In this article the order of charge, the taxation and reflection in accounting of payment of dividends is stated.
TAXATION
At the beginning of a year many agricultural enterprises (as pravilo, economic societies) pay dividendy to participants (owners) following the results of proshyoly year.
In this consultation we will consider an order vyplaty dividends to participants (residents).
What is the dividends and on what their size depends
The most exact and complete definition of dividends is given in P (C) BU 15, and also in item 1.9 of the Law on profit.
Dividends – it is a part of net profit a predpriyayotiya distributed between participants (sobstvenyonik) according to their share in own capital of the enterprise.
The profit calculated by rules of accounting is subject to distribution.
The size of dividends of participants (owners) zavisit from a share of their participation in economic society and from the sum of the profit directed on payment dividendov (the item of Art. 10 of the Law No. 1576).
The exception is made by owners of privilegiroyovanny actions on whom dividends can vyplachivatsya in the fixed size to their nominalyyony cost.
It is necessary to take into consideration: if at a predpriyoyatiya there is a tax duty and its property naxoditsya in tax pledge, pay dividends the enterprise can only after coordination with taxing authority (Law No. 2181 subitem 8.6.1).
Let’s notice that farm profit, rasyopredelenny between his members it is proportional to their labor participation, isn’t dividends.
Let’s present in table 1 order of definition razmera dividends to founders of JSC Urozhay at an usyoloviya that the sum of profit directed on payment of dividends for 2006, makes 50 000 UAH.
Table 1
Documentary registration of payment of dividends
The basis for payment of dividends is resheyony general meeting of founders which should be fixed in the protocol (the item "d" of Art. 41 of Zakoyon No. 1576). In it is mute information should to contain:
• about an order of distribution of profit and the sum dividendov;
• terms, order, forms (monetary or nedenezhyony) their payments, etc.
According to the meeting protocol rekomenduyoy to issue the order (the written order) a ruyokovoditel about charge and payment of dividends to participants.
Profits tax
The taxation of dividends is regulated by item 7.8 of the Law on profit.
The requirements provided by this point, in particular, the following:
• at payment of dividends the enterprise – the issuer of the corporate rights is obliged to add and pay in the budget an advance contribution on the profits tax on a rate of 25 % from the sum of dividends (subitem 7.8.2 of the Law on profit). And the sum of dividends doesn’t decrease by the sum of an advance contribution, that is the contribution is charged over dividends;
• the advance contribution is transferred into the budget to or at the same time with payment of dividends nezavisimo from that, is such enterprise a platelyyoshchik of the profits tax or not;
• if dividends stand out in a non-monetary form, base for charge of an advance contribution is the cost of such delivery calculated at the obychyony prices (to subitem 7.8.2 of the Law on profit).
Advance contribution on the profits tax not uplachivaetsya in cases of payment of dividends, in particular:
• in the form of actions (shares, shares). Thus not izmenyaetsya a ratio of shares of shareholders (participants) in authorized capital (subitem 7.8.5 of the Law on profit);
• on preference shares (at payment of the fikyosirovanny size of dividends or in the sum bigger, than the sum calculated on other akyotsiya which are let out by the same society).
Such dividends are assessed with the profits tax as a salary, and join in structure of valoyovy expenses of the payer of the profits tax (subitem 7.8.7 of the Law on profit).
Also the advance contribution on the profits tax by the enterprise, the main part of the income koyotory isn’t paid (more than 90 %) it is received in the form of dividends which are paid by legal entities (rezidentami) and are under its control according to item 1.26 of the Law on profit.
Advance contribution at payment of dividends by the payer of the profits tax
The advance contribution on the profits tax, paid in connection with payment of dividends, is a part etogo a tax (subitem 7.8.8 of the Law on profit).
The enterprise – the payer of the profits tax reduces the accrued tax sum on pribyl by the sum of an advance contribution in that reporting period in which dividends (are paid to subitem 7.8.3 of the Law on profit).
If the sum of an advance contribution appears bigger, than the accrued tax sum, a difference is transferred to reduction of the tax obligations of future nayologovy periods (subitem 7.8.4 of the Law on profit).
The sum of an advance contribution is reflected in p. 13.5 of priyolozheniye K6 to the declaration on the profits tax:
• in p. 13.5.1 – a part of the sum which belongs on reduction of the sum of the profits tax in the reporting period;
• p. 13.5.2 – the rest of the sum of an advance contribution, koyotory is postponed to future reporting periods;
• p. 13 – total amount by which the tax obligations decrease.
The same sum is reflected in declaration p. 13.
Advance contribution at payment of dividends by the payer of FSN
According to the Law on FSN (Art. 9 item 4) payers of FSN aren’t released from action of item 7.8 of the Law about pribyli, regulating the taxation of dividends.
Thus, the enterprises – payers of FSN at payment of dividends are also obliged to charge and pay an advance contribution on the profits tax.
Thus such enterprises have no right umenshat the obligations on FSN for the sum avansovogo a contribution.
GNAU recommends to payers of FSN, vyplachivayuyoshchy dividends, to represent the declaration on the profits tax quarterly and to fill p. 20, in koyotory the advance contribution (Letter No. 10017) is reflected.
PERSONAL INCOME TAX
The enterprises charging dividends to individuals, are tax agents and are obliged uderzhat by the personal income tax on a rate of 15 % (till 01.01.07 – 13 %).
Thus it is necessary to consider the special norms provided by item 9.3 of the Law No. 889.
So, according to Law No. 889 subitem 9.3.5 the income, poluyochenny in the form of dividends, is subject to a final nayologooblozheniye at their payment at their expense.
If the enterprise issuer charges dividends in the form of the stocks issued by it (a share, shares), but thus such charge:
• doesn’t change proportions (shares) of participants in usyotavny fund (capital) of the issuer;
• increases an authorized capital of such issuer by soyovokupny par value of the added dividends, such dividends don’t join in structure of the naloyogooblagayemy income (Law No. 889 subitem 4.3.17).
The enterprise paying dividends to fizichesyoky persons, should present tax organu tax calculation about the added dividends (Law No. 889 subitem 9.3.3), which form utverzhdena the Order No. 586.
Tax calculation is represented in time, opredelenyony for the monthly reporting (within 20 kalendaryony days upon termination of reporting month).
The sums of dividends on each recipient and the personal income tax withheld at charge of dividends, otrazhayutsya also in the form of No. 1DF with signs of the income (Poyoryadok No. 451):
12 – assessed personal income taxes dividends (subitem 4.2.12 and Law No. 889 item 9.3);
34 – not assessed personal income taxes dividends (subitem 4.3.17 of the specified Law).
Using these tables 1 (dividends to fizichesyoky persons), we will give the filled fragment of naloyogovy calculation for March, 2007 which neobxodimo to present in taxing authority till April 20 of the current year.
Fragment
(…)
Podatkovy rozrakhunok of the resident, shho viplachu ye dividendi to carpenters podatka z doxodiv f_zichny ocib
Odinicya vimiru: grivnya
Accounting of dividends
For calculations with participants (founders) according to dividends in accounting of the enterprises subaccount 671 Calculations for the added dividends is used. On the credit of subaccount 671 charge of dividends, and on the debit – their repayment (payment), including a reinvestirovaniye of the income (by Dt 671 – Kt 40) is reflected.
Example
JSC Kolos is the payer of FSN.
At general shareholder meeting in March, 2007 dividends in the sum of 70 000 UAH are declared. Number of common shares in the address for date of the announcement of dividends – 10 000 pieces. Founders of this joint stock company – individuals. Dividends pay money from joint stock company cash desk in March of the current year.
Same month are transferred into the budget:
• the advance contribution on the profits tax makes 17 500 UAH. (70 000 UAH. x 25 %);
• The personal income tax – 10 500 UAH. (70 000 UAH. x 5 %).
Let’s present reflection in the accounting of such operations in tab. 2.
Table 2 (UAH.)
Reflection of dividends in financial statements
In financial statements dividends are reflected in a sleyoduyushchy way:
• in the form of No. 1 "Balance" of p. 590 The current obyayozatelstvo by calculations with participants and forme No. 1st "Balance" of p. 610 Other current obligations is reflected debt to uchreyoditel (participants) in connection with the raspredeleniyoy arrived (added and unpaid dividendy);
• to a form No. 2 The report about financial rezultatax p. 180 The profits tax from a usual deyoyatelnost – the advance contribution paid by payers of FSN (in an example it makes 17 500 UAH.);
• in p. 340 Dividends on one common share – the indicator calculated by division of the sum of declared dividends on number of common shares on which dividends (zapolnyayut only are paid to joint stock company). This indicator is equal in an example of 7 UAH. (70 000 UAH.: 10 000);
• in the form of No. to the 2nd p. 170 "Profits tax" otrazhaetsya charge of an advance contribution on the profits tax of subjects of small business (payers of FSN and the single tax);
• to a form No. 3 The report on cash flow p. 350 Paid dividends – summy the dividends, paid monetary sredstvami (in an example they make 59 500 UAH.);
• to a form No. 4 The report on own capital p. 149 Payments to owners is provided summa the added dividends (in an example they sostavlyayut 70 000 UAH.).
List of documents
1. The law on FSN – the Law of Ukraine from 17.12.98 of No. 320-XIV About the fixed agricultural tax.
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 No. 1576 – the Law of Ukraine from 19.09.91 of No. 1576-HI About economic societies.
4. The law No. 2181 – the Law of Ukraine from 21.12.2000 of No. 2181-111 About an order of repayment of obligations of taxpayers before budgets and the state specialized funds.
5. The order No. 586 – the order GNAU from 04.10.03 of No. 586 About the statement of a form of tax calculation of the resident which pays dividends to payers of a tax on the income of individuals.
6. An order No. 451 – the Order of filling and representation by tax agents of tax calculation of the sums of the income, the nachisyolenny tax (paid) in favor of payers, and the sums of the tax withheld from them, approved by the order GNAU from 29.09.03 of No. 451.
(On Balans-Agro newspaper materials).