneously with the 3-NDFL report. Those. until 30.04 of the year following the reporting year.
The legislation does not provide any deadlines for submitting an updated declaration
.
Attention should be paid to the situation when an individual entrepreneur did not submit an application for the application of the simplified tax system and applied UTII, and then, after a period of time, implemented another type of activity that does not fall under UTII. In this case, the new type of activity will be taken into account as income on OSNO. Therefore, an individual entrepreneur is obliged to submit a 4-NDFL declaration on time according to the general rule described above.
Responsibility for late submission of the report
If the report is not submitted on time, the individual entrepreneur may be fined 200 rubles, in accordance with Art. 126 of the Tax Code of the Russian Federation.
There are known cases of bringing entrepreneurs to administrative liability under Art. 119 of the Tax Code of the Russian Federation. But such actions by the Federal Tax Service are unlawful, since 4-NDFL contains information about estimated income, the imposition of a fine on which is illegal. In such a situation, such actions of the Federal Tax Service as blocking a current account are also unlawful.
Therefore, fines based on estimated income can be appealed through a pre-trial audit. To do this, a complaint is filed with the Federal Tax Service and the Federal Tax Service.
How to fill out 4-NDFL - step-by-step instructions
So, if you have already downloaded the declaration form, you will see that there is only one sheet, and there is no difficulty in filling it out yourself. What are we filling in?
- We put our TIN in the header of the form;
- We put the correction number: if we submit the primary declaration, then we put “0—”, if we correct previously submitted information due to its change by more than 50%, then we put “1—”, ..., “3—”, etc. ;
- In the boxes for the tax period we put the year (the year in which the first income was received);
- We indicate our tax office code and taxpayer type code (for individual entrepreneurs it is “720”, for notaries, heads of peasant farms, etc. - see the Order of the Federal Tax Service approving the form itself, all this information is there);
- We fill in the OKTMO code (according to the place of residence of the entrepreneur);
- We fill in the full name of the individual entrepreneur according to the passport;
- Indicate your contact phone number;
- In the only line 010 we write down the calculated estimated income;
- We put the number of sheets in the attachment if you have any attachments to the declaration (most often, this is a power of attorney if the report is submitted through a representative).
That’s all, the lower parts of the form are filled out as standard: the left one is for the individual entrepreneur himself or the representative confirming the data, the right one is for the tax authority representative.
How is the declaration submitted?
The report in form 4-NDFL must be submitted to the Federal Tax Service at the place of registration of the entrepreneur. You can do this in one of three ways. Namely:
In electronic form through electronic document management operators or through the official website of the Federal Tax Service.
In paper form in person or through a representative. In this case, two copies must be submitted to the Federal Tax Service. One will be submitted to the tax service, the second with an acceptance stamp will be returned to the entrepreneur as proof of his submission of this declaration. If the report is submitted by a representative, a power of attorney must be issued for it by a notary.
A valuable letter with an inventory of the contents by Russian post. The description of the attachment must indicate the declaration being sent. The inventory, as well as the payment receipt, must be kept. The date on the receipt is considered the date the document was submitted to the Federal Tax Service.
Delivery methods
The current legislation provides for the following methods of submitting this report to the tax authority:
- Directly to the inspector at the Federal Tax Service by submitting a report on paper in two copies. The report can be submitted by the entrepreneur himself, or by the person for whom he has issued a power of attorney. One report is returned to the submitter with an acceptance mark and is proof that the form was accepted.
- By means of a valuable letter sent through the post office. A prerequisite for using this method is to fill out an inventory of the investment. One inventory must be present in the envelope with the letter, the second remains in the hands of the sender. The post office also provides the entrepreneur with a receipt, and the date indicated on it will be considered the date of departure.
- Using electronic document management through a special communications operator or through the tax website. This method will require an electronic digital signature.
It must be remembered that in order for a proxy to send the report, he needs to issue a power of attorney at a notary office. If this document is not executed in the appropriate manner, the declaration will be refused.
Depending on the region, the tax authority may request to provide along with the report:
- Electronic version of the submitted report.
- The presence of a special barcode on the paper version of the report.
Attention! It must be remembered that this is not enshrined in legislation as a performance obligation, and the inspector does not have the right to refuse admission due to the absence of these points. If you receive a refusal, you can go to court.
Rules for filling out 4-NDFL
Official instructions for filling out the report are available for download using the button below:
The following are the basic rules for filling out the document:
- the report can be completed on a computer and printed or completed by hand;
- when filling out on a computer, the data is entered in capital letters in Courier New font size 16-18;
- when filling out by hand, the data must be entered in capital block letters;
- You can fill out the report by hand using a pen with blue or black ink;
- When filling out a document on a computer, the data must be aligned to the right;
- a dash is placed in unfilled report cells;
- It is not allowed to make corrections, use putties or staple the report sheets.
Calculation of estimated income
To complete the report in question, you must calculate your estimated annual income. The calculation principles for individual entrepreneurs who have been doing business for more than a year and for newly registered individual entrepreneurs may differ:
1. Newly registered individual entrepreneurs are calculated based on the amount of income received in the first month after registration.
2. If an individual entrepreneur has been engaged in entrepreneurial activity for more than a year , then the amount of income recorded in the 3-NDFL report for the previous year can be used as the estimated income.
In each case there are nuances.
Newly registered individual entrepreneurs
In this case, the report includes information about the income received during the first month. The calculation is quite simple.
Example. A.I. Ivanov registered as an individual entrepreneur on January 15, 2018. The entrepreneur received his first income on March 25, 2018. The amount of his income for this month (minus expenses) amounted to 100,000 rubles. To get the amount of estimated annual income, you need to multiply 100,000 rubles by the number of months remaining in the year:
100,000 rubles X 10 months = 1,000,000 rubles.
Individual entrepreneurs who have been operating for several years
If a person has been engaged in entrepreneurial activity for more than a year, then the amount recorded in the 3-NDFL report for the previous year can be taken as the estimated annual income.
If, in the opinion of the individual entrepreneur, his income this year will be less than last year, he has the right to indicate the amount he considers necessary.
At the same time, according to the letter of the Ministry of Finance of the Russian Federation dated 01.04.08 No. 03-04-07-01/47, if the amount of expected income in 4-NDFL differs from the amount in 3-NDFL by less than 50%, the Federal Tax Service will calculate advance payments based on 3-NDFL for last year.
Features of the personal income tax return 4-NDFL
Everyone is required to pay personal income tax (PIT).
The employer must pay taxes not only on the profit of the enterprise, but also for each employee of the company. There are several forms of income declarations. 4-NDFL differs from others in its essence and purpose. The peculiarity of this reporting is that the taxpayer indicates in it the possible estimated income of the future period (year).
By orders of the Federal Tax Service, amendments are periodically made to the procedure and form of documents. The latest changes in the Order mainly concern form 6-NDFL and include the addition of sheet 8, a paragraph on the reflection of income from foreign residents and other minor amendments.
The 4-NDFL declaration is intended to ensure that the tax authorities have an approximate idea of the future income of the business activity of the registered organization.
Based on the forecast, a comparison will be made with the actual income report submitted to the tax authorities (3-NDFL, 6-NDFL) in future activities. Based on the difference with the provided projected income, conclusions are drawn about the good faith of the taxpayer.
You can see the deadlines for submitting the 4-NDFL declaration in this video:
https://www.youtube.com/watch?v=F90pMZPbdyQ
What is the difference between 4-NDFL and 3-NDFL
- In Form 4, the report contains information about the income expected for the next year, and in Form 3 - a report on profits received during the reporting period.
- In the 3-NDFL declaration there is a line about accidental profits, in the 4th there is no line, since the taxpayer cannot know what accidents will occur in the future.
- In 4-NDFL there is a line for advance payments, and in form 3 - only the final amounts of payments actually made.
- Based on 3-NDFL, calculations are made for social and property deductions.
Who submits 4-NDFL and when?
In accordance with the law, individual and private entrepreneurs who work under the general taxation system (GTS) must submit taxes once within five days after the expiration of a month after receiving the organization’s very first profit. Further, a resident can submit 4-NDFL only at his own request once a year.
The fine for late first report is 200 rubles. In any case, the entrepreneur will be required to fill out the form and send it to the tax authority.
In order to correctly fill out the report and not overestimate your estimated income, you must have a well-written business plan or, at a minimum, have information about your expected income, which may occur in the niche of the chosen business.
Errors in filling out the declaration lead to additional verification and audit. This event occurs if:
- tax reports in form 3-NDFL, 6-NDFL, etc. exceed the estimated income declared in 4-NDFL by 50%;
- lower than the estimated income stated in Form 4 by more than 50%;
- the estimated profit income was not calculated at all and presented to the tax office.
In practice, entrepreneurs often quote expected profits that are lower than what their optimistic calculations reveal. Experienced accountants and entrepreneurs know that actually opening your own business is not so rosy and that the profit and speed with which a novice businessman expects to get rich is not as quickly and easily accessible as it seems.
Typically, the expenses that await a businessman at the beginning of his journey are so frequent and high that real profits can only be seen after 2 or more years.
It is much worse if the individual entrepreneur indicates a high projected profit. In this case, verification is inevitable and the index will be higher.
It is not necessary to submit personal income tax every subsequent year. This can be done if, after the first report on other forms of personal income tax, annual accounting reports and balance sheet, the picture shows that real income is lower than expected.
Voluntary submission of 4-NDFL next year with an indicator closer to reality will eliminate mistakes and incomprehensible moments for the tax inspectorate in doing business.
When it is possible to overpay personal income tax to the budget and what to do in this case - read the article at the link.
Cover page of the tax return.
Report structure
Declaration 4-NDFL contains only one sheet with a simple structure.
At the top of the document there is a field for entering the TIN.
In the “correction number” item the following is entered:
- the number “0” if the individual entrepreneur submits a report for the first time this year;
- the number “1” or more if the individual entrepreneur submits a report clarifying the expected income. In this case, the number means the number of the clarification being submitted.
The “tax period” section indicates the year for which the report is submitted.
The paragraph “submitted to the tax authority” indicates the code of the Federal Tax Service to which the declaration is submitted.
In the item “taxpayer category code” you should enter the numbers “720”, indicating that the document is being submitted by an individual entrepreneur.
For other categories of individual entrepreneurs the following codes are established:
- 730 Notary engaged in private practice and other similar persons;
- 740 Lawyer who opened a law office;
- 770 An individual is an individual entrepreneur who is the head of a peasant (farm) enterprise.
In the item “OKTMO code” the code of the territory where the person is registered as an individual entrepreneur is entered.
Item “F.I.O. and telephone" is used to indicate this data. They must be written in full without abbreviations.
The “amount of estimated income” item is used to indicate the expected income. Data must be entered in whole monetary units without dashes, brackets or any punctuation marks.
Procedure for calculating estimated income
There is no official methodology for calculating the estimated income indicated in the 4-NDFL declaration. However, regulatory authorities explained how to calculate such income. An entrepreneur can reduce the first income received during a month by expenses incurred during the same period. The resulting difference should then be multiplied by the number of months remaining until the end of the calendar year.
Possible problems during delivery
Some Federal Tax Service Inspectors, accepting reports in paper form, may require:
- print a two-dimensional barcode on the declaration that duplicates the information contained in the report;
- Attach a flash card or disk with the reporting file to the paper report.
It is noteworthy that the Tax Code in its current version does not contain such requirements. Meanwhile, there are cases where some Federal Tax Service Inspectors do not accept reports without fulfilling the above conditions. These demands are unlawful and can be appealed to a higher body of the Federal Tax Service.
According to the Letter of the Ministry of Finance of the Russian Federation dated April 18, 2014. No. PA-4-6/7440, the absence of a bar code, as well as an error in OKTMO are not grounds for refusal to accept tax reporting.
Draft order to abolish 4-NDFL
And now, news for those who must fill out form 4-NDFL.
A draft document on the cancellation of the order of the Federal Tax Service, which approved the 4-NDFL declaration, has been published on the federal portal.
How will we calculate tax after the abolition of 4-NDFL?
According to the rules prescribed in the new edition of paragraphs 7 and 8 of Art. 227 of the Tax Code of the Russian Federation, for those working at OSNO it will be necessary to independently calculate advance payments based on the results of the quarter, half a year and nine months. Advance payments will be calculated based on:
- tax rates;
- actual income received;
- professional and standard tax deductions;
- previously calculated advance payments.
The deadlines for making advance payments are April 25, July 25 and October 25.
This is a new edition of clauses 7 and 8 of Art. 227 of the Tax Code of the Russian Federation, and clauses 9 and 10 lost force (clause 7 of Article 1 of the Law of April 15, 2019 No. 63-FZ was introduced).
Results
Form 4-NDFL must be submitted to entrepreneurs on OSNO and other self-employed individuals (lawyers, notaries, etc.). The form is submitted within 5 days after the expiration of 1 month from the date of receipt of the first income. There is no liability for violation of deadlines, because The form refers to documents of a reference nature.
Sources:
- tax code of the Russian Federation
- Order of the Federal Tax Service of Russia dated December 27, 2010 No. ММВ-7-3/768
You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.
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?
Is the information useful? Tell your friends and colleagues
Dear readers! The materials on the TBis.ru website are devoted to typical ways to resolve tax and legal issues, but each case is unique.
If you want to find out how to solve your specific issue, please contact the online consultant form. It's fast and free!
