Corporate income tax, tax rate: types and size

Income tax is mandatory for alllegal persons who are on the general system of taxation. It is calculated by summing up the profits from all the activities of the company and multiplying by the effective rate.

Legal basis

Procedure for calculating and paying income taxorganizations, the tax rate for enterprises of all forms of ownership are specified in Ch. 25 of the Tax Code. Regional acts regulate the process of applying tax incentives. Lawyers and accountants in their work apply also explanations of the Ministry of Finance and the Federal Tax Service in respect of certain clauses of normative acts.

Subjects and objects

Payers of the tax are:

• Russian organizations engaged in gambling, as well as those that do not use USN, UTII, ECCN.
• Foreign organizations that receive income in the territory of the Russian Federation.
• Participants of the consolidated group.

Exempt from taxation of the enterprise,which pay UTII, USN, ESKH. If the volume of their annual implementation exceeds legislative limits, then enterprises must pay corporate profit tax, the rate of which exceeds the legislative limits. Also, exceptions to the 2017 year are organizations that are engaged in the preparation and holding of the FIFA in 2018 in Russia.

The basis for the calculation is the profit of the organization. In Art. 247 of the Tax Code states that the profit:

• for domestic organizations and representative offices of foreign companies is the amount of revenues received by the enterprise (its representative office), reduced by the expenses incurred;
• the amount of aggregate profit calculated for that participant;
• for other foreign organizations is the amount of funds recognized as income under art. 309 TC.

Income and expenses

The income recognizes the economic benefit ofactivity of the organization, expressed in kind or in cash. This is the sum of all receipts of the organization without taking into account the costs and taxes that are imposed on customers (for example, VAT). They are determined by the data of primary documents. Income is divided into sales income and non-operating income.

When the company's income tax is calculated, the tax rate does not include revenue:

• from gratuitously received property;
• in the form of a pledge;
• contributions to capital;
• assets received under loan agreements;
• property received on special-purpose financing.

The costs are reasonable and confirmeddocumented the costs incurred by the taxpayer, provided that they were directed to receive income. When the corporate income tax is calculated, the tax rate, the costs do not include the amount of fines, penalties, penalties, dividends, payments for excess emissions of substances, voluntary insurance, material assistance, allowances to pensions, etc. The full list of amounts that excluded from the costs, is presented in Art. 270 of the Tax Code. Normalized expenses can be written off not completely, but in part. Since 2017, the amount spent on assessing the skill level of employees can also be attributed to costs. However, there is one important condition: the employee must confirm his consent to the evaluation of the level of qualification in writing.

Reporting periods

Corporate income tax rateis fixed in a fixed amount. Reports on the calculation of the amount of the fee should be provided for 6, 9 and 12 months. Advance payments should be transferred to the budget on a monthly basis. Since 2016, the average quarterly revenue from sales has been increased to 15 million rubles.

The tax base

How is the corporate income tax calculated? The tax rate is multiplied by the difference between income and expenditure. If the amount of receipts is less than the amount of costs, then the base is zero. Profit is determined by an incremental method from the beginning of the calendar year. Since the legislation prescribes separate types of rates for corporate income tax, the receipts must also be considered separately for each type of activity.

The Tax Code specifies the specifics of income determination andexpenses for different categories of payers: banks (item 290-292), insurance companies (st.293), non-state pension funds (item 295), microfinance organizations (item 297), professional participants of RCB (item 299), operations with Central Bank (Article 280), term financial transactions (Article 305), clearing organizations (Article 299). Gambling organizations conduct a separate accounting of receipts and expenses. Only economically justified costs are taken into account, which are documented.

What is the corporate income tax rate?

The amount of the paid fee is transferred tofederal and local budgets. Since 2017, there have been changes in the distribution of interest. The basic rate of corporate profit tax has not changed and is 20%. Earlier 2% of the paid amount went to the federal budget, and 18% remained in the local budget. From 2017 to 2020, a new scheme was introduced. The federal budget will transfer the amount of tax calculated at a rate of 3%, and the budget of the subjects of the Russian Federation - 17%. Regional authorities can reduce the fee for certain categories of payers. In 2017-2020, it can not be less than 12.5%.

Exceptions

For individual types of income, the corporate income tax rate is:

• The income of foreign companies from the use, leasing of containers, mobile vehicles, international transportation - 10%.
• The tax rate on the profit of a foreign organization through a representative office not related to activities in the Russian Federation is 20%.
• Dividends of Russian organizations - 13%. The total amount of taxes remains in the local budget. Dividends received by foreign companies are taxed at a rate of 15%. This includes interest income on state securities.
• Revenues from Russian securities, which are accounted for in depo accounts, are 30%.
• The profit of the Bank of Russia is 0%.
• The profit of agricultural producers is 0%.
• The profit of organizations involved in medical and educational activities is 0%.
• The income from the operation, related to the sale of the share of the authorized capital - 0%.
• Revenues from works carried out in the innovation economic zone, tourist and recreational zone, subject to separate accounting of receipts and costs - 0%.
• The revenues of the regional investment project, provided that they do not exceed 90% of all revenues - 0%.

Reporting

At the end of each tax periodThe organization must submit a declaration to the Federal Tax Service. The form of the report and the rules for its preparation are approved by the Order of the Federal Tax Service of Russia No. MMV-7-3 / 600. The declaration is submitted to the inspection at the location of the enterprise or its subdivision. The report is submitted in hard copy. Electronic declaration can be submitted by the largest taxpayers, as well as organizations in which the average number of employees for the previous year was more than 100 people.

Taxation Changes for 2017

Amount of provision for doubtful debtsshould be less than 10% of revenue for the previous or reporting period. Doubtful debt is a debt that exceeds the amount of the counter obligation. If an organization has accounts receivable and accounts payable to one counterparty, then it is only possible to write off doubtful debts in excess of the accounts payable.

The amount of the loss is limited. From 01.01.2017 to December 31, 2020 can not reduce losses of past periods by more than 50%. This change does not affect the base to which tax benefits apply. The amendments concern losses that were incurred after 01.01.2007.

Since 2017, the restriction on the transfer of amountslosses incurred after 01.01.2007. The transfer can now be carried out for all subsequent years. Changes concerning the adjustment of the amounts of taxes transferred to the state and local budgets should be reflected in the declaration and payments. These documents need to clearly reflect what amounts are paid at a rate of 3%, and which - at a rate of 17%.

The reasons for recognizing the debt are consolidatedbecame more. For example, there are two interdependent foreign organizations (one of the organizations is the founder of the second). Before one of them, a Russian company had a debt obligation. In this case, the debt is recognized as being consolidated. And it does not matter what share of capital is owned by a foreign creditor company. Now the consolidated debt is determined by the size of all liabilities of the taxpayer.

If during the reporting period the capitalization coefficienthas changed, then the question of adjusting the tax base may arise. Since 2017, expenditures on controlled debt do not need to be recalculated. As it was mentioned before, in the amount of expenses it is possible to include the costs incurred to assess the level of qualifications of employees. To stimulate the conduct of such audits, provisions will be developed to account for the cost of the assessment. The enterprise will be able to take into account the expenses if the evaluation was carried out on the basis of a service agreement and a labor contract was concluded with the subject.

The order of accrual of tax penalties has been changed, andthe amount of penalties increased. The amendments concern delinquencies that will arise after 01.10.2017. If you delay the tax payment period by more than 30 days, the penalty amount will have to be calculated according to the following algorithm:

• 1/300 of the Central Bank's rate, effective from 1 to 30 days of delay;
• 1/150 of the Central Bank's rate, effective from 31 days past due.

In the case of repayment of all arrears until 01.10.2017, the number of days of delay is not important.