In a material consultation on features and difference is given at taxation of the personal income tax of persons which work in a farm: members of such economy and hired workers.
In this consultation we will consider features and differences at taxation of the personal income tax of persons which work in a farm: members of such economy and hired workers.
In the beginning we will define legal essence of a fermersyoky economy.
Activity of a farm is carried out according to standards of the Law on a farmer hoyozyaystvo.
So, the farm considered the legal entity created for production of commodity selskoyokhozyaystvenny production, its processing and a realiyozatsiya with a view of receiving profit on the ground uchayostka provided to members of an economy according to the law (Law No. 973 Art. 1).
The farm can be created by one citizen of Ukraine or several citizens who are relatives or members of the family.
Who such members of a farm?
As it is defined by Art. 3 of the Law on a farm, spouses, their parents, children (reached 14-year age), other members of the family, relatives, which obedinilis for joint housekeeping can be members of a farm.
Features of work of members of an economy, including farmer, are defined by the legislation and usyotavy a farm (Art. 3 the Labour Code).
According to a standard form of the charter of the farmer hozyayyostvo, the developed Minagropolitika:
• members of a farm admit its uchyoreditel;
• sources of formation of property of a fermersyoky economy (the joint capital) are voluntary introduction of property and denezhyony deposits by members (founders) of an economy;
• labor relations between members of an economy reguliruyutsya also are defined by the charter.
Labor relations in a farm baziruyutsya on the basis of work of members of an economy, and the income of an economy is distributed between his members proyoportsionalno to a labor contribution of each of them (Art. 27 of the Law on a farm).
Compensation of members of an economy is carried out on rezultatam economic activity from profit lodge coverings of expenses, tax payments (collecting, etc. payments) or otherwise according to the arrangement.
Taking into account stated the income received by members of a farm, it is necessary to consider as the income which are paid by the legal entity in connection with distribution of net profit in favor of individuals.
We pay attention: the persons working in can’t be members of a farmer hoyozyaystvo is mute under the truyodovy contract.
Whether has the right a farm to employ in it other citizens, except the members?
By the law on a farm (Art. 27) it is defined that in case of production need the feryomersky economy has the right to employ in is mute other citizens according to the employment contract. Labor relations with such hired persons are regulated by Sootyovetstvenno the Labour Code, the Law No. 108, etc.
The size of a salary of hired workers doesn’t depend on resulting effects of activity of a feryomersky economy and there can not be less than a size of the minimum wage established by a zayokonodatelstvo.
Let’s remind: in 2006 the size of the minimum zarayobotny payment makes:
• since January 1 – 350 UAH.;
• On July 1 – 375 UAH.;
• On December 1 – 400 UAH.
Who can carry out functions of the chairman of a farm?
The chairman of a farm is his founder or other person specified in the charter. Thus the chairman of a farm can charge in writing performance of the duties to one of members of an economy or the person working on the contract (to Art. 4 of the Law on a farm).
Therefore, the chairman of a farmer hozyayyostvo can be as the founder (i.e. one of members of an economy), and the hired person, not being chleyony such economy. The order of the taxation of the income paid in favor of the chairman of a farm depends on it also.
So, the main differences between members of a farm and its hired workers consist in the following:
• labor relations of members of a farm are regulated by the charter, and hired workers – the Labour Code, the Law No. 108 and other standard doyokument developed according to the truyodovy legislation;
• members of a farm receive the income of profit distribution, and the salary is paid to hired workers.
These distinctions between members of farms and his hired workers influence and an order of taxation of the personal income tax of the income paid by a farm.
Order of the taxation of the income
The tax matter of the income paid by a farm to members of an economy, and also to hired workers, it is necessary to consider with ucheyoty standards of the Law No. 889.
So, by item 17.1 of the Law No. 889 it is defined that the person responsible for charge, deduction and payment (transfer) in the budget of a tax on the income in the form of a salary, the employer who pays the income is.
In turn, according to Law No. 889 item 1.15 the yuriyodichesky person (its branch, office, other oboyosoblenny division) which irrespective of its organizational legal status and a way of an obloyozheniye other taxes is obliged to charge, hold and pay the personal income tax in the budget, is defined as the tax agent.
That is the farm is the tax agent at charge and/or payment as income to members of an economy, and a salary to hired workers.
Therefore the farm at charge (vyplate) the income should carry out all functions of the naloyogovy agent, namely:
• to charge, hold and pay a tax in byudzhet from a name and at the expense of the taxpayer;
• to conduct tax accounting and to represent tax accounts to taxing authorities in a No. 1DF form;
• to bear responsibility for violation of standards of the Law No. 889.
At deduction of a tax the rate of 13 %, and since January 1, 2007 – a rate of 15 % is used.
The tax is transferred into the budget at income payment. If the taxable income is charged, but for any reasons isn’t paid, a tax podlezhit to transfer in the budget within a month, sleyoduyushchy charge after a month of such income.
If the income is paid in a non-monetary form or cash from cash desk, the tax is paid in the budget during the bank day following behind day of tayoky payment.
Taxation of the income of members of a farm
Salary – this compensation, nachislenyony, as a rule, in terms of money which according to the employment contract the owner or upolnomoyochenny to them the body pays to the worker for vypolyonenny to them work (Law No. 108 Art. 1).
For application of standards of the Law No. 889 "salary" is understood also as other incentive and compensatory payments which are paid (are provided) to the taxpayer in connection with otnoyosheniye of labor hiring (item 1.1 of the specified Law).
According to item 1 of Art. 3 of the Law on a farmer hoyozyaystvo the person can’t be members of an economy, raboyotayushchy in is mute according to the employment contract (contract).
According to item 2 of Art. 27 of the called Law labor otyonosheniye of members of farms are regulated by the charter, instead of the legislation on work.
From here it is possible to draw a conclusion: the income of members of a feryomersky economy doesn’t fall under the term a zarayobotny payment for application of standards of the Law No. 889, so, personal income taxes in accordance with general practice are assessed.
So, as the income paid by a farm to members of an economy, isn’t a salary, for definition of the taxable income:
• such income doesn’t decrease by the sum of contributions of the Pension fund and funds of obligatory obshchegoyosudarstvenny social insurance, that is the standard of item 3.5 of the Law No. 889 isn’t applied;
• NSL isn’t applied irrespective of the size doxoda the member of a farm.
Taxation of the income of hired persons
As it was already told above, in case of need the farm has the right to involve to rabote in is mute other citizens according to the employment contract (contract).
Taxation of the personal income tax of the income of hired persons, vyplachivayoemy in the form of a salary, is carried out in a sleyoduyushchy order:
• for definition of the taxable income the zarayobotny payment decreases by the sum of contributions of the Pension fund and funds of obligatory nation-wide social insurance (Zayokon No. 889 item 3.5);
• NSL is applied at implementation of requirements of Art. 6 of the Law No. 889 (in particular, if the size of a nayochislenny monthly salary not prevyshaet the sums which is equal to the sum of the monthly proyozhitochny minimum operating for the trudospoyosobny person for January 1 of fiscal tax year, increased on 1,4 and approximated to the next 10 hryvnias). In 2006 such sum is equal 680 UAH. (483 UAH. x 1,4).
If the chairman of a farm works in is mute according to the employment contract, that is isn’t chleyony such farm, taxation of its income is carried out similar to a nalogoobloyozheniye of the income of hired workers.
Reporting
The income paid both to members of a farm, and to hired workers, a farm – the employer surely reflects in tax calculation f. No. 1DF. Thus paid income is reflected with a sign of the income 01.
List of documents
1. The Labour Code – the Labor code of Ukraine from 10.12.71 of No. 322-VIII.
2. The law on a farm – the Law of Ukraine from 19.06.03 of No. 973-IV About a farm.
3. The law No. 108 – the Law of Ukraine from 24.03.95 of No. 108/95-BP About compensation.
4. The law No. 889 – the Law of Ukraine from 22.05.03 of No. 889 About a tax on the income of individuals.
(On Balans-Agro newspaper materials).