What is the taxpayer status on personal income tax certificate 2. Payer statuses in a payment order. Personal income tax for Ukrainians who receive payments in Russia

How to fill out the “taxpayer status” column in the 2-NDFL certificate?
A not too clearly and clearly formulated point in this form regarding the status of a taxpayer can sometimes cause confusion as to what exactly should be indicated there. However, in fact, this part of the certificate is filled out quite simply.

Taxpayer status in certificate 2-NDFL, clause 2.3, means the tax residence of the person obliged to pay personal income tax in the Russian Federation. When filling out the certificate, codes “1”, “2” or “3” are used, which means the following:

• – code “1” is set if the person is a tax resident of the Russian Federation
• – code “2” is used for taxpayers who are not tax residents of the Russian Federation
• – code “3” indicates cases where the payer is not a tax resident of the Russian Federation, but is recognized as a highly qualified specialist in accordance with the Federal Law “On the Legal Status of Foreign Citizens in the Russian Federation”.

Taxpayer status “1” in certificate 2-NDFL

The criterion for determining tax residence in Russia is established in clause 2 of Art. 207 Tax Code of the Russian Federation. Tax residents are those persons who have been in Russia for at least 183 calendar days during the last 12 months. There are several nuances when determining these time periods. Firstly, the 12 months indicated do not have to correspond to calendar months and years. This period will begin on the day the person enters the territory of Russia and will end on exactly the same day of the next year. Secondly, the 183 days required for tax residence do not have to be consecutive and flow continuously, that is, the taxpayer can travel outside the Russian Federation within 12 months. In this case, trips abroad for the purposes of education or treatment are counted towards the specified 183 days, even if the person is not actually in Russia.

The tax agent submitted a personal income tax calculation to the tax authority, during which a desk audit revealed errors related to the calculation and payment of tax, as well as the fact that income tax amounts withheld from individuals were untimely transferred to the budget.

Result: the case was sent for a new trial to the appellate court, since the court did not evaluate all the companies’ arguments

The basis for

The decision was made based on the inspection's conclusion that, in violation of paragraph 1 of Article 210 of the Tax Code of the Russian Federation, the tax base in the income declaration of Form 3-NDFL for 2016 was underestimated, as a result of an incorrect calculation of the income received from the redemption of promissory notes of PJSC Sberbank of Russia.

Result: having examined the case materials, analyzed the evidence and arguments collected in the case

Contested non-normative

a legal act was adopted by the tax authority based on the results of consideration of the materials of the on-site tax audit. The basis for the assessment of value added tax, penalties and the application of tax sanctions for incomplete payment of tax in the form of a fine was the conclusion of the tax authority that the Entrepreneur understated the tax base due to the failure to include in it income received from the rental of non-residential premises All judicial practice on this topic »

Tax agents. Calculation and retention procedure.

Maintaining personal income tax certificates-2 and personal income tax cards-1

Legal entities and individual entrepreneurs must annually submit to the tax authorities certificates in form 2-NDFL for each employee who receives income from this tax agent. The certificate contains a special point - taxpayer status in 2-NDFL. How to fill out this column correctly to avoid mistakes?

What do tax codes mean?

Checking the statuses is necessary for the tax office to determine whether the reporting has been completed correctly. The calculation of the income tax rate depends on the indication of the taxpayer’s status in 2-NDFL, so this information must be verified. If errors are identified, additions and corrections will need to be made to the reporting, as it turns out that the tax on individuals was calculated incorrectly.

Until 2016, it was necessary to indicate the following status codes in the certificate:

• Taxpayer status “1” in certificate 2-NDFL means a person who was a resident of Russia at the end of the year. A resident is considered a person who has lived in the country for at least 183 days over the last year; the tax rate for such individuals is 13%. In this case, all income of residents is taxed, including those received outside the country.
• Status “2” in the certificate is used for non-residents, that is, for persons who live abroad for most of the year. In this case, income tax is imposed only on income received within the country, but not outside its borders. The personal income tax rate for non-residents is 30%.
• Status “3” is indicated for foreigners who are not recognized as tax residents, but they are considered highly qualified specialists. The state is directly interested in the influx of such employees to Russia, therefore special tax rules apply to them.

Until recently, this form of indicating the status of taxpayers in 2-NDFL was considered the only correct one, but in 2016 changes were made to the documentation. Their necessity was due to the confusion that arose due to the inaccurate indication of the status of an individual. Thus, for non-residents, the tax rate can be either 13 or 30%, depending on the specific situation, and the old codes did not allow distinguishing between such cases.

Current rules for filling out a certificate

Form 2-NDFL certificate was approved by Order of the Federal Tax Service on October 30, 2015; it no longer indicates 3, but 6 codes to more accurately indicate the status of taxpayers. The updated version looks like this:

• Taxpayer status “1” in certificate 2-NDFL still means a resident of the Russian Federation.
• Taxpayer status “2” indicates. that this individual is not a resident of the Russian Federation.
• Status “3” denotes highly qualified specialists who are not Russian residents.
• Status “4” denotes Russians permanently residing abroad, but at the same time returning to their homeland. Such persons are not considered tax residents and therefore are not subject to the standard tax rate.
• Status “5” is used to designate refugees who are not residents of the Russian Federation.
• Status “6” denotes foreign citizens who have received the right to work in Russia on the basis of a patent.

This refined classification allows you to avoid errors and clarifications, so it is very convenient for use if the organization employs a large number of foreign citizens. Clarifying statuses allows you to avoid questions when generating tax reporting. On the 2-NDFL certificate form, for example, in 2018, the taxpayer’s status is recorded as follows:

Deadlines for submitting a certificate

It is necessary to submit reports on 2-NDFL certificates indicating the new status codes in order to avoid claims from regulatory tax authorities. If for some reason the organization did not withhold income tax by the end of the year, it is necessary to notify the tax authorities about this before March 1 of the following year in order to avoid penalties.

If an employee was dismissed for any reason during the year, then the certificate must indicate the code of his status at the time of dismissal. If a foreign citizen was employed, but by the end of the year he acquired resident status, then the certificate for him must indicate the number 1 in the status column. This rule does not apply to those who originally came from abroad and work under a patent. The status “6” remains for them.

The updated classification has simplified the determination of the status of specialists coming to work in Russia on patents, as well as on invitations from large companies. However, when filling out documentation, difficulties periodically arise that require detailed explanations.

A certificate of income (2-NDFL) is required by authorities for which it is necessary to confirm the financial well-being of a citizen, the availability of permanent employment for six months (or more), and provide information about the personal data of an individual. It is often presented to banks when taking out a loan, or to companies when hiring a new employee. In order for the document to be considered drawn up in accordance with all the rules and completely legitimate, it is important to correctly indicate the taxpayer’s status in 2-NDFL.

According to the provisions of Article 23 of the Tax Code of the Russian Federation, an income tax payer is a person who receives income in the form of wages, interest or dividends on the territory of Russia or abroad.

Sources of income subject to personal income tax include:

• salary paid by the employing company;
• receipts from the provision of services and performance of work within the framework of civil contracts;
• rental of property;
• income of individuals from securities purchased by them.

1. Residents of Russia are persons who are actually in the country for at least 183 days over the past 12 months. This period of time is not interrupted by trips to receive medical and educational services in other states, if their duration does not exceed six months.
2. Military personnel serving abroad, employees of state and municipal authorities, working outside the Russian Federation.
3. Non-residents who receive income from sources located within the borders of Russia.

The division of taxpayers into three groups identified by the Tax Code of the Russian Federation is necessary to determine the income tax rate suitable for each specific case. In fact, the taxpayer status indicated in the 2-NDFL certificate indicates that the person belongs to the category of residents or non-residents. The former transfer 13% of their income to the budget, the latter – 30%.

According to tax legislation, a certificate can be provided by:

• Taxpayers themselves - to the authorities that requested it (to a bank or microfinance organization to receive a loan, to a new employer, etc.).
• Companies performing the role of tax agents - exclusively to “their” Federal Tax Service as part of the report on the fulfillment of obligations to withhold and transfer to the state treasury amounts of income tax for hired employees, submitted at the end of the calendar year.

The Tax Code of the Russian Federation limits the list of organizations that have the right to submit 2-personal income tax of employees to regulatory authorities to two categories:

• residents of the Russian Federation - companies, individual entrepreneurs, lawyers and notaries;
• foreign structures with representative offices in Russia.

To ensure that the tax inspectorate and other authorities do not have questions about the contents of the certificate, it is important to take into account all the details of filling it out.

Taxpayer 2-NDFL: types of status

The directory of statuses entered in document field No. 2.3 was approved by order of the Federal Tax Service of the Russian Federation MMV-7-3/611. This document identifies six possible options in force in 2016, from which the organization’s accountant should choose:

• Status No. 1

Used for employees who have resident status as of December 31 of the current year. They actually stayed within the borders of the Russian Federation for at least 183 days during the last 12 calendar months.

• Status No. 2

Used for persons who are non-residents but derive income from sources located on Russian territory. To prove the fact of non-residence, the employee must provide the employing organization with properly executed documents confirming his right to be in Russia: visa, residence permit, migration card, etc.

• Status No. 3

It includes non-resident persons excluded from status No. 2 due to belonging to the category of highly qualified specialists. The criteria for classifying a person to this status are given in 115-FZ. This is an employee who has skills, achievements and (or) experience in a specific field, if the conditions of his employment meet the following requirements:

• salary from 83,500 rub. for scientists and teachers;
• salary from 58,500 rub. for employees of technology-innovation SEZs;
• salary from 1,000,000 rub. for specialists invited to work on the territory of the medical cluster;
• salary from 83,500 rub. for highly qualified foreigners who work in Crimea and Sevastopol;
• salary from 67,000 rub. for other categories of foreigners.

For participants in the Skolkovo project, the minimum salary is not established by law.

• Status No. 4

Persons included in the program for the resettlement of compatriots in the Russian Federation and who do not have resident status. This state project is being implemented with the goal that Russian emigrants and their descendants living in post-Soviet republics can freely return to their historical homeland.

• Status No. 5

It includes persons officially included in the category of refugees (forced migrants). These are non-residents who are subject to a preferential tax rate of 13%.

• Status No. 6

This category includes foreign citizens who work in Russia on the basis of an acquired patent. This is a document that replaces a work permit for immigrants from countries with which Russia has a visa-free regime. Purchasing a patent actually means paying personal income tax in advance for a certain period: from one month to a year.

The division of persons receiving income in the Russian Federation into six categories is logically justified. It allows tax authorities and other entities to easily determine the income tax rate applicable in a particular case.

For example, the status of taxpayer 1 in certificate 2-NDFL eloquently indicates that 13% should be withheld from the specialist’s income. Status 2 means that non-resident wages will be taxed at a rate of 30%.

Correctly filling out the certificate is of great importance for the employee and the employer. One error or inaccuracy is enough for the first to be denied acceptance of the report to the Federal Tax Service, and for the second to be denied credit or unemployment benefits. To avoid problems with regulatory authorities, it is necessary to register the taxpayer status correctly.

It is one of the most important responsibilities of both legal entities and individuals. All income received by citizens and companies must be recorded and subject to taxation. For almost all citizens, the main source of income is the wages they receive, the taxation of which is the responsibility of the company or individual entrepreneur for whom the individual works. In this case, they submit special documents to the tax authority at the place of registration after each reporting period, and be sure to indicate for each individual taxpayer status in 2nd personal income tax.

Each legal entity is a tax agent and undertakes the obligation to pay taxes both on its activities and its financial results, and on the wages of all its employees. In fact, every company (including individual entrepreneurs) is an intermediary for paying taxes for its employees.

The key to taxation of income received is the correct determination of the tax rate (percentage of income). It is precisely in order to correctly determine this rate that there is such a thing as taxpayer status.

Each taxpayer may have its own characteristics that affect its status. They may concern parameters such as:

• country of residence/citizenship;
• occupation;
• features of living in Russia, etc.

The company prepares a special certificate for each of its employees (individuals) and submits it to the tax authority after the past calendar year. It is in this certificate that the taxpayer status is stated.

The tax authorities, in turn, check the specified status for each individual and make a decision whether the tax rate was determined correctly.

Decoding codes

In the certificate, the taxpayer’s status is not written down verbatim, but is encrypted in a numeric code that everyone can understand:

In 2nd personal income tax, taxpayer status “1” is the most common, and means that this individual (taxpayer) is a citizen of Russia and its tax subject.

• Status “2” applies to a foreign citizen who has received income from a Russian company, but is not its tax subject.
• Status “3” applies to those citizens whose profession and specialization relates to highly skilled labor and who are not tax subjects of Russia.
• Status “4” is quite rare and is assigned to those citizens who once emigrated from Russia (are not its tax subjects), but became participants in the program for return and voluntary resettlement to our country.
• Status “5” applies to those individuals who have been granted refugee status and whose request for asylum in Russia has been granted, and who are not its tax subjects.
• Status “6” is also quite rare and applies to foreign citizens who work in Russia on the basis of an issued patent.

Before 2016, there were only 3 such statuses, but they were not enough to cover all possible groups of taxpayers.