The activity of any enterprise is aimed at making a profit, which must then be properly distributed.
Dividends and shareholders
Dividend is usually called the share of profitsan organization that is paid to shareholders after the payment of all necessary payments. That is, in order to receive dividends, it is necessary to be a shareholder of the company, in other words, to own shares of the enterprise. Usually the shareholders become the founders of the company at the stage of its formation, pursuing the goal of acquiring the income from the funds invested in the development of the organization.
What payments can not be considered dividends?
Do not fall under the definition of "dividends":
• payments to the shareholder in the event of reorganization or liquidation of the company, which do not exceed the amount of his investments in the share capital;
• payments transferred to the ownership of the company's shares, shareholders of the same organization.
• payments of non-profit organizations to employees for the implementation of its statutory activities.
Decision on payment of dividends: who accepts it?
The law establishes that by the results of activities for the year the company has the right to declare dividends on shares, but it may not do so. This is the company's right, established by law.
Terms of payment
Having approved the size of the profit distributed for distribution of dividends, the general meeting declares the decision on payment of dividends, than informs involved persons.
Usually such incomes are paid with money, but there are also property forms of payments, which must necessarily be stipulated in the company's charter.
Joint-stock companies and LLC have the right to distribute dividends not only by the end of the year, but also by the half-year, and also by the quarter. In the law there are no restrictions on the periods of income payments.
It happens that the company's profits are not distributedseveral years, accumulating on the account of undistributed profits (No. 84). Bans on payment of dividends of past periods are also not legally established, so such a decision of the board of directors and subsequent approval by its general meeting is quite feasible.
The charter of the organization or the shareholders' meetingdetermine the time during which the company is obliged to accrue and pay dividends. If the payment period is not established, then, according to the law, it does not exceed 60 days from the date of the announcement of dividends. In these terms, shareholders must receive their accrued income.
Charging
After deciding to pay dividends and approvalsthe lists of those to whom they are due, painstaking accounting work begins. The accrual of the amounts of income is carried out personally for each participant.
Usually the company's charter provides for the conditionsdistribution of dividends among shareholders in accordance with current legislation, which dictates recognition of income accrued in proportion to the shares of participants. The total amount of profit, which by the decision of the meeting is determined for payment to shareholders, is multiplied by the percentage of contribution of funds to the share capital of each participant. This determines the amount of dividend due to an individual shareholder. Accompanying accrual of dividends, posting will be indicated below.
Taxation
Like any income, the dividend dueshareholder, is subject to taxation. The size of the tax rate depends on the taxpayer category. Since early 2015, tax rates have changed significantly. Earlier income from dividends for individuals and legal entities residing and residing in Russia was taxed at a rate of 9%. Now the tax rate has increased to 13%, and the declared dividends for the past periods will be taxed at this rate.
Dividends of legal entities that do not have tax residency status of the Russian Federation are taxed at a rate of 15%, for private individuals - 30%.
Russian companies act as tax agents and usually withhold and transfer taxes to the budget on their own, so shareholders receive dividends already minus the amount of tax.
Terms of tax transfer
Закон требует произвести удержание и перечисление NDFL no later than the date of receipt of money for payment from the cash register or transfer of funds to the accounts of participants, shareholders on behalf of or third parties. In the payment documents for the transfer of personal income tax should indicate the code of budget classification - 18210102010011000110.
Accrual and payment of dividends: posting
All information on the accrual and movement of dividend payments is accumulated on the balance sheet of settlements with founders (No. 75) corresponding to accounts of sources, assets, settlements, taxes, etc.
Having determined the size of the total amount to be paid, the accountant will accrue dividends. Postings:
• D / t 84 - K / t 75/2 - in the amount of profit,distributed to the payment of dividends. Analytical accounting of accrued dividends personally for each participant is a list of names with due payouts, the results of which correspond to the credit turnover of the account No. 75/2 of the specified transaction.
• D / t 75/2 - K / t 70 - for the amount of income to shareholders-employees of the enterprise.
The next step is taxation of accrued income. Accrued tax on dividends to shareholders, posting:
• D / t 75/2 - K / t 68 / profit - a tax has been charged on income from dividends of shareholders - organizations.
• D / t 75/2 - K / t 68 / PIT - for the amount of tax from dividends of shareholders - private individuals.
• D / t 68– K / t 51 - the amount of taxes withheld is transferred from the current account.
Dividends paid to participants who are not in the company's staff (transactions: d / t 75/2 - banknotes 50, 51) are made in cash or by transfer from the company's account to the shareholders' accounts.
Sometimes incomes are not paid in cash, butsecurities, such as promissory notes of third-party organizations available in the company. Transfer of promissory notes - the same dividend payment. The transactions reflecting this operation are:
• D / t 75/2 - K / t 91 - in the amount of the nominal value of the security.
• D / t 91 - K / t 58/2 - for the sum of actual expenses accompanying the purchase of the bill included in account 58/2.
• D / t 91 (99) - K / t 99 (91) - the financial result from disposal of a monetary document is determined.
In some companies, the property payment of dividends is allowed. The postings in this case are as follows:
• D / t 75/2 - K / t 90 - in the amount of the selling price of goods or property equivalent to the amount of income due.
• D / t 90 - K / t 68 / VAT - VAT is charged on the selling price of goods.
• D / t 90 - K / t 41, 43, 20 and other production accounts - for the sum of the actual cost of purchased goods and products.
• D / t 90 - K / t 99 - the result from the sale of goods or services is derived.
The transfer of the property of the company (not goods) reflect other accounting entries. Dividend payment:
• D / t 75/2 - K / t 91 - on the value of the property, including VAT, on the amount of income due, net of withholding taxes.
• D / t 91 - K / t 68 / VAT - in the amount of VAT accrued on the property price.
• D / t 91 - K / t number 01, 08, 10 - the amount of the residual value of the property transferred.
• D / t 91 - K / t 99 - the amount of profit from the transfer of property was determined.
These are the postings on the payment of dividends to the founder and other shareholders of the company.
The subtleties of determining the tax base of the enterprise at the simplified taxation system after the payment of dividends
In connection with the payment of dividends from the "simplified"often the question arises: "Does the payment of dividends (transactions are indicated) and the transfer of personal income tax in the taxable base of the simplified tax system?" Enterprises in the “Income minus expenses” mode may reflect a limited list of expenses referred to in the RF Tax Code. But dividends accrued and paid to participants are not specified in it. Consequently, to reduce the tax base costs for them can not. And since the company, following the duties of a tax agent, does not transfer taxes for itself, the amount of withholding personal income tax also does not affect the reduction of the tax base.
So, the article presents the basic concepts, such as dividends, accounting entries, reflecting the operations of their accounting.
