In the course of an organization’s activities, one business transaction often entails various “remote” consequences, for example, in the final settlement with a business traveler, he was paid per diem in excess of the norm or paid for hotel accommodation without supporting documents. In such cases, the accountant needs to record the employee's additional income. In this article*, methodologists from the 1C company tell you how to correctly reflect such operations in the “Salary and Human Resources Management” configuration for “1C:Enterprise 8.0” so that all regulated taxes (personal income tax, unified social tax) are calculated.
Note:
seminars "1C: Consulting".
Example
:
Example 2
The employee's income additionally includes
| Description of income | UST taxation procedure |
|---|---|
Classification of “in-kind” income of workers
Note:
* When preparing the article, methodological materials from the 1C:Consulting seminars were used.
In accordance with paragraph 2 of Article 211 of the Tax Code of the Russian Federation, income received in kind includes, in particular:
- payment (in whole or in part) for an individual for goods (work, services) or property rights, including utilities, food, recreation, education in his interests;
- goods received by an individual, work performed in his interests, services provided in his interests free of charge;
- remuneration in kind.
When receiving income in kind, the tax base is defined as the cost of these goods (works, services), other property, calculated on the basis of their prices, determined in a manner similar to that provided for in Article 40 of the Tax Code of the Russian Federation (read more about this procedure). At the same time, the cost of such goods (works, services) includes the corresponding amount of value added tax and excise taxes.
Example
An organization engaged in tailoring outerwear to pay off wage arrears in the amount of 1,000 rubles. provides an employee with 10 shirts at a price of 100 rubles. The selling price for third-party consumers is 150 rubles. (in view of VAT).
[(150 rub. - 100 rub.) x 10 shirts] = 500 rub.
Example 2
Trade organization to pay off wage arrears in the amount of 1,000 rubles. releases to an employee a television purchased for the purpose of resale. The average retail price for a similar product on the commodity market in a given area on the day of sale is 1,500 rubles.
The employee's income additionally includes
500 rub. (1500 rub. - 1,000 rub.).
Now the accountant needs to determine what taxes are imposed on the employee’s additional in-kind income. As a rule, these incomes are entirely subject to personal income tax (hereinafter - personal income tax). From the point of view of UST taxation, the following options are possible:
| Description of income | UST taxation procedure |
|---|---|
| the income was not received in connection with the employee’s performance of his duties under an employment contract (a civil law contract) | income is not subject to UST taxation in accordance with paragraph 1 of Article 236 of the Tax Code of the Russian Federation and is not reflected in the reporting |
| income was received in connection with the employee’s performance of his duties, the organization is a payer of income tax and does not classify these expenses as expenses that reduce the tax base for income tax | income is not subject to taxation under the Unified Social Tax in accordance with paragraph 3 of Article 236 of the Tax Code of the Russian Federation, but is reflected in the reporting |
| income was received in connection with the employee’s performance of his duties, the organization is not a payer of income tax or classifies these expenses as expenses that reduce the tax base for income tax | income is entirely subject to UST (if the organization is a profit tax payer) and insurance contributions to the Pension Fund (in any case) |
Registration of “in-kind” income of workers
Additional income an employee receives in addition to the “regular” salary is registered in the program using the document “Personal Income Tax and Unified Social Tax - Income and Taxes” (see Fig. 1).
Depending on the classification (see above), income is entered either only on the “Personal Income Tax: Income and Taxes” tab (if the income is not subject to taxation under the Unified Social Tax in accordance with paragraph 1 of Article 236 of the Tax Code of the Russian Federation), or on two tabs: “Personal Income Tax: Income and taxes" and "Unified Social Tax: income" - in other cases.
On the “Personal Income Tax: Income and Taxes” tab the following is indicated:
- employee who received income;
- date and month of receipt of income (the month is indicated in the column "Month of the tax period");
- current date (in the "Registration period" column);
- income code - 2000;
- amount of income.
The remaining columns are not filled in.
On the "Unified Social Tax: Income" tab the following is indicated:
- employee who received income;
- month of income;
- in the column “Income code” it is indicated either “Not subject to UST taxation in accordance with clause 3 of Article 236 of the Tax Code of the Russian Federation (payments from profits)” or “Taxed to UST in its entirety”;
- amount of income.
Calculation of taxes on “in-kind” income of workers
After an employee’s income in kind is registered with the document “Personal Income Tax and Unified Social Tax - Income and Taxes”, taxes are calculated automatically: Personal income tax will be accrued by the next document “Calculation of salaries for employees of the organization”, Unified Social Tax and insurance contributions to the Pension Fund will be accrued by the next document “Calculation of Unified Tax” .
Income in kind is products that arise in the process of agriculture, animal husbandry, etc. for the purpose of own consumption. Together, cash and in-kind incomes form the household system.Part of the natural economy, as before, goes to strengthening the country’s economy. Some collective farms sell their products to the state according to agreed plans, and the remainder is sold in the system of local market relations.
Sources of income in kind
Income in kind is a common phenomenon in agriculture. It comes from several key areas of agriculture. Livestock farming is the main branch of the economy for the extraction of various types of meat, milk and hides. People who live only on natural income are forced to sell livestock products in order to cover the costs of maintaining and raising livestock, and to purchase other everyday goods.Farmers are people who are professionally engaged in subsistence farming and are able to save money by eating products that bring them natural income.
Poultry farming is a branch of livestock farming. It is used by agricultural enterprises to obtain consumer products in the form of white meat and eggs, secondary products - fluff and feathers. Edible poultry products are sold to nearby food chains, and by-products are sold to special feather and down factories.
Vegetable growing is one of the most important branches of agriculture, which provides people with in-kind income in the form of vegetables and other dietary products.
Income in kind is subject to personal income tax on a general basis. However, it is impossible to withhold tax on some in-kind income because it is impossible to calculate the economic benefit received by the person.
However, income in kind is inferior to household cash income. The household, technologically, subsists almost entirely on human labor power. Therefore, now it cannot compete with mechanized industry, whose labor productivity is much higher. However, the amount of natural income increases when an unfavorable economic situation occurs.
Back in the 19th century, income in kind was the main source of food and consumer goods in rural areas. However, in the modern world, housekeeping is only a help in case of monetary instability. Income in kind today is not able to provide a village resident with a sufficient amount of food and everyday goods. This type of income does not guarantee a person's survival.
A comprehensive explanation of the term “income in kind” (not cash income) is contained in the Labor and Tax Code of the Russian Federation. So, as Art. 131 of the Labor Code of the Russian Federation, it is allowed to pay wages to working citizens not only in cash equivalent - in rubles (permissible in foreign currency), but also not in cash. In the latter case, the following conditions must be met:
- The presence of mutual consent of the parties (employer and employee) on the payment of wages in kind, fixed in the contract.
- The share of salary in non-monetary form should not exceed the established limit - 20% of monthly earnings.
Income in another form that does not contradict the law may be accrued without applying limits. Thus, to non-cash income, as evidenced by Art. 211 of the Tax Code of the Russian Federation, include:
- payment by an organization (or individual entrepreneur) for an employee for goods (specific services, work), including his training, rest, food, etc. in accordance with this article;
- payment in kind for work performed by the employee;
- goods received by the employee;
- works performed in his favor;
- services provided to an employee free of charge or with partial payment.
In fact, generally obligatory insurance contributions are withheld from all income in kind referred to in the relevant applicable legal acts. Withholding and payment of contributions to extra-budgetary funds is carried out in a general manner, i.e. through the employer (the policyholder).
Example 1. Non-monetary income of a sewing studio employee
L. T. Sidorenko works as a seamstress in the Beloshveyka atelier. Over the past September 2020, the employer made payments to her partially in non-monetary form. The possibility of remuneration in kind is stipulated in the employment agreement concluded by L. T. Sidorenko with the director of the Beloshveyka atelier.
So, L. T. Sidorenko was given 5 T-shirts and 5 shirts towards September earnings. In value terms, this non-cash income amounted to 20% of the employee’s actual salary for September 2020.
When general mandatory contributions are withheld from income in kind
As is customary, the necessary taxes and fees are collected from the “salary” payments made by the employer to its employees. Thus, if income is “paid” within the framework of labor and civil law agreements, then, accordingly, mandatory contributions are withheld from it.
However, not all non-cash income of individuals is subject to such deductions. Remunerations that are recognized as the object of taxation specifically for generally obligatory contributions are designated by the Tax Code of the Russian Federation.
| What does the subject of contribution include? | Income of citizens not subject to general compulsory contributions |
| Salary according to the employment agreement; remuneration under alienation agreements for the result of intellectual activity and other agreements specified in Art. 420 Tax Code of the Russian Federation | State benefits, including unemployment and compulsory social insurance; compensation payments provided for by law, and clause 2 of Art. 422 Tax Code of the Russian Federation; one-time financial assistance to victims of emergency situations (natural disasters, etc.), as well as at the birth, adoption of a child (or establishment of guardianship) and in the event of the death of a family member; scholarships, inheritance; profit received from the sale of personal property (if owned for more than 3 years); value expression of uniforms, uniforms and benefits provided to employees; financial assistance no more than 4,000 rubles. per employee for the billing period; amounts of payments (contributions) for voluntary personal annual insurance, as well as medical services, etc. in accordance with the article of the Tax Code of the Russian Federation |
So, most non-monetary income, with some exceptions, may be subject to mandatory contributions. At the same time, the basis for calculating fees (in relation to Article 421 of the Tax Code of the Russian Federation) is defined as the cost of such income, equivalent to the market average. Prices are determined in accordance with the provisions of Art. 105.3 Tax Code of the Russian Federation. In other words, this is the cost of the product (service, work) on the date of payment, taking into account VAT and excise tax (for excisable goods).
It is noteworthy that the profit on which tax is not calculated is, in fact, non-taxable income in kind. As a rule, this is income received under a gift agreement (free use).
Example 2. Date of actual receipt of non-monetary income by a full-time employee of the company (payment day)
Vasilek LLC pays for its employee S.N. Smirnova for off-the-job training. Payments made in the interests of the employee are considered income in kind. Real income is considered received on the date of debiting funds from the account, deducted as payment for the studies of S. N. Smirnova.
Withholding of general mandatory contributions from gifts to employees
Gifts intended for employees can be different (monetary and non-monetary). It depends on the qualifications of this gift and how it is decorated and transferred to the recipient whether contributions need to be withheld from its value or not.
| Conditional classification of a gift | The procedure for its registration | Withholding of mandatory contributions |
| A gift not related to the work activity of the recipient (not compensation, does not depend on the employee’s work and length of service) | Transferred to the donee free of charge under a gift agreement (in writing) | The corresponding taxes and contributions are withheld when the donor is an individual and the price of the gift is more than 3,000 rubles. |
Gift - encouragement for work (in relation to Article 191 of the Labor Code of the Russian Federation) | Equated to partial remuneration, the actual transfer of such a gift is made within the framework of the employment agreement | The necessary fees are collected from the value of the gift (equated to the amount of profit) |
Withholding of mandatory contributions (compulsory pension insurance, compulsory medical insurance, compulsory social insurance) from gifts, where necessary, is carried out as follows. The amount of contributions (tax) is withheld from a cash gift when the money is given to the recipient employee from the cash register or transferred to his account (card).
If the gift is provided in kind, then contributions (taxes) are deducted from its value on the next payment day. This could be, for example, the day a salary is paid to the recipient employee. When no payments are expected in a particular billing period, fees from this gift are deducted at the end of the period, in the month following it.
Postings regarding the deduction of mandatory contributions from the income of the donee employee
As is customary for the general case, compulsory insurance premiums are taken into account using an account. 69: for credit - accrual, and for debit - payment. Subaccounts are added to it depending on the specific type of insurance. Thus, the accounting department records the calculation of mandatory contributions as follows:
- DT 20 (25…) KT 69-1 - VNiM.
- DT 20 (25, 26, 44) KT 69-2 - PFR
- DT 20 (25…) KT 69-3 - Compulsory medical insurance
- DT 20 ... KT 69-11 - for injuries.
The actual payment of mandatory contributions is reflected by the following entries:
- DT 69-1 KT 51(50) - VNiM.
- DT 69-2 CT 51 (50) -PFR.
- DT 69-3 CT 51 (50) - Compulsory medical insurance.
- DT 69.11 CT 51 (50) – for injuries.
For information, non-payment (partial payment) of contributions due to an understatement of the base for their calculation or due to accounting errors is punishable by fines and penalties (Article 122 of the Tax Code of the Russian Federation). In especially serious cases (evasion of payment, failure to submit reports, submission of false information), criminal liability is provided (under Articles 198, 199 of the Criminal Code of the Russian Federation).
Common mistakes when withholding mandatory contributions
Error 1. Compensation payments for employee meals are not subject to general mandatory contributions. This norm exists and is justified as follows.
Material benefits that an employer provides to its employees (including free food) are not considered remuneration for work. Simply put, they are in no way connected with the performance of workers’ duties. Accordingly, their value expression is not subject to general compulsory contributions.
Error 2. The cost of bottled water consumed by them in the organization should not be included in the in-kind income of employees.
Rationale: the employer is obliged to create appropriate working conditions for his employees. This norm is enshrined in the collective agreement. Therefore, the expenses of the organization that went to pay for bottled water are expenses to provide the necessary working conditions.
Error 3. An employer must adhere to a certain procedure when purchasing gifts for his employees. The following actions of the employer are considered correct.
It is necessary: it is necessary to conclude a purchase and sale agreement, draw up an estimate of the expenses incurred, issue an order (indicating the circle of persons responsible for issuing gifts, as well as their cost and terms of issuance).
The very fact of the acquisition of all gifts, i.e. their purchase, must be documented, for example, using a standard invoice or an appropriate acceptance certificate.
Article 41 of the Tax Code of the Russian Federation establishes that the income of an individual is recognized as economic benefit in monetary or in-kind form, taken into account if it is possible to evaluate it and to the extent that such benefit can be assessed, and determined, in particular, in accordance with Chapter 23 of the Tax Code of the Russian Federation "Tax on personal income."
Insurance premiums
Insurance contributions to the Pension Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund and the Federal Social Insurance Fund of the Russian Federation are levied on payments and other remuneration accrued in favor of individuals within the framework of labor relations and civil contracts, the subject of which is the performance of work or the provision of services, under contracts of author's order, under contracts on the alienation of exclusive rights for the work and licensing agreements, etc. (Part 1 of Article 7 of the Federal Law of July 24, 2009 N 212-FZ “On insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund” (hereinafter referred to as Law N 212-FZ)).
The basis for calculating insurance premiums for organizations is the amount of payments and other remunerations provided for in Part 1 of Art. 7 of Law N 212-FZ, accrued by payers of insurance premiums for the billing period in favor of individuals, with the exception of the amounts specified in Art. 9 of Law No. 212-FZ (Part 1 of Article 8 of Law No. 212-FZ).
Based on clause 5, part 1, art. 9 of Law N 212-FZ are not subject to insurance premiums, in particular:
Amounts of payments (contributions) of the payer of insurance premiums under voluntary personal insurance contracts for employees, concluded for a period of at least one year, providing for payment by insurers of the medical expenses of these insured persons;
Amounts of payments (contributions) of the payer of insurance premiums under contracts for the provision of medical services to employees concluded for a period of at least one year with medical organizations that have appropriate licenses to carry out medical activities, issued in accordance with the legislation of the Russian Federation;
Amounts of payments (contributions) of the payer of insurance premiums under voluntary personal insurance contracts for employees, concluded exclusively in the event of the death of the insured person and (or) harm to the health of the insured person.
However, payment for compulsory medical insurance purchased in connection with a visit to a foreign country is not provided for by this norm.
Part 6 of Art. 8 of Law N 212-FZ determines that when calculating the base for calculating insurance premiums, payments and other remuneration in kind in the form of goods (work, services) are taken into account as the cost of these goods (work, services) on the day of their payment, calculated on the basis of their prices specified by the parties to the contract. In this case, the cost of goods (work, services) includes the corresponding amount of VAT.
Thus, we believe that payment for the cost of compulsory medical insurance purchased in connection with a trip to a foreign country does not fall under the benefit established by clause 5, part 1, art. 9 of Law N 212-FZ, therefore, is subject to insurance premiums in the general manner.
Note that in a similar situation, for example, if an organization paid for sanatorium-resort treatment of an employee, an object of taxation with insurance premiums also arises (letters of the Ministry of Health and Social Development of Russia dated 03/12/2010 N 559-19, dated 03/11/2010 N 526-19, dated 03/23/2010 N 647-19, dated 03/16/2010 N 589-19, dated 03/01/2010 N 426-19, FSS letter dated 11/17/2011 N 14-03-11/08-13985).
Contributions for insurance against accidents and occupational diseases
In accordance with Art. 20.1 of the Federal Law of July 24, 1998 N 125-FZ "On compulsory social insurance against accidents at work and occupational diseases" (hereinafter referred to as Law N 125-FZ), the object of taxation of insurance premiums is payments and other remunerations paid by insurers in favor of the insured in within the framework of labor relations, as well as civil contracts, if, in accordance with the civil contract, the policyholder is obliged to pay the insurer.
In this case, the base for calculating insurance premiums is determined as the sum of the above payments and other remunerations accrued by policyholders in favor of the insured, with the exception of the amounts specified in Art. 20.2 of Law No. 125-FZ.
Among the payments not subject to contributions in accordance with Art. 20.2 of Law N 125-FZ does not provide for compensation for the cost of purchasing compulsory medical insurance when visiting a foreign state. Consequently, payment for such vouchers is included in the base for calculating contributions from NS and PP.
At the same time, paragraph 3 of Art. 20.1 of Law N 125-FZ establishes that when calculating the base for calculating insurance premiums, payments and other remuneration in kind in the form of goods (work, services) are taken into account as the cost of these goods (work, services) on the day of their payment, calculated on the basis of their prices specified by the parties to the contract. In this case, the cost of goods (work, services) includes the corresponding amount of VAT.
For your information:
Let us note that in a number of cases similar to the situation under consideration, the Tax Code of the Russian Federation allows not to take into account when assessing personal income tax an employee’s income not exceeding 4,000 rubles per (year), received, for example:
As the value of gifts received by taxpayers from organizations or individual entrepreneurs (paragraph 2 of clause 28 of article 217 of the Tax Code of the Russian Federation);
As the amount of financial assistance provided by employers to their employees, as well as to their former employees who resigned due to retirement due to disability or age (paragraph 4, paragraph 28, article 217 of the Tax Code of the Russian Federation) (see also the letter of the Federal Tax Service of Russia dated November 8, 2010 N ShS-37-3/14851).
Among other things, an employee’s income included in taxable income may be reduced by 4,000 rubles. At the same time, the limit established by Chapter 23 of the Tax Code of the Russian Federation is 4,000 rubles. is considered a cumulative total from the beginning of the year.
We also note that in accordance with Part 3 of Art. 7 of Law N 212-FZ do not apply to the object of taxation of insurance premiums, payments and other remuneration made within the framework of civil contracts, the subject of which is the transfer of ownership or other real rights to property (property rights), and contracts related to the transfer to use of property (property rights), with the exception of copyright contracts, contracts on the alienation of the exclusive right to works of science, literature, art, publishing license agreements, license agreements on granting the right to use works of science, literature, art.
In addition, according to clause 11 of part 1 of Art. 9 of Law No. 212-FZ and paragraphs. 12 clause 1 art. 20.2 of Law N 125-FZ, amounts of financial assistance provided by employers to their employees not exceeding 4,000 rubles are not subject to insurance contributions. per employee per billing period.
This means that the organization can formalize the payment of the cost of insurance to an employee through a gift agreement or pay it based on the employee’s application as financial assistance.
Prepared answer:
Expert of the Legal Consulting Service GARANT
Grafkin Oleg
Response quality control:
Reviewer of the Legal Consulting Service GARANT
auditor, member of the MoAP Melnikova Elena
The material was prepared on the basis of individual written consultation provided as part of the Legal Consulting service.
When determining the tax base for personal income tax purposes, the taxpayer’s income received both in cash and in kind is taken into account.
This requirement is established by Article 210 of the Tax Code of the Russian Federation.
This means that income of individuals received in kind is subject to personal income tax on a general basis. At the same time, in accordance with the requirements of Article 226 of the Tax Code of the Russian Federation:
- Russian organizations,
- notaries engaged in private practice,
- lawyers who have established law offices,
- as well as separate divisions of foreign organizations in the Russian Federation,
- calculate
- withhold from the taxpayer,
- pay personal income tax to the budget.
At the same time, the amount of personal income tax withheld cannot exceed 50% of the paid amount.
If the tax agent is unable to withhold personal income tax, then he is obliged to notify the taxpayer and the Federal Tax Service at the place of his registration about this fact in writing.
This must be done no later than one month from the date of the end of the tax period* in which the income in kind was received.
*The tax period for personal income tax is the calendar year (Article 216 of the Tax Code of the Russian Federation).
In some cases, calculating personal income tax on income in kind is extremely labor-intensive, since it is almost impossible to calculate the economic benefit received by each individual taxpayer.
The article will discuss the features of personal income tax taxation of income received by individuals in kind and the comments of the Ministry of Finance on this issue.
Tax base for personal income tax on income received in kind.
The procedure for determining the tax base for income in kind is regulated by the provisions of Article 211 of the Tax Code of the Russian Federation.According to clause 1 of Article 211 of the Tax Code of the Russian Federation, when a taxpayer receives income from organizations and individual entrepreneurs in kind in the form of:
- goods,
- works,
- services,
- other property,
At the same time, prices are determined in a manner similar to that provided for in Article 105.3 of the Tax Code of the Russian Federation.
Based on clause 1 of Article 105.3 of the Tax Code of the Russian Federation, market prices are considered to be those prices for goods (work, services) that are used in transactions between parties that are not interdependent.
In accordance with clause 3 of Article 105.3 of the Tax Code of the Russian Federation, when determining the tax base taking into account the price of goods (work, services) applied by the parties for tax purposes, the specified price recognized as market, If:
- Federal Tax Service, the opposite has not been proven,
- the taxpayer did not independently adjust the tax amounts in accordance with clause 6 of Article 105.3 of the Tax Code of the Russian Federation.
In accordance with clause 6 of Article 105.3 of the Tax Code of the Russian Federation, if the taxpayer uses prices in a transaction between related parties that do not correspond to market prices, if this discrepancy entails understatement personal income tax amounts, taxpayer has the right independently adjust the tax base and personal income tax amount after the end of the calendar year.
The amount of arrears identified by the taxpayer independently based on the results of the adjustments made must be repaid no later than the date of payment of personal income tax for the corresponding tax period.
In this case, for the period from the date of occurrence of the arrears to the date of expiration of the established period for its repayment, penalties are not accrued on the amount of the arrears.
In accordance with clause 1 of Article 211 of the Tax Code of the Russian Federation, the cost of goods (work, services) for the purpose of determining the tax base for personal income tax, turn on corresponding amounts:
- excise taxes
- goods received by him,
- work performed for him,
- services rendered to him.
keep records of accrued and paid income to taxpayers, calculated, withheld and transferred taxes to the budget system of the Russian Federation, including for each taxpayer.
Also, in accordance with clause 1 of Article 230 of the Tax Code of the Russian Federation, tax agents keep records of:
- income received from them by individuals in the tax period,
- tax deductions provided to individuals,
- calculated and withheld taxes in tax registers.
- tax accounting,
- primary accounting documents,
- taxpayer
- type of income paid to the taxpayer,
- provided tax deductions in accordance with codes approved by the Federal Tax Service,
- amounts of income and dates of their payment,
- taxpayer status,
- dates of tax withholding and transfer to the budget system of the Russian Federation,
- details of the corresponding payment document.
Types of income in kind.
In accordance with paragraph 2 of Article 211 of the Tax Code of the Russian Federation, to income received by a taxpayer in kind, in particular, relate:- Payment (in whole or in part) for it by organizations or individual entrepreneurs for goods (work, services) or property rights, including:
- utilities,
- nutrition,
- recreation,
- training
- Goods received by the taxpayer, work performed in the interests of the taxpayer, services rendered in the interests of the taxpayer free of charge or with partial payment.
The procedure for processing salary payments in kind.
According to the provisions of Article 130 of the Labor Code of the Russian Federation, the system of basic state guarantees for remuneration of workers includes:- limitation of remuneration in kind.
In accordance with the collective agreement or employment contract upon written request of the employee salary Maybe be carried out in other forms that do not contradict the legislation of the Russian Federation and international treaties of the Russian Federation.
Payment of wages in kind may be in the form of products produced by the organization or other property and goods owned by the company.
It is also possible to provide the employee with the services he needs.
It must be taken into account that the property and goods with which wages are paid must be intended for the personal consumption of the employee and his family, and they must be issued at a reasonable price.
At the same time, the share of wages paid in non-monetary form cannot exceed20% from accrued monthly salary
Besides, not allowed payment of wages:
- in booms,
- coupons,
- in the form of debt obligations,
- receipts,
- in the form of alcoholic drinks,
- drugs,
- poisonous, harmful and other toxic substances,
- weapons,
- ammunition,
- other items for which prohibitions or restrictions on their free circulation have been established.
Such documents, for example, may include:
- Regulations on employee remuneration,
- Collective agreement,
- Employment contract,
- And so on.
Payment for employee meals.
Nowadays, it is not uncommon for a company to pay for meals for its employees.In some organizations it is just tea and coffee, in others it is set daily lunches or buffet meals.
In addition, many companies organize corporate holiday events in which employee refreshments are part of the holiday program.
In all these cases, taxpayers - individuals, have taxable income.
But not in all cases, organizations are required to withhold and pay personal income tax.
Tax does not need to be calculated and paid if the organization has there is no opportunity to personalize and evaluate economic benefits received by each employee.
“When acquired by an organization:
- food (tea, coffee, etc.) for its employees,
- as well as during corporate celebrations,
For these purposes, the organization must takeall possible measures to assess and take into account economic benefits (income) received by employees.
At the same time, if when employees consume food purchased by the organization (during a corporate holiday event), there is no opportunity to personify and evaluate the economic benefit received by each employee,income subject to personal income tax does not arise .»
A similar opinion is contained in the Letter of the Ministry of Finance dated January 30, 2013. No. 03-04-06/6-29.
However, the department had a different opinion in its Letter dated April 18, 2012. No. 03-04-06/6-117, where we were talking about lunches for employees in the form of a buffet, payment for which is provided for in the current system of remuneration of employees on an ongoing basis:
“According to paragraph 1 of Art. 230 of the Code, a tax agent is obliged to keep records of income received from him by individuals during the tax period.
In this case, the income of each taxpayer can be calculated based on the total cost of meals provided and data from the time sheet or other similar documents.”
Thus, in cases of payment for lunch for employees on an ongoing basis, including in the form of payment for the services of canteens, restaurants, and other public catering establishments, the employer is obliged to keep appropriate records.
This can be done in different ways. For example, by introducing a coupon system, or keeping a log of visits to public catering by employees.
Currently, in modern business centers, tenants are also offered special cards that employees use to pay for lunch.
Such cards are issued to employees and assigned to them, and at the end of the month, the catering service company provides the employing company with a report indicating the amount of expenses spent on each of the cards.
For each such amount, personal income tax will be calculated individually for each employee.
Payment for travel of employees.
Not all organizations have well-located offices that are easily accessible via public transport.In this case, some companies pay for transportation services for employees from the metro to the office and back (by bus, minibuses, etc.).
In addition, the company often buys/pays for its employees public transport tickets.
In accordance with the provisions of Article 168.1 of the Labor Code, employees whose permanent work:
- carried out on the way,
- has a traveling nature,
- carried out in the field,
- associated with expeditionary work,
travel expenses.
Thus, if a company pays for travel tickets (transport cards) to employees who use them to perform their official duties, such payment for travel is not employee income and is not subject to personal income tax.
At the same time, it should be remembered that payment for employees’ travel to a stationary workplace (and the place of work must be indicated in the employment contract with the employee in accordance with Article 57 of the Labor Code of the Russian Federation) does not apply to travel expenses:
- Related to a business trip, and compensated by the employer in accordance with Article 168 of the Labor Code of the Russian Federation.
- Related to the performance of official duties and compensated in accordance with Article 168.1 of the Labor Code of the Russian Federation.
In accordance with the provisions of Article 41 of the Tax Code of the Russian Federation, income is recognized as economic benefit in monetary or in-kind form, taken into account if it is possible to evaluate it and to the extent that such benefit can be assessed, and determined in accordance with the chapters “Tax on personal income” ", "Organizational income tax".
According to the Ministry of Finance, paying for their transportation is considered a lack of economic benefit for employees if employees cannot get to the company’s office by public transport due to the office’s remoteness from its routes.
This opinion was expressed by the Ministry of Finance in its Letter dated March 6, 2013. No. 03-04-06/6715:
“Taking into account the specified provisions of Art. 211 of the Code, payment by an organization for travel of employees, provided that the employees have the opportunity to get to the place of work independently, is subject to personal income tax in the prescribed manner.
If the delivery of workers is due to the remoteness of the organization’s location from public transport routes and the workers do not have the opportunity to get to their place of work and back by public transport, the amount of payment by the organization for the travel of workers in accordance with agreements concluded with the transport organization cannot be recognized as an economic benefit ( income) of employees and, accordingly, be subject to personal income tax.”
In any other cases, the organization will have to prove its position in court.
It should be noted that the courts quite often side with taxpayers.
To minimize tax risks, the employing organization should enter into an agreement with a transport company for the provision of appropriate services.
It’s even better if the company can transport employees to their place of work on their own.
In this case, the costs of paying for transportation of employees to their place of work will not be of a personal nature, since it will be very difficult to determine the amount of transportation costs attributable to each individual employee.
Thus, if it is not possible to personify and evaluate the economic benefit received by each employee, income subject to personal income tax will not arise.
Discounts on education at a state educational institution.
If a student is provided with a discount on tuition under an agreement for the provision of educational services at a state educational institution:- based on the results of entrance examinations,
- for success in learning,
This opinion was expressed by the Ministry of Finance in its Letter dated February 28, 2013. No. 03-04-05/9-158
“A reduction in tuition fees by an educational institution depending on the results of entrance examinations, as well as on learning outcomes, made on the basis of an order from an educational institution, cannot be considered as income (economic benefit) received in kind if the possibility of reducing the cost of tuition is provided for students who have achieved the appropriate results of entrance tests and (or) educational results, that is, it does not have the nature of an individual benefit.”
