6 personal income tax accrual under GPC agreements.

Both organizations and entrepreneurs have the right to engage individuals to perform work under civil contracts. 6-NDFL contains information on accrued and withheld taxes on personal income. In this regard, the question may arise about how payments under GPC agreements are reflected in 6-NDFL. In the article we will look at how to reflect GPC in 6-NDFL.

GPC agreement

If companies or individual entrepreneurs engage individuals to perform any work, they enter into civil law agreements (GPC) with them. Under this agreement, the date of receipt of income is in fact considered the date of payment of funds to the individual. In this case, it will not matter what was paid - an advance or the final amount. Each payment in 6-NDFL will be reflected in a separate block and under a separate date.

Important! If we compare a GPC agreement with a regular agreement, then according to the latter, the date of receipt of income will be considered the last day of the month for which wages are paid. In addition, in this case, personal income tax will not be withheld from the advance.

Procedure for withholding personal income tax

Important! If an organization or individual entrepreneur hires individuals under a GPC agreement and pays them income, then they are required to reflect this in 6-NDFL, since in this case they are tax agents. This means that the organization is responsible for withholding personal income tax from payments and paying them to the treasury.

First of all, it is necessary to find out in what time frame the amount of tax on personal income should be calculated, withheld and paid to the budget.

The date on which an employee receives income under a GPC agreement is the tax withholding date. On this day, the individual is paid for work from the cash register, or money is transferred to his card. This date will need to be reflected in 6-NFDL on line 100.

Since the date on which income under the GPC is received is also the date of personal income tax withholding, which means that this date must be indicated in form 6-NDFL on line 110. This date must also be consistent with the one indicated as the settlement date in the agreement contract

As in all other cases when transferring personal income tax to the budget, this must be done no later than the next business day after the payment of funds to the individual. This date is indicated in form 6-NDFL on line 120.

How to reflect GPC in 6-NDFL

In 2018, Form 6-NDFL for GPC is filled out on the basis of Federal Tax Service order No. ММВ-7-11/450 dated 10/14/2015. The order specifies the following filling requirements:

1. For each OKTMO the form is filled out separately. The organization also needs to indicate the code of the municipality in which the company's division is located.
2. Payment for GPC in form 6-NDFL is not indicated in certain sections. This amount must be indicated in reporting on a general basis. The first section should contain data on income and tax that was calculated and paid on an accrual basis for 1 quarter, half a year, 9 months and a year. For each tax rate, the first section is completed. Reporting data for the reporting period are indicated in the second section.
3. If in one tax period personal income tax was paid at different rates, then information for each rate is entered into 6-personal income tax separately. To ensure that the tax office does not impose penalties, you must carefully check the correctness of the information entered.

Based on the specified requirements, the GPC in 6-NDFL is reflected and submitted for each reporting period no later than the last day of the month following the reporting period.

An example of reflecting GPC in 6-NDFL

Continent LLC entered into an agreement with individuals for the provision of services from April 1 to May 31. The cost of services provided under the contract is 10,000 rubles, the amount of personal income tax on this amount is 1,300 rubles. The payment was made on June 10.

On line 070 of form 6-NDFL, the amount of withheld personal income tax is recorded, that is, 1,300 rubles. On the same day, personal income tax was withheld, which means that on lines 100 and 110 the same amount is indicated under the date June 10. The total amount of income paid is 10,000 rubles. This value is entered on line 130 of form 6-NDFL.

Advance under the GPC agreement in 6-NDFL

Important! If, before the end of the reporting period, the payment under the GPC agreement was only accrued, but they did not have time to pay it, then it is included in the total amount of income on line 020. The tax calculated on this amount is indicated on line 040. In this case, there is no need to indicate the amount in line 070. This follows from the fact that the amount has not yet been paid and personal income tax has not been withheld from it.

Section 2: here are reflected advances under GPC agreements that were issued during the last three months of the reporting period.

Lines 100 and 110 reflect the dates of payment of money to the individual with whom the GPC agreement was concluded. Line 120 indicates the day when personal income tax is transferred, that is, the next working day after the individual’s income is paid. Lines 130 and 140 reflect the advance paid under the GPC agreement and, accordingly, personal income tax withheld from this amount.

Reflection in 6-NDFL of interim payments and final settlement under the GPC agreement

Section 1: 1 section is filled out in the usual manner. All payments made under the GPC agreement will be included in total income and reflected on line 020. From this amount, personal income tax will be indicated below on lines 040 and 070.

Section 2: the advance payment, as well as the final payment, which was paid over the last three months, will be indicated in a separate block on lines 100-140. This is due to the fact that they were paid at different times.

Features of reflecting income in 6-NDFL

Organizations and individual entrepreneurs enter into contractual relations with individuals, individual entrepreneurs or non-residents. When companies generate a report, certain filling features will be highlighted for each case. For example:

• Entrepreneurs independently calculate the amount of tax and reflect it in their reporting. If the GPC is issued with an individual entrepreneur, then 6-NDFL will not be filled out, and the organization should not calculate personal income tax. The customer does not reflect in the certificate the payments under the GPC agreement with the individual entrepreneur. This is due to the fact that the individual entrepreneur independently pays personal income tax payments to the budget, and, accordingly, reports on them independently.
• If the contract is concluded with an individual who is not a resident, the personal income tax rate will be 30%.

Conclusion

If information is generated under a GPC agreement, the tax agent must take into account the status of the contractor. The reflection of information, as well as the personal income tax rate, will depend on this. In addition, advance payments must be recorded separately. Only payments from contracts that are listed on the same date are grouped in one block.

Entrepreneurs and organizations have the right to engage individuals to perform certain work under civil law contracts (CPL). In this regard, the question arises of how to reflect the GPC in 6-NDFL - calculations for calculated and withheld personal income tax. This question often causes difficulties for accounting department employees and requires additional clarification.

Rules for calculating and withholding personal income tax

According to established standards, payments under a GPC agreement must be reflected in 6-NDFL, since an organization or individual entrepreneur using the services of individuals becomes a tax agent for them. It is the organization in this case that is responsible for withholding and transferring personal income tax to the treasury.

To understand how to reflect GPC agreements in 6-NDFL, you need to understand within what time frame the tax agent is obliged to calculate, withhold and transfer personal income tax to the budget.

The rules say that the date of receipt of income under GPC in 6-NDFL becomes the date of tax calculation. This is the day when an individual receives money for working at the cash register or when it is transferred to his bank account. It is this date that must be reflected in line 100 of the reporting form.

Please note that the date of receipt of income under the GPC agreement in 6-NDFL is also the date of tax withholding: this is the day that must be recorded in line 110 of the form. It must coincide with the settlement date specified in the contract.

Just as in other cases, tax on payments under GPC in 6-NDFL is transferred no later than the next business day after the money is transferred to an individual. This date should be indicated on line 120 of the reporting form.

General features of filling out form 6-NDFL

Reporting form 6-NDFL for GPC in 2018 is filled out taking into account the order of the Federal Tax Service dated October 14, 2015 No. ММВ-7-11/450. It sets out a number of general mandatory requirements:

According to these requirements, the reflection of GPC in 6-NDFL requires the submission of calculations for each reporting period no later than the last day of the month that follows the reporting period.

An example of filling out 6-NDFL for a contract (more precisely, some key points), which we offer in the article, will allow you to better understand the features of compiling this report, which are characteristic specifically for contracting relationships. In addition, our publication will help to correctly reflect the information in the declaration.

When should personal income tax be calculated on payments under a contract?

A contract can be concluded with an organization, an individual entrepreneur or an individual. In the first two cases, the customer under the contract is not involved in calculating, withholding and paying any taxes for the contractor. If a transaction is signed between an organization (customer) and an individual, then the customer acts as a tax agent and pays personal income tax (personal income tax).

If this is a citizen of the Russian Federation (resident), then 13% of the amount of payment for work is withheld (clause 1 of Article 224 of the Tax Code of the Russian Federation (hereinafter referred to as the Tax Code of the Russian Federation)). When the contractor is a non-resident (i.e. a person staying on the territory of the Russian Federation for 12 consecutive months of less than 183 days), the tax is calculated at a rate of 30% (paragraph 1, clause 3, article 224 of the Tax Code of the Russian Federation).

Which document reflects payment and personal income tax for a contract with an individual?

In addition to the accrual, withholding and payment of taxes, the customer is also required to submit appropriate reports to the Federal Tax Service (territorial inspectorate of the Federal Tax Service) at its location. The reporting reflects the amount of remuneration under the contract and the amount of taxes withheld. The form in which reporting is provided is Form 6-NDFL.

Don't know your rights?

The report form is contained in Appendix No. 1 to the order of the Federal Tax Service of Russia dated October 14, 2015 No. ММВ-7-11/450@. The normative act began to be applied on 01/01/2016. The specified legal source contains detailed recommendations for filling out the form. However, they are of a technical nature. Therefore, in our article further we will look at some of the subtleties of preparing a report that will allow you to correctly enter information about the personal income tax paid.

How to reflect a contract in 6-NDFL? Example of filling out a report

The form consists of 3 parts:

• Title page.
• Section 1. General information.
• Section 2. Dates and amounts of income actually received and withheld personal income tax.

In order to fill out the document, the following information is required:

1. The amount of remuneration under the contract.
2. Remuneration payment periods.
3. What tax rate is calculated at?

1. The report contains information about all payments under the contract - both in general and separately for each fact of their receipt by the contractor.
2. In section 1, the amounts in lines 020 and 040 are indicated as a cumulative total.
3. Section 2 provides data for the last quarter.
4. The date the contractor receives payment (line 100) is determined by the day the remuneration is actually issued or transferred to the card. Advance payments are reflected in the same way.
5. The date of payment of the tax is indicated in line 120 (it must be transferred no later than the next day after the day of actual payment for the work).

So, form 6-NDFL reflects information about the contract concluded with a citizen of the Russian Federation or another state. A point that should be taken especially carefully concerns the possible division of payments into several payments: in this case, the report reflects all dates and amounts of transfers and the amount of personal income tax withheld for each payment. An example of filling out the 6-NDFL report can be downloaded on our website.

A company paying income to an individual who is not an individual entrepreneur must not only calculate personal income tax, withhold it from the paid income and transfer it to the budget, but also report on this operation according to (clause 1, 2 of article 226, clause 2 of art. 230 of the Tax Code of the Russian Federation).

Indicators of form 6-NDFL

Regarding the income of an individual under a civil law contract in 2016, at least the following information will be reflected.

In section 1:

• on line 010 – tax rate (13% or 30%);
• – the amount of accrued income on an accrual basis from the beginning of the calendar year;
• on line 040 – the amount of calculated personal income tax on an accrual basis from the beginning of the calendar year;
• on line 070 – the total amount of personal income tax withheld on an accrual basis from the beginning of the calendar year.

In section 2:

• on line 100 – the date of actual receipt of income by an individual;
• on line 110 – the date of deduction of personal income tax from the amount of income received;
• on line 120 – the date no later than which personal income tax must be transferred;
• on line 130 - the amount of income received (without deducting personal income tax) on the date indicated in line 100;
• on line 140 - the amount of personal income tax withheld on the date indicated in line 110.

Key dates

If an advance is not provided for under a civil law agreement, then the date of actual receipt of income is the date of payment of remuneration (subclause 1, clause 1, article 223 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated May 26, 2014 No. 03-04-06/24982). The calculated personal income tax on such income should be withheld upon its actual payment (clause 4 of article 226 of the Tax Code of the Russian Federation). And the tax must be transferred to the budget no later than the day following the day of payment of remuneration to an individual (clause 6 of Article 226 of the Tax Code of the Russian Federation).

Filling out form 6-NDFL

The Federal Tax Service of Russia believes that any income is reflected in the period in which it is considered received (and not accrued). And an operation that was started in one period and completed in another is reflected in the period in which it was completed (letters of the Federal Tax Service of Russia dated December 5, 2016 No. BS-4-11/23138@, dated October 17, 2016 No. BS-3- 11/4816@). These rules determine the filling in income in the form of remuneration under a civil law agreement.

In particular, if the acceptance certificate of work (services) under a civil law agreement was signed in December 2016, and the remuneration to an individual for the provision of services under this agreement was paid in January 2017, then this operation is reflected in sections 1 and 2 for first quarter of 2017.

Please note: an individual cannot receive a property deduction from an organization with which a civil contract has been concluded, since it is not an employer (Article 220 of the Tax Code of the Russian Federation, letters of the Ministry of Finance of Russia dated October 14, 2011 No. 03-04-06/7-271, dated June 30, 2011 No. 03-04-06/3-157). At the same time, personal income tax on remuneration can be reduced by standard and professional tax deductions (Articles 218, 221 of the Tax Code of the Russian Federation, letters of the Ministry of Finance of Russia dated November 19, 2015 No. 03-04-05/66968, dated April 7, 2011 No. 03-04-06 /10-81).

How to reflect a contract in 6-NDFL? The answer to this question is not as simple as it seems at first glance. Our material will tell you about the features of “contract” payments and the procedure for displaying them in the 6-NDFL report.

Contract agreement and 6-NDFL: basic provisions

A work contract is one of the types of civil law agreements (GPC), in which:

• the contractor (performer) has the obligation to perform the work stipulated by the contract according to the customer’s instructions;
• The customer assumes the obligation to accept the results of the work performed and pay for it.

Payment for “contract” work is income subject to personal income tax for the contractor. For the customer, the payment of such income is associated with the performance of the duties of a tax agent and the reflection of this “contract” payment in 6-NDFL.

Find out what to pay attention to when concluding a contract in this article.

To reflect “contract” income in 6-NDFL, the following data will be required:

• the cost of “contract” work - it falls on page 020 of section 1 of the report;
• calculated and withheld personal income tax - it is reflected on lines 040 and 070;
• in section 2 of the report, blocks pp. 100-140 are filled in for each date of “contract” payments (they will be discussed in more detail later).

In order for “contract” payments to be reflected without errors in 6-NDFL, you should remember the following tax requirements:

• all payments under the contract (including advances) are subject to reflection in 6-NDFL (clause 1 of Article 223 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated May 26, 2014 No. 03-04-06/24982);
• the data in section 1 of the report is presented on an accrual basis, in section 2 - for the last 3 months of the reporting period;
• the date an individual receives “contract” income is the day it is transferred to the card or money is issued from the cash register, including the date the advance is issued to the contractor. But the date of signing the work acceptance certificate does not matter, which is confirmed by tax authorities (see, for example, letter of the Federal Tax Service for Moscow dated January 16, 2019 No. 20-15/003917@);
• The deadline for transferring personal income tax is no later than the day following each “contract” payment.

Find out the nuances of a contract from the perspective of international standards from the article “IFRS No. 11 Contracts - application features” .

The following example will help you understand the peculiarities of filling out 6-NDFL for “contract” payments.

Geodesist LLC entered into a contract agreement with M. N. Berezkin to perform contract work on repairing furniture in workshop No. 12. According to the terms of the contract, during the execution of the work (1st quarter of 2019), the specified person received an advance on 02/15/2019 (5,000 rubles .) and final payment on February 27, 2019 (RUB 22,000).

The contract in Section 1 of 6-NDFL is as follows:

In Section 2 of Section 6-NDFL, the contract is reflected in the following form:

How the data in lines 6-NDFL will change if the “contract” income is paid to a non-resident or individual entrepreneur, find out in the next section.

A contract may be concluded with an individual:

• having the status of individual entrepreneur;
• being a non-resident (a subject staying on the territory of Russia for less than 183 calendar days within 12 months).

For 6-NDFL this means:

• The money paid by an individual entrepreneur under a contract is not reflected in 6-NDFL by the tax agent - the entrepreneur himself pays taxes on the income received and reports on them;
• “contract” income of a non-resident is taxed at a rate of 30% (instead of the usual 13%).

Payment of income to a non-resident will not in any way affect the completion of the dates in the 2nd section of 6-NDFL, and pages 130 and 140 of this section and the lines of section 1, reflecting the personal income tax calculated from “contract” income, will change and will be reflected as follows:

Thus, the status of an individual affects the fact of reflecting “contract” income, as well as the amount of personal income tax.

Results

Income received by an individual under a contract is reflected in 6-NDFL separately for each payment date (including all advance payments). If the work was performed by an individual entrepreneur, “contract” income and the corresponding personal income tax amounts are not reflected in 6-NDFL at the source of payment.