Clients of the advertising agency WISE. PROMO often ask the question of how to calculate taxes correctly when holding promotions. This question is not easy and really requires a careful study of the Russian tax code. We have tried to write an article that will answer most of these questions. The article is an overview of tax legislation as applied to advertising campaigns and is devoted to the peculiarities of calculating personal income tax when issuing prizes in the prize draw. Examples are considered.
Individual income tax when issuing rewards to participants in shares
According to the Tax Code of the Russian Federation, when registering a prize in shares, each winner must pay taxes on income of individuals. faces. To date, the tax rate is 35% of the prize price if it is received by a citizen of the Russian Federation, or 30% if the reward is received by a foreigner.
The current formula for calculating personal income tax from a prize in a promotional event with a drawing of prizes for residents of the Russian Federation is as follows:
Personal income tax=(Win minus 4 thousand rubles) X 0, 35
1. In the event that the prize is cheaper than four thousand
In the tax code, there is a tax deduction for prizes receivedan individual, which is 4'000 rubles. per year.
If you win at a cost of less than four thousand rubles. You will not need to pay income taxes, because the aforementioned deduction is in effect (paragraph 8, clause 28, article 217 of the tax code of the Russian Federation).
For the promotional event organizer in this option:
- no need to calculate personal income tax from an individual (clause 28, article 217 of the Russian tax code);
- no need to send information regarding the income of an individual to the tax office (Letter of the Ministry of Finance of the Russian Federation dated 2010-20-07 N 03-04-06 / 6-155).
However, if the total winnings during the year exceeded 4,000 rubles, then you will need to pay personal income tax on the amount of winnings minus 4,000 rubles, as is always done for all prizes worth more than 4,000 rubles. (Item 2.).
2. In the event that the prize is worth more than four thousand rubles
According to the Tax Code of the Russian Federation, if the value of the prize is over 4,000 rubles, the recipient will be required to pay income tax. The tax is 35% of the cash equivalent of the gift with a deduction of 4'000 rubles for residents of Russia and 30% if the winner is a resident of any other country.
Often the organizers of the action take the responsibility and pay personal income tax for each winner. However, in the event that, under the terms of the promotion, the organizer does not assume the function of a tax agent, the tax on the income of an individual with a prize worth more than 4,000 rubles, the participant must pay personally and report this to the Federal Tax Service.
Further, two options are considered - the first, if the organizer of the action is not a tax agent or,if he is a tax agent in the stock.
If the organizer of the marketing campaign is not a tax agent
Organizer:
- provides the participant with a certificate of winnings (paragraph 3 of Article 230 of the Russian Tax Code);
- no later than the end of January of the year following the year of receiving the prize, sends a 2-NDFL certificate to the Federal Tax Service, stating that income tax has not been withheld (clause 5, article 226 of the Tax Code of Russia).
Based on the application of the organizer of the action, the inspectorate will send a notice on the income tax of an individual to the winners.
Winner:
- no later than April 30, following the year of the prize, sends a declaration in form 3 of the personal income tax (paragraph 3 of article 228 of the Tax Code of the Russian Federation);
- no later than July 15 of the year following the year of receiving the winnings, pays income tax (clause 4 article 228 of the Russian tax code), which is equal to 35% (clause 2 article 224 of the tax code of Russia). But if the prize goes to a non-resident, then cash income of more than 4,000 rubles is taxed at a rate of 30% (clause 3, article 224 of the tax code of Russia). This profit must also be reported to your own tax office.
If the promoter is a tax agent
Usually, the organizers of the promotions lay down the tax in advance, thanks to which the winner receives the cash prize in full and does not worry about paying the tax, thus the organizer assumes the functions of a tax agent and pays all the necessary taxes for the participants.
In this case:
- the organizer takes away the income tax of an individual fromthe amount of financial income is more than 4 thousand rubles. (Clause 4, Article 226 of the Russian Tax Code);
- no later than April 1 of the year following the year of issue of the winnings, sends 2 personal income tax to the tax certificate indicating the profit of the individual. person and tax (clause 2, article 2З0 of the Russian tax code).
If the organizer pays the tax for the winner, he must do it within 2 days.
In order to pay tax according to the tax code of Russia for a participant, these documents will be required:
- the act of transferring the prize (if the prize is not money);
- copies or scans of each page of the winner's passport;
- SNILS
Consider an example:
What tax will the organizer need to pay if the participant receives a cash prize worth 100,000 rubles?
Note that the tax must certainly be withheld from the taxpayer, and not taken from your own budget. That is why the organizer often deliberately increases the prize fund by the cost of the tax: the cash prize consists, firstly, of the part that is given to the winner himself (in our example, this is 100,000 rubles), and in addition to this, the conditional part that the organizer pays to the budget as a tax.
At the same time, the organizer writes in the conditions that he assumes the functions of a tax agent and will pay tax on the income of an individual for the winner of the prize draw.
As a result, the participant receives 100,000 rubles "net", that is, after paying personal income tax.
According to the law, winnings in the lottery for a resident of the Russian Federation are taxedwill be a rate of 35% after deducting 4'000 rubles. In order to pay the tax and give the winner exactly 100,000 rubles, the organizer must declare a prize fund of 151,692.31 rubles. This is the tax base.
Then:
- The participant will receive 100,000 rubles "clean";
- According to the tax code of Russia, the organizer pays income tax in the amount of 51692.31 p. (at a rate of 35% of the winnings, which in our case is equal to the taxable base, or in other words from 151,692.31 rubles)
Thus, the organizer has to pay more than half of the net price of the prize received by the participant in the form of personal income tax if he acts as a tax agent in the promotion and wants to save the winner from paying taxes.
Expensive, isn't it?
Let's write final formulas for personal income tax in an advertising lottery with a winning price of more than 4 thousand rubles:
For a prize-winner - a resident, if he did not use the deduction of 4 thousand rubles
INCOME TAX FOR THE WINNER=7/13 X (CLEAN IN HAND - 4 thousand rubles)
For the winner - a resident who used the deduction of four thousand rubles INDIVIDUAL INCOME TAX PER PARTICIPANT=7/1Z X NET PRIZE
For the winner - non-resident
NDFL PER WINNER=W/7NET PRIZE
We hope that our article answered your questions about the taxation of prizes in advertising.
The article was prepared by a specialist of the advertising agency WISE. PROMO.
