In this consultation the order of recalculation of a tax on the income of individuals, terms of carrying out and sequence of recalculation, documentary registration is stated.
Personal income tax RECALCULATION
Recalculation of the personal income tax is carried out by employers – tax agents who pay the income to hired workers. How it is correctly to make it, you learn from our consultation.
Recalculation cases
By the law No. 889 it is provided that in a place of a primeyoneniye of NSL recalculation added doxodov, the provided tax concessions and the withheld sums of the personal income tax in the following cases (subitem 6.5.2) is made:
• at change of a place of application of NSL according to the samoyostoyatelny decision of the worker or at emergence of the additional income defined by subitem 6.3.3 of this Law;
• at final settlement with the worker who leaves;
• by results of each fiscal year.
Let’s notice, if during 2007 personal income tax recalculation to the workers specified above wasn’t made, the rabotoyodatel is obliged to make it following the results of fiscal year.
According to the Letter No. 3059 the essence of recalculation is reduced to specification and revision of the taxable income and the personal income tax sums for each separate month of fiscal year (without definition of the monthly average income).
For example, in a month of employment NSL though the statement is submitted in time isn’t provided to the worker, or the no-purpose charitable help and to the worker not predostavlena for this reason of NSL is wrongly included in salary structure, etc.
If throughout the period of recalculation there were no changes in structure of the taxable income and in the bases for NSL application, to carry out recalculation there is no need.
Carrying out terms
Terms of carrying out annual pererascheta personal income taxes aren’t defined by the law No. 889. GNAU recommends (Letter No. 3059) to finish such recalculation to an ustayonovlenny term of a No. 1DF form during the period in which it is made, i.e. IVkvartal of the 2007th or Ikvartal of 2008.
Recalculation carry out:
• in case of dismissal of the worker – at final settlement with it;
• in other cases defined by the mentioned Zayokon (subitem 6.5.2) – before No. 1DF form giving for the corresponding quarter in which such recalculation is carried out.
Sequence of recalculation
Order of recalculation by the Law No. 889 also not opredelen. Proceeding from GNAU explanations (The letter No. 3059, and No. 5107) recalculation of the personal income tax is carried out by No. 3146 in such sequence.
Step 1. The income of the worker in the form of a salary for every month in the recalculation period is specified. Thus "passing" payments (sick-lists, indexation, etc.) are distributed on months on which they fall.
For example, to tractor operator Vlasenko V. V. in October, 2007 the grant on VPT at a rate of 700 UAH is added., from which 300 UAH. fall on September of the same year.
In this case 300 UAH. we add to the income for sentyabr, at the same time subtracting them from the income for October. As a result of redistribution of the sums of payments on a bolyyonichny leaf the taxable income that can affect application of NSL and change of the sum of the personal income tax changes.
Vacation pay on the periods is distributed during their charge, instead of recalculation (Law No. 889 subitem 6.5.1).
According to an explanation GNAU (Letter No. 3059) in sluchae if awards are paid to the worker in a quarter or year, instead of in a month, they admit the income of month in which were added, and their recalculation doesn’t become.
Step 2. Correctness of application of NSL, for what is checked:
• we compare the specified sum of a salary to its preyodelny lgotiruyemy size granting the right to application of NSL. In 2007 this sum made 740 UAH., for application of "children’s" NSL: 740 UAH. x x number of children – for one of parents and 740 UAH. – for the second;
• we define structure and periods of validity of the documents submitted to accounts department confirming the right of the worker on NSL;
• we establish the period of application of NSL.
NSL is provided since a month of filing of application (Order No. 2035 item 4). For example, if for 01.01.07 the worker had the right to NSL, it is applied since the beginning of year without submission of the new statement. "Children’s" NSL is applied until the end of the year in which the child will reach age of 18 years (in case of death of the child – until the end of the year of which it is the share);
• we count the NSL size according to poyodanny documents. In 2007 of NSL it is defined proceeding from the minimum salary approved for 01.01.07 – 400 UAH. also makes in a month:
- the usual – 200 UAH. (400 UAH. x 50 %);
- the raised – 300 UAH. (200 UAH. x 150 %);
- the maximum – 400 UAH. (200 UAH. x 200 %).
Step 3. The personal income tax sum for every month taking into account the right to NSL is recalculated.
Step 4. The received result is compared to the sum of earlier withheld personal income tax and the sum nedoplaty or tax overpayments is defined.
Step 5. The personal income tax underpay at the expense of the nalogoyooblagayemy income (after its taxation) in a month in which recalculation is made is collected, and at insufficiency of the sum of the income – at the expense of the income of the next months, before complete repayment of an underpay (Law No. 889 subitem 6.5.3).
Step 6. The personal income tax sum for that month in which recalculation, for return to a nayologoplatelshchik of an overpayment of a tax is carried out decreases. If in a month of recalculation the personal income tax sum is less than overpayment sum, the tax obligations according to the personal income tax for the next months, before complete return of the sum of an overpayment to the worker decrease.
Documentary registration
Results of recalculation of the personal income tax are usually made out at the enterprise by the accounting reference.
The law No. 889 didn’t provide representation to nayologovy bodies of the separate report on the carried-out recalculation of the personal income tax. Its results are reflected only in the form of No. 1DF in columns 4a The sum added naloga and 4 The sum of the listed tax. In them privodyatsya the actual sums of the added (withheld) tax taking into account results of recalculation.
So, if recalculation was carried out in December, its results will be reflected in indicators of the specified columns for IVkvartal of 2007 – they increase (decrease) by the sums of the revealed underpay or a personal income tax overpayment.
If recalculation is made in January or February of this year, its results will be reflected in indicators of these columns for Ikvartal of 2008.
It is possible to put to a No. 1DF form explanatory zapisku with results of recalculation.
In accounting these results are reflected by conducting of Dt 661 – Kt 641:
• at a nedouderzhaniye – for the sum donachislenny naloga;
• at an overpayment – for the sum unduly withheld naloga a method "storno".
Conditional examples
The most widespread case of "passing" payments is grant charge on a neyotrudosposobnost leaf.
It speaks that often workers hand over bolyyonichny in accounts department after charge of a salary for reporting month.
Example 1
(recalculation of "passing" payments)
In November, 2007 to milkmaid Zaporozhets M.I. (identifiyokatsionny number 1234567890) are added bolnichyony in the sum of 500 UAH., from which 200 UAH. fall on October, 2007 Besides, for nady milk to it the salary for October – 670 UAH is added., for November of-650 UAH. As the widow the worker has the right to poyolucheny NSL at a rate of 300 UAH. in a month.
In December the recalculation, given about which privedeny in tab. 1 is made.
Table of 1 UAH.
The order of reflection of recalculation for IVkvartal of 2007 is presented in a No. 1DF form fragment. Let’s say in December Zaporozhets M.I. is added a salary in the sum of 900 UAH., the personal income tax – 131,55 UAH is withheld. Thus the salary stands out in due time.
Filling f. No. 1DF
for IVkvartal of 2007.
(fragment 1)
Example 2
(recalculation in case of mistake correction)
To the chairman of FH Fesenko P. I. (identifikatsiyoonny number 3102456789) for 2007 was charged the income at a rate of 700 UAH. in a month. At personal income tax deduction it decreased by the sum straxovyxvznosov in PF and NSL at a rate of 200 UAH. In the end of the year from the Letter of No. of 7720 FH it became known that to the income of members of an economy NSL and the sum doxoda isn’t applied doesn’t decrease by insurance fees.
In December personal income tax recalculation, its results otrazheny in tab. 2 and a No. 1DF form for the IV quarter 2007 is made.
Table 2 (UAH.)
Filling f. No. 1DF
for IVkvartal of 2007.
(fragment 2)
Example 3
(recalculation of the indexed income)
Employee of agricultural enterprise Ivaschenko I. I. (idenyotifikatsionny number 1357986420), employed in August, 2007, has the right to the general NSL. Its official salary – 730 UAH. in a month.
Table 3 (UAH.)
In December to it 772,04 UAH are added., including the indexation sum for November – 12,50 UAH., December of-29,54 UAH.
In December, 2007 recalculation of the income and the personal income tax which results are given in tab. 3 and a No. 1DF form for IVkvartal of 2007 was made.
Filling f. No. 1DF
for IVkvartal of 2007.
(fragment 3)
List of documents
1. The law No. 889 – the Law of Ukraine from 22.05.03 of No. 889-IV About a tax on the income of individuals.
2. An order No. 2035 – the Order of submission of documents and their structure at application of a tax social concession, utverzhyodenny the resolution KMU from 26.12.03 of No. 2035.
3. The letter No. 3059 – GNAU letter from 18.02.05 of No. 3059/7/17-3117.
4. The letter No. 3146 – GNAU letter from 15.04.05 of No. 3146/6/17-3116.
5. The letter No. 5107 – GNAU letter from 03.05.06 of No. 2635/7/17-0215/5107/17-0216.
6. The letter No. 7720 – GNAU letter from 25.04.06 of No. 7720/7/17-0717.
(On Balans-Agro newspaper materials).