New Year holidays are a time for gifts. And employers often adhere to this good tradition, giving gifts to the children of employees. We will talk about the tax consequences of giving children's gifts and their accounting in our consultation.
New Year's gifts for employees' children: taxation
The cost of gratuitously transferred property relates to expenses not taken into account for profit tax purposes (clause 16 of Article 270 of the Tax Code of the Russian Federation). Therefore, for those transferred to the children of workers new Year gifts Taxable income cannot be reduced.
It will not be possible to take into account New Year's gifts in expenses for the simplified tax system (Article 346.16 of the Tax Code of the Russian Federation).
For the purpose of calculating VAT, the transfer of ownership of goods free of charge is recognized as a sale (paragraph 2, paragraph 1, paragraph 1, article 146 of the Tax Code of the Russian Federation). Therefore, VAT must be charged on the market value of the transferred New Year's gifts (clause 2 of Article 154 of the Tax Code of the Russian Federation). Accordingly, input VAT on purchased gifts can be deducted if there is a properly executed invoice (clause 2 of Article 171 of the Tax Code of the Russian Federation).
Naturally, we are talking about a non-monetary gift. After all, the transfer Money VAT is not assessed (clause 1 of Article 146 of the Tax Code of the Russian Federation).
Personal income tax on children's New Year's gifts
If the transferred New Year's gifts are combined with other gifts transferred to the individual during calendar year, did not exceed 4,000 rubles, personal income tax does not need to be withheld (clause 28 of article 217 of the Tax Code of the Russian Federation). In this case, an individual is understood as an employee or the child himself, depending on who the transfer of the New Year’s gift is documented to.
Otherwise, if “gift” income exceeds 4,000 rubles per year, it will be necessary to withhold personal income tax from the immediate cash income of the individual recipient of the gift (including the day the gift is issued, if it is transferred in money).
Contributions from New Year's gifts
If a New Year's gift is given to an employee's child (or even to the employee himself as a representative of the donee), there is no need to charge insurance premiums, because the gift is not issued within the framework of labor or civil law relations (clause 1 of article 420 of the Tax Code of the Russian Federation, clause 1 of art. 20.1 of the Federal Law of July 24, 1998 No. 125-FZ).
If the recipient of the New Year's gift is the employee himself, then in order to avoid claims from regulatory authorities, it is advisable for the employer to conclude a gift agreement with the employee. After all, the transfer of property under a gift agreement is not recognized as an object of taxation (clause 4 of Article 420 of the Tax Code of the Russian Federation).
An order for the distribution of New Year's gifts to children of employees can be issued in any form.
Accounting for New Year's gifts for employees' children
Let's look at an example of how to reflect in accounting the acquisition and transfer of children's New Year's gifts to employees, provided that the market value of 1 unit. gift is 2,500 rubles (including 18% VAT) and the transfer of gifts is not subject to personal income tax, since the cost of gifts did not exceed 4,000 rubles per employee during the year.
After congratulating the staff on one or another significant date, events and presentations, the accounting department has to check whether Personal income tax on gifts to employees. Let's look at how not to miss anything.
Accountant's task
Gifts to team members are one of the elements of the corporate culture of many companies. In this case, the organization acts as a source of income for the taxpayer and at the same time as a tax agent in accordance with Art. 226 Tax Code of the Russian Federation. Therefore, the main task of the accounting service will be the correct calculation and retention Personal income tax on employee gifts.
Some gifts may not be related to professional activity employee. They are issued on the occasion of an anniversary or holiday. Others act as encouragement for Good work. According to Art. 191 of the Labor Code of the Russian Federation, subordinates can be awarded valuable gifts for conscientious work. And on New Year's holidays, children of company employees traditionally receive gifts.
Gifts are given in cash or in kind. Gift certificates have become popular in recent years. But in each case the question arises: ? The answer to this is given by the Tax Code of the Russian Federation.
Base for income tax
As follows from paragraph 1 of Art. 210 of the Tax Code of the Russian Federation, gifts should be included as income received in kind. Individual income tax must be taken from their value. The same as with income received in the form of “real” money.
Article 217 of the Tax Code of the Russian Federation lists receipts to a person from whom personal income tax is not collected. These also include gifts received by employees from employers. Provided that their cost does not exceed 4,000 rubles (clause 28). And such a tax benefit can only take place once per year. This must be taken into account when calculating, for example, Personal income tax on employee gifts for the New Year.
If the value of all gifts that an employee received during the year exceeded 4,000 rubles, the amount in excess of this limit is subject to personal income tax.
Paperwork
To avoid problems during a tax audit, you should pay attention Special attention preparation of documents for issuing gifts to staff. This will help avoid unpleasant surprises regarding Personal income tax on gifts to employees.
So, to award gifts, an order is issued on behalf of the manager. Moreover, regardless of their type and cost. Based on the order, an order for the purchase of gifts is drawn up. Or the purchase issue is immediately discussed in this order.
Gifts are usually transferred with the drawing up of a gift agreement. According to the law, it can be both oral and written.
On a note
In a solemn atmosphere, the manager makes a speech, presents small gifts and souvenirs to the staff, and the employees accept them. This point can be considered an oral gift agreement.
If the value of the gift given by the manager is over 3,000 rubles, the gift agreement is drawn up in writing (Clause 2 of Article 574 of the Civil Code of the Russian Federation). Moreover, this can be a multilateral document in which the donor is the employer, and the recipients of gifts are subordinates.
A statement is prepared for such an agreement, in which employees who received gifts sign.
Please note that when presenting a valuable gift on the basis of Art. 191 of the Labor Code of the Russian Federation, a gift agreement is usually not drawn up. The fact is that the gift is part of the salary; it is transferred on the basis of an employment agreement. The manager's order specifies the recipient, the name of the gift and its value. And the fact of delivery of such a gift is noted in the work book.
Tax withholding
When it's clear Should personal income tax be assessed on gifts to employees?, you can’t hesitate. Tax on the value of the gift must be taken on the next payment of any funds transferred to the employee. The retention amount is:
- 13% – for residents of the Russian Federation;
- 30% – if the employee is a non-resident of our country.
Note: if there are no payments from which personal income tax could be taken and there will be no more of them, the organization is obliged to:
- notify the employee (former) about this in writing;
- submit to tax office information about the impossibility of withholding personal income tax.
Then, when drawing up a gift agreement, contributions for insurance against personal injury and health insurance are not charged on the cost of gifts, since in this case the gifts are given not within the framework of an employment relationship with the employee, but within the framework of a civil contract concluded with him, which does not provide for the payment of insurance contributions from NS and PZ.
2. Year-end bonus
In accordance with part 1 of Art. 22 and art. 191 of the Labor Code of the Russian Federation, the employer has the right to encourage employees who conscientiously perform job responsibilities(to express gratitude, to give a prize, to reward a valuable gift, certificate of honor, to present for the title of best in the profession).
According to Art. 129 and art. 135 of the Labor Code of the Russian Federation, bonuses, additional payments and incentive allowances, as well as other incentive payments are an integral part of the salary that is established for the employee by the employment contract in accordance with the current remuneration systems. Remuneration systems are established by collective agreements, agreements, local regulations in accordance with labor legislation and other regulatory legal acts containing labor law norms.
Direct payment of the bonus is carried out on the basis of an order or instruction from the head of the organization, since it is the order (instruction) that confirms the achievement of bonus indicators in a specific period (month, quarter, year). The order is drawn up in form N T-11 (T-11a), approved by Resolution of the State Statistics Committee of Russia dated January 5, 2004 N 1.
2.1. Corporate income tax
In accordance with Art. 252 of the Tax Code of the Russian Federation reduces the income received by the amount of expenses incurred (except for the expenses specified in Article 270 of the Tax Code of the Russian Federation). In this case, these expenses must be economically justified, documented and aimed at generating income.
According to Art. 255 of the Tax Code of the Russian Federation, the taxpayer’s expenses for wages include any accruals to employees in cash and (or) in kind, incentive accruals and allowances, compensation accruals related to working hours or working conditions, bonuses and one-time incentive accruals, expenses associated with the maintenance of these employees, provided for by the norms of the legislation of the Russian Federation, labor agreements (contracts) and (or) collective agreements.
At the same time, paragraph 2 of Art. 255 of the Tax Code of the Russian Federation stipulates that labor costs include accruals of an incentive nature, including bonuses for production results, bonuses to tariff rates and salaries for professional skills, high achievements in work and other similar indicators.
Considering that in the situation under consideration, the payment of bonuses at the end of the year is provided for by the labor and (or) collective agreement, such expenses on the basis of Art. 255 of the Tax Code of the Russian Federation can be taken into account when determining the tax base for income tax. Similar explanations are contained in letters of the Ministry of Finance of Russia dated 02/26/2010 N 03-03-06/1/92, dated 07/10/2009 N 03-03-06/1/457, dated 05/14/2009 N 03-03-05/88, dated 03/19/2007 N 03-03-06/1/158, dated 03/06/2007 N 03-03-06/1/151, Federal Tax Service of Russia for Moscow dated 12/19/2008 N 19-12/118853.
2.2. Accounting
In accounting, the organization's expenses for paying bonuses to employees are expenses for ordinary activities and are included in the cost price (clauses 5, 7, 8 and 9 of PBU 10/99 "Organization expenses").
Professional accountant Molchanov Valery
Response quality control:
Reviewer of the Legal Consulting Service GARANT
auditor Melnikova Elena
The material was prepared on the basis of individual written consultation provided as part of the Legal Consulting service.
Ahead new year holidays. For some, this is a time of summing up, for others, it is a period of corporate events and gifts. And for an accountant, this is the height of work. After all, everything mentioned above must be reflected in accounting. Including New Year's gifts for the children of employees. We'll talk about them.
“Gift” personal income tax
A gift is income in kind, which is taken into account when determining the tax base for personal income tax (clause 1 of article 210 of the Tax Code of the Russian Federation). At the same time, paragraph 28 of Art. 217 of the Tax Code of the Russian Federation exempts from taxation gifts received by individuals from organizations whose value does not exceed 4,000 rubles per year. It is unlikely that a children's New Year's gift will cost more. This means that the employee most likely will not have any obligation to withhold personal income tax. In this case, the organization is required to keep personalized records of these incomes (see, for example, letter of the Ministry of Finance dated January 20, 2017 No. 03-04-06/2650).
If the gift costs more than 4,000 rubles. (in this case, a written gift agreement is required - clause 2 of Article 574 of the Civil Code of the Russian Federation), or the organization gifts the children of employees not only New Year, but also on other holidays, and the total cost of gifts for the year exceeded the amount exempt from tax, the organization becomes a tax agent (clause 1 of Article 226 of the Tax Code of the Russian Federation). But only in relation to the excess amount, from which the tax must be calculated.
In this case, the child receives only a gift, no cash payments the organization does not produce anything to him. Consequently, she has no opportunity to withhold personal income tax (clause 4 of article 226 of the Tax Code of the Russian Federation). But there is an obligation to inform the taxpayer about this and tax authority(Clause 5 of Article 226 of the Tax Code of the Russian Federation).
After this, the child’s legal representatives will have to pay the tax: parents, adoptive parents, guardians, trustees (Articles 27, 29, paragraph 4, paragraph 1, Article 228 of the Tax Code of the Russian Federation, letter of the Federal Tax Service dated April 23, 2009 No. 3-5-04 /495@).
Should insurance premiums be charged?
There is no need to calculate insurance premiums, including for injuries, from the cost of children's gifts. If only because there are no labor relations between the children of employees and the organization, and therefore there is no object for taxation of contributions (clause 1 of article 420 of the Tax Code of the Russian Federation, clause 1 of article 20.1 Federal Law dated July 24, 1998 No. 125-FZ, see also letter of the Ministry of Health and Social Development of the Russian Federation dated May 19, 2010 No. 1239-19).
In addition, paragraph 4 of Art. 420 of the Tax Code of the Russian Federation directly provides that payments under civil contracts, within the framework of which the transfer of ownership of property occurs, do not relate to the object of contributions. And a gift agreement is just such an agreement.
What about VAT?
It is better to pay VAT on the cost of gifts. And not only because this is the position of the Presidium of the Supreme Arbitration Court of the Russian Federation (Resolution of the Supreme Arbitration Court of the Russian Federation dated June 25, 2013 No. 1001/13) and the regulatory authorities.
When giving gifts, including to children of employees, ownership of the goods is transferred free of charge. And by virtue of paragraph 1 of Art. 39 and paragraphs. 1 clause 1 art. 146 of the Tax Code of the Russian Federation, such transfer is subject to VAT. Consequently, the organization must calculate the tax on the market value of gifts (clause 2 of Article 154 of the Tax Code of the Russian Federation) and pay it to the budget.
Find out whether to issue an invoice for a gift.
If the gift seller also pays VAT, then special problems there is no. By calculating the tax for this transaction, the purchasing organization receives the right to deduct the “input” tax (Clause 1, Article 171 of the Tax Code of the Russian Federation). The market value of gifts, from which in this case VAT payable must be calculated, will be the price of their acquisition. Thus, the amount of tax accrued will be equal to the amount of deduction. This means that the organization will not lose anything.
At the same time, failure to pay taxes may result in:
- claims from regulatory authorities;
- impossibility of deducting “input” VAT (clause 2 of Article 170 of the Tax Code of the Russian Federation);
- the need for separate accounting (clause 4 of article 170 of the Tax Code of the Russian Federation).
If gifts were purchased from a VAT evader (for example, from a “simplified person”), you will actually have to pay the tax at your own expense. If the amounts are significant, it is better to avoid such suppliers.
Income tax: do not take into account expenses
It will most likely not be possible to include children's gifts in your expenses. Firstly, it is very difficult to prove their economic feasibility and production orientation, which are required from expenses by paragraph 1 of Art. 252 of the Tax Code of the Russian Federation. In addition, there is a gratuitous transfer of property. And its cost is directly attributed to expenses not taken into account for taxation (clause 16, article 270 of the Tax Code of the Russian Federation).
Gift accounting
Based on the Chart of Accounts and instructions for its use (approved by Order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n), the acquisition and issuance of children's gifts can be reflected in accounting as follows:
Debit 41 Credit 60 - children's New Year's gifts were capitalized;
Debit 19 Credit 60 - reflects the VAT presented by the supplier;
Debit 68, subaccount “Calculations for VAT”, Credit 19 - “input” VAT is accepted for deduction;
Debit 73 Credit 41 - reflects the transfer of gifts to employees;
Debit 91 Credit 73 - the cost of gifts is included in other expenses;
Debit 91 Credit 68, subaccount “Calculations for VAT” - VAT is charged on the cost of gifts.
Due to the fact that these expenses do not reduce taxable profit, organizations applying PBU 18/02 (approved by Order of the Ministry of Finance of the Russian Federation dated November 19, 2002 No. 114n) will have a permanent tax difference and a corresponding permanent tax liability (PNO):
Debit 99, subaccount “Permanent tax liability” Credit 68, subaccount “Calculations for income tax” - for the amount of PTI.
Results
As you can see, keeping track of children's New Year's gifts is not so difficult. Follow our simple recommendations, and these pre-holiday chores will only be a joy for you. With coming!!!
As the New Year approaches, businesses begin to plan to provide gifts for employees and their children. What are the features of providing New Year's gifts from the company?
New Year's gifts for children of workers
Back in 2015, the Social Insurance Fund for VUT stopped financing the purchase and issuance of New Year's gifts for the children of policyholders' employees.
At the same time, a norm has been introduced according to which enterprises are invited to independently provide gifts for the children of employees (subject to the inclusion of this norm in the collective agreement):
“The collective agreement may provide for additional guarantees, social benefits, in comparison with the current legislation and agreements, in particular for children’s health care and the purchase of New Year’s gifts for the children of employees, etc.” (Article 7 of Law No. 3356).
So, if an enterprise plans to purchase and give gifts to the children of employees this year, you need to pay attention to the following points:
- the head of the enterprise should issue an order for the purchase and distribution of New Year's gifts to the children of employees, which specifies all the necessary requirements and criteria;
- The age of a child is determined not by labor legislation, but by the Family Code - this is the age of up to 18 years. That is, an enterprise can independently set restrictions on the age of children to whom gifts will be given.
Taxation of gifts to children of employees
As an exception to the general provisions established, some issues of financing events related to the organization of New Year and Christmas holidays for children and adolescents are regulated, valid every year from November 15 of the current year to January 15 of the next year.
According to Law No. 2117, the cost of holiday gifts and tickets to New Year and Christmas events is not included in the total taxable income of individuals - parents of those children who received them from state authorities, local governments, public (including trade union) organizations and those created by them educational institutions, health care and cultural institutions maintained at the expense of the relevant budgets.
At the same time, children's holiday gifts in Law No. 2117 should be understood as sets of goods containing only confectionery, domestically produced toys and fruits, with a total value of no more than 8% living wage for an able-bodied person established by law on January 1 of the reporting tax year.
Since the cost of living for an able-bodied person as of 01/01/2016 is 1378.00 UAH, the non-taxable cost of New Year's gifts in 2016 is 110.24 UAH (1378 x 8%).
Note. If the presentation of gifts is planned to take place in January 2017 (from 01/01/2017 to 01/15/2017), then it is necessary to be guided by the norms of Ukrainian legislation regarding the size of the subsistence minimum at the beginning of 2017.
If the gift is more expensive, then the amount exceeding its value must be taxed at a rate of 18% as an additional benefit, taking into account the increasing coefficient.
Thus, the cost of holiday gifts and tickets to New Year and Christmas events received by children in accordance with Law No. 2117 from the above-mentioned institutions and organizations is not included in the total taxable income of citizens who are their parents. At the same time, such income should be indicated in the tax calculation according to f. No. 1 DF regardless of their taxation. It is advisable to reflect them with the income indicator “127”.
Furthermore, in accordance with Art. 2 of Law No. 2117 exempt from VAT the sale of children's holiday gifts by production and trading enterprises, as well as tickets to New Year and Christmas events for children, which are purchased at the expense of the Social Insurance Fund for VUT, trade union committees of enterprises and organizations, and other non-profit organizations. At the same time, the tax amounts paid by manufacturers of children's holiday gifts for the purchase of raw materials for their production are included in expenses and are not included in the tax credit.
At the same time, when taxing gifts to children of employees, it is also necessary to take into account paragraphs. 165.1.39 of the Tax Code, which determines that the total monthly (annual) taxable income of the taxpayer does not include the cost of gifts (as well as prizes for winners and prize-winners of sports competitions), if their value does not exceed 50 percent of one minimum wage (per month ), established as of January 1 of the reporting tax year, with the exception of cash payments in any amount.
That is, the cost of the gift, not subject to personal income tax and military duty, in 2016 is 689.00 UAH per month (clause 165.1.39 of the Tax Code).
Note. If the presentation of gifts is planned to take place in 2017, then it is necessary to be guided by the norms of the legislation of Ukraine on the amount of the minimum wage as of 01/01/2017.
The cost of such a gift should be reflected in the tax calculation according to f. No. 1 DF with income indicator “160”.
New Year's gifts given by the company to employees
Personal income tax, military tax and unified social tax
If the management of an enterprise decides to reward employees with New Year's gifts, then the accountant must take into account that if an additional benefit is paid to the taxpayer not in cash, the amount of personal income tax is calculated taking into account the increasing coefficient.
According to paragraphs. 164.2.17 of the Tax Code of Ukraine the income received by him as an additional benefit is included in the total monthly taxable income of the taxpayer. If additional benefits are provided not in monetary form, the object of taxation is calculated according to the rules defined in clause 164.5 of the Tax Code, that is, the tax base is the value of income in any non-monetary form, calculated at regular prices, the rules for determining which are established by the Tax Code, multiplied by a coefficient calculated according to following formula:
K = 100: (100 – Sp),
where K is the coefficient;
Sp - personal income tax rate.
Today this coefficient is 1.219512.
However, when taxing gifts to employees, it is also necessary to take into account paragraphs. 165.1.39 NKU (see above).
The value of gifts received by a taxpayer during the reporting month that exceeds 50% of the minimum wage will be subject to taxation by the tax agent providing the gifts at a rate of 18% (on the amount of the excess).
The cost of New Year's gifts purchased with the company's funds is indicated in the tax calculation according to f. No. 1DF with income indicator “160”. If the value of gifts exceeds 50% of the minimum wage, - with the income indicator “126”.
The object of military taxation is income defined in Art. 163 Tax Code (clause 1.2 clause 161 subsection 10 section XX Tax Code), that is, total taxable monthly (annual) income. Therefore, if the value of a gift is subject to personal income tax, it is also subject to military tax at a rate of 1.5%; if not, military tax is also not withheld.
The cost of gifts for holidays and tickets to entertainment events for children of employees is included in clause 8 of section. II, therefore, the unified social contribution for such value is not accrued and is not withheld.
Income tax
The income tax base is determined based on the accounting financial result before tax, adjusted for differences provided for by the Tax Code. Without any difference, the base is determined by payers whose accounting income last year amounted to no more than UAH 20 million (clause 134.1.1 of the Tax Code).
However, in the Tax Code there is only a difference associated with gifts to non-profit institutions and organizations, namely: in the case of free transfer of goods, fixed assets, funds to non-profit institutions - non-payers of income tax, there will be a difference that increases the accounting financial result before tax by the amount of the gift to such non-profit institutions , which exceeds 4% of the taxable profit of the previous year (clause 140.5.9 of the Tax Code, Article 1 of Law No. 2117). Also, the Tax Code does not contain a rule according to which it is impossible to take into account expenses not related to economic activities (gifts, financing of personal needs of employees, etc.).
In accounting, when purchasing gifts, they are credited to subaccount 209 at their original cost, which forms expenses directly related to the purchase of gifts. When transferring gifts, the entry Dt 949 - Kt 209 is drawn up.
As for VAT, New Year's gifts for children are nothing more than the free transfer of goods. Therefore, when purchasing gifts, an enterprise includes the amount of VAT in the cost of such acquisition as part of the tax credit (clause 198.3 of the Tax Code). However, since such free distribution of gifts has no connection with economic activity, it is necessary to charge VAT tax liabilities on the purchase price in order to reverse the tax credit (clause 198.5 of the Tax Code). And finally, when distributing gifts to children, it is necessary to accrue VAT tax liabilities, again on the cost of acquisition, but this time in connection with the free transfer of goods (clause 189.1 of the Tax Code).
The tax authorities presented a similar algorithm of actions, in particular, in letter dated November 11, 2015 No. 25227/10/28-10-06-11.
Tax obligations accrued when giving gifts are documented by posting Dt 949 - Kt 641/VAT.
Irina Petrusenko
