Tax deduction for programmers (program authors)
The IT industry as a whole and the creation of intellectual property products (computer programs and much more) in particular are a considerable driving force of the modern economy and global progress.
The specificity of the industry is that professionals do not always can and do not always want to work in-house and are freelancers. It is natural - intellectual labor is not required to imply a working day framework and office walls.
Of course, I understand the general degree of dislike for our laws and legislators and the fact that the lion's share of specialists works “in the dark”, however, almost any large customer will work with you on a contractual basis (observing, including tax law), and to you, as an individual or individual entrepreneur, it is important to know about those expenses that you can return to your pocket without giving them to the state in the form of taxes.
Let's start with the dry bureaucracy of the law: Individuals who receive royalties or royalties for the creation, execution or other use of works of science, literature and art, royalties to authors of discoveries, inventions and industrial designs, can reduce their income by professional tax deductions (para. 3 article 221 of the Tax Code of the Russian Federation).
The deduction is entitled to apply to any individuals who receive the indicated remuneration, including individual entrepreneurs (even if the creation of such pieces is not the main activity of the IP, that is, if the IP is engaged in real estate activities, it will not affect tax deductions in the evening writes programs).
Again bureaucracy:The deduction is provided in the amount of actually incurred and documented expenses associated with the creation, execution or other use of works of science, literature and art, as well as for discoveries, inventions and industrial designs (paragraph 1 of paragraph 3 of Article 221 of the Tax Code of the Russian Federation).
Determine which expenses are associated with the creation, execution or other use of works of science, literature and art, etc., and which are not, taxpayers must independently.
For example:
The taxpayer’s expenses (which can be deducted) also include:
- taxes (with the exception of personal income tax) accrued or paid for the tax period (article 221 of the Tax Code of the Russian Federation);
- state duty paid in connection with professional activities (Article 221 of the Tax Code of the Russian Federation);
- insurance premiums for compulsory pension and medical insurance accrued or paid in accordance with the provisions of the Federal Law of July 24, 2009 N 212-ФЗ (Article 221 of the Tax Code of the Russian Federation).
For example:
It is important to consider that if the author receives remuneration as part of the performance of labor duties, then there are no grounds for presenting this tax deduction.
If the taxpayer cannot confirm his expenses with documents, then they are deductible according to the standard of expenses as a percentage of the amount of accrued income (from 20 to 40 percent for different types of intellectual property.
For example: D. Kryuchkov receives royalties for creating a computer program. Documentary confirm he cannot incur his expenses for its creation.Therefore, the amount of income in the form of royalties can be reduced by a cost standard of 20% (the creation of scientific works and developments) from the amount of remuneration accrued to him.
It is important to keep in mind that when providing a deduction, documented expenses cannot be taken into account simultaneously with standard costs, for
example:
The deduction can be received by an individual from a tax agent (your customer) or from a tax authority (if there is no tax agent).
To obtain a deduction from a tax agent, the taxpayer must contact him with a written statement.
It should be borne in mind that if the deduction is declared in the amount of expenses actually incurred by the taxpayer, then in addition to the application, the tax agent should also submit documents confirming the expenses. Among such documents are contracts, commodity checks, cash receipts, KKT checks, receipts from individuals in receipt of funds, etc.
If the income is not received from a tax agent, but, for example, from a foreign organization located abroad that is not a tax agent, then the tax authority provides the deduction.
For this, the taxpayer at the end of the year in which the income is received, file a tax return with the tax authority. In addition to the tax return, according to regulatory authorities, the taxpayer should also submit documents confirming the expenses incurred by him.
At the same time, the Supreme Arbitration Court of the Russian Federation in relation to professional deductions to individual entrepreneurs noted the following: tax officials during the desk audit are not entitled to require documents confirming the professional deduction of the individual entrepreneur, except when the tax authority revealed such errors and other contradictions in the presented declarations.
The specificity of the industry is that professionals do not always can and do not always want to work in-house and are freelancers. It is natural - intellectual labor is not required to imply a working day framework and office walls.
Of course, I understand the general degree of dislike for our laws and legislators and the fact that the lion's share of specialists works “in the dark”, however, almost any large customer will work with you on a contractual basis (observing, including tax law), and to you, as an individual or individual entrepreneur, it is important to know about those expenses that you can return to your pocket without giving them to the state in the form of taxes.
I
Let's start with the dry bureaucracy of the law: Individuals who receive royalties or royalties for the creation, execution or other use of works of science, literature and art, royalties to authors of discoveries, inventions and industrial designs, can reduce their income by professional tax deductions (para. 3 article 221 of the Tax Code of the Russian Federation).
The deduction is entitled to apply to any individuals who receive the indicated remuneration, including individual entrepreneurs (even if the creation of such pieces is not the main activity of the IP, that is, if the IP is engaged in real estate activities, it will not affect tax deductions in the evening writes programs).
Again bureaucracy:The deduction is provided in the amount of actually incurred and documented expenses associated with the creation, execution or other use of works of science, literature and art, as well as for discoveries, inventions and industrial designs (paragraph 1 of paragraph 3 of Article 221 of the Tax Code of the Russian Federation).
Determine which expenses are associated with the creation, execution or other use of works of science, literature and art, etc., and which are not, taxpayers must independently.
For example:
D. Kryuchkov (all coincidences are random) created a computer program, the rights to which are transferred under the copyright agreement to the TM company (read the previous brackets), for which he receives a royalty of 100,000 rubles. To create a computer program, educational literature on programming languages, website development, and new software were purchased for a total of 50,000 rubles. These costs are associated with the creation of a computer program and are documented. Consequently, D. Kryuchkov can reduce his income taxed by personal income tax in the amount of 100,000 rubles. 50,000 rubles.
The taxpayer’s expenses (which can be deducted) also include:
- taxes (with the exception of personal income tax) accrued or paid for the tax period (article 221 of the Tax Code of the Russian Federation);
- state duty paid in connection with professional activities (Article 221 of the Tax Code of the Russian Federation);
- insurance premiums for compulsory pension and medical insurance accrued or paid in accordance with the provisions of the Federal Law of July 24, 2009 N 212-ФЗ (Article 221 of the Tax Code of the Russian Federation).
For example:
D. Kryuchkov paid the state fee for registration of the computer program he created in the amount of 1700 rubles. Consequently, he can reduce his income taxed by personal income tax in the amount of 100,000 rubles. also for 1700 rubles.
It is important to consider that if the author receives remuneration as part of the performance of labor duties, then there are no grounds for presenting this tax deduction.
II
If the taxpayer cannot confirm his expenses with documents, then they are deductible according to the standard of expenses as a percentage of the amount of accrued income (from 20 to 40 percent for different types of intellectual property.
For example: D. Kryuchkov receives royalties for creating a computer program. Documentary confirm he cannot incur his expenses for its creation.Therefore, the amount of income in the form of royalties can be reduced by a cost standard of 20% (the creation of scientific works and developments) from the amount of remuneration accrued to him.
It is important to keep in mind that when providing a deduction, documented expenses cannot be taken into account simultaneously with standard costs, for
example:
D. Kryuchkov receives royalties for the program he created, but only part of the costs of its creation can be documented. Consequently, a professional tax deduction can be declared either for the part of expenses confirmed by documents, or according to the standard of expenses in the amount of 20% of the amount of remuneration received.
III
The deduction can be received by an individual from a tax agent (your customer) or from a tax authority (if there is no tax agent).
To obtain a deduction from a tax agent, the taxpayer must contact him with a written statement.
It should be borne in mind that if the deduction is declared in the amount of expenses actually incurred by the taxpayer, then in addition to the application, the tax agent should also submit documents confirming the expenses. Among such documents are contracts, commodity checks, cash receipts, KKT checks, receipts from individuals in receipt of funds, etc.
If the income is not received from a tax agent, but, for example, from a foreign organization located abroad that is not a tax agent, then the tax authority provides the deduction.
For this, the taxpayer at the end of the year in which the income is received, file a tax return with the tax authority. In addition to the tax return, according to regulatory authorities, the taxpayer should also submit documents confirming the expenses incurred by him.
At the same time, the Supreme Arbitration Court of the Russian Federation in relation to professional deductions to individual entrepreneurs noted the following: tax officials during the desk audit are not entitled to require documents confirming the professional deduction of the individual entrepreneur, except when the tax authority revealed such errors and other contradictions in the presented declarations.