Zero reporting for NPOs that do not carry out activities. Accounting financial statements of non-profit organizations: when and what we submit Simplified accounting statements for non-profit organizations
Tax period is the year (Article 285 of the Tax Code of the Russian Federation),
B. VAT if there are movements on the account
You need to submit your VAT return in an updated form. Taxpayers, including those who are tax agents, as well as persons specified in clause 5 of Art. 173 of the Tax Code of the Russian Federation, are required to submit a corresponding tax return to the tax authorities at the place of their registration on time no later than the 20th day of the month following the expired tax period.
Tax period for VAT is a quarter (Article 163 of the Tax Code of the Russian Federation).
D. 2-NDFL and 6-NDFL, if no payments were made to employees for the entire year
Even if an NPO does not carry out activities, it still retains a governing body, for example, a chairman. Usually in this case the chairman works without pay. But as our practice shows, non-payment of wages can cause claims from the inspection authorities. In this situation, we recommend concluding.
If persons working in an NPO do not receive wages or remuneration under civil contracts, then 2-NDFL and 6-NDFL reports do not need to be submitted (clause 2 of Article 230 of the Tax Code of the Russian Federation (clause 2 of Article 230 of the Tax Code of the Russian Federation).
But if an organization is afraid that its account may be blocked due to failure to submit zero reports, then it can be sent to the Federal Tax Service with a notification that the NPO is not a tax agent, and therefore should not provide 6-NDFL calculations.
D. Declaration of corporate property tax, land and transport tax
An organization that does not have property recognized as an object of taxation does not submit a declaration. Only taxpayers must submit a tax return for property tax, land and transport tax (Article 386 of the Tax Code of the Russian Federation, paragraph 1 of Article 388 of the Tax Code of the Russian Federation and paragraph 1 of Article 357 of the Tax Code of the Russian Federation).
E. Information on the average number of employees
If an NPO did not carry out work, this does not relieve it from the need to submit information. According to paragraph 3 of Art. 80 of the Tax Code of the Russian Federation, the taxpayer submits to the tax authority no later than January 20 of the current year information on the average number of employees for the previous calendar year in the form approved by order of the Federal Tax Service dated March 29, 2007 N MM-3-25/174@.
G. Accounting statements
The obligation to send financial statements to the tax authority at the location of the organization is fixed pp. 5 p. 1 art. 23 Tax Code of the Russian Federation. The annual accounting (financial) statements of a non-profit organization consist of a balance sheet, a report on the intended use of funds and appendices to them (clause 2 of article 14 Federal Law dated December 6, 2011 No. 402-FZ). Reporting is submitted to the tax authority at the location of the organization on time no later than three months after the end of the reporting year. Non-profit organizations that had no income or expenses during the reporting period can submit a zero report.
2. PENSION FUND
A. Form RSV-1 (since 2017, administrator of the Federal Tax Service)
Each policyholder must submit a calculation in form RSV-1 at the end of the reporting and settlement period (clause 1, part 9, article 15 of Law No. 212-FZ of July 24, 2009), even if there was no activity. The Ministry of Labor believes that such an obligation remains, even if the policyholder does not make payments to individuals. In other words, the reporting obligation is bound by the policyholder's status. An insurer is considered to be a person who employs people under an employment contract or who pays insurance premiums for persons working under a civil contract (Article 5 of the Federal Law of July 24, 1998 N 125-FZ). If there are no such people, then it is logical to assume that there is no obligation to provide reporting.
We sent inquiries to the Pension Fund and the Ministry of Labor regarding the case of the NGO “Mothers of the Kumya Region”, where the only permanent employee did not receive any wages, essentially doing volunteer work. The pension fund filed claims against the organization.
In response to our requests, as a general rule, it is necessary to conclude an employment contract with the chairman of the NPO. However, he did not rule out the possibility of selflessly performing work, providing services, or providing other support within the framework of civil law. The Ministry of Labor also emphasized that “the conditions for the implementation of these works can be enshrined in a civil contract.” Thus, the Ministry of Labor did not exclude the possibility of concluding employment contract, but an agreement for the gratuitous performance of services with the chairman. At the same time, the Ministry of Labor mentioned this possibility in passing, which indicates that the issue has not been thoroughly worked out at the ministry level. That is, in order to avoid claims from the Pension Fund, it is better to send a zero calculation.
B. Form SZV-M
A monthly report in the SZV-M form is submitted to the pension fund and contains a list of all employees. In the absence of activity and when concluding a civil contract with the chairman on the free performance of their duties, in our opinion, it is not necessary to submit this monthly report.
The Pension Fund of the Russian Federation indicated in its letter: the question of the need to submit public associations who are policyholders of compulsory pension insurance, reporting in the SZV-M form depends on the fact of the presence or absence of labor or civil law relations between public associations and their participants, based on labor or civil law contracts for payments, for which accrued and paid in PFR insurance contributions for compulsory pension insurance. In the absence of such formalization of relations, public associations do not submit reports in the SZV-M form for such persons.
Please note that in this letter the Pension Fund indicates that “for such persons” there is no need to submit reports. But he does not write that reports do not need to be submitted at all. Therefore, in this case it would be better to send zero reporting.
3. SOCIAL INSURANCE FUND
A. Form 4-FSS
The situation with reporting to the Social Insurance Fund is the same as with reporting to the Pension Fund of the Russian Federation. If there is a manager who works for the benefit of the organization for free, then we recommend concluding an appropriate civil law agreement. If you are guaranteed not to have any claims from the Social Insurance Fund, then it is better to submit a zero report. Please note that as of January 1, 2017, a new form for passing 4-FSS was introduced.
B. Confirmation of the main activity
Lack of activity does not relieve the obligation to confirm the main type. To do this, before April 15, you must submit to the FSS:
- application for confirmation of the main type economic activity;
- certificate confirming the main type of economic activity;
- a copy of the explanatory note to the balance sheet for the previous year.
4. Rosstat
Organizations must submit annual financial statements to Rosstat. As we indicated above, the annual accounting (financial) statements of a non-profit organization consist of a balance sheet, a report on the intended use of funds and appendices to them (clause 2 of article 14 of the Federal Law of December 6, 2011 No. 402-FZ).
Moreover, Russian legal entities, including NPOs, obliged provide primary statistical data to Rosstat. You can find out more about what data this is and when it needs to be submitted by filling out the form on the website http://statreg.gks.ru/. As a rule, each organization needs to submit a dozen forms, and at different times.
5. Ministry of Justice of the Russian Federation
The legislation defines different reporting compositions for
- public associations
- all other NPOs
- NPOs included in the register Not commercial organizations performing the functions of a “foreign agent”.
A. Public associations
Even if there was no activity, you need to submit a report on form OH0003 and a letter of continuation of activity,
B. Other NPOs (except “foreign agents”)
There are two options here. The first is intended for non-profit organizations that have at least one of the following criteria:
- the founders (participants, members) are foreign citizens and (or) organizations or stateless persons,
- for the previous year there were receipts of property and Money from foreign sources,
- over the previous year, the receipt of property and funds of non-profit organizations (from any sources) amounted to over three million rubles.
Such organizations submit a report in form OH0001 and in form OH0002. The report is posted on the website of the Ministry of Justice of Russia at http://unro.minjust.ru/ Deadline: April 15 of the year following the reporting year.
The second option is intended for non-profit organizations that do not have any of the above criteria. In this case, the NPO places on the website of the Ministry of Justice a statement/notice about the continuation of activities, as well as statement that the NPO does not have any of the above criteria. Deadline: April 15 of the year following the reporting year.
The charitable organization additionally submits to the Russian Ministry of Justice a report on its activities containing information about:
- financial- economic activity, confirming compliance with legal requirements for the use of property and expenditure of funds of a charitable organization;
- the personal composition of the highest governing body of a charitable organization;
- the composition and content of the charity programs of the charitable organization (list and description of these programs);
- the content and results of the activities of the charitable organization; violations of the requirements of the above law, identified as a result of inspections carried out by tax authorities, and measures taken to eliminate them.
The annual report is submitted in person (through a representative) or by mail to the territorial body of the Ministry of Justice of Russia no later than March 31 of the year following the reporting year.
B. NPOs are “foreign agents”
Submit the following reports on time:
- a report on its activities, on the personnel of the governing bodies - once every six months, no later than the 15th day of the month following the end of the six months (January 15, July 15);
- report on the purposes of spending funds and using other property, including those received from foreign sources, and on the actual expenditure and use of funds and other property received from foreign sources - quarterly, no later than the 15th day of the month following the end of the quarter (15 January, April 15, July 15, October 15);
Letter of the Pension Fund of the Russian Federation dated July 13, 2016 N LCH-08-26/9856 “On sending clarifications on the provision of monthly reports”
clause 3 of the Regulations on the conditions of provision in mandatory primary statistical data and administrative data to subjects of official statistical accounting, approved. Decree of the Government of the Russian Federation dated August 18, 2008 N 620
EXPERT OPINION
Member of the Expert Advisory Council
Self-regulatory organization of auditors of the Non-Profit Partnership “Audit Association Commonwealth” Petrova N.V.
On the composition of the accounting (financial) statements of a non-profit organization
Order of the Ministry of Finance of Russia dated July 22, 2003 No. 67n “On the forms of financial statements of organizations” declared the Order of the Ministry of Finance of Russia dated January 13, 2000 No. 4n to have lost force.
According to clause 4. Instructions on the scope of financial reporting forms approved by Order of the Ministry of Finance of Russia dated July 22, 2003 No. 67n “On forms of financial reporting of organizations,” non-profit organizations may not submit a Report on Changes in Capital (Form No. 3) as part of their financial statements. Cash flow statement (Form No. 4), Appendix to the balance sheet (Form No. 5) in the absence of relevant data.
A non-profit organization maintains accounting and statistical reporting in the manner prescribed by law Russian Federation(Clause 1, Article 32 of the Federal Law of January 12, 1996 N 7-FZ “On Non-Profit Organizations”).
In accordance with paragraph 2 of Art. 14 of the Federal Law “On Accounting” dated December 6, 2011 No. 402-FZ (as amended and supplemented), the annual accounting (financial) statements of a non-profit organization consist of a balance sheet, a report on the intended use of funds and appendices to them.
For reference:
Article 14. Composition of accounting (financial) statements
Clause 2. “Annual accounting (financial) statements of a non-profit organization, with the exception of cases established by this Federal Law and other federal laws, consist of a balance sheet, a report on the intended use of funds and appendices thereto.”
In the Recommendations for audit organizations, individual auditors, auditors for conducting an audit of the annual financial statements of organizations for 2014 (Attachment to Letter dated February 6, 2015 No. 07-04-06/5027) the following is said:
“In accordance with Part 2 of Article 14 of the Federal Law “On Accounting”, the annual financial statements of a non-profit organization, with the exception of cases established by the said Federal Law and other federal laws, consists of a balance sheet, a report on the intended use of funds and appendices to them.
Taking this into account, in the case where a non-profit organization carries out income-generating activities and information about income and expenses for this activity is significant, the specified information disclosed in the appendix to the balance sheet and report on the intended use of funds in relation to the structure and composition of indicators financial results report."
Thus, in accordance with current legislation and recommendations of the Ministry of Finance of the Russian Federation, the financial statements of non-profit organizations include:
- Balance sheet
- Report on the intended use of funds
- Appendices to them (a clear list is not established in regulatory documents)
If the income from entrepreneurial activity, the NPO discloses information in the Appendices in the form of the Statement of Financial Results. The level of materiality must be determined in the accounting policies of the organization.
The Recommendations for audit organizations, individual auditors, and auditors on conducting an audit of the annual financial statements of organizations for 2014 (attachment to letter dated February 6, 2015 No. 07-04-06/5027) states the following:
“... in the case when a non-profit organization carries out income-generating activities and information on income and expenses for this activity is significant, this information is disclosed in the appendix to the balance sheet and the report on the intended use of funds in relation to the structure and composition of the indicators of the financial results statement.”
Please note:
In the currently valid regulatory documents (standards), a specific list of applications for the accounting statements of non-profit organizations is not clearly defined.
The composition of the appendices to the Balance Sheet and the Financial Results Report (the composition of the appendices to the Balance Sheet and the Report on the Intended Use of Funds), in accordance with current legislation, established by federal standards (clause 6 part 3 art. 21 Federal Law “On Accounting” No. 402-FZ).
With regard to the composition of the appendices to the Balance Sheet and the Financial Results Report (the composition of the appendices to the Balance Sheet and the Report on the Intended Use of Funds), the Order of the Ministry of Finance of the Russian Federation “On the Forms of Accounting Reports of Organizations” dated 07/02/2010 No. 66n is in effect.
(Ground 1, Article 30 of the Federal Law “On Accounting” No. 402-FZ)
However, in the Order of the Ministry of Finance dated July 2, 2010 No. 66n, the composition of the appendices to the Balance Sheet and the Report on the intended use of funds (NPO reporting forms ) not directly defined.
For reference:
Federal Law “On Accounting” No. 402-FZ
Article 21. Documents in the field of accounting regulation
“ 3. Federal standards, regardless of the type of economic activity, establish:
6) composition, content and procedure for generating information disclosed in the accounting (financial) statements, including sample forms of accounting (financial) statements, and also the composition of the annexes to balance sheet Andreport on financial results and the composition of appendices to the balance sheet and the report on the intended use of funds..."
Article 30. Features of the application of this Federal Law
"1. Until the state accounting regulatory bodies approve the federal and industry standards provided for by this Federal Law, the rules for maintaining accounting records and preparing financial statements approved by the authorized federal executive authorities are applied...”
3. A non-profit organization has the right to conduct business activities if this is provided for by its Charter. Information on income from business activities is reflected in the Report on the intended use of funds in the line “Profit from income-generating activities.”
If a number of conditions are met, information on income from business activities should be disclosed separately in the reporting, i.e. In addition, a financial performance report must be prepared.
For reference:
Information of the Ministry of Finance of Russia No. PZ-10/2012 “On the entry into force of the Federal Law of December 6, 2011 No. 402-FZ “On Accounting” on January 1, 2013 says the following :
“A non-profit organization provides in its accounting (financial) statements indicators on individual income and expenses (financial results) separately in relation to the form and procedure for drawing up a statement of financial results in the case when:
- in the reporting year, this non-profit organization received income from entrepreneurial and (or) other income-generating activities;
- the indicator of income received by the non-profit organization is significant;
- disclosure of data on profits from business and (or) other income-generating activities in the Report on the intended use of funds is not enough to form a complete picture of the financial position of a non-profit organization, the financial results of its activities and changes in its financial position;
- without knowledge of the indicator of income received by interested users, it is impossible to assess the financial position of a non-profit organization and the financial results of its activities.”
Thus, if there is a business activity, the income from which is significant, the NPO must additionally prepare a financial performance report.
When preparing financial statements, non-profit organizations are guided by the following regulatory documents:
- Regulations on accounting and financial reporting in the Russian Federation No. 34n
- Accounting Regulations “Accounting Statements of an Organization” PBU 4/99
- Chart of accounts for financial and economic activities of organizations and Instructions for its application
- Order of the Ministry of Finance of the Russian Federation dated July 2, 2010 N 66n “On the forms of financial statements of organizations” and other regulatory legal acts on accounting.
(Information of the Ministry of Finance of the Russian Federation dated January 17, 2012 “On the peculiarities of the formation of financial statements of non-profit organizations (PZ-1/2011)”)
Based on the provisions of PBU 4/94, non-profit organizations are not required to disclose information on the presence and changes in the authorized capital, reserve capital and other components of the organization’s capital (Report on changes in capital) as part of their financial statements.
In accordance with the Regulations on Accounting and Financial Reporting No. 34n, non-profit organizations may not submit a Cash Flow Report.
At the same time, based on the provisions of paragraphs 6, 11 of PBU 4/99, if it is necessary to provide reporting users with additional data that is necessary for reporting users to assess the financial position and performance of the NPO, such data is disclosed in the Explanations to the reporting.
CONCLUSIONS:
1. In accordance with paragraph 2 of Art. 14 of the Federal Law “On Accounting” No. 402-FZ dated December 6, 2011 (as amended, supplemented), non-profit organizations must include:
- Balance sheet
- Report on the intended use of funds received.
- Applications to them
2. In current standards composition of the Applications to the Balance Sheet and the Report on the intended use of funds is not defined, it follows that the composition and content of the annexes to these mandatory reporting forms must be determined by the organization independently in the Accounting Policy.
3. Under certain conditions of economic activity, non-profit organizations must, in addition to the Balance Sheet and the Report on the intended use of funds received, submit a Report on Financial Results as part of the financial statements.
4. Cash flow statement optional for annual financial statements of non-profit organizations, however, ODDS may be included in reporting.
5. If other indicators of the NPO’s activities are significant, the necessary explanations can be given in free form in text and/or tabular form.
As a general rule, a nonprofit organization does not prepare financial statements. This follows from the law on accounting, however, in some cases, a non-profit organization is obliged to draw up and submit a report on financial results to the tax authority. This occurs when a non-profit organization has received income that does not fall under the concept of targeted financing or targeted revenues for the maintenance of a non-profit organization, which are given in Article 251 of the Tax Code - “Income not taken into account when determining the tax base.”
A report on the intended use of funds does not provide a complete picture of the financial position of a non-profit organization, financial performance and changes in financial position. Without interested users of financial statements knowing the indicators of income received, it is impossible to assess the financial position and financial results of a non-profit organization.
As stated in information letter No. PZ-10/2012 of the Ministry of Finance of the Russian Federation published on December 4, 2012, if in the reporting year a non-profit organization received income from entrepreneurial and other income-generating activities, it is required to prepare a statement of financial results. The amount of income generated by a non-profit organization is significant.
Paragraph 18 of Section 5 “Disclosure of Information in Financial Statements” of PBU 9/99 “Income of the Organization” states the following: “Revenue, other income, revenue from goods, works, services, amounting to 5 percent or more of the total income of the organization for the reporting period , are shown for each type separately.” For this PBU, the organization’s income recognizes an increase in economic benefits as a result of the receipt of assets, cash, other property and the repayment of liabilities that lead to an increase in capital. The receipt of targeted funds does not increase capital.
The information letter of the Ministry of Finance No. PZ-1/2011 states that a non-profit organization, based on its operating conditions, as well as the requirements of the legislation of the Russian Federation, independently decides on the materiality of a particular indicator, taking into account its assessment and the nature of the specific circumstances of its occurrence. The level of materiality of the indicator is fixed in the accounting policy.
The accounting policy not only indicates the level of materiality (for example, 5%), but also determines the value from which this 5% is calculated so that the calculation principle is clear to everyone, including auditors. In the explanatory note, indicate the procedure for calculating the materiality of the indicator. But do not forget that there are other forms of reporting that detail the financial result, so you should not make this indicator very low.
When assessing the materiality of financial reporting indicators that are subject to separate presentation, an amount that is more than 10 percent of the corresponding section of the balance sheet for the reporting period is considered material.
An indicator is considered significant if it exceeds 10% of the balance sheet currency (line 1600 or 1700 of the balance sheet).
An indicator is considered significant if it exceeds 10% of the “Targeted financing” section of the balance sheet as of the reporting date.
The indicator is considered significant and is presented separately in the balance sheet and income statement. Non-disclosure of the indicator affects the economic decisions of interested users made on the basis of reporting information. When detailing financial reporting items, an amount of 10% or more of the reporting item is considered significant.
How not to write definitions of the materiality of an indicator:
An indicator of more than 5% is considered significant.
When assessing the materiality of financial reporting indicators that are subject to separate presentation, an amount is considered significant if its ratio to the total of the relevant data for the reporting period is at least 5 percent.
You may also be interested in:
Are the financial statements of non-profit organizations presented in full or simplified form in 2019? What reporting forms must a non-profit organization submit? What changes have the accounting reporting forms undergone in 2019? You will find answers to these and other questions in our article.
What are non-profit organizations
The main difference between a non-profit organization and a for-profit organization is its fundamental purpose. The goal of a commercial company is to extract the maximum possible amount of profit.
Non-profit organizations do not pursue the goal of making a profit. This is reflected in Art. 50 Civil Code of the Russian Federation. In their activities, they must first of all be guided by the Civil Code of the Russian Federation and the Law “On Non-Profit Organizations” dated January 12, 1996 No. 7-FZ.
As in commercial structures, the types of activities of a non-profit organization are fixed in its constituent documentation. The activities carried out by such an organization must correspond to the purpose of its creation and operation. Non-profit organizations are founded for the state to implement its functions in the social sphere, education, medicine, and culture. They also conduct religious, charitable and other activities. Non-profit organizations can also be created in the form of associations of citizens and legal entities to solve common problems.
Non-profit organizations can also engage in entrepreneurial activities that generate income. For example, educational institutions may provide additional paid services. But such activities should not contradict the main purpose of the organization. It must also be stated in the constituent documents, for example in the charter. Accounting for income received from the results of such activities is carried out separately from the main one. Legislation may establish certain restrictions on its conduct by certain types of non-profit organizations.
Financial support for non-profit structures is possible in the form of:
- income from founders or participants;
- charitable contributions/voluntary donations;
- income from business activities;
- income from the organization’s property, for example, from renting out premises;
- other income permitted by law.
Read about what distinguishes accounting conducted in a non-profit organization in the material “Features and tasks of accounting in non-commercial organizations” .
Forms of non-profit organizations
The Civil Code of the Russian Federation specifies several organizational and legal forms of enterprises that are created on a non-profit basis:
- Consumer cooperatives (unions, societies).
It is generally accepted that such enterprises are formed only for commercial purposes. However, in the non-profit sphere, they can be organized with the purpose of bringing together individuals and legal entities to meet the needs of their members and solve common problems. For example, housing cooperatives, citizen credit societies, gardening and dacha associations, agricultural unions, etc.
Financing of such organizations is carried out at the expense of participants by contributing shares. - Funds.
They exist through voluntary contributions from citizens and legal entities. Foundations pursue goals that are beneficial to the whole society: educational, social, cultural. Charitable organizations often operate in the form of foundations. - Public and religious organizations.
These are voluntary unions and associations of citizens with common interests and intangible (for example, spiritual) needs. Such associations can also function in the form of an institution, a social movement, or a foundation. The founders can be individuals, legal entities, or their associations. - Associations of legal entities (associations, unions).
They are created to coordinate commercial enterprises and protect them, as well as common interests. The constituent documentation is the constituent agreement, signed by all participants of the association, and the charter. Upon joining such an association, the independence of each member is preserved. - Institutions.
These include organizations created by the founder(s) to carry out educational, social, cultural and managerial functions. In this case, institutions can be either fully funded by the founders or partially. To conduct their activities, institutions can attract charitable contributions from legal entities and individuals.
What kind of financial statements do non-profit organizations submit?
When preparing financial statements of non-profit organizations in 2018-2019, you must be guided by:
- Regulations on maintaining accounting and financial statements in the Russian Federation, approved by order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n;
- accounting chart of accounts and instructions for its use;
- Order of the Ministry of Finance of Russia “On the forms of financial statements of organizations” dated 07/02/2010 No. 66n, etc.
It is also useful to familiarize yourself with the latest information from the Russian Ministry of Finance “On the peculiarities of the formation of financial statements of non-profit organizations” (PZ-1/2015).
According to paragraph 4 of Art. 6 of Law No. 402-FZ, non-profit organizations can submit reports using the simplified form KND 0710096, which includes:
- balance sheet (OKUD 0710001);
On our website you will learn how to fill it out correctly using the article “Procedure for drawing up a balance sheet (example)” .
Download the balance sheet form on our website in the article “Filling out Form 1 of the balance sheet (sample)” .
- financial results report (OKUD 0710002);
Read the rules for filling it out on our website in the article “Filling out Form 2 of the balance sheet (sample)” .
- report on the intended use of funds (OKUD 0710006).
Find out how to fill out a report on our website from the article “Filling out forms 3, 4 and 6 of the balance sheet” .
IMPORTANT! As of 06/01/2019, updated simplified reporting forms approved by Order of the Ministry of Finance dated 04/19/2019 No. 61n are in effect. According to these amendments, all indicators should be entered in thousands of rubles, because unit of measurement "million rubles" and the code "385" denoting it are excluded. In addition, instead of OKVED, OKVED 2 is in effect, and in the report on the intended use of funds, the OKUD code has been corrected from 0710006 to 071003.
You can download the updated forms of the simplified balance sheet, income statement and report on the intended use of funds using the link below.
The electronic format for submitting simplified reporting was sent by letter of the Federal Tax Service dated July 16, 2018 No. PA-4-6/13687@.
At the same time, such organizations can present financial statements in full. The decision is made by the organization independently.
Non-profit organizations may not submit a cash flow statement (OKUD 0710004) unless they are required to do so by law. For example, in accordance with paragraph 5 of Art. 12 of the Law “On the Fund for Assistance to the Reform of Housing and Communal Services” dated July 21, 2007 No. 185-FZ, the annual reporting of the Fund for Assistance to Reform of Housing and Communal Services includes a cash flow report, a report on the results of investing temporarily free funds of the fund, and a report on the execution of the fund’s budget. According to PBU 4/99, non-profit organizations are not required to disclose information about changes in capital in their reporting (OKUD 0710003).
Non-profit organizations that do not conduct business activities and do not have sales turnover can represent accounts. reporting in a simplified form once a year. It will also consist of a balance sheet, an income statement and a report on the intended use of funds. Religious organizations that do not have obligations to pay taxes may not submit accounting reports.
A non-profit organization can develop a tabular form of explanations for the balance sheet and financial statements independently. According to the Accounting Regulations, non-profit structures can independently establish the detail of indicators for accounting items and determine the level of their materiality.
Read about how the accounting policy of a non-profit organization is formed in this material.
Accounting financial statements of socially oriented non-profit organizations
For the first time, mention of socially oriented non-profit organizations appeared in the law “On amendments to certain legislative acts of the Russian Federation on the issue of supporting socially oriented non-profit organizations” dated 04/05/2010 No. 40-FZ. These include:
- public and religious organizations;
- Cossack societies;
- autonomous non-profit organizations;
- societies of indigenous and small peoples in the Russian Federation;
- organizations whose activities are aimed at solving social problems, issues and helping citizens (for example, providing legal assistance to citizens, supporting the population after natural disasters and catastrophes, protecting environment, protection and restoration of cultural sites, burial sites, etc.).
Socially oriented non-profit organizations can submit accounting reports using a simplified form.
Results
The procedure for submitting financial statements of non-profit organizations in 2019 is somewhat different from that for commercial enterprises. Non-profit organizations have the right to submit financial statements in a simplified form, as well as independently determine the detail of its articles and the level of materiality. From June 1, 2019, updated accounting forms must be used.
Plus, some NPOs rent out Income statement . This should be done when:
- The NGO received significant income from business activities;
- It is impossible to assess the financial position of an NPO without an indicator of the income received.
In all other cases, the NPO reflects data from business activities in the report on intended use in the line “Profit from income-generating activities.” But if this is not enough to reflect the financial position of the nonprofit, submit an income statement. This is stated in the information of the Ministry of Finance of Russia No. PZ-10/2012.
Balance sheet
NPOs fill out the balance sheet in a special way (see general ). Some sections need to be renamed. For example, Section III should be called not “Capital and Reserves”, but “Targeted Financing”. After all, a non-profit organization does not have the goal of making a profit. Instead of capital and reserves, NGOs reflect the balance of earmarked revenues. The balance sheet lines that NPOs must replace in Section III are named in the table below.
|
Code of the balance line whose name of the non-profit organization needs to be replaced |
Line names for commercial organizations |
NPO line names |
|
Section III of the Balance Sheet “Capital and Reserves” |
Section III of the Balance Sheet “Targeted Financing” |
|
|
1310 |
Authorized capital |
Unit trust |
|
1320 |
Own shares purchased from shareholders |
Target capital |
|
1350 |
Additional capital (without revaluation) |
Targeted funds |
|
1360 |
Reserve capital |
Fund of real estate and especially valuable movable property |
|
1370 |
Retained earnings (uncovered loss) |
Reserve and other target funds |
This procedure is prescribed in Note 6 to the Balance Sheet and in Note to Appendix 4 of Order No. 66n of the Ministry of Finance of Russia dated July 2, 2010.
Cash flow statement
The cash flow statement of NPOs is not included in the financial statements. This is directly stated in paragraph 85 of the regulation, approved by order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n.
Other reports
There are special features for funds. They are required to annually publish reports on the use of their property (clause 2 of article 7 of the Law of January 12, 1996 No. 7-FZ).
Tax reporting
All non-profit organizations are required to submit information about the average number of employees to the tax office. This needs to be done even if there are no employees. In addition, all NPOs are required to submit certificates form 2-NDFL for each employee and calculation according to form 6-NDFL.
For more information on this topic see:
- What rights and responsibilities do taxpayers have? ;
As for the rest, the composition of tax reporting in NPOs depends on the tax regime.
Tax reporting: OSNO
NPOs submit tax reports under the general regime, mandatory .
Income tax
All NGOs are required to file an income tax return. This obligation does not depend on whether there is taxable income or not. This conclusion follows from Article 246 and paragraph 1 of Article 289 of the Tax Code of the Russian Federation.
For NPOs that do not have a profit, there are special features. They submit a declaration only once a year in a simplified format:
- Title page (sheet 01);
- Calculation of corporate income tax (sheet 02);
- Report on the intended use of property (including funds), works, services received as part of charitable activities, targeted income, targeted financing (sheet 07);
- Appendix No. 1 to the tax return.
This follows from Article 285 and paragraph 2 of Article 289 of the Tax Code of the Russian Federation, paragraph 1.2 of the Procedure approved by order of the Federal Tax Service of Russia dated November 26, 2014 No. ММВ-7-3/600.
If a non-profit organization makes a profit, the declaration must be submitted quarterly. At the same time, NPOs do not pay advance payments if sales revenues for the previous four quarters did not exceed an average of 10 million rubles. for each quarter (clause 3 of Article 286 of the Tax Code of the Russian Federation).
VAT
Non-profit organizations under the general regime are required to submit a VAT return quarterly in accordance with the general procedure. If there is no object subject to VAT, submit only the title page and section 1 (clause 3 of the Procedure approved by Order of the Federal Tax Service of Russia dated October 29, 2014 No. ММВ-7-3/558).
An NPO can submit a single (simplified) tax return, which was approved by Order of the Ministry of Finance of Russia dated July 10, 2007 No. 62n, only if it does not simultaneously have:
- object of VAT taxation;
- transactions on current accounts.
Property tax
Non-profit organizations under the general regime submit property tax returns quarterly, in general procedure. The exception is organizations that do not have fixed assets. procedure for filling out a property tax return stated in the article.
Since NPOs do not charge depreciation, on lines 020–140 of section 2 of the declaration, indicate the difference between the balance of account 01 “Fixed Assets” and the amount of depreciation on off-balance sheet account 010 (clause 1 of Article 375 of the Tax Code of the Russian Federation).
As for other tax returns, the obligation to submit them depends on whether the NPO has an object subject to the corresponding tax.
Tax reporting: simplified tax system
Simplified NPOs submit mandatory reporting . In addition, simplified NPOs annually submit to the tax office a declaration on the single tax they pay (clause 1 of Article 346.12 of the Tax Code of the Russian Federation). Moreover, the obligation to submit declarations does not depend on whether there were income and expenses in the reporting period or not.
This conclusion follows from the provisions of paragraph 1 of Article 346.19 and paragraph 1 of Article 346.23 of the Tax Code of the Russian Federation.
In addition, simplified NPOs are required to conduct book of income and expenses . This is stated in Article 346.24 of the Tax Code of the Russian Federation and paragraph 1.1 of the Procedure approved by Order of the Ministry of Finance of Russia dated October 22, 2012 No. 135n.
For more information on this topic see:
- How to draw up and submit a single tax return under simplification ;
- How to keep a book of income and expenses when simplified .
Simplified NPOs do not pay income tax, property tax and VAT (Clause 2 of Article 346.11 of the Tax Code of the Russian Federation). Therefore, a non-profit organization is not required to submit returns for the listed taxes. But there are exceptions to this rule:
- NGOs that have property taxable at cadastral value (Clause 2 of Article 346.11 of the Tax Code of the Russian Federation), pay tax on this property and submit a declaration according to it in a general manner;
- non-profit organizations - tax agents for VAT, which, for example, rent state or municipal property (clause 3 of article 161 of the Tax Code of the Russian Federation), are obliged
