Changes in statements

SELECTION OF TAX AUTHORITY FOR REPORTING AND PERSONAL INCOME TAX PAYMENT

The new procedure will affect only separate divisions (SDs) within one municipality.

To pay personal income tax and submit reports on a centralized basis, an entity is obliged to notify about it all the tax offices, in which SDs are registered, not later than 11 January 2021.

If an entity and several of its SDs are located within the same municipality, then from 01 January 2021 personal income tax may be paid and 6-NDFL calculations and 2-NDFL certificates may be submitted to:

• either the tax authority at the location of a SD, chosen by the entity itself (the SD in charge);

• or the tax authority at the location of the entity.

Federal Law No. 325-FZ dated 29 September 2019

New 6-NDFL Form

1. A new 6-NDFL form must be used starting from reporting for Quarter I of 2021.

2. In 2021, the 2-NDFL certificate which used to be generated by the employer for each employee on an annual basis is canceled.

3. The year 2020 is the last reporting period for which the 2-NDFL certificate must be submitted to the tax authority; the submission deadline is 01 March 2021.

4. A certificate of personal income and tax amounts (currently, 2-NDFL) is now included as an appendix to the calculation as per the 6-NDFL form.

5. The order also approved the form of an income statement which is issued to the employee.

Order of the Russian Federal Tax Service No. ЕД-7-11/753@ dated 15 October 2020

P-4 Statistical Reporting

The order of the Federal State Statistics Service amends the rules for completing a number of statistics reporting forms from 2021.

In particular, adjustments have been made to the statistics reporting form P-4 Information on the Number and Wages of Employees.

1. If during the reporting period an entity changes its actual place of business, information on indicators for the period from the beginning of the year is given from the start of operations in another constituent entity of the Russian Federation.

2. In the categories of employees included in the calculation as whole units, pregnant women who are discharged from work until they are given another job should be taken into account.

3. If the date of a civil contract which provides for a specific period of work does not match the date of work commencement, then the validity period of such a civil contract will be the period of performing the specified objectives. 

Order No. 706 of the Federal State Statistics Service dated 17 November 2020

Procedure for Blocking Bank Accounts for Late Reporting to the Tax Authorities

1. The period of delay in submission of returns (calculations) has been increased from 10 to 20 days; upon expiry of this period the tax authorities may “freeze” a taxpayer’s bank account.

2. Tax officers will have the right to notify entities that have failed to submit a return (calculation) on time about the upcoming freezing of their bank accounts.

3. The deadline for such notification is not later than 14 working days before the decision to block is made.

The amendments will take effect on 1 July 2021.

Federal Law No. 368-FZ dated 9 November 2020 On the Amendments to Part 1 and Part 2 of the Tax Code of the Russian Federation

NEW FORM OF INSURANCE PREMIUM CALCULATION (RSV)

The updated RSV form will apply starting from the calculation for 2020.

1. Data on the average number of employees should be indicated on the title page.

2. Additional codes of the payer’s rate are set:

• 20 – for SMEs

• 21 – for those who are subject to a zero rate of insurance premiums for the second quarter of 2020

• 22 – for payers engaged in developing and designing electronic component base products and electronic (radio-electronic) products. This code will be required for reporting for the first quarter of 2021.

3. The following categories of insured persons have been added:

• MS – persons for whom the SME shall calculate premiums based on the part of payments and remuneration that exceeds MSW

• KV – persons insured in the Compulsory Pensions Insurance system at a zero rate of insurance premiums

• EKB – persons whose earnings and remuneration are subject to insurance premiums at the rate applicable to radio-electronics manufacturers.

4. Starting from reporting for Quarter 1 of 2021, new Appendix 5.1 will have to be filled out (for IT companies and radio-electronics manufacturers).

In Appendix 5.1, entities will indicate the Payer Code:

• «1» – IT company

• «2» – Radio-electronics manufacturer 

Order of the Russian Federal Tax Service No. ЕД-7-11/751@ dated 15 October 2020

Presenting the Average Number of Employees in the RSV Form

Order of the Russian Federal Tax Service No. ЕД-7-11/752@ dated 15 October 2020 cancels the form for submitting information on the average number of employees for the preceding calendar year to the tax authority. Previously, the form was submitted as a separate report at the end of each year not later than 20 January.

In the new form of the Calculation of Insurance Premiums, information on the average number of employees should be given on the title page.

The amendments will take effect on 1 January 2021 and will apply to the calculation of insurance premiums for 2020 onwards.

New 4-FSS Form

Due to the transition to direct payments to the Federal Insurance Fund from 2021, it is planned to use the new 4-FSS form for insurance premiums relating to “accidents at work”.

Tables concerning information about the employer’s expenses have been removed from the 4-FSS form.

A table has been added to the 4-FSS form for the employer to indicate the classification units, if any. The table is not mandatory for all employers to fill out and submit.

The new 4-FSS form will apply from Quarter 1 of 2021.

Draft Order of the Social Insurance Fund On Approval of the Form for Calculation of Assessed and Paid Insurance Premiums for Compulsory Social Insurance Against Accidents at Work and Occupational Diseases (Form 4-FSS) and the Procedure for Form Completion

Other changes

New KBK codes for PIT payment at the 15% rate, penalties and fines

New budget classification codes (KBK codes) were approved for the payment of personal income tax calculated at the rate of 15%, penalties and fines:

• amount payable, reassessment, tax arrears     182 1 01 02080 01 1000 110

• penalties                                                               182 1 01 02080 01 2100 110

• fines                                                            182 1 01 02080 01 3000 110

Order of the Ministry of Finance No. 236н dated 12 October 2020

Key rate of the Bank of Russia

The Bank of Russia Board of Directors resolved to keep the key rate at 4.25%.

The key rate is used to calculate compensation for late payment of wages and penalties on personal income tax and insurance premiums.

If the rate changed during the period of delay, then different key rate values should be used for the calculation.

Communication dated 23 October 2020