Tax liability: down payment

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Tax payments are an integral part of our lives. There are many nuances in this area, for example, when drawing up a declaration, establishing a temporary payment procedure, and so on. Literacy in these matters will help to avoid many unpleasant situations, so it would be nice to consider what an advance payment means. This concept, at first glance, does not seem so complicated, but there are several points that would be useful to know.

Advance payment concept

Advance payment in taxation is the amount of fees for certain activities, property and so on. The terms of payments and the procedure for deductions of preliminary payments of duties are determined by Article 287 of the Tax Code of the Russian Federation.

It may be noted that there is a choice of method for pre-payment of duties on income. So, the accountant has the right to calculate the amounts from accounting for actual income for the past period or to pay fees, the amountwhich is determined based on the constant values of income and expenses of the previous year.

Types of advance payments

Regardless of the form of the taxation system (simplified or basic), this type of payment is mandatory. Conventionally, several types of this concept can be distinguished:

• Deductions for profit. These amounts can be paid monthly or quarterly. In this case, in the first case, payments must be made no later than the 28th day. Payment of advance payments for income tax is made quarterly for 3 months, for half a year or for 9 months. For the last period, no payment is made, and the fees accrued during this time are entered into the general annual report. At the same time, all payments are recalculated, and if the income is actually higher than the advance fees accepted when deducting, an additional payment is made. If the difference is negative, the state (tax authorities) will refund.
• Advance payments on land tax. The deduction process can also be carried out at the end of each quarter and generally at the end of the year.



• Customs duties. Here you can also make payments in advance, this type of payment is relevant for the constant import of goods. In this case, you can make an advance payment to the account of the customs organization, and when submitting a declaration, employees will write off the required amount from the funds contributed. It is believed that this is very convenient - it is not necessary every timego through the payment process and so on. However, in practice there are some negative aspects of prepayment. For example, customs may delay the payment of advance duties, and in some cases this structure has the right to write off these funds to the federal budget. This can happen in situations such as the wrong choice of the method of disposing of advances, the absence of a statement from the person who deposited the funds, and others.
• Excise payments. This type of taxation is also referred to as advance fees put into effect by amendments to Chapter 22 of the Tax Code of the Russian Federation dated July 14, 2011. According to this document, manufacturers must make payments no later than the 15th day of each reporting period. The amount of payments is determined by the total volume of alcohol used in obtaining alcoholic products and excise rates.

Advance payment is considered a convenient way to deposit amounts for tax purposes. This method of calculation saves time and facilitates the preparation of accounting documentation.