In this material consultation about the taxation and reflection in the accounting of the income of members of FH is given.
Alla XARITONOVA, accountant-expert of IKK "Balance Club"
In a farm (further – FH) can work both directly his members, and hired workers (Law No. 973 Art. 27). In this consultation it will be a question of the taxation and reflection in the accounting of the income of members of FH.
Features of a payment for work
• According to Art. 3 of the Law No. the persons working in can’t be 973 members of FH is mute on labor dogovoru. As with members of FH employment contracts don’t consist, the income which is paid to them, can’t be considered as a salary.
According to Methodical recommendations No. 189 (item 7.12) compensation for work of farmers – is the income (pribyl) FH which is distributed between them proyoportsionalno to a labor contribution of each member of FH.
At the same time the economy can choose a different way of distribution of the income (profit) about what it is specified in FH charter (for example, equal parts between all members of an economy etc.).
We pay attention! If the amount of payments pribyli to members of FH is defined by the size of their contributions to authorized capital of an economy, such payments schitayutsya dividends, on which FH (including platelyyoshchik of FSN) is obliged to add and pay in the budget an advance contribution on the profits tax.
• FH can use profit as for a production rasshireyoniya (production consumption), and for needs of the farmer and members of his family (personal consumption). If by the charter it is provided, the poluyochenny profit can be completely distributed between members of FH.
• As agricultural production (in particular, a rasyoteniyevodstvo) in which FH is engaged, has sezonyony character, economy profit, as a rule, mozhyono authentically to establish and distribute between his members only in the end of the year.
At the same time the part of profit can be received by members of FH for a year in the advance payment in the form of production of own production, money, the inventory items withdrawn from economic circulation for satisfaction of personal needs fermerov*.
* In more detail about use of production read in consultation Use of production of a farm for personal needs of members of an economy ("Balans-Agro", 2007, No. 6, page 25 – 27).
• The size of the profit distributed between members of FH, isn’t limited by the Law No. 973.
• The got profit we recommend to distribute at meeting of members of FH, and the made decision to make out the protocol.
The decision on monthly payment of a part of profit chlenam FH is made out in the advance payment by the order (rasporyazheyoniy) the chairman of an economy on the basis of the charter.
• On the income of members of FH the gosuyodarstvenny guarantee about its charge of not less than a minimum wage as it is provided for hired workers doesn’t extend.
• The personal income of farmers is subject a nalogooblozheyoniya which also has the features.
Taxation
PERSONAL INCOME TAX
The income of members of FH is subject to personal income tax taxation as it wasn’t included into the list of not assessed personal income taxes of the income. The specified income is assessed with the personal income tax, as well as other types of income (Law No. 889 subitem 4.2.12), on a rate of 15 %.
The income of farmers doesn’t belong to compensation fund (Instruction No. 5 subitem 3.35) therefore members of FH, poluchivyoshy a part of profit in the form of the personal income, unlike hired workers have no rights (Law No. 889):
1) on NSL application at personal income tax deduction as the sum of the added salary (item 6.1) decreases by the sum of a tax social concession only;
2) on reduction of the income by the sum of insurance fees in PF and (item 3.5) OGSS Funds;
3) na* receiving the tax credit, for example, for compensation of the means paid to educational institutions for training of the member of FH or members of his family of the first degree of relationship (subitem 5.3.3).
At charge of the income to members of FH in any non-monetary forms the taxation object opredelyaetsya as cost of such charge at the obychyony prices, increased by factor 1,176471 (Law N8 889 item 3.4)
Order the taxation of the income of farmers izlozhen in the Letter No. 7720, Payments of the income are reflected in tax raschetef. No. 1DF with a sign of the income 14.
Contributions to PF
Law No. 1058 (item 2. Art. 11) members of FH are defined as the insured persons in system of gosudarstvenyony pension insurance and, means, should uplachivat contributions to PF. The question arises: on what rate?
Rates of insurance fees in PF are defined by the Law No. 400, however a rate to the income of members of FH (pomnite, what it not a salary?) it is not established.
PF of century. The letter No. 3110 explained that FH can be insurers in relation to members of an economy only under a condition if farms act for them as employers.
At the same time according to Law No. Art. 3. 973 FH aren’t employers in relation to members of the farms as they can’t be hired workers in FH. In the absence of a rate of pensionyony contributions to the income of the farmer of an economy can’t add and hold these contributions.
However for purpose of pension operating time of members of FH (since 2004) is set off in an insurance experience, if for this period they monthly uplachivali insurance fees in the sum not less a minimalyyony insurance fee (further – MSV).
As the special rate of pension contributions for payers of FSN (13,28 %) it is applied only to a salary of hired workers (item 8 subitem 5 Zaklyuchiyotelnykh of provisions of the Law No. 1058), for members of FH MSV pays off at a rate of 33,7 % (33,2 + 0,5) from the minimum salary (Instruction No. 21-1 item 4.7).
The MSV size for members of FH in 2007 makes:
Contributions to social funds
Insurance fees in OGSS Funds are charged for the sum of a salary of the hired workers, subject to personal income tax taxation, in the size established by Zayokon No. 2213.
As the income of members of FH doesn’t belong to compensation fund, it isn’t base for calculation of the specified contributions.
At the same time for receiving a material obesyopecheniye and services on socstraxu members of FH can pay dobyorovolno insurance fees in razmere 3,8 % of the sum of the taxable income (pribyli), including:
• 2 % – in the Social Insurance Fund on VPT;
• 1,8 % – in the Social Insurance Fund on an unemployment case.
In the Social Insurance Fund from an occupational accident dobroyovolno the insured persons pay insurance fees in an order provided by item 4.12 of Instrukyotsiya No. 12, namely:
• the first contribution – at a rate of 1/4 minimum zarplaty, established at date of contribution payment, odyonovremenno with filing of application;
• the following contribution is paid each three mesyayoets (quarter) at a rate of 1/4 minimum zarplaty, established at date of payment of this contribution.
Confirmation to the told we find in Letters No. 619 and No. 6-05.
Accounting
Advance charge of the income to members of FH at the expense of profit within a year belongs on the debit subscheta 443 The profit used in the reporting period. The balance on this subaccount is closed in the end of the year by correspondence with subaccounts 441 Profit unallotted or 442 Nepokryyotye losses.
Calculations with members of FH on payments for the account pribyli are reflected in subaccount 672 Calculations for other payments.
Example
FH doesn’t use work of hired workers. In an economy the chairman works only, kotoyory monthly within a year in quality platy the profit is paid for work in the advance payment and MSV is charged.
FH applying a simple or simplified form of the account, payment of the income (profit) to the members otrazhayut in columns:
• 26. Withdrawal of means (expenses at the expense of the income) Books of the account, the income and expenses;
• 20 Expenses at the expense of the income the Magazine of registration of economic operations.
Samples of the Book and the Magazine are given in annexes to Methodical recommendations No. 189.
List of documents
1. The law N2 400 - the Law of Ukraine from 26.06.97 of No. 400/97-BP About collecting on obligatory state pension – insurance.
2. The law No. 889 – the Law of Ukraine from 22.05.03 of No. 889-IV About a tax on the income of individuals.
3. The law N ° 973 – the Law of Ukraine from 19.06.03 of No. 973-IV About a farm ("Balans-Agro", 2003, No. 8-1).
4. The law No. 1058 – the Law of Ukraine from 09.07.03 of No. 1058-IV About an obligatory state pension strakhoyovaniye.
5. The law No. 2213 – the Law of Ukraine from 11.01.01 of No. 2213-III About the size of contributions to some types of an obligatory state sotsialnogostrakhovaniye.
6. The order No. 49 – Minagropolitika Ukrainy’s order from 07.03.01 of No. 49 About the approval of registers and Methodical recommendations about the organization and conducting accounting about a journal and order form at the enterprises of an agroproyomyshlenny complex.
7. The instruction No. 5 - the Instruction on the salary statistics, approved by the order of Goskomstat of Ukraine from 13.01.04 of No. 5 ("Balans-Agro", 2004, No. 18).
8. The instruction No. 12 – the Instruction about an order of transfer, the account and an expenditure of insurance fund of social insurance from occupational accidents and occupational illnesses of Ukraine, approved postanovleyoniy Social Insurance Fund boards from occupational accidents and occupational illnesses of Ukraine from 20.04.01 of No. 12.
9. The instruction No. 21-1 – the Instruction about an order of calculation and payment by insurers and the insured persons of contributions to obligatory state pension insurance in the Pension fund of Ukraine, PFU approved postanovleniyoy board from 19.12.03 of No. 21-1.
10. Methodical recommendations No. 189 – Methodical recommendations about the organization and conducting accounting in the country (farmer) farms, approved by Minagropolitika Ukrainy’s order from 02.07.01 of No. 189.
11. The letter No. 619 – the letter of Executive management of the Social Insurance Fund on VPT from 28.04.05 of No. 07-35-619 About granting a razjyasyoneniye ("Balans-Agro", 2005, No. 11).
12. The letter No. 6-05 – the letter of the State center of employment of Ministry of Labor of Ukraine from 28.04.05 of No. DTs-09-2165/0/6-05 ("Balans-Agro", 2005, No. 11).
13. N letter °. 3110 – PFU letter from 16.03.06 of No. 3110/03-30 Concerning payment of insurance fees for obshcheobyazatelyyony state pension insurance by farms ("Balans-Agro", 2006, No. 7).
14. No. letter. 7720 – GNAU letter from 25.04.06 of No. 7720/7/17-0717 About the taxation of members of farms ("Balans-Agro", 2006, No. 10).