Codes of types of income in the 2‑NDFL certificate with explanation

What do personal income tax codes mean?

The Tax Code obliges tax agents to keep records of income paid to individuals, not in any form, but using special codes.
Thus, paragraph 1 of Article 230 of the Tax Code of the Russian Federation states that each tax agent must compile tax accounting registers. They need to record income paid to individuals in accordance with the codes approved by the Federal Tax Service. The current codes are given in the Federal Tax Service order No. ММВ-7-11/ [email protected] (hereinafter referred to as order No. ММВ-7-11/ [email protected] ). They are used, among other things, to fill out a certificate of income and tax amounts for an individual (Appendix No. 1 to the calculation of 6-NDFL). This means that incorrectly assigning a digital code to income will result in an error in the income certificate. This, in turn, threatens the tax agent with a fine of 500 rubles. for each incorrectly completed certificate (Article 126.1 of the Tax Code of the Russian Federation, clause 3 of the Federal Tax Service letter No. GD-4-11/14515 dated 08/09/16).

Reference

For 2022 and earlier, tax agents submitted separate income certificates in Form 2-NDFL. Starting with reporting for 2022, the income certificate is Appendix No. 1 to the annual calculation of 6-NDFL (approved by order of the Federal Tax Service dated October 15, 2020 No. ED-7-11 / [email protected] ; see “New form 6-NDFL , which included 2‑NDFL: how to fill out and when to submit”). The income certificate no longer has the official name “2-NDFL”, although out of habit many continue to call it that way. Income certificates for 2022 must be submitted as part of the 6-NDFL calculation no later than March 1, 2022.

Fill out and submit 6‑NDFL form online for free with current codes

In addition, in many accounting programs, payment codes are tied to determining the date of actual receipt of income, and it depends on it whether the payment needs to be included in the calculation of 6-NDFL for a specific period (letter of the Federal Tax Service dated 08/09/21 No. SD-19-11/ [email protected] ; see “The Federal Tax Service announced how to reflect the salary for December 2022 in the calculation of 6-NDFL and the income certificate”). Consequently, due to an error in income coding, the tax agent may incorrectly fill out the 6-NDFL calculation. For this violation, the fine is also 500 rubles. (Article 126.1 Tax Code of the Russian Federation).

Finally, this same pay encoding is used in most accounting programs to calculate average earnings. Therefore, incorrect assignment of a code may cause incorrect calculations with employees for vacation pay, business trips, sick leave, etc. If the payment turns out to be underestimated, the organization may be fined in the amount of 30,000 to 50,000 rubles, an official - from 10,000 to 20,000 rubles, and an individual entrepreneur - from 1,000 to 5,000 rubles. (Part 6 of Article 5.27 of the Code of Administrative Offenses of the Russian Federation). If the employee is transferred more than is due, there may be problems with the payment of various benefits compensated from the budget.

Important

Errors in the application of codes can lead to underestimation or overestimation of vacation pay, travel allowance, sick leave and other payments “tied” to average earnings.
Therefore, it is better to calculate these payments in web services, where current codes are installed and entered into reporting automatically. Calculate salary and personal income tax with standard deductions in the web service

The purpose of drawing up a certificate in form 2-NDFL.

All Russian citizens who are officially employed are required to pay income tax. In legislative documents, this tax is called the personal income tax. The generally accepted abbreviation for this deduction is also widely used, namely personal income tax.

Important! A document that allows you to display as accurately as possible information about the income that was paid to an employee of an enterprise is a certificate in form 2-NDFL.

This document has the form established by law. In this case, the validity period of the certificate is not limited. When drawing up a certificate, an employer may encounter a number of nuances that must be taken into account, since this document must be submitted to various authorities. Not only legal entities and individual entrepreneurs, but also individuals who have been assigned self-employed status can draw up a certificate.

The reporting obligation is regular, namely every year. In this case, the period for provision is limited to April 1 of the year following the reporting year.

A mandatory condition for drawing up a certificate in form 2-NDFL arises in the following cases:

1. When filing a tax deduction;
2. When applying for a subsidy;
3. When receiving a loan from a financial institution, including a mortgage;
4. When purchasing real estate for the benefit of a child;
5. When applying for benefits in the social support fund;
6. In other situations established by law.

Particular attention is required when drawing up a certificate, which must be submitted to the Federal Tax Service. This is due to the fact that when providing false information, a mistake can be regarded as an attempt to hide your real income. The result of such an oversight may be the imposition of fines and penalties. The size of the latter is set individually.

Persons who often directly draw up a certificate in form 2-NDFL:

Income code 4800 with decoding

Let's start with the most universal code - 4800 “Other income”. It corresponds to any income for which there is no more suitable code in Order No. ММВ-7-11/ [email protected] (letter of the Federal Tax Service dated 07/06/16 No. BS-4-11/12127). For example, this code indicates income in the form of a one-time additional payment for vacation (letter of the Federal Tax Service dated August 16, 2017 No. ZN-4-11 / [email protected] ).

In addition, code 4800 can be used, in particular, in relation to the following employee income:

• average earnings saved for the days of medical examination;
• payment for downtime caused by reasons beyond the control of the parties;
• compensation for the delay in issuing a work book to a dismissed employee;
• the average salary retained for donors on the days of blood donation and on the days of rest provided to them;
• the amount of forgiven debt on the advance report.

Important

Previously, using code 4800 it was also necessary to reflect excess daily allowances. Since November 9, 2022, the Federal Tax Service order No. ED-7-11/ [email protected] (hereinafter referred to as Order No. ED-7-11/ [email protected] ) has been in effect, which, among other things, introduced a new code 2015. It should be used to encode “daily allowances exceeding 700 rubles for each day of being on a business trip in the Russian Federation and no more than 2,500 rubles for each day of being on a business trip outside the Russian Federation.” Also see “Income and deduction codes have been updated in the 6-NDFL calculation.”

Also, code 4800 is used to reflect settlements with individuals who are not employees of an organization or individual entrepreneur, unless a special code is provided for payment. The same code is used when “requalifying” interim dividends if, at the end of the year, the amount of profit turned out to be lower than the calculated one.

Section “Income code” in the 2-NDFL certificate

Why are income codes needed in the 2-NDFL certificate?
The “Income Code” column is required. The classification of income is quite detailed; they are marked with four-digit numbers from 1010 to 4800. Very often, using a list of codes causes difficulties, because it is not always immediately possible to understand where to classify this or that type of income. For example, what code should be used to designate bonuses for holidays, birthdays, and anniversaries? Previously, they were reflected under the general code 4800 “Other income,” but in 2022 the list of income was updated. There are no penalties for an error in choosing a code. However, the correct code is very important because entering the wrong code will affect how the tax is paid. Income codes can be viewed in Appendix No. 1 to the order of the Federal Tax Service of Russia dated September 10, 2015 No. ММВ-7-11/ [email protected]

By order of the Federal Tax Service of Russia dated September 28, 2021 No. ED-7-11/ [email protected], additions and changes were made to the list of income codes. When reporting employee income for 2022, it is this version of the order that must be taken into account.

ATTENTION! As of income 2022, the 2-NDFL certificate, as a separate document, has been cancelled. Information on employee income, starting from 2021, is transmitted as part of 6-NDFL, the form of which was approved by order of the Federal Tax Service of Russia dated October 15, 2020 No. ED-7-11/ [email protected]

Read in detail about some changes in personal income tax in 2022 in the analytical Review from ConsultantPlus experts. Trial access to the legal system is free.

Income code 2000 with decoding

The next most common code is 2000. This code corresponds to “remuneration received by the taxpayer for the performance of labor or other duties.”

Typically, the use of this code does not cause difficulties - everything that is reflected in the employer’s accounting as a salary accrued under an employment contract for the performance of job duties “passes” according to code 2000. The same value is assigned to the average earnings saved for the period of a business trip, since it is also salary (letter of the Ministry of Finance dated November 12, 2007 No. 03-04-06-01/383).

Calculate your salary and benefits taking into account the increase in the minimum wage in 2022 Calculate for free

Reduced insurance premium rate

From 2022, SMEs in public catering with an average number of employees of more than 250 people. will be entitled to apply reduced insurance premium rates. The Letter of the Federal Tax Service dated August 27, 2021 No. BS-4-11/ [email protected] explains the conditions for the application of reduced tariffs:

• The company's income is no more than 2 billion rubles. in total;
• the share of income from the sale of catering services in total income is more than 70%;
• the average monthly salary is not lower than the minimum wage.

The rules for calculating insurance premiums remain the same, and the minimum wage in 2022 will be 13,890 rubles.

The maximum taxable base for pension contributions will increase to 1,565,000 rubles, and for social contributions - to 1,032,000 rubles.

Income codes 2002 and 2003 with decoding

But bonuses for the purpose of coding income as wages are not recognized, although they are named in Article 129 of the Labor Code of the Russian Federation as part of remuneration. Moreover, bonuses are reflected in tax registers and in income certificates in three different codes.

The main code is 2002. It is used for awards that simultaneously satisfy three conditions:

• the payment is not made at the expense of profits, earmarked proceeds or special-purpose funds;
• the payment is provided for by law, labor or collective agreement;
• the basis for payment is certain production results or other similar indicators (i.e. indicators related to the employee’s performance of his or her job duties). This circumstance must be confirmed by an order for payment of the bonus.

Code 2003 reflects bonuses (regardless of the criteria for their assignment) and other remunerations (including additional payments for complexity, intensity, secrecy, etc., which are not bonuses), which are paid from special-purpose funds, targeted revenues or profits organizations.

For other bonuses, code 4800 must be used.

Also see: “We reward employees correctly: how to arrange bonuses in an organization.”

Income codes 2012 and 2013 with explanation

The 2012 code corresponds to the amount of vacation pay, that is, the average earnings retained by the employee during the vacation period. This code applies to payments for both regular vacations and additional ones, including educational ones.

Code 2012 can only be applied to vacation pay that is paid to existing employees. If the employer transfers compensation to the dismissed employee for unused vacation, this income must be assigned code 2013.

Attention

The Labor Code allows for the provision of leave followed by dismissal (Part 2 of Article 127 of the Labor Code of the Russian Federation). In this case, the employee receives the final payment and work book before the vacation, and does not return to the previous employer after the vacation. However, from the point of view of labor legislation, the transferred amounts are vacation pay, and not compensation for unused vacation. Therefore, the code 2012 must be applied to such a payment.

In what cases is it indicated?

2012 is the code assigned to vacation payments. But line 2012 reflects payments for annual paid leave - while maintaining wages under Article 114 of the Labor Code. If an employee quits and is paid compensation for unused vacation, this amount is reflected in line 2013.

But the deduction code 2012 is not possible in the 2-NDFL certificate: 2012 is cash receipts, vacation pay. The encoding of deductions is also given in Order No. ММВ-7-11 / [email protected] - in Appendix No. 2, but they have different meanings. The main deductions are:

• 126 - standard, for the first child under 18 years of age and up to 24 years of age, a full-time student;
• 127, 128 - standard, for the second and third children, respectively;
• 311 - property, expenses for construction or purchase of housing;
• 312 - property, interest on loan;
• 320 - social, for own training;
• 324 - social, for medical services;
• 325 - social, for VHI.

Income code 2300 with decoding

Using code 2300 in personal income tax reporting, temporary disability benefits are indicated. This code must be assigned not only to the benefit that is paid in case of illness of the employee himself, but also to those amounts that are transferred in the case of caring for sick children or other family members.

Reference

Formally, maternity benefits also fall under this code, since the basis for its accrual is sick leave.
But since maternity benefits are not subject to personal income tax (clause 1 of Article 217 of the Tax Code of the Russian Federation), this payment may not be recorded at all in the registers and certificate of income (clause 1 of Article 230 of the Tax Code of the Russian Federation, letter of the Ministry of Finance dated April 2, 2019 No. 03-04 -05/22860). Generate and submit documents for payment of benefits to the Social Insurance Fund Submit via the Internet

Revenue codes 2762 and 2760 with decoding

Using code 2762 in tax registers and income certificates, you must indicate the entire amount of financial assistance issued to the employee at the birth of a child. Let us remind you that such financial assistance is not subject to personal income tax up to 50,000 rubles. for each child, provided that the payment is transferred no later than one year after his birth (clause 8 of Article 217 of the Tax Code of the Russian Federation).

In case of payment to employees of other types of financial assistance, the code 2760 is used. In this case, the basis for the transfer of money does not matter. So, if the company decides to issue financial aid for vacation, then this amount must be separated from the main vacation pay and reflected with code 2760. This code must also be assigned to financial aid paid to former retired employees. Let us remind you that such income is not subject to personal income tax up to 4,000 rubles. per year (clause 28 of article 217 of the Tax Code of the Russian Federation).

Revenue codes 2720 and 2721 with decoding

According to Order No. ED-7-11/844, two different codes are used to reflect the value of property received as a gift. If the tax base is determined according to the rules of paragraph 6 of Article 210 of the Tax Code of the Russian Federation (that is, taking into account the deductions provided for in paragraphs 1 and 2 of paragraph 1 of Article 220 of the Tax Code of the Russian Federation, or taking into account the features established by Articles 213, 213.1 and 214.10 of the Tax Code of the Russian Federation) , then you need to use code 2720. For other gifts - 2721. Let us recall that previously the cost of gifts for employees was included in personal income tax reporting only under code 2720.

Attention

Gifts worth no more than 4,000 rubles. per year, are exempt from personal income tax (clause 28, article 217 of the Tax Code of the Russian Federation). This income must be reflected in the tax registers, regardless of the amount of the gift. But in income certificates the cost of gifts does not exceed 4,000 rubles. for a year, you don’t have to show it (letters from the Federal Tax Service dated 07/02/15 No. BS-4-11/ [email protected] and dated 01/19/17 No. BS-4-11/ [email protected] ).
Also see: “Tax accounting for gifts and bonuses, or what an accountant should do after February 23 and March 8.”

Updated RSV and 4-FSS forms

From 2022, the updated DAM form will be in effect, regulated by the Order of the Federal Tax Service dated October 6, 2021 No. ED-7-11 / [email protected] Adjustments were made due to the transition to direct payments from the Social Insurance Fund.

In Sect. 1 it is no longer necessary to indicate the amount of excess of the policyholder's expenses over the calculated insurance premiums (pp. 120-123). In addition, on page 070 in Appendix No. 2 to Sec. 1 it is required to indicate the reimbursement of the Social Insurance Fund amount.

In connection with the change in the procedure for paying benefits directly from the Social Insurance Fund, the following features have been introduced for filling out 4-FSS for 2022:

• in table 2 no need to fill out page 15;
• table 2 does not need to be filled out and submitted.

In 1C:Enterprise in updated versions in section. 3.2.1, according to the personal information of the insured persons, an empty line was added to the DAM without the amount of income indicating the category of the employee and the start date of the contract in the current quarter, even if the salary was not paid in the current period.

Revenue codes 2400, 1400, 1401 and 1402 with explanation

To indicate rental income, you need to select one of four codes (depending on the object that is transferred under the contract). Thus, income from the rental of any cars, as well as sea, river and aircraft, is reflected in personal income tax reporting using a special code 2400. It is necessary to show the fee for the rental of these types of transport, even if it is paid to the employee (including h. to the manager). The same code also covers income from other uses of vehicles. Therefore, it includes income from contracts for the provision of services for driving your own car, rental agreements with a crew, etc.

Reference

Compensation for the use of a personal car, paid within the framework of an employment relationship in the amount established by the parties, is not subject to personal income tax.
There is no income code for this payment, and it does not need to be indicated in personal income tax reporting. Also see: “How to more profitably register an employee’s use of his car (new edition).” In addition, code 2400 applies to rental payments for fiber-optic and (or) wireless communication lines, and other means of communication, including computer networks.

Income from the provision of rent or other use of residential real estate is reflected under code 1401, and other real estate objects - under code 1402 (both codes were introduced by Order No. ED-7-11 / [email protected] ).

If the income is received from renting out any other property, then you need to use code 1400 (remember that previously all “rental” income that did not fall under code 2400 was coded with this code).

Note that when choosing a code for rental payments, it does not matter who exactly receives this income from an organization or individual entrepreneur: a manager, an ordinary employee or an outsider.

Also see “Lease agreement: in what cases it can be concluded and how to draw it up correctly.”

Child deduction code

Child deductions can be provided for each minor child or for children under 24 years of age studying full-time; children with disabilities are entitled to additional deductions. If the parent is the only one, he is given the opportunity to take advantage of the double deduction. In each case, the process of reducing the tax base will be reflected in different encodings.

The personal income tax deduction code for children, depending on the order in which they appear in the family, can have the following meanings:

• for the first child - code 126 (for guardians, trustees, adoptive parents - 130);
• for the second child - code 127 (for guardians, trustees, adoptive parents - code 131);
• for the third or subsequent child - code 128 (for guardians, trustees, adoptive parents - 132).

Disabled child deduction code 129 is used in combination with a deduction depending on birth order. If a child with a disability is in the care of the taxpayer or is adopted by him, code 133 is entered.

Deductions in double size, taking into account the order of birth, are characterized by codes 134 (for the first child), 136 (for the second), 138 (for the third and subsequent ones).
For guardians, trustees and adoptive parents, codes 135 (for the first), 137 (for the second), 139 (for the third and subsequent ones) are used. You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

Income code 2610 with decoding

The material benefit that results from savings on interest when providing employees with interest-free or low-interest loans must be assigned code 2610.

Let us remind you that income with this code is generated on the last day of each month of using the loan (subclause 7, clause 1, article 223 of the Tax Code of the Russian Federation). And the tax on it is calculated at an increased rate of 35% (clause 2 of Article 224 of the Tax Code of the Russian Federation).

Also see “Interest-free loan agreement: with whom it can be concluded, and how to draw it up correctly.”

interest-free loan agreement

Revenue code 2001 with decoding

Code 2001 is used for remuneration paid to directors on the board of directors and other members of the organization's collegial governing body.

At the same time, the salary of the manager according to code 2001 is not “posted”, even if the corresponding position is called “director”. However, if the manager is a member of the board of directors (board, other collegial body) and receives additional remuneration for this, then this payment must be separated from the salary and reflected for personal income tax purposes using code 2001.

Income code 2014 with explanation

The amounts of severance pay, as well as the average monthly earnings saved for the period of employment, are reflected in personal income tax reporting with the code 2014. This code applies only to that part of the payments that is subject to personal income tax (in total, it exceeds three times the average salary, and for “northerners” - sixfold). The income tax-free amount of severance pay and average earnings for the period of employment for personal income tax purposes is not fixed or coded.

Also see: “Payments if an employee is laid off in 2022.”

Prepare a termination agreement for free using a ready-made template

Other personal income tax codes with decoding

Quite often in practice there are other income codes. For ease of use, we have compiled them into a table, providing the necessary explanations. In particular, the table shows which three codes should be used to reflect income received in kind.

Recoding income

As already mentioned, the new codes approved by Order No. ED-7-11 / [email protected] (2015, 2721, 1401 and 1402) are valid from November 9, 2022. What if the income for which these codes are intended was paid before this date and, accordingly, was recorded in the registers using the old codes? Do they need to be recoded? In our opinion, it is not necessary.

Clause 5.8 of the Procedure for filling out 6-NDFL (approved by order of the Federal Tax Service dated October 15, 2020 No. ED-7-11 / [email protected] ) says: “In the “Income Code” field, indicate the income code selected in accordance with the “Income Type Codes” taxpayer" (clause 1 of article 230 of the Tax Code of the Russian Federation)." And paragraph 1 of Article 230 of the Tax Code of the Russian Federation states that: a) tax agents keep records of income, deductions, calculated and withheld taxes in tax registers; b) registers must contain information allowing to identify the type of income paid in accordance with the approved codes, as well as the amount of income and the date of their payment.

It follows from this that at the moment when income enters the register (on the date of its payment), it is assigned one of the approved codes. And then income with the same code is included in the income certificate (Appendix No. 1 to 6-NDFL). The new codes apply from November 9, 2022. This means that if the income was paid earlier, it had a different approved code. And there is no reason to change it, including when transferring it to the 6-NDFL calculation. Moreover, if this is done, it turns out that the income is reflected in the registers not in accordance with the approved codes, since on the date of its payment the new codes introduced by Order No. ED-7-11 / [email protected] had not yet been approved.

In conclusion, we note that correct assignment of codes to payments that an organization or individual entrepreneur makes in favor of individuals will allow you to avoid claims from tax authorities regarding the calculation and payment of personal income tax, as well as filling out the 6-personal income tax calculation and income certificates. Knowledge of the rules for coding income will simplify the work of accounting departments in calculating average earnings, as well as various compensations, benefits and other payments “tied” to this indicator.

Common mistakes on a given topic.

Mistake #1. Only employers must provide a 2-NDFL certificate to the Federal Tax Service Inspectorate on behalf of their employees. If you have the official status of “self-employed,” the citizen independently provides a certificate in form 2-NDFL regarding the income he received. The reporting obligation is regular, namely every year. In this case, the period for provision is limited to April 1 of the year following the reporting year.

Mistake #2. The payment of vacation pay when an employee goes on annual paid leave is displayed in the certificate in form 2-NDFL under code 2000. In accordance with the established designations, code 2012 displays the citizen’s income that he received in the form of vacation payments.