Almost all taxes, levies and contributions will need to be transferred to a single date to a special account. How the new system of payments and reporting is arranged, we will tell in the review.

 

SUMMARY:

  • all taxes and social contributions, but for the exceptions described below, will be paid to the unified tax account (UTA);
  • the tax authorities themselves will offset the unified tax payment (UTP) against current tax liabilities (distribute the amounts received to UTA by type of tax);
  • the deadlines for submission of tax returns, calculations have changed (the reporting date will be unified – the 25th day of the month);
  • a single date for tax payments and social contributions has been introduced – the 28th day of the month;
  • a new obligation has appeared – to submit a notification of tax calculated if the tax is paid before the deadline for submission of a tax return/calculation or without a tax return/calculation.

 

UNIFIED TAX ACCOUNT AND UNIFIED TAX PAYMENT

As of January 1, 2023, all taxpayers in Russia (both legal entities and individuals) will switch to a so-called “unified tax account” (UTA). The UTA is not a bank account, but a special internal account with the Federal Tax Service, which will be opened for every organization and individual with a tax number.

The payment of almost all taxes, advance tax payments, social contributions, late fees, fines, and fees can then be made exclusively by transferring a “unified tax payment” (UTP) – as before to the bank account of the tax administration. Currently, an individual “budget classification code” (“KBK”) must be provided for each individual tax payment. Thus, the change in the law will result in simplification for taxpayers.

The UTA, which will function from January 2023, will show the tax administration both all transfers to the account and all liabilities of the taxpayer – i.e. the total amount of taxes, prepayments, insurance premiums, fees, penalties, interest and fines that the tax authority has determined.

The following are transferred as the UTP:

  • corporate profit tax,
  • VAT,
  • personal income tax,
  • social contributions. The exceptions are contributions for injuries. They are transferred to the Social Fund of Russia, created on the basis of the Pension Fund and Social Fund,
  • property tax,
  • land tax,
  • transport tax,
  • excises etc.

Companies may transfer UTP to their UTA either as a lump sum or in several instalments throughout the year. The main condition is to have time to make the payment (part of it) before the due date of this or that tax.

When transferring UTP, a company must indicate only the amount of payment and personal tax ID in the payment order. Both payers themselves and any third parties will be able to make a single payment to their account. Money will be accumulated in the account and debited as specific taxes are due. The tax authorities will calculate and set off the necessary part of the single tax payment against the payment of a particular tax. Offsetting the payment against taxes and contributions is performed in the following sequence of payment obligations:

  • arrears (starting from the earliest date of its detection),
  • taxes, advance payments on taxes, fees and insurance premiums (starting from the date of the obligation to pay them on the basis of tax declarations, calculations and notifications),
  • penalties,
  • interest.

Money transferred to a UTA and exceeding the total amount of due taxes may be at any time either refunded or offset against the payment of taxes of another person at the request of the taxpayer. The refund shall be made within one month of the date of receipt of the relevant application from the company, and the decision on the refund shall be made by the tax authorities within 10 days of its receipt.

The tax authorities will determine the open balance of the UTA as of January 1, 2023. Overpayments for which the time limit for refunding has been missed and any uncollectible arrears should not be taken into account.

Instead of the standard reconciliation, certificates may be requested from the tax authorities about the following:

  • the existence of a positive, negative, or zero balance of the UTA,
  • belonging of money transferred as UTP,
  • fulfillment of obligation to pay taxes, fees, penalties, fines, interest.

 

SINGLE PAYMENT DEADLINE

The deadline for most taxes and contributions to the UTA is the 28th of the month.

The most significant change has affected personal income tax. According to the new rules, its due date is not tied to the type of payment from which the withholding was made.

The tax, which was withheld from the 23rd of the previous month to the 22nd of the current month, must be paid no later than the 28th of the current month.

The exceptions are December and January. In December (for the first time in 2023) PIT must be remitted twice:

  • no later than December 28 – the tax withheld for the period from November 23 to December 22,
  • no later than the last working day of the year (December 29 in 2023) – the tax withheld for the period from December 23 to December 31.

PIT withheld for the period from January 1 to January 22 should be transferred no later than January 28.

 

SINGLE DEADLINE FOR SUBMITTING REPORTS

The deadline for tax and insurance contributions reporting is the 25th of the month.

So, for example, the calculation of social contributions for 2022 must be submitted no later than January 25, 2023.

The frequency of submitting reports does not change.

 

NEW REPORTING: NOTIFICATION OF TAX CALCULATED

For taxes, contributions and advance payments which are paid before or without filing a declaration, it is necessary to submit a notification of the calculated amounts. The deadline is no later than the 25th of the month of payment.

There is a special deadline for notification of personal income tax, which will be withheld from December 23 to 31 – the last working day. Thus, in December 2023 with regard to personal income tax must be sent two notices: one no later than December 25, and the second – up to and including December 29.

In 2023, an organization or individual entrepreneur has the right to submit a payment order instead of a notification. The inspectorate must unambiguously identify the budget to which the funds are sent, the date of payment and other necessary details. The rule ceases to apply as soon as a taxpayer submits a notification for the first time.

 

WHAT YOU NEED TO DO

We recommend that you do reconciliations for all taxes as soon as possible to make sure that the company data is up-to-date and that the initial balance of the UTA is formed correctly.

KBK Accounting is ready to help with the practical application of the new rules, in particular with confirming overpayments and reconciling the opening balance of the unified tax account.