2018

Jan
7

Manual: how to pay taxes trader (3-Personal income tax Declaration)

Kak-zapolnit-i-sdat-deklaratsiyu-o-dohodah-formyi-3-NDFL

If you are actively trading, you have a lot of transactions. If you trade correctly, you get profit. So should this profit to pay tax. When working through a Russian broker, you to do nothing (as a tax agent it will pay for you). But when working through a foreign broker the alignment of a.

Here to calculate the amount of income and serve 3-pit you will be yourself and will have to Declaration to make report. What kind of a report? A report detailing transactions. Tax watches it, to understand, how do you calculate profit. In fact it is a simple table with the calculation, to prepare it but still the same headache. Judge for yourself. You will need:

  • Collect all sales during the reporting period (for tax is the calendar year).
  • To raise the history for each transaction (date of opening/closing, open price/closing, the number and size of committees).
  • To take into account the currency of the transaction, to determine the exchange rate of the ruble CBR at the date of the transaction and recalculate all amounts in rubles.
  • To calculate a fee for each transaction in the two sides (buy/sell) and to convert them into rubles.
  • To combine data from different brokers (if they have open accounts).

So on science with consideration of requirements of tax specialists should look the process of preparing that report, you must accompany 3-pit. If, of course, want, to have the Declaration accepted the first time, and not bombarded with questions and required no clarification. To run this year marathon while preparing the report I was not ready. So a few years ago my partner and created a program, which prepares reports from Interactive Brokers for us. That's what makes this program.

  • Sistematizirovat transactions by date, operations, instruments and currencies.
  • Calculates the revenue for each transaction based commissions.
  • Counts income from operations for the CBR exchange rate on the date of their Commission.
  • Prepares data to populate reports.

The output is several reports, prepared in accordance with the requirements of the tax service of the Russian Federation (when developing the program, we engaged a tax consultant and had made requests to the Ministry of Finance and tax). The number of these reports depends on your trading strategy. It can be earnings reports: dividend, coupons, distributions, transactions in shares, bonds, futures, options and currency (the program supports all currencies, which the CBR sets the course). For example, if you are working with shares, we get a similar report.

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Sample report on transactions with shares in Interactive Brokers to pass 3-pit

What I mean? Besides, if you, as I, traded through Interactive Brokers (if you have a different broker, the preparation of reports for 3-pit are individually negotiated), you have a lot of transactions and have benefits from them, I can help you with the calculation of income. Based on my reports you'll pay tax and will sleep peacefully. Knowing: if you need to withdraw money from the broker in Russia, at any moment you can do it and you will have problems.

But if the Bank has any questions, you will have something to show. You just show the confirmation of acceptance 3-NDFL, about you paid the tax and get the money into the account. That's all. This is the recipe for trade abroad without a headache.

What is the timeline to submit the Declaration?

To declare the income you need within 30 April of the year, following the expired tax period (item 1 article 229 THE TAX CODE). To pay tax you need to 15 July of the year (item 4 article 228 THE TAX CODE). In this case, working on a foreign stock market, the investor should be aware of, the Declaration of 3-NDFL is drawn up in roubles and the amount of earned income it is also reflected in the rubles (the base — point 5 article 210 THE TAX CODE).

Therefore, all revenues, denominated in foreign currency, should be recalculated in rubles at the official rate of the Central Bank of Russia (CBR). The rate of conversion is the rate of the Central Bank of the Russian Federation, established on the date of receipt of income (TH: find exchange rates on a specific date can here).

What documents the investor must submit along with the tax return? Whether their approved list?

As such the approved list of documents no, and in the Tax code this list is not regulated. The main thing, to provide documents could confirm the amount of income received during the reporting period. Usually it is enough to attach to the Declaration the following documents:

  • Certificate or contract, confirming the opening of a brokerage account.
  • Report on transactions with a broker for the reporting period information on the amount of, currency and date of income (to prepare such a report in the personal Cabinet of broker).
  • Calculation for transactions with recalculation in rubles on each transaction (an example of such a report, you can see here).
  • Explanatory note for the inspector explaining the calculation of the tax base and the apportionment of the expenses.

What is the format of submitting these documents? How many copies you need, do I need to translate them and notarize it?

Documents, written in a foreign language, must be translated into Russian language. Such a transfer may be made as a professional translator, by the investor (base — letter of the Ministry of Finance of the Russian Federation No. 03-03-06/1/202). To provide the documents required in one instance, but when filing the Declaration personally make two copies, one to leave yourself with a mark about acceptance.

Within three months of taking 3-NDFL tax checks completed Declaration (TH: its status can be clarified in the IRS on the registration). If during the inspection the inspector any questions, he can call you or sent to your address a written request.

What are the taxes paid by the investor, owning shares in foreign companies?

Investing in stocks involves two types of income: from paid them dividends and increase their value. Upon receipt of the dividends and income from the sale of securities above the price of purchase, the investor is obliged to pay income tax. (TH: in addition, there are also implicit forms of income, for example, the broker can charge interest on the balance of the account or investment Fund, you keep, can sell with a profit the securities in its portfolio. These and other operations are recorded in the form 1042-S. Derived income is also required to make a Declaration and pay his tax).

When calculating taxes, the investor, working for the American stock market, you should be aware of the current between our countries the contract for the avoidance of double taxation. According to this agreement, in the United States with Russian investors-individuals charged only the tax on dividends (at the rate 10%), income on capital gains is not taxed — it is the investor calculates and pays independently in Russia (at the rate 13%).

1. Calculation of tax on dividends

To 2014 years inclusive tax in the US on dividends (10%) exceed tax rate, valid in Russia (9%). In this regard, investors in Russia had to pay tax only on capital gains. However 2015 the rate of tax on dividends in Russia is 13%, resulting in a difference in 3% will have to pay. Let me explain with an example.

For example, a citizen of Russia invests in the stock market USA, buys stocks of foreign companies and receiving dividends. At the end of the reporting year, they brought him 6 000 $ . The dollar, set the CBR on the date of their payment, was 56 RUB/USD. (TH: for simplicity here is a General course. When filling out the Declaration must be recalculated into rubles each receipt from dividends at the exchange rate on the date of receipt.) Then:

  • The amount of income from dividends = 336 000 RUB. (6 000 $ . × 56 RUB/USD. = 336 000 RUB).
  • Withheld and paid outside Russia tax = 33 600 RUB ((6 000 $ . × 10%) × 56 RUB/USD. = 33 600 RUB).
  • Dividends, obtained 1 Jan 2015 year, taxed in Russia at a rate of 13%, so: 336 000 RUB. × 13% = 43 680 RUB.

As a result, in Russia the investor must pay taxes on the amount 10 080 RUB. (43 680 RUB. — 33 600 RUB. = 10 080 RUB).

The basis for tax on dividends, paid outside of the Russian Federation, is the report, provided by broker (article 232 THE TAX CODE). Without this, the tax Inspectorate will not make a tax and then you have to pay tax to the budget at the rate of 13%.

2. Tax calculation on income from operations with securities

With regard to operations with securities, then the investor, working for the US stock market, there is a duty to pay tax in case, if at the end of the year, it received the profit. In this case, as mentioned above, he avoids double taxation and pays taxes only in Russia. The tax rate in this case is 13%. The calculation of the amount of the tax is on the principle of "income minus expenses".

In other words, the investor can reduce the amount of income on the amount of the expenses (TH: for example, commissions of the broker and of the Depositary). It should attach documents, confirming such costs. For example, a statement of the trading account, contains information on revenues from operations and associated costs (TH: to prepare such a report can be in your account on the broker's website).

On the basis of this statement is the investor is in a free form prepares a detailed calculation indicating the income for each transaction (how to do it, read here). While preparing the calculation it is important to consider, if the income was not received in one lump sum, and, for example, from different transactions on different days, in this case, income is recorded separately for each day and converted at the exchange rate at the date of the transaction. In other words, combine all income into one amount not (TH: as in the case of dividends).

What are the consequences of failure or untimely submission of the Declaration?

If the Declaration is not delivered or delivered late, the tax Inspectorate may charge the investor a penalty of 5% the unpaid tax, but no more 30% the specified sum and not less than 1000 rubles plus penalties for each day of delay. More about this can be found in article 119 THE TAX CODE. In turn, in article 122 THE TAX CODE you can learn about the responsibility for non-payment or incomplete payment of tax, and article 198 THE CRIMINAL CODE — the consequences, occurs when tax evasion.

Where and how to fill in the Declaration?

From July 2015 year, the process for completing and submitting tax returns for individuals is much simpler. Now to establish and apply a 3-NDFL it is possible, without visiting the tax Inspectorate.

3-Personal income tax: instructions for completing returns for traders and investors

The easiest way to do this via the online-service "Personal Cabinet of the taxpayer".

You can get to it using:

Declaration online

Step 1. Go to the website of the Federal tax service Nalog.ru and autoresume in the "Personal Cabinet of the taxpayer".

Step 2. In the top horizontal menu, select "Tax on income of physical persons", and in the dropdown list — item "Fill/submit the Declaration online".

2_3-NDFL-600x249

Step 3. On the next page, study the capabilities of the service "Personal Cabinet of the taxpayer" and electronic signatures. If you do not have an electronic signature, it should create. It will save you time, paper and get rid of visiting the mail.

3_3-NDFL-600x449

As can be seen from the description, features of the service allow:

  1. To fill in the Declaration form 3-NDFL online.
  2. To upload a completed online Declaration in a file for printing and submission to the tax authority in paper form.
  3. To send a Declaration electronically, by signing the electronic signature.

Now we get down to the bottom of the page and click the blue button "Fill in a new Declaration".

In the resulting window, select year, for which you want to report and file a tax return. Click "OK". After that, we will be redirected to the "completion and submission in electronic form of the tax Declaration 3-NDFL".

example of filling of the tax Declaration

Step 4. In the section "completion and submission in electronic form of the tax Declaration 3-NDFL" follow the signs assistant and gradually fill in the information sections 1. Data> 2. Income> 3. Deductions -> 4. The results.

Step 5. Go to the "Data". As you can see, "last Name", "Name", "Middle" is already filled. Add information in the "Place of residence". At the specified address will select the service inspection to send the Declaration.

If we point INN, information about the date and place of birth, citizenship and passport, you can not enter. Otherwise, these fields need to be completed (cm. notes at the bottom of the page). After adding information, click "Next" and move on to the fun part — filling in the information about income.

submit a Declaration online

Step 6. Under "Income" the default input active the top item in the "Income, taxable at 13%". But as we report income, received on the foreign stock market, then select the item "Income, received from sources outside of the Russian Federation". Then go to the page "Income, received in foreign currency".

filling 3-NDFL in electronic form

Step 7. On the page "Income, received in foreign currency" in the field "source Name" write the name of the broker. In our case, Interactive Brokers. In the field "country Name" specified United States.

Next, we proceed from the fact, we have detailed reports with conversion of transactions in foreign currency in rubles at the CBR exchange rate. So when filling the field "Name of currency", we select "Russian ruble".

We already have the totals in reports, therefore, in the fields of "date of income receipt" and "date of payment of the tax income," we set the last working day of the accounting year. (If you do not have the explanatory report, you choose the date of income receipt for operation.) In the field "Rate on the date of income" referred 1 and click "auto-detect".

Now we can enter the information about the received income. To fill the "income Code" select from the dropdown list any us income.

Code income depends on the financial instrument and market:

  • For income from the sale of stocks and bonds code 1530.
  • For income in form of dividends code 1010.
  • For income in the form of a coupon code 1011.
  • For income from operations with foreign currency code 2900.
  • For income from the sale of options and futures code 1532.
  • For income from the sale of futures options code 1535.

For example, if during the reporting period, we received income from the sale of shares, bonds and stock options, for each tool we need to create a separate record. In this entry we indicate the appropriate revenue code (stock (1530), bonds (1530), stock options (1532)) write the amount of income. The amount of income for each instrument we calculated taking into account the requirements, which makes tax on.

  • Note. If you fill out the Declaration prepared by me reports, the total amount of income you take in the appropriate report in the Amount field, RUB. or Profit/loss, RUB.

The "Tax, paid in a foreign country", applicable in the case of withholding tax in the country of receiving. For example, if we get the dividend yield on us stocks, in the US we usually must withhold tax 10% tax (less 39%). If we have operation with different amounts of withheld tax, we summarize and fill them separately. Further comment on this in the explanatory note to 3-NDFL. The total amount paid in the USA tax can be found in the report broker, tax form 1042-S or in the "Retained. tax, RUB" I had prepared a report on the dividends.

Thus, when completing this section we specify the total amounts, obtained for each code income. To confirm these amounts we apply to the Declaration reports with calculations and accompany them with explanatory letter. (About, what other documents should attach, we will discuss below.)

 

Step 8. Turn to section "Deductions". In a default active tab to enter the standard tax deductions. If you in accordance with St. 218 NK of the Russian Federation have the right to receive, put a "tick" in the line "to Provide a standard tax deduction" and add the necessary information. We are interested in the other tab — "Securities". Here you can specify the information on the amounts of losses, received in previous years, and thereby reduce the tax base.

The losses upon delivery of 3-NDFL

To display the form, we put a "tick" in the line "to Provide deductions for securities and investment deduction". A table appears fill in the appropriate columns, indicating the total amount of losses on operations with securities (CB) and for operations in financial instruments of time deals (FISS). The amounts we accompany the report with calculations

  • Note. The tax return for you 3 last year, and to offset the losses for 10 years.

Step 9. Entering the homestretch. Go to the tab "Results". Here we create a file with the Declaration for shipment, pressing the "Generate file to send".

Step 10. Attach supporting documents. The Declaration was a Desk audit, it must accompany the documents, confirming the amount of income. What kind of documents? As such the approved list no. But, in my experience, usually enough of the following documents:

  • Certificate or contract, confirming the opening of a brokerage account.
  • Report on transactions with a broker for the reporting period information on the amount of, currency and date of income (to prepare such a report in the personal Cabinet of broker).
  • Calculation for transactions with recalculation in rubles on each transaction (an example of such a report, you can see here).
  • Explanatory note for the inspector explaining the calculation of the tax base and the apportionment of the expenses.

Attach these documents, clicking the "Browse" button and selecting the file. In the line "Description" added summary information about the document (for example, agreement to open a brokerage account) and press the "Save"button.

Filing your tax return

Step 11. Sign and send the Declaration. To do this, see "to Sign a key, enhanced unqualified electronic signature" we enter the password, which is indicated in the formation of the signature and press the button "Sign and send". (If we forget the password, we can create a new key and to sign the Declaration they).

How to send the completed Declaration

Step 12. That's all. Now we have to pay tax on the income received (the date of payment to 15 July) and track the status of our Declaration. You can do this in the section "Documents of the taxpayer" > "Electronic document". Within three months from the date of filing of the Declaration, it will be checked, and you will see the status changes in the personal Cabinet.

Sources :

3-PIT for traders and active investors

3-Personal income tax: instructions for completing returns for traders and investors

As investors prepare for the tax return?

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