Tax authorities require full reporting from all business entities, including individual entrepreneurs. One of them is the income statement. It is important to remember that even in the absence of activity in the reporting period and in the case when there is no profit, each registered entrepreneur must provide zero 3 personal income tax for individual entrepreneurs . The rules for filling it out and the features of delivery will be discussed in this article.
When does an entrepreneur pay personal income tax?
According to paragraph 1 of Art.
23 of the Civil Code of the Russian Federation, an individual entrepreneur is an individual who conducts business activities and is registered as such. Thus, an individual entrepreneur, as an individual, is recognized as a personal income tax payer (clause 1 of article 207 of the Tax Code of the Russian Federation). The need to calculate the specified tax on income received by individual entrepreneurs from business is also indicated by the text of subsection. 1 clause 1 art. 227 Tax Code of the Russian Federation. When special regimes are applied, personal income tax together with VAT and property tax are replaced by one tax that meets the appropriate regime (Unified Agricultural Tax, Simplified Tax Tax, PSN). However, this only applies to income related to business activities. Income received by an individual entrepreneur not from business is regarded as the income of an ordinary individual and is subject to personal income tax, taking into account the requirements of Chapter. 23 of the Tax Code of the Russian Federation (letter of the Ministry of Finance of Russia dated April 23, 2013 No. 03-04-05/14057).
The obligation to submit a declaration to the individual entrepreneur on income received from business and expenses incurred is reflected in clause 5 of Art. 227 Tax Code of the Russian Federation. Such a declaration is drawn up on a form called Form 3-NDFL. In 2022, for 2022, 3-NDFL should be issued on an updated form, approved by order of the Federal Tax Service dated October 15, 2021 No. ED-7-11 / [email protected] You can download it for free by clicking on the picture below:
The update for previous years is submitted using the forms valid for the adjusted reporting periods.
If you need to adjust your reporting for 2022 - 2020, you can make your declarations here.
How to submit 3-NDFL for individual entrepreneurs on OSNO and when advance payments for this tax are made
Using the general taxation regime, individual entrepreneurs, unlike legal entities paying income tax under this regime, draw up and submit a 3-NDFL declaration in the generally established manner. The 3-NDFL declaration for individual entrepreneurs on OSNO can also simultaneously reflect income both not related to business activities and those received in the course of its conduct.
The deadlines for paying advance payments have changed since 2022. Now, during the year, a taxpayer using OSNO for personal income tax must make advance payments within the following terms:
- until April 25 (04/25/2022 in 2022) - for 1 quarter;
- until July 25 (07/27/2022 in 2022, taking into account the transfer) - based on the results of the half year;
- no later than October 25 (10/25/2022 in 2022) - 9 months in advance.
Read more about the changes here.
The features of the declaration filled out by individual entrepreneurs are that:
- on the title page of 3-NDFL, the individual entrepreneur indicates the taxpayer category - 720;
- In addition to the title page and sections 1, 2, Appendix 3 is required to be completed.
Income and expenses of individual entrepreneurs for the purpose of calculating the tax base from entrepreneurship are determined taking into account the provisions of Chapter. 25 Tax Code of the Russian Federation. The justification of expenses must satisfy the requirements of Art. 252 of the Tax Code of the Russian Federation. In this case, the individual entrepreneur can take advantage of the provisions provided for in Chapter. 23 of the Tax Code of the Russian Federation with deductions: standard, social, property, professional and investment.
How long does it take to conduct a desk audit of 3-NDFL filed by an individual entrepreneur? Does the verification period change if a clarification is submitted? How can an individual entrepreneur fill out and submit a 3-NDFL declaration? Answers to these and other questions can be found in the Ready-made solution from ConsultantPlus. Get free trial access and get free expert opinion.
According to Art. 229 of the Tax Code of the Russian Federation, the deadline for submitting the 3-NDFL declaration is April 30 of the year following the reporting year. Violation of this deadline will lead to the application of liability under Art. 119 of the Tax Code of the Russian Federation - a fine in the amount of 5–30% of the unpaid amount, but not less than 1,000 rubles.
For 2022, the declaration must be submitted by 05/04/2022, taking into account the postponement from 04/30/2022, which is a Saturday.
If an error is found in the submitted declaration, the report can be clarified. More details about this can be found in the article “ Features of the updated tax return 3-NDFL ” .
Zero reporting on insurance premiums
Individual entrepreneurs submit all reports on insurance premiums only if they have employees. If there are no employees throughout the year, then there is no need to submit zero reporting.
The reporting of individual entrepreneurs to the Pension Fund consists of three forms - SZV-M, SZV-TD and SZV-STAZH. They are applied to employees. If the individual entrepreneur has employees, he submits these forms. If there are no employees, it doesn’t rent. There can be no zero reports.
Businessmen and their employees submit a zero calculation for insurance premiums to the Federal Tax Service if the individual entrepreneur’s employees did not receive money during the reporting period. In the zero calculation you need to add the title page, section 1, subsections 1.1 and 1.2 of Appendix No. 1 to Section 1, Appendix No. 2 to Section 1, Section 3.
If you have employees and no payments, you must submit a zero form 4-FSS to the Social Insurance Fund. You must submit 4-FSS with zero values before the 25th day of the first month of the 1st, 2nd, 3rd, and 4th quarters. Zero 4-FSS includes the title page, tables 1, 2 and 5.
Submit zero reporting through Kontur.Extern
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Do I need a 3-NDFL certificate for an individual entrepreneur using the simplified tax system or another special regime?
If an individual entrepreneur uses the simplified tax system or another special regime, he is exempt from paying personal income tax if he receives income from business. However, there are circumstances in which an individual entrepreneur must still file 3-NDFL, namely if:
- during the tax period, the individual entrepreneur lost the right to use the simplified tax system or another special regime in his activities, while the entrepreneur will have to report according to the OSNO and submit 3-NDFL;
- The individual entrepreneur sells his real estate or movable property that is not used in business activities;
- The individual entrepreneur received funds from the organization as a private individual and this organization does not act as a tax agent (for example, when receiving an interest-free loan, savings on interest will be income).
- he won the lottery;
- received foreign currency as part of payments for activities not related to entrepreneurship;
- dividends were paid to him.
If the circumstances listed in the list arise, the individual entrepreneur will have to report to the tax office as an individual and deposit the corresponding tax amounts into the budget before July 15.
Tax for 2022 must be paid by July 15, 2022.
Can the tax office punish for failure to submit 3-NDFL, read the material “Is there a fine for late submission of the 3-NDFL return?” .
⇒ In what cases is it necessary to fill out and submit the 3-NDFL declaration yourself? In what cases is it necessary to file a “zero” 3-NDFL? In what cases is it not necessary to file a 3-NDFL declaration? When is it necessary to submit a 3-NDFL declaration? Where and in what form should the 3-NDFL declaration be submitted? Where can I download and how to fill out the 3-NDFL declaration? Responsibility for failure to file or violation of deadlines for filing a return What to do after sending the return to the tax office? Articles on the topic
In what cases is it necessary to fill out and submit the 3-NDFL declaration yourself?
Paying taxes is the responsibility of every citizen-taxpayer in the Russian Federation. However, not every one of us thinks about this responsibility, because... The main tax—on wages—is paid for us by the employer. However, there are a number of cases when the taxpayer must fill out and submit a declaration to the Federal Tax Service, as well as pay the tax himself in the future, and if he does not do this, then there is a risk of being held accountable.
The most common cases when a taxpayer must independently file a 3-NDFL return :
- You sold an apartment (dacha) - 1) if you have documents confirming the amount of purchase of the property (copy of the contract and receipt) - then tax can be paid on the difference between the sale price and the purchase price; 2) if it is impossible to confirm the purchase price or if the property sold was received as a gift NOT from close relatives, or was inherited, then tax must be paid on the entire sale price minus 1,000,000 rubles (this is a tax deduction) . If the apartment's sale price is less than RUB 1,000,000, then even if you have owned it for less than 3 (5) years, you have the right to apply a deduction to it in the amount of RUB 1,000,000, which will result in zero tax. If you sold the property for less than you bought it for, you still need to submit a so-called “zero” declaration, in which you should indicate zero income (attaching a copy of the agreement and receipt). Income received from the sale of real estate that was owned for more than 3 years (for real estate purchased before 01/01/2016) and more than 5 years for real estate purchased after 01/01/2016 is exempt from taxation. From 2022, the sale price real estate between individuals CANNOT be lower than its cadastral value, established as of January 1 of the year in which the transaction is made, and multiplied by a reduction factor of 0.7. Apartments received by inheritance are exempt from taxation.
- You sold a car - as in the case of an apartment, you can choose ANY calculation, which will be more profitable for you, taking into account the tax deduction. For cars it is set at 250,000 rubles: 1) sale price (-) purchase price x 13% = tax; 2) sale price (-) 250,000 rub. x 13% = tax
- You receive income from renting out an apartment (in this case, we recommend registering as an individual entrepreneur on the “simplified” system, which will allow you to pay 6% instead of 13%)
- You provided services under a GPC agreement (as an individual or as an individual entrepreneur) to another individual
- You won the lottery
- You work as a tutor, nanny, or household assistant for an individual - this income can be exempt if taxpayers register for taxation in accordance with clause 7.3. Article 83 of the Tax Code of the Russian Federation
- You received income abroad (for example, dividends from participation in a foreign company, CFC)
- You received coupon and dividend income from owning shares of foreign issuers
- You sold a share (shares) in a business - 1) the amount of proceeds from the sale can be reduced by the amount of the purchase of shares, shares, confirmed by documents; 2) payment of tax is not required if the shares have been owned for more than 5 years
- You were given an apartment, a dacha, a car, shares in a business by friends at a wedding, fans, lovers, etc. (NOT close relatives) or you received any other gift worth more than RUB 4,000. — the tax is paid based on the market value of the property received as a gift;
- You are applying for a refund of previously paid personal income tax - for example, when purchasing an apartment (See Tax deductions)
- You are an individual entrepreneur (if you do not have income from activities as an individual entrepreneur, you must still submit a “zero” declaration)
In what cases is it necessary to file a “zero” 3-NDFL?
These cases are described above, however, we will indicate them together again:
- You sold an apartment, a dacha, a car for a price lower than the purchase price, i.e. expenses turned out to be more than income - the tax amount is negative, however, by law you must fill out and submit the 3-NDFL declaration “with zeros”
- The individual entrepreneur did not conduct business in the reporting period - there is no tax to pay, however, there is an obligation to file a “zero” declaration
In what cases is it not necessary to file a 3-NDFL declaration?
The most common cases when filing a declaration is NOT required at all:
- You receive a salary based on an employment contract (in this case, the tax is paid for you by the employer)
- You received an apartment, a dacha, a car as a gift from close relatives
- You sold an apartment, a dacha, a car to close relatives
- You received an apartment, a dacha, a car by inheritance (it doesn’t matter by will or by inheritance by law)
- You sold an apartment, a dacha, which you owned for more than 5 years (more than 3 years, for real estate purchased before 01/01/2016)
- You sold a car that you owned for more than 3 years
- You sold shares (shares in LLC) that you owned for more than 5 years
- You were given money (whether relatives or not)
- You were given an apartment, a dacha, a car by close relatives
* Commentary from the GidPrava lawyer: 1. “As can be seen from what is written above, if a lover gave a friend a car, then she must fill out a declaration and pay tax on the market value of this car, HOWEVER, if the lover gave the friend MONEY with which she bought the car, then this money does not need to be declared.”
2. It often happens that the Federal Tax Service sends a notification to the taxpayer with a requirement to submit a 3-NDFL declaration in connection, for example, with the sale of an apartment to a relative. Don’t worry, in such cases it is necessary to send documents confirming relationship or tenure ; as a rule, after receiving such documents, the Federal Tax Service does not make any further demands.
When is it necessary to submit a 3-NDFL declaration?
The 3-NDFL declaration must be submitted by April 30 of the year following the year in which the taxpayer received the income. For example, you sold a car in 2022, which means you need to fill out and submit a declaration before April 30, 2022, and so on. If April 30 falls on a weekend or holiday, then the declaration must be submitted on the first working day after April 30.
Where and in what form should the 3-NDFL declaration be submitted?
The declaration is submitted to the Federal Tax Service at the address of permanent or temporary registration . There is a little confusion associated with the taxpayer’s TIN: the TIN is obtained once and “for life”, that is, you can move to another region, but your TIN will remain the same, however, you will need to submit a declaration NOT to the Federal Tax Service in which you were previously registered (and which assigned you a TIN), and as stated above - with the Federal Tax Service at the place of permanent or temporary registration.
You can submit a completed declaration:
- through the taxpayer’s personal account on the Federal Tax Service website,
- by sending a copy by Russian Post (by registered mail with a list of attachments, with acknowledgment of delivery),
- to the Federal Tax Service in person (two copies are submitted - the second one is stamped with acceptance)
- to the Federal Tax Service through a representative with a notarized power of attorney (two copies are submitted - the second one is marked with acceptance)
Copies should be attached to the declaration:
- agreements for the sale of the object (and agreements under which the object was purchased by you), other documents for the object
- certificate 2-NDFL from the employer
- application for tax deduction
- other documents related to the transaction
Where can I download and how to fill out the 3-NDFL declaration?
You can download the 3-NDFL declaration on the website of the tax authority or on our website (below). There are many programs on the Internet that help you correctly fill out the 3-NDFL declaration, as well as many detailed instructions for filling out the declaration pages.
Responsibility for failure to submit or violation of deadlines for filing a declaration
Violation of the deadline for filing a 3-NDFL declaration (“filed a declaration late”) in accordance with Article 119 of the Tax Code of the Russian Federation entails the collection of a fine from the taxpayer in the amount of 5% of the amount of unpaid tax for each full and partial month of delay, but not more than 30% of the specified amount and not less than 1,000 rubles.
Late payment of personal income tax (“I filed a declaration, but did not pay the money”) - there is no fine, but penalties are charged.
Understatement of the tax amount (“filed a declaration, paid the tax, but unintentionally incorrectly calculated the amount of tax”), Article 122 of the Tax Code of the Russian Federation, for example, as a result of the unlawful use of deductions - 20% of the unpaid tax amount.
Intentional underestimation of the amount of tax (“I filed a declaration, paid the tax, but deliberately incorrectly calculated the amount of tax”), Article 122 of the Tax Code of the Russian Federation, for example, as a result of the unlawful use of non-existent deductions - 40% of the unpaid tax amount.
The statute of limitations for these violations is 3 years.
What to do after sending the tax return?
The amount that you indicated in the declaration must be paid yourself no later than July 15 of the same year in a way convenient for you: a receipt in Sberbank, on the tax website, in Sberbank-online, etc.
ARTICLES ON THE TOPIC:
3-NDFL: in what cases is it necessary to file a declaration and pay the tax yourself? Does the tax office track transfers from card to card?
Sale of a share by a participant in a limited liability company: risk of additional personal income tax assessment
Tax deductions
Zero declaration 3-NDFL in the absence of activity and closure of individual entrepreneurs
If the taxpayer did not receive income from business activities during the tax period (year), he must still report to the Federal Tax Service by filing a declaration. How to fill out the 3-NDFL declaration for individual entrepreneurs in this case? Such a report is drawn up with zero indicators (letter of the Ministry of Finance of Russia dated December 25, 2007 No. 03-02-07/1-507).
When compiling it, the current form of the 3-NDFL declaration form is used.
The 3-NDFL declaration forms for individual entrepreneurs and ordinary individuals are identical, but they are filled out by these taxpayers differently.
Get free trial access to ConsultantPlus and in the system you will find examples of filling out 3-NDFL for all occasions, for example, to receive a deduction when buying a home or when selling it, etc.
The title page and sections 1, 2 are required for completion for both individual entrepreneurs and individuals. These are the ones that must be completed when filing a zero 3-NDFL declaration for an individual entrepreneur. The remaining sheets are filled out by both the individual entrepreneur and the individual as necessary.
Lack of activity can logically develop into the elimination of individual entrepreneur status. In such circumstances, the taxpayer also does not have the data to fill out the declaration columns. As a result, a zero 3-NDFL is submitted, and the report must be submitted within a short period of time, not exceeding 5 days from the date of registration of the fact of termination of the individual entrepreneur’s activities.
Composition of a zero declaration for UTII
The main difference between the UTII declaration and the others is that the tax is calculated not on the basis of real indicators received for the quarter, but on the basis of such physical indicators as the area of the sales floor, the number of vehicles, etc. This principle of calculating tax payments does not allow Individual entrepreneurs and companies using UTII must report in the absence of activity with declarations with zero indicators.
The taxpayer will not need to submit a UTII return only if he is deregistered with a tax organization. To do this you need to submit an application. The tax authority, having received such an application from the taxpayer, must send him a notice of deregistration. From the moment the notification is received, the entrepreneur loses the obligation to provide a UTII declaration, but in the time before deregistration he will have to report.
Results
An individual entrepreneur who does not apply any of the special regimes is obliged to calculate and pay personal income tax on income received as a result of entrepreneurship. Such income is declared annually in a special report (declaration) 3-NDFL. Form 3-NDFL is the same for individual entrepreneurs and individuals, but they fill out different sheets (in addition to the required ones).
Sources:
- tax code of the Russian Federation
- Order of the Federal Tax Service dated October 15, 2021 No. ED-7-11/ [email protected]
You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.
