In this article we will talk about what the income tax rate is. Formula for calculating income tax:
Income tax = Tax base * Tax rate / 100%,
As already written above, the tax base- this is the monetary expression of profit = income - expenses. We talked about those subject to taxation in the previous article. Now let's talk about the second component in the formula for calculating income tax, that is, let's look at tax rates. So, what are the tax rates for income tax?
There are several tax rates, all of them are detailed in Art. 284 Tax Code of the Russian Federation. Here I will briefly describe what rates apply to each type of income.
Key information on income tax in infographics
The figure below describes the basic concepts of income tax: interest rates, payers, tax and reporting period.
Income tax. Rate 20%
Applies in the general case, when the rates indicated below are not applied (clause 1 of Article 284): 2% - credited to the federal budget, 18% - credited to the budget of the constituent entities of the Russian Federation.
Income tax. Rate 0%
- for medical and educational institutions (Article 284, paragraph 1.1);
- for agricultural and fishery producers, if they meet the criteria specified in Art. 346.2 clause 2.;
- dividends, if the organization receiving the dividends has a share in the authorized capital of the organization paying the dividends of more than 50% (clause 3.1 of Article 284);
- bonds issued before 1997 (clause 4.3 of Article 284).
Income tax. Rate 9%
- for dividends received that do not qualify for the 0% rate (clause 3.2 of Article 284), in 2015 this rate will increase to 13%; read about the taxation of dividends;
- municipal securities issued before 2007 (clause 4.2 of Article 284).
Income tax. Rate 15%
- dividends from foreign organizations(Clause 3.3 of Article 284);
- government securities issued after 2007 (clause 4.1 of Article 284).
Income tax. Rates 10% and 20%
- apply to foreign companies (clause 2 of Article 284).
Now, knowing how to determine the tax base, and knowing the income tax rates, you can calculate the amount of income tax and pay it to the budget.
What is the basic rate for income tax in 2020?
For tax rates for corporate income tax in the Tax Code of the Russian Federation, there is a conditional division into one basic one, which is used by most legal entities, and several special ones. The basic rate is set at 20% (clause 1 of Article 284 of the Tax Code of the Russian Federation). It is distributed between budgets of various levels as follows:
- the federal budget is due 3%;
- budgets of constituent entities of the Russian Federation - 17%.
The distribution is valid within the time period from 2017 to 2024.
You will learn in detail who the income tax payer is in another article.
It is allowed to reduce the regional component by decision of local legislative bodies for some taxpayers. This applies to legal relations that arose from 01/01/2019. The federal share must remain unchanged if the organization does not enjoy the benefits established Tax Code, which we will discuss below.
The number of taxpayers who may be subject to a reduced rate includes residents of special economic territories if they differentiate between the accounting of income and expenses generated outside and inside the preferential zone. For such legal entities, the corporate income tax rate in the part that is subject to transfer to the subject’s budget is no more than 13.5%.
If investment programs are being implemented in the region, then the constituent entities of the Russian Federation have the right to provide reduced rates to the companies participating in them based on the norms set out in clause 3 of Art. 284.3 or clause 3 of Art. 284.3-1 Tax Code of the Russian Federation.
Provisions of paragraph 1 of Art. 284 of the Tax Code of the Russian Federation is not applicable to legal entities that:
- extract hydrocarbons from offshore fields that have just begun to be developed;
- control foreign companies when determining the size of the tax base.
What percentage is the special income tax rate?
In Art. 284 of the Tax Code of the Russian Federation contains a number of cases when income tax rates can fluctuate significantly down or up. This refers to that part of the tax that is credited to the federal budget. The situation with the regional budget is different. For example:
- dividends do not need to be paid to the regional budget;
- income from the sale of shares is taxed at a rate of 0% in both budgets;
- For residents of special economic zones, the federal rate is zero, and the regional rate is reduced.
Let’s summarize the information in a small table, which will help clarify the situation, how much interest will be the corporate income tax when extracting income in non-standard circumstances. It is worth noting that in order to apply the required benefits, organizations in most cases must submit a package of supporting documents.
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Let us separately note the 20% rate indicated in the table. Although it is the main one, in the case we are considering it refers to special rates, and the tax is fully credited to the federal budget.
Don't know your rights?
The amount of income tax is determined as the product of the tax rate. What percentage is the rate, and what rates generally apply when calculating this tax?
We will tell you about income tax rates in 2019 in our material.
Basic income tax rate - 20%
The basic income tax rate has not changed since January 1, 2019 and is 20% (clause 1 of Article 284 of the Tax Code of the Russian Federation). Let us recall that the distribution of profits between the federal and regional parts for 2017-2024 is as follows:
- 3% of the tax is credited to the federal budget;
- 17% of the tax is credited to the budget of the constituent entity of the Russian Federation.
Let us recall that before January 1, 2017, the distribution between budgets was 2% and 18%, respectively.
For certain categories of organizations, the rate of income tax credited to the regional budget can be reduced by the laws of the constituent entities of the Russian Federation. For example, the regional income tax rate in 2018-2020. in Moscow for organizations that have the status of a car manufacturer Vehicle, is 12.5% (clause 1 of article 1 of the Moscow Law of May 17, 2018 No. 12).
Other income tax rates in 2019
| Bet amount | Who is it used by? |
|---|---|
| 0% | Organizations that conduct educational and (or) medical activities (with the exception of income in the form of dividends and interest on securities (clauses 3 and 4 of Article 284 of the Tax Code of the Russian Federation, Article 284.1 of the Tax Code of the Russian Federation (clause 1.1 of Article 284 of the Tax Code of the Russian Federation) ) |
| Social service organizations (with the exception of income in the form of dividends and interest on securities (clauses 3 and 4 of Article 284 of the Tax Code of the Russian Federation)) and taking into account the features established by Art. 284.5 of the Tax Code of the Russian Federation (clause 1.9 of Article 284 of the Tax Code of the Russian Federation) | |
| Organizations for income from the sale or other disposal of shares in the authorized capital Russian organizations, as well as shares of Russian organizations, taking into account the features established by Art. 284.2 of the Tax Code of the Russian Federation (clause 4.1 of Article 284 of the Tax Code of the Russian Federation) | |
| Organizations for income in the form of dividends, if at least 50% of the contribution (share) is owned by the organization receiving the dividends continuously for at least 365 calendar days, and under certain conditions (clause 1, clause 3, article 284 of the Tax Code of the Russian Federation) | |
| 13% | Russian organizations on income received in the form of dividends (except for cases when dividends are taxed at a rate of 0%), as well as on income in the form of dividends received on shares, the rights to which are certified by depositary receipts ( |
Income tax is provided for business structures using OSNO. It is one of the largest taxes in Russia. The procedure for its calculation, payment, and reporting is established by the Tax Code.
To calculate the tax, not only income but also expenses of companies are taken into account, i.e. net profit is taxed. However, not all expenses incurred can be taken into account when calculating the tax base. The law defines specific lists of expenses accepted and not taken into account. Their compliance is mandatory.
There are different types of income tax reporting periods, payment terms. Rates also differ depending on the area in which business activities are conducted, the status of the economic entity, and the type of economic activity. The law provides for various types of income tax reporting. It can be presented in either full or simplified form.
The essence of the concept
Income tax is direct. Its size directly depends on the final financial result work of the company. It is accrued on the net profit received by the enterprise, i.e. the difference between his actual income and expenses incurred. The rules for taxing the profits of organizations are established by Chapter 25 of the Tax Code of the Russian Federation.
Who is the payer
Profit tax is paid by all companies and businessmen operating in the Russian Federation. There is no certainty in its value, since it depends on various factors. The standard rate for business entities using OSNO is 20% of net profit. In some cases, tax is paid at rates of 9, 15, 30 percent.
Firms operating under special tax regimes, for example, simplified tax system or UTII, are exempt from this tax. For them, the profit tax, together with VAT and property tax, has been replaced by a single tax.
To correctly calculate income tax, it is necessary to take into account not just income (revenue), but also expenses. As a rule, it is calculated quarterly.
Special attention should be paid to taxation of profits individual entrepreneurs. Typically, this status is chosen by citizens who want to work independently for themselves, without organizing a legal entity. Especially if you plan to work in freelancing mode at home, even without opening an office.
Most of the activities that individual entrepreneurs engage in are subject to a simplified tax regime. Therefore, they have no problem calculating income tax. The income received is taxed according to a different system.
At application of the simplified tax system the taxpayer pays 6% of his actual revenue or 15% of net profit to the budget. Working for UTII, a businessman is charged by the state with a certain tax, which is contributed to the budget at a rate of 15%.
To calculate a single tax according to the simplified tax system or UTII, you do not need to have any special knowledge. It is enough to have a general understanding of mathematical calculations using simple formulas. These regimes were introduced specifically to simplify the taxation of small businesses.
In addition to the profits of organizations and individual entrepreneurs, the income of ordinary citizens is taxed. Personal income tax is provided for them. It should not be confused with income tax. That's two different taxes. For most of the income of citizens, the rate is 13%.
It is subject to:
- wages, bonuses, and other remuneration received from the employer;
- profit from the sale of expensive property;
- income from rental real estate, etc.
In some cases, for individuals Other personal income tax rates apply. For example, winnings are taxed at 35 percent.
Object of taxation
The object of taxation is the net profit received by companies and individual entrepreneurs as a result of conducting their business activities. In contrast to actual income, profit represents the firm's income minus the expenses incurred to obtain it.
It is important to know that not all income and expenses are taken into account when determining the tax base. So, for example, income is taken into account only from core activities and non-operating ones.
The first includes income from the sale of products, performance of work or provision of services, and from the sale of property rights. The second includes income not related to the main work, for example, interest on loans issued to other business entities.
Income and expenses of the enterprise
When calculating income tax, income without excise taxes and VAT is taken into account. Sales income is the company's revenue received from the sale of independently produced products or purchased goods, property rights. To determine revenue, all cash receipts expressed in kind are taken into account.
Non-operating income is income not included in the list presented in Art. 249 of the Tax Code of the Russian Federation. For example, interest income from loans issued, from renting out property, from participation in other companies.
Income calculation is carried out according to documentation tax accounting, primary and other documents that confirm the fact that the company has received profitability.
Certain income is not subject to taxation. Their list is established in Art. 251 Tax Code of the Russian Federation: contributions to authorized capital, deposit or pledge, etc.
Expenses taken into account must have documentary evidence and economic justification. They are classified into two groups: those related to the production and sale of products and non-sales. There is a list of expenses that cannot be taken into account. This includes, for example, expenses for repaying loans, dividends, etc.
The costs of manufacturing and selling products are divided into direct and indirect.
The list of the first is determined by Art. 318 Tax Code of the Russian Federation:
- material;
- for wages;
- accrued depreciation, etc.
All costs not specified in Art. are considered indirect. 318 of the Tax Code of the Russian Federation and not related to non-operating ones.
The list of non-operating expenses is determined by Art. 265 Tax Code of the Russian Federation:
- for the maintenance of property that is given to the company under a leasing agreement;
- to issue their own securities;
- for the liquidation of operating systems subject to decommissioning;
- in the form of negative exchange rate differences, etc.
Direct costs are subject to monthly distribution to the cost of manufactured products and the balances of uncertified production. They are taken into account to reduce the amount of tax as goods are sold or services are provided, the cost of which is taken into account in accordance with Art. 319 Tax Code of the Russian Federation.
Income tax payers are given the right to independently determine the list of direct costs associated with production. It is fixed in accounting policy companies.
Indirect costs incurred in the reporting period are fully attributable to that time.
The expenses given in Art. 270 of the Tax Code of the Russian Federation do not reduce the income of enterprises. Their list is closed and cannot be interpreted broadly.
Income tax rates and calculation procedures
The normal rate is 25%. In 2016, it was distributed between the federal and regional treasuries at 2% and 18%, respectively. At the end of 2016, Federal Tax Service Order No. ММВ-7-3/572@ came into effect, changing this distribution procedure.
Since 2017, 3% of the profit tax is sent to the federal budget and 7% to the treasury of the constituent entity of the Russian Federation. The rate can be reduced at the municipal level in the part that must be contributed to the local budget - in addition there is 3%.
The law defines the minimum limit of the rate established by the subjects - 13.5%. Consequently, simultaneously with payments to the federal treasury, the lower limit is 16.5%, i.e. 13.5% + 3%.
In the Russian capital, payments in the amount of 13.5% are made by certain categories of payers:
- companies that employ disabled people in their activities;
- automobile manufacturing companies;
- entities conducting business in the SEZ;
- residents of industrial parks and technopolises.
In St. Petersburg, the profit of SEZ residents operating on its territory is taxed at this rate. Mainly in the constituent entities of the Russian Federation tax rate goes down for individual species business.
In addition to the standard rate, special rates apply. According to them, the entire tax amount goes to the federal treasury.
They are established for individual companies with a certain status and for special types of income:
- foreign enterprises without a representative office in the Russian Federation, companies extracting hydrocarbon raw materials, companies under the control of foreign organizations pay tax at a rate of 20%;
- foreign enterprises receiving dividends from Russian organizations pay 15%;
- local firms receiving profits from dividends in domestic and foreign companies, from shares on depositary receipts, pay 13%;
- foreign companies that do not have a representative office in Russia pay 10% of income when renting out vehicles and when carrying out international transportation;
- income from municipal securities and others established by paragraphs. 2 clause 4 art. 284 of the Tax Code of the Russian Federation, taxed at a rate of 9%;
- The 0% rate is provided for medical and educational institutions, residents of SEZs and territories of rapid socio-economic development, participants of SEZs in Sevastopol, Crimea and for regional projects.
It is convenient to consider the procedure for calculating income tax using a clear example.
Samotsvet LLC works for OSNO. Over the past year, its revenue amounted to 5.6 million rubles. The company incurred expenses in the amount of 3.9 million rubles.
Net profit of Samotsvet LLC: 5.6 – 3.9 = 1.7 (million rubles).
Tax must be paid on 1,700 thousand rubles. At a rate in the region of doing business equal to 18%:
If a reduced rate of 13.5% is applied, the tax will be:
As you can see, the amount of tax paid to the federal treasury does not change.
Payment of income tax is made by month, quarter and total for the year. Advances for quarterly periods are calculated based on the profit actually received by the company, and for monthly ones - based on the estimated profit, based on the amounts for the previous quarter.
Payment deadlines
For income tax, the following frequency of payments is established:
Reporting
If a company has made at least one incoming or outgoing transaction by cash or non-cash payment, regardless of whether it has income, it must submit a declaration to the Federal Tax Service for the reporting and tax periods. The annual declaration is submitted in full form.
Simplified reports are submitted by:
- organizations that have reporting periods of a quarter, half a year and 9 months;
- companies with monthly reporting periods;
- non-profit companies, if they do not have the obligation to pay income tax.
Income tax is one of the mandatory OSNO taxes for legal entities(including foreign ones). IP, in turn, pay personal income tax (in more detail). Income tax is a federal tax, the amount of which directly depends on financial activities organization (its profits).
Who is exempt from paying income tax
The following are exempt from income tax:
- Organizations that apply special tax regimes (STS, UTII, Unified Agricultural Tax), as well as pay taxes on the gambling business.
- Participants of the Skolkovo Innovation Center project.
- A number of foreign and international organizations (listed in clause 4 of Article 246 of the Tax Code of the Russian Federation).
- Organizations that meet certain conditions, subject to which the income received is subject to a zero rate, for example, conducting educational or medical activities (the list of income for which a 0% rate can be applied is established by Articles 284, 284.1, 284.3 of the Tax Code of the Russian Federation).
Object of corporate income tax
The object of taxation is the organization’s profit received at the end of the reporting (tax) period.
Note: Profit is the difference between income received and expenses incurred.
Income for income tax purposes
- Revenues from sales (revenue from the sale of goods, works and services, property rights).
- Non-operating income (other income not related to sales income). A complete list of non-operating income is given in Art. 249 of the Tax Code of the Russian Federation.
Note: the list of income not taken into account when calculating tax is given in Art. 251 Tax Code of the Russian Federation. This list is closed and, if some income is not indicated in it, they must be taken into account when calculating tax.
Expenses for income tax purposes
- Sales expenses.
- Non-operating expenses.
Sales costs, in turn, are divided into direct and indirect.
Direct expenses are taken into account as goods are sold in the cost of which they are taken into account (depreciation expenses, wages to employees involved in the production of goods, works and services, material expenses).
Indirect costs are taken into account in the period in which they were produced. These include all other expenses, except direct and non-operating expenses.
Note: the list of expenses not taken into account when calculating tax is given in Art. 270 Tax Code of the Russian Federation. This list is closed; the expenses listed in it cannot under any circumstances reduce the organization’s income.
note, in order to accept expenses to reduce income tax, they must be documented, justified and aimed at generating income. If at least one of the conditions is not met, the organization will be denied recognition of expenses.
Note: Often tax authorities question the validity of the declared expenses due to unscrupulous contractors. You can read in detail about checking counterparties.
Methods of accounting for income and expenses
The procedure for accounting for income and expenses in a particular period is determined by two methods:
- Accrual method. Income and expenses are recognized in the period in which they were incurred, regardless of the date of payment and receipt of funds.
- Cash method. Income and expenses are recognized in the period in which expenses were paid or funds (property, property rights) were received. Organizations can apply this method provided that for the four previous quarters, revenue did not exceed one million for each quarter (in the amount of 4 million rubles for 4 quarters).
Note: an organization can use only one of the specified methods; combination (for example, one method for income and another for expenses) is not allowed.
More details about the methods of accounting for income and expenses for income tax can be found in Art. 271-273 Tax Code of the Russian Federation.
Calculation of corporate income tax
Corporate income tax is calculated in the following form:
Tax payable to the budget = Tax base x Tax rate – Advance payments – Trade tax
The tax base
The income tax base is determined as the difference between income and expenses (profit). If expenses exceed income, the base is recognized as zero. And no tax is paid to the budget.
note, profit is determined by the cumulative total from the beginning of the year.
Note: if profits are taxed at different rates, then the tax base is calculated separately for each rate.
If an organization has a loss to be carried forward, it also reduces the tax base.
Tax rate
Basic rate – 20% . The tax paid at this rate is distributed to budgets in the following proportions:
- 3% - to the federal budget.
- 17% goes to the budget of a constituent entity of the Russian Federation.
Special tax rates
| Tax rate | Type of income |
|---|---|
| 30% | Income from the turnover of securities (except for dividend income) recorded in securities accounts in case of violation of the procedure for submitting information to the tax agent |
| 20% | Income of foreign organizations not related to activities through a permanent representative office (except for income specified in clauses 2,3,4 of Article 284 of the Tax Code of the Russian Federation) |
| Income from activities for the extraction of hydrocarbons in relation to organizations that meet the requirements of clause 1 of Art. 275.2 Tax Code of the Russian Federation | |
| 15% | Income in the form of interest on state and municipal securities |
| Income of foreign organizations received in the form of dividends from Russian companies | |
| 13% | Income of Russian organizations in the form of dividends from Russian and foreign companies |
| Income from dividends received on shares, the rights to which are certified by depositary receipts | |
| 10% | Income of foreign organizations not related to activities in the Russian Federation through a permanent establishment, from the use, maintenance or rental of mobile vehicles or containers in connection with international transportation |
| 9% | Income in the form of interest on municipal securities issued for a period of at least three years before January 1, 2007, as well as other income specified in paragraphs. 2 clause 4 art. 284 Tax Code of the Russian Federation |
| 0% | The list of organizations that have the right to apply a zero rate is named in Art. 284 Tax Code of the Russian Federation. |
An example of calculating income tax at the end of the year
The taxable income of Romashka LLC for 2018 was 35 million rub.
Expenses accepted as a reduction in income amounted to 15 million rubles.
The tax base will be 20 million rub.(35 million rubles – 15 million rubles)
Bid - 20 % .
The tax calculated based on the results of 2018 will be equal to 4 million rub.(20 million rubles x 20%).
Advance payments paid during the year amounted to 3 million rubles
The tax payable to the budget will be 1 million rub.(4 million rubles – 3 million rubles), of which:
- 30,000 rub. to the federal budget.
- 170,000 rub. to the budget of a constituent entity of the Russian Federation.
Income tax payable
The reporting period for income tax is quarter, half year And 9 months.
Note: for organizations that have chosen the method of paying advances based on actual profits (monthly), the reporting period is a month, two months, and so on until the end of the year.
The tax period for income tax is calendar year.
Organizations must make advance payments during the year based on the results of each reporting period (depending on the method of payment of advances).
Learn more about the calculation procedure, terms and methods of making advance payments.
Corporate income tax reporting
At the end of each reporting and tax period, organizations must submit a tax return.
note, that since 2017 a new tax return form for income tax has been applied.
If an organization pays quarterly advances, it submits a declaration 4 times(based on the results of each quarter for the year). When paying advances on actual profits, a declaration must be submitted 12 times a year(from January to November and per year).
Declarations based on the results of the reporting period are submitted to the Federal Tax Service no later than 28 days from the end of the reporting period. Declaration at the end of the year no later than March 28 next year.
Note: the declaration is submitted at the place of registration of the organization and its separate divisions. The largest taxpayers report at their place of registration.
Income tax payers are required to maintain tax and analytical accounting registers.
If in tax period the taxpayer had no income tax transactions and no movement Money for current accounts and cash register, he can submit
