Article 285 of the Tax Code of the Russian Federation. Taxable period. Reporting period (current version)

The tax base

As a general rule, profit is the income received minus the expenses allowed by the Tax Code of the Russian Federation.

The tax base is calculated on an accrual basis from the beginning of the tax period, which corresponds to one calendar year.

That is, the tax base is calculated for the period from January 1 to December 31 of the current year.

The accountant has the right to accept all income and all expenses for accounting only on the basis of primary documents confirming either income or expenses. Requirements for primary documents are regulated by Article 9 of the Law “On Accounting”.

Organizational expenses in the tax base based on profit

Expenses are recognized as justified and documented expenses. For example, employee salaries, purchase of raw materials and materials, depreciation of fixed assets, advertising and entertainment expenses, legal expenses, IT expenses and so on.

For a complete list of expenses and the rules for accounting for them in the tax base for profits, see the “Practical Encyclopedia of an Accountant” berator.

The costs of paying dividends, contributions to the authorized capital, repaying loans, etc. are not taken into account as expenses.

Methods for calculating income tax

A company can choose one of two methods for determining revenue.

Accrual method

The date of recognition of income/expense does not depend on the date of actual receipt/write-off of funds.

Income and expenses are recognized in the period in which they relate.

Cash method

Income is recognized on the date of actual receipt, that is, the receipt of money in the company's account. And expenses - according to the date of actual payment, that is, debiting money from the account.

Formula for calculating income tax

INCOME TAX = TAX BASE * TAX RATE

To calculate the tax base for income tax, an accountant must know:

• The period for which the tax base is determined.
• The amount of income from sales received in the reporting (tax) period.
• The amount of expenses incurred in the reporting (tax) period that reduces the amount of income from sales.
• Profit (loss) from sales.
• The amount of non-operating income.
• Profit (loss) from non-operating operations.
• Total: tax base for the reporting (tax) period.

The amount of loss to be carried forward can be excluded from the tax base.

If a company conducts several types of activities with different income tax rates, the tax base must be calculated separately for each type of activity.

Carry forward of loss to future periods

The loss must be carried forward to subsequent periods at the end of each year (December 31), if it results in a loss in NU.

At the moment, the transfer of current losses to deferred expenses in 1C is not automated: this operation at the end of the year will have to be completed manually.

Reflect the transfer of losses received in the expired tax period in the document Transaction entered manually, transaction type Transaction (Transactions – Transactions entered manually - Create button):

• Dt 97.21 “Other deferred expenses” subconto LOSS 2020 ;
• Kt 99.01.1 “Profits and losses from activities with the main taxation system” subconto Profit (loss) from sales .

Subconto LOSS 2020 for account 97.21 is an element of the directory Deferred Expenses (Directories - Deferred Expenses), it is configured as follows:

• Type for NU - Losses of previous years ;
• Amount - loss carried forward to future tax periods;
• Recognition of expenses - In a special manner ;
• Write-off period from - 01/01/2021 ; by - not limited.

In a manually entered Transaction :

• the amount for carrying forward losses from previous years is reflected only in tax accounting ;
• out subdivisions .

If you use the balance sheet method of maintaining PBU 18/02 reflecting permanent and temporary differences, complete the Operation as follows:

Additionally, reflect the amount with a minus in the Amount Dt in the BP .

We recommend using the balance method in 1C (without reflecting PR and BP).

Don't forget to re-close December! (Transactions – Month Closing)

See Closing the tax period

Check the result of loss transfer in the report Turnover balance sheet for account 97.21 (Reports – Turnover balance sheet for account):

• indicate the period - by 31.12.2020;
• Click the Show settings on the Indicators the BU , NU , BU-NU checkboxes .

Income tax rate

Basic rate

20%

• 2%
  to the federal budget (
  3%
  in 2022 - 2024);
• 18%
  to the budget of the constituent entity of the Russian Federation (
  17%
  in 2022 - 2024).

The tax amount calculated at a rate of 18% is credited to the Moscow city budget, 2% to the federal budget.

Regional authorities can lower the tax rate for certain categories of taxpayers, but not more than 13.5% (12.5% ​​in 2017 - 2022).

The rate may be even lower:

• for residents of special economic zones (clause 1, clause 1.7 of Article 284 of the Tax Code of the Russian Federation);
• for participants in regional investment projects (clause 3 of article 284.1 of the Tax Code of the Russian Federation; clause 3 of article 284.3 of the Tax Code of the Russian Federation);
• for residents of the territory of rapid socio-economic development or the free port of Vladivostok (clause 1.8 of article 284 of the Tax Code of the Russian Federation, article 284.4 of the Tax Code of the Russian Federation).

Clause 3. Effect of acts of tax legislation over time

This post is part of a project of scientific and practical commentary on the Resolution of the Plenum of the Armed Forces of the Russian Federation dated November 26, 2022 No. 48 “On the practice of application by courts of legislation on liability for tax crimes.” Other parts of the commentary can be found through the table of contents at this link.

In cases of tax crimes, it is necessary to take into account the peculiarities of the operation of acts of legislation on taxes and fees over time, established in Article 5 of the Tax Code of the Russian Federation.

Commentary to paragraph. 1 point 3

1. The Tax Code of the Russian Federation provides that acts of tax legislation come into force no earlier than one month from the date of their official publication and no earlier than the 1st day of the next tax period for the corresponding tax. This rule is established for acts that change the conditions for collecting established taxes. As for federal laws establishing new taxes and fees, they can come into force no earlier than January 1 of the year following the year of their adoption, and no earlier than one month from the date of their official publication. [3.1]

The same restrictions are established for acts of constituent entities of the Federation and local governments introducing taxes and fees (Clause 1, Article 5 of the Tax Code of the Russian Federation). We are, of course, talking about those taxes and fees that are provided for in Art. 14 “Regional taxes and fees” and in Art. 15 “Local taxes and fees” of the Tax Code of the Russian Federation. [3.2]

Thus, those taxes for which the tax period is equal to the calendar year (corporate income tax, personal income tax, property tax, etc.) can be changed many times during the year, but all changes will come into force no earlier than January 1 of the following year, provided that such changes are officially published before December 1 of the current year. If the publication took place only in December, then the date of entry into force of the changes is shifted by a year. For example, a law published in December 2022 will enter into force no earlier than January 1, 2023 [3.3]

The conditions for collecting taxes with a short tax period (for example, for mineral extraction tax and excise taxes it is usually equal to one month) can change much more often. [3.4]

It is easy to notice that when two or more conditions are established for determining the moment the tax law comes into force, this moment is determined by the date of the event that occurs after all other conditions are met. [3.5]

For fees (one-time payments), for which a tax period is not established, changes may come into force no earlier than one month from the date of publication of the relevant legislative act (Clause 1, Article 5 of the Tax Code of the Russian Federation). [3.6]

2. Frequent changes in the regulatory framework for taxation contradict the principle of certainty of tax obligations (Article 57 of the Constitution of the Russian Federation) and undermine the principle of freedom of entrepreneurial activity (Part 1 of Article 34 of the Constitution of the Russian Federation). [3.7]

But in the Russian Federation it is common practice to introduce amendments to the Tax Code of the Russian Federation many times a year[1]. It is impossible even for a specialist to take into account this flow of initiatives, let alone taxpayers. Incomplete payment of tax due to incorrect application of the “fresh” norm is most often the result of ignorance or error, rather than intent. [3.8]

A lawyer should pay attention to the validity period of the violated norm of tax legislation, the availability at the time of its application by the taxpayer of explanations from the competent authorities, established judicial and arbitration practice that allow overcoming legal uncertainty. [3.9]

3. Disputes about the procedure for the entry into force of acts of tax legislation are not so uncommon[2].[3.10]

The presence of such a dispute is a sign of uncertainty in tax legislation, which excludes the conclusion of intentional tax evasion. [3.11]

4. Rules art. 5 of the Tax Code of the Russian Federation, although they act as a legislative projection of the provisions of Article 57 of the Constitution of the Russian Federation on the operation of the tax law over time, are a “weak norm”. They were violated more than once by the legislator himself (the effect of clause 1 of Article 5 of the Tax Code of the Russian Federation was suspended) and were reinterpreted by the Constitutional Court of the Russian Federation[3].[3.12]

In addition to Art. 5 of the Tax Code of the Russian Federation, it is necessary to take into account the provisions of investment legislation containing “grandfather clauses”. These are rules establishing that if the legislator changes the tax conditions that worsen the situation of the taxpayer, the previous rules for calculating and collecting tax can be applied by the taxpayer for a certain period. [3.13]

The “grandfather clause” established by the legislator cannot be arbitrarily canceled[4].[3.14]

This clause is contained in Art. 9 of the Federal Law of the Russian Federation of June 9, 1999 No. 160-FZ “On Foreign Investments in the Russian Federation”. The stabilization guarantee is addressed to foreign investors and commercial organizations with foreign investments operating in programs for the implementation of priority investment projects. [3.15]

Since the application of this article was accompanied by disputes with the tax authorities[5], stabilization clauses began to be introduced into the article itself. 5 Tax Code of the Russian Federation. It added clause 4.1 (in relation to participants in special investment contracts), clause 4.2 (in relation to residents of territories of rapid socio-economic development, etc.), clause 4.3 (in relation to participants in agreements on the protection and promotion of capital investments). [3.16]

To draw the attention of the courts to the fact that in accordance with Article 57 of the Constitution of the Russian Federation and with paragraph 2 of Article 5 of the Tax Code of the Russian Federation, acts of legislation on taxes and fees establishing new taxes, fees, insurance premiums, increasing tax rates, fees, insurance premium rates, establishing or aggravating liability for violation of legislation on taxes and fees, establishing new obligations or otherwise worsening the position of taxpayers, fee payers, insurance premium payers, as well as other participants in these relations, do not have retroactive effect.

Commentary to paragraph. 2 points 3

1. Article 57 of the Constitution of the Russian Federation provides that laws establishing new taxes or worsening the situation of taxpayers do not have retroactive effect. [3.17]

The rule on non-retroactivity of laws is not specific to tax laws. It is characteristic of many branches of law. The meaning of this requirement is that changes made to legislation (including tax legislation) should not have a detrimental effect on the stability of relations between subjects of law, and should not undermine citizens’ confidence in the stability of their legal and economic situation, and in the strength of the rule of law. Mention in Art. 57 of the Constitution of the Russian Federation on the non-retroactivity of tax laws is a manifestation of the special significance of the problem in the field of taxation. [3.18]

In relation to taxes and fees, this rule means that the conditions for paying taxes (amounts, terms, procedure, etc.) must be known to business entities in advance, i.e. before they acquire the obligation to pay tax through their actions. [3.19]

2. Giving tax laws retroactive means not only the adoption of the relevant law after the expiration of the tax payment period, but also before this date, but after the occurrence of events or actions that resulted in the obligation to pay the tax. Thus, the Constitutional Court of the Russian Federation recognized that the Law on Land Tax actually had retroactive force, since it established increased rates not from the beginning of the calendar year for which this tax was accrued, but after a significant period of time, although before the payment deadline. Land users carried out activities on land plots, focusing on other tax conditions. The conditions and procedure for taxation must be known to the land user at the time of use, and not after a lapse of time[6].[3.20]

3. The Constitutional Court of the Russian Federation emphasized that it is unacceptable not only to give retroactive force to tax laws by directly indicating this in the law, but also to issue laws that, by their meaning, have retroactive force, even without a special indication of this in the text of the law. It is equally unacceptable to give such laws retroactive effect by acts of official or other interpretation or by law enforcement practice[7].[3.21]

Thus, the constitutional prohibition on giving retroactive effect to a law cannot be circumvented by any technical or other tricks. This prohibition may not be violated under any circumstances. The Constitution of the Russian Federation does not allow waiver of this rule, including during a state of emergency. [3.22]

The constitutional requirement that laws that establish new taxes or worsen the situation of taxpayers not be given retroactive force applies to both federal laws and laws of constituent entities of the Federation and acts of local governments. [3.23]

When calculating the amount of a tax, fee, insurance premium formed as a result of evasion of their payment, the courts must take into account only those taxes, fees, insurance premiums, tax rates and their sizes, insurance premium rates that were established by law for the tax (calculated ) the period for which the specified amount is calculated. In cases where an act of legislation has abolished taxes, fees, insurance premiums or reduced the rates of taxes (fees), tariffs of insurance premiums, the calculation must be made taking into account this new circumstance, if the relevant act is given retroactive force in accordance with paragraph 4 of Article 5 of the Tax Code RF.

Commentary to paragraph. 3 points 3

1. The law can not only increase taxpayers’ obligations, but also reduce them. The constitutional prohibition on making tax laws retroactive applies only to cases where the situation of taxpayers worsens. At the same time, the Constitution of the Russian Federation does not prevent laws from being given retroactive force if they improve the situation of taxpayers. At the same time, the beneficial effect of such a law for tax subjects should be clear to both the taxpayer and the government authorities collecting taxes[8].[3.24]

2. The Tax Code of the Russian Federation establishes two regimes for the retroactive effect of acts that improve the situation of taxpayers. In the first case, improving laws always have retroactive effect, and in the second - only when this is directly provided for by law. The first regime applies to acts of legislation on taxes and fees that eliminate or mitigate liability for violation of legislation on taxes and fees or establish additional guarantees for the protection of the rights of taxpayers, payers of fees, tax agents, and their representatives (clause 3 of article 5). The second regime is established for acts that abolish taxes and fees, reduce the rates of taxes and fees, eliminate the obligations of taxpayers, payers of fees, tax agents, their representatives, or otherwise improve their situation (clause 4 of article 5). [3.25]

3. Courts sometimes approach the issue of eliminating liability for violation of legislation on taxes and fees from a broader perspective than the Tax Code of the Russian Federation. [3.26]

Thus, the Supervisory Ruling of the Supreme Court of the Russian Federation dated October 30, 2002 No. 5-D02-292 sets out the situation when tax evasion occurred during the period of validity of the Law “On Personal Income Tax”, and a criminal case was considered after the repeal of this law. [3.27]

The court decided that since with the introduction of the second part of the Tax Code of the Russian Federation a person is exempt from paying tax for a sold apartment if it was in his ownership for 5 years or more, then failure to pay tax for the said sold apartment does not constitute a crime. [3.28]

4. Due to the extreme “mobility” of Russian tax legislation, it is necessary to carefully check each time in which specific version the disputed norm was in effect in the period for which the arrears were calculated. [3.29]

The use of an incorrect version is possible both by the tax authority and the taxpayer. In the latter case, this is evidence, most likely, of erroneous rather than intentional actions. [3.30]

5. It is necessary to distinguish between the concepts of “tax period” and “reporting period”. [3.31]

Tax period is the period during which the process of forming the tax base is completed and the amount of the tax liability is finally determined. [3.32]

The Tax Code of the Russian Federation defines the tax period as a calendar year or another period of time in relation to individual taxes, at the end of which the tax base is determined and the amount of tax payable to the budget is calculated (Article 55). [3.33]

Reporting period – the period for summing up the results (final or interim) of reporting and submitting it to the tax authority. [3.34]

Tax and reporting periods may coincide or may be different. Reporting may be submitted several times during one tax period. The Tax Code of the Russian Federation determines that a tax period may consist of one or more reporting periods, based on the results of which advance payments are made (Clause 1, Article 55). The amount calculated based on the results of a billing period that does not coincide with the tax period is considered an interim payment. [3.35]

Tax concealment is possible only based on the results of the tax period, when the payment amount is finally determined. [3.36]

Underpayments of advance (interim) tax payments do not in themselves indicate tax evasion if the payment amount is calculated correctly in the final declaration (calculation) based on the results of the tax period. [3.37]

[1] See about this: Pepelyaev S.G. Fix the printer. / Tax expert, 2016, No. 9, p. 4-6.

[2] Determination of the Constitutional Court of the Russian Federation of September 29, 2022 No. 2311-O; Determination of the SKES of the Armed Forces of the Russian Federation dated January 28, 2022 in case No. A51-17532/2018; Determination of SCAD of the RF Armed Forces dated September 23, 2022 No. 18-CAD20-11-K4; Resolution of the AS PO dated October 10, 2022 in case No. A12-8049/2019; Resolution of the AS UO dated June 1, 2022 in case No. A60-40392/2019.

[3] Determination of the Constitutional Court of the Russian Federation dated April 8, 2003 No. 159-O, May 12, 2003 No. 186-O, June 7, 2003 No. 291-O, December 4, 2003 No. 445-O.

[4] Determination of the Constitutional Court of the Russian Federation of July 1, 1999 No. 111-O.

[5] See: paragraph 8 of the Review of the practice of resolving disputes related to the protection of foreign investors by courts. Approved by the Presidium of the RF Armed Forces on July 12, 2022.

[6] See: Resolution of the Constitutional Court of the Russian Federation of October 8, 1997 No. 13-P “On the case of verifying the constitutionality of the law of St. Petersburg of July 14, 1995 “On land tax rates in St. Petersburg in 1995”” // NW RF. 1997. No. 2. Art. 4901.

[7] See: paragraph 7 of the Resolution of the Constitutional Court of the Russian Federation of October 8, 1997 No. 13-P, of May 24, 2001 No. 8-P, of March 5, 2013 No. 5-P, of January 21, 2010 No. 1 -P, dated October 17, 2022 No. 24-P, dated November 28, 2017 No. 34-P, etc.

[8] See: paragraph 4 of the Resolution of the Constitutional Court of the Russian Federation of October 24, 1996 No. 17-P “In the case of checking the constitutionality of part one of Article 2 of the Federal Law of March 7, 1996 “On Amendments to the Law of the Russian Federation “On excise taxes"" // SZ RF. 1996. No. 45. Art. 5202.

How to calculate monthly advance payment for income tax

The amount of the monthly advance payment that must be paid in the next reporting period is calculated based on the amount of the advance payment calculated for the previous reporting period.

The monthly advance payment for the first quarter of the year is equal to the monthly advance payment calculated for the fourth quarter of the previous tax period.

New organizations pay quarterly advance payments rather than monthly ones until a full quarter has passed from the date of their registration.

Then you need to clarify the amount of sales revenue excluding VAT. If it is less than 1 million rubles per month or 3 million rubles per quarter, the company can continue to pay quarterly advance payments. If your revenue is higher, you need to switch to monthly advance payments from the next month.

How to calculate your quarterly advance income tax payment

The advance payment for the quarter is equal to the amount of tax for the quarter minus the tax paid for the previous quarter.

In what cases can only quarterly advance payments of income tax be made?

Federal Law No. 121-FZ of April 22, 2022 raised the income limit under which only quarterly advances on income tax can be paid from 15 million rubles to 25 million rubles

Companies whose sales income for the second, third, fourth quarters of 2022 and the first quarter of 2022 did not exceed an average of 25 million rubles per quarter can switch to paying only quarterly advances. You can already pay them based on the results of the reporting periods of 2020. And when drawing up a declaration for the first quarter of 2022, do not charge monthly advances for the second quarter of 2022.

Quarterly income tax payments

Income tax return

The tax return is submitted to the Federal Tax Service no later than 28 days from the end of the corresponding reporting period.

The annual income tax return must be submitted no later than March 28 of the year following the expired tax period.

The declaration is submitted to the tax office:

• at the location of the organization;
• at the location of each separate division of the organization.

Most accounting programs support auto-filling of the declaration and ensuring that the form itself is up to date.

If the accounting department does not use an accounting program, the tax return form can be downloaded electronically on the Federal Tax Service website or filled out through the taxpayer’s personal account, which can also be registered on the Federal Tax Service website.

The Federal Tax Service accepts tax returns in electronic form.

Results

The tax period for income tax is one year. The duration of the first and last tax period in the life of an organization is determined according to the rules of Art. 55 Tax Code of the Russian Federation. In the income tax return, the reporting and tax periods are indicated in accordance with the codes specified in Appendix 1 to the Procedure for filling out the declaration.

You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

Deadlines for payment of taxes and advance payments

Classification of tax periods

The tax period is classified by types of taxes and by the size of the time range. By duration they are distinguished:

• monthly period;
• quarterly;
• annual.

There is a concept of indivisible and divided periods. The latter consist of several reporting periods, in which case taxes are paid in advance payments. At the end of the year, final data is displayed:

• how much tax was accrued for the entire tax period;
• how much advance payments were made;
• how much tax liability is subject to repayment (payments made during the year are subtracted from the calculated total tax amount).

Tax returns for tax periods provide special codes:

1. For the VAT return, their list is given in the Order of the Federal Tax Service dated October 29, 2014 under No. ММВ-7-3/ [email protected]
2. In the income tax return, codes are indicated in accordance with the indicators set out in the appendices of the Order issued by the Federal Tax Service on October 19, 2016 under No. ММВ-7-3/ [email protected]
3. With regard to property tax, the designations approved by the Federal Tax Service are used in the text of the Order dated March 31, 2017 under No. ММВ-7-21/ [email protected]
4. For the declaration document under the simplified tax system, the norms from the Order dated February 26, 2016 No. ММВ-7-3/ [email protected]
5. For those who work for UTII, separate codes for tax periods are provided. They are given in the Order dated July 4, 2014 No. ММВ-7-3/ [email protected]
6. To reflect information in form 6-NDFL, codes must be taken from Order No. ММВ-7-11 dated October 14, 2015 / [email protected]