A new monthly report is being introduced (SZV-TD).
The Information on Employee’s Working Practice report, containing data on the employee’s working practice will need to be submitted until the 15th day of the month following the reporting month.
Companies with 25 or more employees will submit the report signed by an enhanced encrypted and certified digital signature in electronic form.
Companies with up to 25 employees are allowed not to submit the report in electronic form. For failure to submit, delay in the submission of the information, as well as for unreliable information, administrative liability will be introduced, up to RUB 50,000 (for companies) and up to RUB 5.000 (for individual entrepreneurs).
The deadline for 6-NDFL and 2-NDFL will change.
Now, 2-NDFL certificates with attribute 1 and 6-NDFL annual report will need to be submitted a month earlier than in 2019, i.e. no later than 01 March of the year following the reporting year. The deadline for 2-NDFL certificate with attribute 2 remains the same, i.e. no later than 01 March of the year following the reporting year (clause 5 article 226 of the Tax Code of the Russian Federation). In 2020, until 02 March 2020, adjournment from 01 March.
A company will be able to pay the personal income tax for an employee in case of additional tax charge by results of a tax inspection.
If the tax inspection reveals errors in withholding the personal income tax, the company will be able to pay the personal income tax for the employee from its own funds upon additional tax charge.
If the employee continues to be employed by the company, it may avoid a fine if it finds an error itself, withholds additional personal income tax, among other things, for the previous year (Letter of the Federal Tax Service No. BS-3-11/4119@ dated 24 April 2019), pays arrears and penalties (for the entire delay) for the tax and files adjusted 2-NDFL and 6-NDFL returns.
If the employee leaves the company, the company will not be able to withhold and to transfer the additional personal income tax to the budget. It is necessary to file adjusted 2-NDFL and 6-NDFL returns, inform the Inspectorate of the Federal Tax Service and the employee that it is impossible to withhold the personal income tax. The company will pay a fine of 20%.
List of Income Types Exempted from the Personal Income Tax
The list of payments not subject to the personal income tax has been defined more precisely and expanded. It includes:
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payment for travel to the holiday destination and back for employees working in the North and their family members;
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compensation for an extra day of rest for contract servicepersons;
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annual payment to donors with the Honored Donor of Russia award pin (payments under Law No. 125-FZ dated 20 July 2012);
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additional days-off granted for caring for the disabled children in accordance with article 262 of the Labor Code of the Russian Federation;
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lump-sum compensation payments to public health care workers of no more than RUB 1,000,000 under the state program, and lump-sum compensation payments to public health care workers under article 51 of Law No. 326-FZ dated 29 November 2010;
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payments to citizens exposed to radiation as a result of the disaster at the Chernobyl Atomic Electric Power Station, tests at the Semipalatinsk test site, the Mayak accident and waste dumping into the Techa River;
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income gained by veterans, Heroes of the Soviet Union, Heroes of the Russian Federation, Full Cavaliers of the Order of Glory, Heroes of Socialist Labor, Heroes of Labor of the Russian Federation and Full Cavaliers of the Order of Labor Glory;
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income in specie and in kind gained by citizens due to the birth of a child. The exemption shall apply to payments in accordance with enactments of the Russian Federation, acts of the President, acts of the Government, laws and other acts of regional authorities.
New Headcount Limit for Filing Electronic Reporting
From 01 January 2020, the headcount limit will be reduced for 2-NDFL certificates, 6-NDFL annual reports, insurance contributions calculations to 10 persons in hard copy and more than 10 persons in electronic form. In 2019, the limit is up to 25 persons in hard copy and more than 25 persons in electronic form.
Other changes:
