What is culture
The correct presentation of a gift depends on what type it is:
- A gift not related to the employee’s activities. It can be awarded on holidays. Paragraph 1 of Article 572 of the Civil Code of the Russian Federation states that only an item given free of charge can be recognized as a gift. The gift is transferred on the basis of a donation agreement. It must be drawn up if the cost of the gift is more than 3,000 rubles, and the donor is a legal entity. The need to formalize the agreement is stated in paragraph 2 of Article 574 of the Civil Code of the Russian Federation. The employer is recommended to draw up an agreement in any case, as this will prevent problems with the tax authorities. If gifts are given en masse (for example, to all employees on March 8), there is no need to draw up agreements with each employee. You can draw up a multilateral gift agreement. Each of the recipients puts his signature on it. This procedure is stipulated by Article 154 of the Civil Code of the Russian Federation.
- A gift related to achievements at work. A present can act as a reward for successful work (Article 191 of the Labor Code of the Russian Federation). In essence, the cost of a gift is a salary supplement. The gift is transferred on the basis of an employment agreement. There is no need to draw up a special agreement.
The latter form of gift can be considered a production bonus. Such a gift is prepared in a special order.
Are insurance premiums paid on the cost of gifts?
Employers do not pay any insurance premiums on gifts. The main condition is that the gift has nothing to do with remuneration for work. If an employer calculates the cost of a gift based on the salary or rewards only the most successful employees, this is already something like a bonus. And the employer must pay the same amount of taxes and contributions on the bonus as on the salary.
Regulatory authorities are interested in recognizing gifts as remuneration. When an entrepreneur is assessed additional contributions, fines and penalties, all that remains is to defend his case in court. Here's a successful example:
The company gave theater tickets to employees. The pension fund decided that this was payment for labor and demanded additional contributions. The court sided with the company because the gifts were timed to coincide with holidays: the company’s birthday, National Unity Day and the New Year. The cost of tickets did not depend on experience and qualifications. The collective agreement and wage regulations said nothing about tickets.
Case No. 56-146838/2018
Personal income tax on gifts to employees
Regardless of the form of the gift (in kind, cash), it will be considered the employee’s income. Therefore, it is subject to personal income tax. The employer is responsible for calculating taxes. Tax is not charged on the entire gift, but only on amounts over 4,000 rubles. This rule is specified in paragraph 28 of Article 217 of the Tax Code of the Russian Federation. For example, an employee was given a trip to a sanatorium worth 6,000 rubles. Tax will be charged only on the amount of 2,000 rubles.
Let's look at another example. During 2016, the employee received 2 presents. The cost of the first was 2,000 rubles, the second – 3,000 rubles. The amount of taxes in this case will be 1,000 rubles (2 thousand + 3 thousand – 4 thousand). All subsequent costs for gifts will be subject to personal income tax in full. That is, the amount of costs is calculated based on expenses throughout the year.
Tax rate
Let's look at the tax rate:
- For a resident of the Russian Federation it will be 13%.
- For a non-resident of the Russian Federation it will be 30%.
That is, the rate is standard. The same applies to salaries.
Calculation example
An employee received a gift worth 20,000 rubles from his employer. The company in which the specialist works is a resident of the Russian Federation, that is, the rate for it will be 13%. The following calculations are carried out:
(20 000 – 4 000) * 13%
In this case, the employer will have to pay a tax in the amount of 2080 rubles.
When to make a payment
The deadlines for withholding taxes are determined by the form in which the gift is given (based on the letter of the Federal Tax Service dated August 22, 2014):
- In the form of money. Personal income tax must be transferred on the day the gift is given, regardless of whether the money was taken from the cash register or transferred to the employee’s personal account.
- In kind. Personal income taxes are transferred on the nearest date of transfer of funds to the employee (for example, the day the salary is paid). If no funds are accrued to the employee by the end of the year (for example, a gift was given in December), the employer is obliged no later than 30 days from the end of the year to notify the employee and the tax service that the tax was not withheld due to the impossibility of this. The notice must be given in writing. The employee must obtain a 2-NDFL certificate. In the “sign” line, “2” is indicated. The document is sent to the Federal Tax Service no later than January 31.
This is the only difference between taxation of a gift in kind and taxation in the form of money.
Results
It is necessary to calculate personal income tax on gifts only if their total value for the year to an individual exceeds 4,000 rubles.
Tax must be withheld from any cash payments to the taxpayer. And if this was not done by the end of the year, you need to notify the tax authorities about this. They will present personal income tax for payment to the recipient of the gift. You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.
Features of collecting insurance premiums from the cost of gifts
Contributions are calculated on payments within the framework of labor merits. They will not be accrued for payments under civil law agreements in the event that a transfer of ownership is carried out (this includes the donation procedure). Let's take a closer look at the taxation of expenses with insurance premiums:
- Issuance of gifts on the basis of employment agreements, if the gift agreement is not filled out, insurance premiums are not charged.
- Presents are transferred on the basis of a gift agreement - contributions are calculated.
This procedure for calculating insurance premiums is stipulated in the letter of the Ministry of Health and Social Development dated February 27, 2010.
ATTENTION! If the employer is faced with the task of avoiding the accrual of contributions, the gift agreement does not need to provide references to employment agreements or various internal acts of the enterprise. The contract also does not need to calculate costs depending on labor characteristics. Otherwise, the gifts will be recognized as incentives for work. In this case, insurance premiums will be charged.
VAT on gifts
When giving gifts to both employees of an organization and its clients, there is a gratuitous transfer into the ownership of an individual of any property or property right (Article 572 of the Civil Code of the Russian Federation).
In turn, the object of VAT taxation is transactions involving the sale of goods, works and services on the territory of the Russian Federation (clause 1, clause 1, article 146 of the Tax Code of the Russian Federation). Moreover, sales in this norm also means the transfer of ownership of goods, works and services free of charge.
Thus, goods donated free of charge to employees or clients (potential clients) of an organization as gifts are subject to VAT taxation on a general basis.
At the same time, the tax base for these transactions is determined in accordance with paragraph 1 of Art. 154 Tax Code of the Russian Federation. That is, based on the market (purchase) value of gifts, taking into account excise taxes (for excisable goods) and without including value added tax.
In turn, the market value of gifts purchased by an organization can be confirmed on the basis of invoices or delivery notes from suppliers (letter of the Ministry of Finance dated October 4, 2012 No. 03-07-11/402).
At the same time, VAT amounts presented to the donor organization when purchasing gifts are allowed to be deducted (Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated June 25, 2013 No. 1001/13).
Features of accounting for gifts when determining income tax
Accounting for gifts depends on the purpose for which they are given to employees:
- Presents not related to labor incentives. Costs will not be taken into account in tax expenses on the basis of paragraph 16 of Article 270 of the Tax Code of the Russian Federation. This rule also applies to companies using the simplified tax system.
- Presents related to labor merits. In this case, the costs will be included as expenses.
IMPORTANT! The transfer of gifts free of charge is considered a sale and is therefore subject to VAT. VAT is not charged on gifts in cash. It will be charged if the company uses the general taxation system or UTII. Gifts are not subject to VAT if the organization uses the simplified tax system.
ATTENTION! If the gift is given in kind, the cost of the gift is considered the basis. VAT is withheld at the rate of 18%.
Accounting for gifts as expenses
If tax authorities treat the very fact of giving gifts by organizations leniently, since the law does not prohibit such donations, then with the possibility of taking into account the cost of gifts in the expenses of the organization, everything is much more complicated.
The fact is that, in accordance with the current rules, expenses for profit tax purposes are recognized as justified (economically justified) and documented expenses incurred to carry out activities aimed at generating income (Article 252 of the Tax Code of the Russian Federation).
At the same time, the Tax Code of the Russian Federation directly establishes a rule according to which, when determining the tax base for corporate income tax, expenses in the form of gratuitously transferred property and expenses associated with such transfer cannot be taken into account (Clause 16, Article 270 of the Tax Code of the Russian Federation).
Since the giving of gifts is precisely a gratuitous transfer of property, from the position of the inspectors, the costs of purchasing these gifts cannot be included in the tax base for corporate income tax (letter of the Ministry of Finance dated September 18, 2017 No. 03-03-06/1/59819). Moreover, this rule is true not only for OSNO, but also for the simplified tax system.
However, an organization can still, at its own peril and risk, classify gift costs as hospitality, advertising and labor costs. In this case, expenses for gifts must be properly confirmed and justified.
For example, an organization for advertising purposes can present branded souvenirs to its clients, potential buyers and partners.
In order to take into account the cost of such products as part of advertising expenses, the organization must have not only primary documents for the purchase of such products, but also a document confirming that these products were used specifically as part of the advertising event (letter of the Federal Tax Service dated 05/08/2014 No. GD-4- 3/8852).
That is, the organization must prove that the donated souvenirs are given to potential buyers and partners for a reason, namely with the aim of increasing the customer base and, as a result, generating income.
As for gifts given to employees, in order to reduce taxable profit, they must be directly related to the production activities of the employees, and even better, be an integral part of wages.
Moreover, such gifts as incentive payments must be specified in local regulations or in the regulations on bonuses (resolution of the Arbitration Court of the Ural District dated December 17, 2014 No. A50-2698/2014).
But in any case, the organization must be prepared for the fact that it will have to defend its case in court, since tax authorities, as a rule, do not consider the costs of gifts to be economically justified expenses.
If an organization wants to avoid possible additional taxes and litigation with tax authorities, then the presentation of gifts should be made at the expense of net profit. That is, after paying tax and without taking into account the cost of gifts as expenses.
Accounting for gifts
Let's look at the transactions used when giving gifts to employees:
- DT10 KT60 (76, 71). Capitalization of the gift excluding VAT.
- DT19 KT60. Fixation of “input” VAT.
- DT68 KT19. Acceptance of “input” VAT for deduction.
- DT73-3 KT10. Presentation.
- DT91-2 KT73-3. Write off the cost of the gift for other expenses.
- DT70 KT68. Withholding personal income tax.
- DT91-2 KT68. VAT accrual.
For each transaction you must indicate the transaction amount. In addition, each posting is confirmed by the corresponding document.
IMPORTANT! If the gift is not related to labor merits, account 73 “Settlements for other operations” will be used in the calculations. In the example given above, this option is considered. If the gift is related to work activity, you need to use account 70 “Payroll calculations”.
Features of accounting for financial assistance
Various sources can be used for payment. Including the company's profit remaining after taxation and not previously distributed. Let's assume that the organization decided to issue financial assistance from retained earnings of previous years (account 84). How to carry out such a business transaction? I would like to emphasize that the Ministry of Finance is against such manipulations; in its opinion, the expression “retained earnings” implies that the founders have not yet made a decision on these funds.
In order not to irritate the Ministry of Finance, you need to hold a meeting and draw up a protocol with a decision on allocating part of retained earnings to such expenses. This will be easier to do if there is only one participant in the organization, then his sole decision is sufficient. The postings will be similar to the postings above, but count 91 will replace count 84.
