KBK - what is it: questions and answers

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

Humanity has always sought to unify the names of its operations, regardless of the field of activity. From this laudable aspiration, various standards, norms, rules, accounting accounts were born. Of particular interest has always been the possibility of unifying budget expenditures and revenues. The state has long strictly regulated all actions in this direction.

In the Soviet Union, paragraphs, sections and articles of budget expenditures and revenues were adopted. The budget reform, which began back in the late 90s of the last century, smoothly led us first to six-digit budget classification codes, and then to twenty-digit ones.

CBK - what is it?

CBK - this is how accountants and financial workers call budget classification codes in their professional jargon. Experts began to actively apply them in the form in which they exist now in the early 2000s. The Ministry of Finance of the Russian Federation approved them by its order and annually adjusts them based on those identified duringimplementation of the budget needs process.

Using CCM

Taking into account the budget classification codes, in accordance with the requirements of the instruction concerning budget accounting, twenty-digit accounting accounts are also formed. Budget classification codes affect both the expenditure and revenue parts of the budget, so experts single out both the BCC of income and the BCC of expenses. With their help, planned assignments of income and expenses are unified and the actual execution of the budget is monitored. Income encodings of the budget classification of an accountant who does not work in the public sector are more simply called the BCC of taxes, meaning not only those types of income that are administered by the tax authorities, but also all mandatory payments to budgets.

CBC taxes

One of the standard questions has always been the following: tax CBC - what is it? The question concerns, perhaps, most of the inhabitants of our country. Almost all of us are taxpayers, so we have to deal with KBK quite often: either when receiving a tax notice, or when filling out documents for the return of part of income tax.

CSC structure

CSC of taxes consists of 20 characters.

The first three indicate the ministry or department that calculates and collects this or that type of payment. This may be not only the tax office, but also, for example, the Ministry of Natural Resources.

From the fourth to the twelfth digits regulate the type of income code. They show the following:

• 4 sign - income group (tax - 1, non-tax - 2). It should be noted that all incomes for which the tax service is responsible are grouped under the number 1, even the state duty, which, by its economic nature, is more likely to be a mandatory payment;
• 5 sign and 6 signs - a subgroup of income, which shows, depending on what base the tax is charged (from profit, from total income, from the value of property in property, etc.);
• 7 sign - 11th sign - items and sub-items of income (more detailed specification of types of taxes depending on the specification of the base);
• 12 sign and 13 sign - show what level the tax should go to the budget - federal, regional or local;
• from 14th to 17th sign - code of income subtypes. It gives the administrator the opportunity, by detailing, to allocate for himself, for example, the payment of the main payment, the payment of pen alties and pen alties;
• 18, 19, 20 - mean the operation code of the general government sector or KoSGU in kbk. What it is? Worth a closer look.

Classification of general government transaction codes and its application

KOSGU has a place in both expenditure and income KBK. Their classification is perhaps the most important, interesting and understandable.

This code is designed to collect operations into groups based on their economic content. Codes can be divided into five main groups, which will then be divided into several smaller subgroups:

• 100 - income;
• 200 - expenses;
• 300 - 400 - transactions with non-financial assets;
• 500 - 600 - operations with financial assets;
• 700 - 800 - operations related to obligations or easier - with borrowings.

Since the most interesting and most commonly used are the CSGS related to income and expenses, it makes sense to consider them in more detail.

So, the enlarged income group is divided into:

• tax revenues (i.e. all taxes are collected here);
• income associated with the state's ownership - land or property;
• income from various kinds of sanctions - fines, compensation for damages, etc.;
• income from paid services - i.e. this includes, for example, a fee for certificates issued by authorities for money;
• receipts from various types of mutual settlements from other budgets - i.e. it can be both gratuitous financial assistance from one level of government to another, or some targeted public funds;
• income from fluctuations in exchange rates. By the way, in case of a loss, they can be negative;
• other income that could not be found in other groups.

Despite the fact that the expenditure part of the budget is described in much more detail, the enlarged group of expenses is divided into only 6 types of subgroups.

The Ministry of Finance instruction is a fairly weighty brochure, which describes in detail all the classifications and their details. Initially, it is somewhat intimidating, but upon closer examination, it becomes clear that CSC is not only not difficult, but also very exciting.