What are dividends? Income from securities: calculation and taxation

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

Dividends are part of the profit that is distributed among the founders. Calculated per share. The paid profit is distributed in proportion to the number of securities owned by a particular person. The entire process associated with the accrual and calculation of amounts is regulated by Federal Law No. 26 “On Joint Stock Companies.”

Taxation

According to Art. 43 of the Tax Code of the Russian Federation, a dividend is income received by a participant from an enterprise in the distribution of funds that remain after taxation, depending on the type and number of securities.

Dividends do not include payments:

• which are carried out during the liquidation of the enterprise, to the participant in kind, in cash, not exceeding the amount of the shareholder's contribution to the capital;
• in the form of the transfer of ownership of the Central Bank;
• non-profit structure to carry out non-entrepreneurial activities or produced by companies whose capital consists of contributions.

Who is eligible to receive dividends? Income is paid only to security holders.

Types of shares

Security confirms the contribution of an individual to the enterprise and gives the right to receive a share of the profits. Therefore, the capital of a joint-stock company consists of the nominal value of the placed shares. Federal Law No. 26 defines two types of these securities: ordinary and privileged. The share of the latter in the total capital of the organization should not exceed 25%.

All shares are registered, i.e. they are assigned to the owners. When exercising the right of participants to purchase securities sold by another participant, and when consolidating shares, fractional securities may arise. Their accounting is carried out according to the general rules. If a person buys two or more fractional securities of the same type, then they form one whole.

Ordinary shares allow their owners to take part in the meeting of participants, vote, receive income in the form of dividends, and in the event of reorganization - part of the property. The amount of payments depends on the financial condition of the organization.

A preferred share gives the owner the right to receive a fixed payment. Its size is set as a percentage of the value of the security. They cannot participate in meetings or somehow influence the activities of the organization. The amount of payment due upon liquidation of the enterprise is regulated by the articles of association. If the organization provides for shares of several types, the charter must also determine the order, timing and amount of payments.

How are dividends calculated?

Income can be paid every quarter, half year or year. The decision on the transfer of funds must be made within the next quarter afterreporting period at the meeting of shareholders. The amount of the payment should not exceed that recommended by the board of directors. The term and procedure for settlements are determined by the charter. If these conditions are not spelled out in the document, then the period should not exceed two months from the date of the decision to pay.

Limits

In art. 43 of the Federal Law No. 26 describes the restrictions on payment. In particular, the organization cannot announce the payment of income on the Central Bank:

• until full payment of the UK;
• prior to redemption of securities that are redeemable;
• if on the day of the decision there is a threat of bankruptcy of the enterprise or if it may arise after the transfer of funds;
• if the value of net assets is less than his UK, reserve fund, or if such a situation may arise after the transfer of funds;
• if we are talking about the Central Bank, the amount of payments for which is not defined by the charter.

It is also forbidden to pay dividends on preferred shares if the income is not previously paid to holders of ordinary securities. Usually, the decision on payment is made based on the results of work for the year.

How are dividends calculated?

The income payable is determined based on the interest rate:

- %=Profit / UK x 100%.

Example

22 thousand rubles are allocated for the payment of dividends for 2015. The organization's capital is 10 thousand rubles, the nominal value is 20 rubles, the number of securities is 50 thousand pieces.

%=(22: 10) x 100%=220%.

440 rubles per share. (22:50).

BU

Dividends are income that is paid out of net income left after taxes. They can be accumulated in a special reserve fund. Payment is made in cash or other property. Let's consider how the calculation and accounting of income on dividends in the BU is carried out:

• DT84 "Uncovered loss" CT75 "Calculations on the payment of income" - dividends were accrued to shareholders who are not employees.
• DT84 KT70 “Settlements with personnel” – accrued income to employee shareholders.
• DT75 (70) KT68 “Personal income tax settlements” - personal income tax withheld from the accrued amounts.
• DT75 (70) КТ51 (50) – accrual of "net" dividends to shareholders.

Let's consider how income (dividends) paid by property is accounted for:

• DT84 KT75 (70) – accrual of dividends.
• DT75 (70) KT68 - personal income tax withheld from the accrued amounts.
• ДТ75 (70) КТ90 (91 "Other income") - the value of property with VAT, which was transferred to pay off dividend debt.
• DT90 (91) KT68 - VAT included on transferred property.
• DT90, KT43 (41, 20, 26) - the cost of the transferred property was written off.
• DT91 KT01 (10) - the value of assets issued in the form of dividends has been written off.

In the event of liquidation of a JSC, the payment of accrued dividends on all shares, except for ordinary ones, is carried out in the second place, simultaneously with the repayment of the liquidation value of the Central Bank.

Example

Taxation proceduredividends depends on the organization's income from equity participation in other enterprises and on the status of a tax resident of the Russian Federation for an individual.

Let's assume that the company received equity income during the year. The MC consists of 1,000 shares. Of these, 700 pieces belong to Russian enterprises, 50 pieces. - foreign enterprises, 200 pcs. - resident individuals and 50 pcs. - a non-resident individual. The meeting of shareholders decided to pay 100 rubles per share. The organization received dividends in the amount of 10 thousand rubles from a third-party company. The amount to be distributed is: 100 x 1,000=RUB 100,000

Income payable to non-residents is 5 thousand rubles (100 rubles x 50 items). Since individuals and organizations own 50 pcs. shares, then the total amount of the payment is 10 thousand rubles. Accordingly, residents are en titled to 90 thousand rubles. (100 rubles x (700 + 200) pieces).

NU

Taxation of income in the form of dividends received by individuals is regulated by the letter of the Ministry of Taxes of the Russian Federation No. SA-6-04/942. NPP is calculated for a calendar year, and each quarter is considered a reporting period. For enterprises that calculate advance payments every month based on the profit received, the same period is the calculation period. Thus, for the calculation of NPP in the distribution of income for the second quarter of 2015, the reporting period will be six months of 2015, and the previous one - the first quarter of 2015. Withholding tax on dividend income is calculated at the rate of 9%.

Funds to the budget should not be transferredlater than the day the money is received at the bank or the day the funds are transferred to the account. It depends on which of the listed dates came first. If dividends are transferred to a credit institution or sent by postal order, the date of receipt of income is the day of transfer of funds.

Example

In 2015, CJSC received a profit in the amount of 266 thousand rubles. The meeting of shareholders decided to allocate this amount to the payment of income to the founders. The Criminal Code is divided into 100 shares, of which 60 shares belong to the head of the organization, 40 shares. - a non-resident individual. The following transactions are formed in the balance sheet:

- DT84 KT70 - 159.6 thousand rubles. (266: 100 x 60) - dividends accrued to the director.

The amount of personal income tax payable is: 159.6 x 0.09=14.364 rubles.

Wiring:

- DT84 KT75-2 - 106.4 thousand rubles. (266: 100 x 40) - accrued income to a non-resident.

Taxation of non-resident income

If a double taxation avoidance agreement is concluded between the Russian Federation and another country, the tax rate is 9%. If there is no such legislative act, then the amount paid is subject to taxation at the rate of 15%. If the specified act exists, then the tax amount is calculated by the formula:

Personal income tax to be withheld=((Nd: Od) x Od - Pd) x 9%:

• Nd - accrued dividends;
• Od - total payout amount;
• Pd - the amount of dividends received.

Example

In 2015, CJSC received a profit in the amount of 266 thousand rubles. This amount includes $150,000.rub. share income. The meeting of shareholders decided to pay dividends. Income will be distributed between two founders: a director and a non-resident. The first one owns 60 shares, and the second - 40 shares. Consider the entries in the BU:

• DT84 KT70 - 159.6 thousand rubles. (266: 100 x 60) - dividends accrued to the head.
• DT84 KT75-2 - 106.4 thousand rubles. (266: 100 x 40) - dividends were accrued to a non-resident.

The amount of tax payable on the founder's income is calculated as follows:

- 106.4 x 0.15=15.96 thousand rubles

- (266 x 0.6: 266) x (266 - 150) x 0.09=6.264 thousand rubles

NDFL at a rate of 30%

Income taxation at an increased rate is provided only if there is no information about the holders of the Central Bank. Such a situation may arise if the interests of the founders are represented by an authorized person or a depository. All calculations are carried out according to the formula:

NDFL=Dividend amount x 30%.

The tax amount must be transferred within a month from the moment of the occurrence of one of these events:

• end of tax period;
• expiration of the contract under which the agent pays income to the holder;
• payment of funds.

Special occasions

Even if one of the founders is another organization, you still need to withhold personal income tax. The law does not provide for any restrictions in this case. Depending on whether the founder is a resident or not, they are generally taxeddividends.

Income received by inheritance is subject to taxation under special conditions. The object of inheritance is the right to receive funds. Therefore, from the amount paid, it is necessary to withhold personal income tax at a rate of 9% or 15% and transfer them to the budget in a timely manner.

The basis for calculating the tax is the money actually received and the amount of funds that the founders received the right to dispose of. The date of receipt of income is the date of payment. Therefore, the day when the shareholder refused to receive income is considered the date of receipt of funds by the organization. Such amounts are also subject to taxation on a general basis.