Each founder of an enterprise or organization has the right to receive profit from the activities of such an organization. One of the types of profit that a shareholder of a business entity receives is dividends. In this article we will introduce you to the concept of dividends, the specifics of their calculation and payment, as well as standard accounting entries.

Dividends are understood as part of the enterprise’s profit, which is subject to distribution among the founders, participants and other shareholders of the business entity. The size of the payment is determined depending on the share of shares owned by a particular person, as well as on their type.

The procedure for paying dividends is determined by general meeting shareholders, where it is decided what amount will be paid to each of the shareholders, and the frequency of such payments is also determined. The shareholders' decision is recorded in a corresponding act. As a rule, dividends are paid once a year, less often - once every six months or once a quarter. Payments to shareholders in the last two cases are called interim or preliminary.

The legislation provides for cases when a company cannot make payments to shareholders. These include:

• threat of bankruptcy;
• arising as a result of payment;
• The authorized capital of the company's participants has not been contributed in full.

The amount of dividends is subject to taxation. The company makes payments to shareholders at the time of payment. According to changes made to the Tax Code, the tax rate is:

• for domestic companies from .2015 is 13%,
• for non-resident companies or individuals – 15%.

Typical entries for accrual and payment of dividends

When distributing profits, account 84 is used as dividends. Payments are made from the account.

Accounting methodology and standard accounting entries Let's look at examples.

Example of entries for dividend payments to residents and non-residents

Let's say:

At the end of the year, Molniya LLC made a profit of 365,000 rubles. At the general meeting of shareholders, a decision was made to distribute profits as dividends to shareholders. The authorized capital of Molniya LLC is distributed into 110 shares, of which a citizen of Argentina owns, and the owner of 85 shares is a resident.

According to the decision recorded in the act of the shareholders’ meeting, the accountant of Molniya LLC made the following entries:

Dividends and loss

Let's imagine the situation:

By decision of the shareholders of Sever Plus LLC, interim dividends were paid based on the results of 6 months in the amount of 428,000 rubles. The payment was made to the director of Sever Plus LLC, L.K. Spiridonov, who is a tax resident. At the end of the year, according to the financial results report, Sever Plus LLC incurred a loss, and therefore the interim payment to Spiridonov is not recognized as dividends.

These transactions were reflected in the entries as follows:

When paying dividends, do not forget about the deadlines for transferring taxes, violation of which entails fines and penalties.

When calculating the amount of dividends, you should rely on the rules prescribed by law Russian Federation, as well as the standards established by the enterprise itself.

Let's figure out what should be taken into account when making calculations in 2019. Each company systematically shares part of the profits received from its activities.

Although the company may decide not to pay such funds, but to use them for business development.

If, nevertheless, the amount and timing of the transfer of dividends have been established, you need to understand by what rules the calculations of the due funds are carried out.

After all, it is known that dividend payments can be different. This means that it is worth paying attention to all the nuances of making calculations.

Required information

Russian legislation establishes the procedure for dividend payments. There is also a definition of the concept itself. Let us consider the information provided in the regulatory documents in more detail.

Basic definitions

Dividends are part of the income of joint-stock companies or other entities conducting business activities, which is distributed among participants (shareholders) in accordance with their shares in the authorized capital.

The size and rules for transferring dividends are determined at a meeting of shareholders and founders, and are also enshrined in the charter of the enterprise.

Dividends can be paid in cash or issued in shares or other property.

When are payments made?

The amount of established dividends can be transferred several times a year. But it may not be paid at all.

When paying out such funds, capitalization decreases and this requires savings that were not allowed for reinvestment or are withdrawn from it.

Those dividends that are paid during the financial year are interim or preliminary. At the end of the billing period, final dividend payments are made.

Based on the results of the organization’s activities, they prepare financial statements, the components of which are:

The reporting period for the preparation of such documents is considered to be a quarter, 6, 9 and 12 months.

In accordance with the law, dividend amounts cannot be transferred more than once a quarter after the financial statements have been approved.

But it is worth considering that financial results for the year may differ from the interim quarterly results. And in such situations, overpayment of dividends is possible.

The LLC Law states that payment of dividends must be made within 60 days from the date of resolution at the meeting.

Otherwise, the company has the right to independently decide when and how to pay the due portion of the profit to the founders. But such rules must be specified in local documentation.

There are situations when the payment of dividends in internal documents nothing is said. Then you should be guided general rules, established by regulatory documents of the Russian Federation.

Payment of dividends is not allowed:

• if the entire required amount has not been contributed to the authorized capital;
• if the share of the participant has not been paid;
• if the company is on the verge of bankruptcy or at the date of payment
• dividends will become untenable;
• if the size of net assets is less than the authorized and reserve capital.
• shares were not repurchased in accordance with Article 76 of the Federal Law of the Russian Federation “On JSC”.

Legal grounds

The rules for the distribution of income in the form of dividends between the founders of the enterprise are established by a regulatory document approved by Russian legislators.

The timing of dividend payments is established in accordance with.

How to calculate the level of dividends at an enterprise?

In addition, there are a number of features that need to be remembered when preparing a depositary receipt. But knowledge in this area will also not be enough. Therefore, let’s analyze how the calculations are carried out, which is worth taking into account.

For ordinary shares

The calculation of dividends on common shares depends on whether the dividend yield has been determined. And this indicator is determined using the following formula:

You can also use another method for calculating dividends:

1. It is worth starting to calculate dividends by checking whether the conditions of regulatory documentation have been met.
2. Determine if there are any restrictions on transfers.
3. Calculate the value of the company's net assets, which is equal to the difference between assets and liabilities, which are taken into account in the calculations.

The balance of the company's net income assets is calculated at the end of the financial year. They are subtracted from the net income of mandatory contributions to reserves and the amount of advance application of income in the reporting period.

Advance application is permissible in the absence of income from previous years, free depreciation balances or funds to finance investment programs.

The amount of dividends is determined by multiplying the remaining net income by the adjustment factor K1, K2.K1 is established by the board of directors. Usually this is 1. K2 can be 1, 0.85, 0.5.

When calculating dividends from ordinary shares, it is worth predicting the average dividend for recent periods and will set their current size.

When analyzing the amount of income, it is worth considering that transfers of funds to participants are not included in the development of the enterprise. Analyze the percentage of the company's net income that will be paid to shareholders.

Large dividends should be amortized by a large, well-developed enterprise. Young companies are reluctant to pay dividends.

Conservative investors should buy stocks that pay higher dividends. Such shares will grow slowly, which means they will have higher dividend yields.

By privileged

Preferred shares are better predictable. Businesses must pay often 10% of the firm's income. This amount must be paid in mandatory.

It is worth dividing 10% of the income among all preferred shares. This way you can get the minimum transfer amount. But firms rarely pay more than this figure.

If with one founder

All dividend transfers are made by decision of the meeting of founders. But if there is only one founder, then he has the right to independently make such a decision and formalize it in writing (Article 39 normative document Russian Federation No. 14-FZ).

Those funds received by such a person are subject to personal income tax at a rate of 9%, and from 2019 - 13%.

When calculating dividends, it is necessary to fulfill a number of conditions prescribed in Art. 29 of act No. 14-FZ.

The right of the sole founder to make decisions on payment is stated in paragraph 2 of Art. 7 of the legislative document of the Russian Federation No. 14-FZ.

There are no regulated documents that would formalize the decision to transfer dividends. But such decisions must be made in writing.

So in the protocol it is worth indicating:

• amount of payments;
• the form in which dividends will be issued;
• date of receipt.

This means that line 2400 must contain undistributed income, which will be identified in the reporting period.

Net profit is reflected in line 2400 of the Statement of Financial Results, which may coincide with the indicators of retained income in line 1370 of the Balance Sheet.

But this is possible if:

• at the beginning of reporting periods the company will not have undistributed income from previous periods;
• no interim dividends were distributed during the reporting period;
• if overvalued fixed assets were not disposed of during the reporting period.

Otherwise, the amount of interim dividends will reduce the income of the reporting period, and the values ​​​​in the lines indicated above will not match.

Interim dividends paid during the year will be reflected in the balance sheet for the year in the section “Capital and reserves”.

The calculation of dividends and other income due is carried out in accordance with strict legal rules. But don’t forget about local regulations.

Experienced specialists do not need information about the calculation procedure, but beginners will come in handy with such information.

Very often, companies accumulate a certain amount of income that is not distributed to other needs. This happens over a long period of time. In this case, you responsible persons the question arises about the possibility of paying dividends for the previous period. How can this be done in this case and how is this issue regulated?

Concept and features

Dividend comes from the Latin word. This means a certain part of the income joint stock company or other entities. It is distributed among shareholders or shareholders in accordance with their ownership. The amount of payments is determined at a highly specialized meeting between shareholders.

Income is paid several times on an annual basis. In some cases they are not paid at all. Dividends are considered a kind of investment, with the possibility of capitalization and extension. Payment to shareholders allows reducing capitalization income and does not require additional savings.

Typically, companies pay out earnings at the end of the year. These dividends are called interim or preliminary. At the end of the financial period, the rest is paid.

And then this is called final income. This financial compensation, paid in accordance with the ownership of the share. This is called a cash dividend. In some cases, it is possible to pay income in additional shares.

Payment is made in several ways.

• The classic option involves payment of funds in cash and non-cash form. This is also indicated in the minutes of the general meeting if it is necessary to clarify this point.

There are several restrictions for citizens who decide to receive cash. According to the current legislation that regulates cash circulation, it is not allowed to pay income to shareholders on cash proceeds.

• Dividends are paid only through other transactions. The calculation is made from available funds received from the accounts of a credit institution or return of money by other means.

In some cases, it is permissible to pay in the form of fixed assets or property. For example, shareholders receive finished products or the right to claim.

This is considered the most expensive option for tax purposes. This method is also subject to VAT in addition to income tax. When simplified, it appears additional income.

With UNDV, everything is more complicated. Everything will depend on the activities of the enterprise and the possibility of its transition to UTII. In this case, transactions on the right of claim and transfer of ownership will not be subject to taxation.

In a different situation, there will be permission to application of the simplified tax system. Therefore, you should make a decision on paying income with your own products or other property rights only after consulting with professional lawyers.

The legislative framework

These provisions are regulated in the Russian Federation by the current Tax Code. The concept of dividend, according to its standard, is the entire remaining amount after taxation of the shareholder's ownership. The share participation rate is specified in the same normative act in article 224.

Previously, the income was 9% per annum for individuals – residents of the Russian Federation and 15% for non-residents of the country. Now the income rate for residents has changed and is 13%.

The legal basis for the distribution of profits remains in Civil Code RF, or more precisely in Article 103. For this action, the owners must hold a shareholder meeting. According to the law, the timing of the meeting is also specified - no earlier than 2 months and no later than six months. At the same time, LLCs must carry out such events in the period 1.5-30.04.

The decision on the distribution of income is made collectively and upon signing the protocol by all participants. With a single founder, such documentation is not drawn up in accordance with Federal Laws No. 14 and 208.

Retained income can be spent on:

1. payment of shareholder income;
2. increasing the company's cash capital;
3. creation of a reserve;
4. repayment of last quarter's debt;
5. pay wages employees;
6. capital investments;
7. other goals.

Is it possible to pay dividends for previous years?

The question “Is it possible to pay dividends for previous years?” many founders ask. In 2018, the competent authorities were able to answer this question in accordance with current legislation.

The organization has the right to pay dividends for the past period of time. This is regulated by the letter from the Ministry of Finance and its latest edition.

The same position is supported in judicial and other collegial and government bodies. When distributing net income, mention must be made of the existing charter of the institution. At the same time, it is possible and possible to direct income to such needs only in the absence of plans to form a reserve.

Or if you want to corporatize employees. Otherwise, taxation occurs at different rates.

Video: Rules

Accounting

Dividends are accrued in accordance with the current legislation of the Russian Federation. When carrying out such an action, entries are made where Credit is 75.2 and Debit is 84.

If profit has been accrued but not yet claimed in accounting, it is reflected in a different entry. If the company does not pay dividends for some reason, the shareholder can receive profit at another time. Accrued dividends are restored to net profit after three years of non-claim.

In some cases, such dividends may be extended for a period of no more than five years. In this case, the posting will be Debit 75.2, and Credit 84 for the subaccount. There is no taxation here.

Documenting

Regulates documenting Tax Inspectorate.

To do this you need:

1. register a charter that describes the procedure for registering dividends;
2. protocol with signatures of all participants;
3. supporting documentation of share ownership;
4. accounting entries with net profit.

Payment of profits to shareholders is confirmed by payment certificates.

Error in net profit calculations

According to all legal acts, the accountant is obliged to make amendments when errors are discovered in the financial statements. All changes made must be true. If the profit indicator is underestimated, additional income of the organization should appear in the documentation. It must also be distributed among shareholders.

If the amount of income is overstated and dividend payments already exist, the profit must be understated. After correction, the indicators will be slightly underestimated. In the next period, shareholders will receive less than they should have received due to such erroneous information.

When sending balance sheet The accountant must check the correctness of the calculation and calculation. It is possible to correct such documents, but it takes a lot of time. But shareholders will receive their profits in any case, even after time passes.

Taxation of shareholders' profits

Present here different shapes and principles of taxation. General taxation equal to 20% of the amount of profit received by the organization for the financial period. Only financial and economic activities are taxed.

The rate that is provided for the simplified tax system along with the profit object minus the expense part. The overall coefficient will be 7%. The cost of dividends under the classic scheme is 20%, and under the simplified scheme it is necessary to pay only 7% to the state.

When calculating the amount of taxation, you can calculate the full load. In this case, the indicator will not exceed the general coefficient.

It follows from this that if you switch to the simplified tax system or UTII regime, then the payment of profits to shareholders is much easier.

Payments to non-residents

Paying dividends to non-residents is a rather labor-intensive process with its own characteristics. The main nuance is the use of an increased taxation coefficient. Profit of a foreigner from a share in a company with activities not related to Russia is taxed at a rate of 15%. But this indicator does not always work.

Other indicators are announced subject to signature at the shareholders meeting to minimize the risk of double tax. After all, when staying in different territories, this is exactly what can happen. The calculation and write-off is not carried out by a tax representative in the absence of taxation in accordance with an international convention.

Conditions for reducing the indicator are concluded only with official confirmation of the foreigner’s income. The foreign organization must confirm the presence of a non-resident’s permanent location on its territory.

At the same time, Russia must have an agreement with this country in accordance with the current Tax Code of the Russian Federation.

The decision to pay profits to shareholders is made by the company's members, not by the accountant. His tasks include only providing correct financial statements on time. If shareholders have made decisions on the distribution or redistribution of funds, the accountant is obliged to reflect the corresponding action in the balance sheet.

We offer step-by-step instructions for paying dividends in 2019. You will learn how to calculate and pay dividends to the founders of an LLC, how often they can be paid and how to formalize everything correctly.

The procedure for paying dividends to LLC

Dividends are part of the profit that is distributed among the participants of the enterprise. Depending on the legal form of the company (LLC or JSC), profits are divided between the founders or shareholders.

Since 2019, the shareholder’s income that he receives upon leaving the company or its liquidation has also been equated to dividends (Clause 13, 21, Article 2, Part 3, Article 9 of the Law of November 27, 2018 No. 424-FZ).

There are two stages of dividend distribution:

1. Accrual
2. Payment.

In our step-by-step instructions for paying dividends to founders in 2019, we will look at both stages in detail.

The procedure for accrual and payment of dividends is determined Federal law dated December 26, 1995 No. 208-FZ (as amended on July 29, 2017) “On Joint-Stock Companies” or Federal Law dated February 8, 1998 No. 14-FZ (as amended on July 29, 2017) “On companies with limited liability"(with amendments and additions, entered into force on September 1, 2017). In addition, the procedure is prescribed in constituent documents(for example, in the charter), in the decision on the payment of dividends. It is on the basis of these documents that, in principle, a decision is made on the accrual or non-accrual of dividends.
Who is the tax agent when paying dividends?

The accrual is based on net profit (that is, profit after paying income tax). Dividends are also paid minus personal income tax (personal income tax for resident and non-resident individuals) or income tax for legal entities (including under special regimes - UTII, simplified tax system, unified agricultural tax). Thus, the company that accrues and pays dividends to the participants is their tax agent.

How often can LLC dividends be paid?

Dividends can be accrued quarterly, once every six months, or once a year. Expressed in property (including shares) or cash. Most companies, especially public ones, use cash payments. Sometimes the question arises when dividends can be paid to an LLC. Payment must take place within 60 days from the date of accrual. Next, we will tell you how to calculate dividends and consider step-by-step instructions for paying dividends to an LLC in 2019.

How to calculate dividends that will suit the owners and will not damage the business

How to spend the company's net profit - use it to pay dividends or finance the business - is decided by the owners. The financial director will have to justify to the owners the amount of dividends that is safe for the company.

How to calculate dividends in an LLC

Before dividends are paid, they must be accrued. At the end of the quarter, half-year or year, after-tax profits are distributed among the LLC participants. To do this you need:

• decide on the accrual of dividends;
• fully pay the authorized capital;
• settle accounts with retired members of the company.

In addition, the company must exceed the amount of authorized and reserve capital. The company must also show no signs of bankruptcy, including after the planned accrual and payment of dividends (see, for example, stages of bankruptcy of a legal entity).

If all conditions are met, the company gathers all the company's participants and makes or does not decide on the payment of dividends, as well as on what part of the profit to allocate to payment to the founders. The decision is made by a majority vote. If the LLC participant is one person (or one legal entity), the decision is made individually.

Part of the profit to be distributed can be divided in proportion to the shares of the company's participants or not. The method of distribution is fixed in the company's charter or its subsequent amendments (additions).

Based on the results of the meeting, a protocol is drawn up indicating the name of the company, the company's participants and their shares, the agenda, for what period dividends are planned to be accrued, the amount, terms and form of payment. If a different period is not indicated in the charter or in the minutes of the decision, then by default it is considered to be 60 days from the date of the decision (see Figure 1).

If there is only one participant in a limited liability company (LLC), he alone can make a decision on allocating part of the net profit based on the results of the enterprise’s work to dividends, indicating the amount and terms of payment. By the way, there is a large section dedicated to. You can sign up and try. Based on the results of training, a state diploma is issued.

Picture 1. Minutes of the general meeting of participants of a limited liability company. The decision to allocate net profit to pay dividends

In any case, the decision also states that there are no restrictions on the distribution of profits.

Postings for accrual of dividends in an LLC are made from the debit of account 84 to credit 70 (if the company member is an employee of the company) or 75.2. The account “Settlements with founders” is used in this posting for non-employee participants and for legal entities.

Step-by-step instructions for paying dividends to LLC founders in 2019

After accrual of dividends, the enterprise has a debt to the participants of the company to pay them the dividends due.

Step 1. Draw up an order for the payment of dividends to the founders

Figure 2. Order on payment of dividends to founders

Step 2: Withhold taxes

The amount of tax on dividends is determined by the status of a company participant. For individuals - residents of the Russian Federation - personal income tax on dividends in 2017 is 13%, for individuals - non-residents - 15%.

For legal entities, the tax on dividends will be:

• 0% – for a Russian organization that owns a share of 50% or more in the authorized capital of the company for 365 days or more;
• 13% – for a Russian company that does not meet the previous conditions;
• 15% or another rate - for a foreign company, on the basis of international agreements on the avoidance of double taxation.

For an example of filling out a personal income tax payment form, see Figure 3.

Figure 3. An example of filling out a payment order for personal income tax from the founder’s income

Step 3. Record the payment in accounting

When dividends are paid, the following entries are made:

Dt 75.02 Kt 68

Dt 70 Kt 68 – dividend tax is charged.

Dt 75.02 Kt 50 (51)

Dt 70 Kt 50(51) – dividends paid.

When payment is not made in cash, but in the form of LLC property, for example, finished products, the entries take into account the write-off from account 43 (see also, ). However, this type of calculation is quite rare nowadays.

An example of calculating dividends in an LLC

Let's look at the example of calculating dividends and taxes on them. The company Arfa LLC is subject to a general taxation regime and was founded by five participants with different shares.

The charter states that after-tax profits can be distributed every six months, in proportion to the shares of the participants. For 6 months of 2017, the company’s net profit amounted to about 21 million rubles. (read also, ), NAV net asset value is 145 million rubles. (for calculation purposes, the balance is not given in the article).

The authorized capital is 8.3 million rubles, reserve capital is 504 thousand rubles. The value of net assets is greater than the authorized and reserve capital.

At the end of August 2017, after passing the semi-annual audit, a meeting of company participants was held. A unanimous decision was made to distribute part of the net profit to pay interim dividends in the amount of 10.5 million rubles. The minutes of the meeting record that dividends are distributed in proportion to the participant’s share, with funds transferred to bank cards individuals and current accounts of organizations until the end of September 2017. It should be noted that Arfa LLC does not participate in the authorized capital of other organizations and does not receive dividends in any other way. Otherwise, dividends received must be taken into account in the calculation to avoid double taxation.

Table 1. Founders information

An order for the accrual and payment of dividends was drawn up, a calculation was made for each LLC participant, income tax was calculated in accordance with the tax regime of the participant, and dividends were paid minus taxes.

table 2. Amount of dividends payable including taxes

Thus, it is clear that the largest share in the company belongs to Step LLC, which has owned this share for 5 years. For this company the rate will be 0% despite common system taxation with a dividend rate of 13%. The amount of accrued dividends is 5 million rubles. was paid in full.

Resident individual Frolov M.P. received dividends for minus personal income tax in 13% - in the amount of 730 thousand rubles.

Non-resident Marquez D. - with a tax rate of 15% and a share in Arfa LLC - 1 million rubles.

Insurance premiums are not charged for these payments. Arfa LLC independently determines the tax status of these individuals. The foreign company Stella ltd, which owns a 19% share of Arfa LLC, is a Cypriot organization to which the Double Taxation Avoidance Agreement can be applied. Therefore, an income tax rate of 5% was used, the payment of dividends amounted to 1.9 million rubles.

The total amount of dividend payments to Arfa LLC amounted to 9.96 million rubles, taxes amounted to 534 thousand rubles. Based on the results of payments, the company compiled certificates in Form 2-NDFL and indicated in the income statement the fact of accrual of dividends in favor of legal entities. It must be remembered that the tax inspectorate can essentially classify some payments in favor of company participants, which are not formally related to dividends, as dividends, and charge appropriate taxes and penalties.

The economic meaning of paying dividends in an LLC

Dividends represent the income of company participants due to the profitable operation of the enterprise. Therefore, the size of dividend payments and the very fact that an LLC receives dividends can be an additional indicator for investors when analyzing and choosing a company from the point of view of investment investments (read also). That is, it is an indirect indicator of the success of the enterprise. The company decides whether it will pay a portion of the profits to its participants or not. There may be several reasons:

1. The company has no profit and does not pay dividends.
2. The company's profit is insignificant and/or the company plans to develop, but does not have enough resources. Refuses to pay dividends and uses profits for development.
3. The company has a profit, but to reduce the tax burden, the profit is understated using various accounting techniques. It should be remembered that net profit is partly a manipulative indicator. Dividends are not paid, or are paid in a smaller amount than they could.
4. The company has profits that should be used for development. But the company wants to show high-quality public reporting, maintain investor confidence, and pay dividends.
5. The company has profits, resources for development, and dividends are paid.

Payment of dividends is good sign when choosing a company for investment. But you need to understand the reasons for accruing dividends from profits, for which you need to clarify other indicators of the company’s performance. For joint-stock organizations, the payment of dividends may be a more manipulative indicator than for an LLC.

In principle, not every company can afford to accrue and pay dividends to the founder. If this happens regularly over several years of the enterprise’s existence, it indicates a stable financial position and fairly transparent reporting.

Dividends are income that members of an organization receive when distributing profits remaining after taxation. It is for the sake of making a profit that a business is started, so it is important for the owner of an LLC to know exactly how he can get it.

Let us remind you that individual entrepreneur can freely dispose of the income received for personal needs, that is, withdraw money from the current account, take it from the cash register, transfer it by bank transfer. The only condition is that he must not have arrears in taxes and contributions.

An LLC participant can receive money from the business in the form of a salary if he works according to employment contract in its organization, or in the form of dividends, but provided that the company’s activities were successful.

When dividends cannot be distributed

Of course, there will be no dividends to be paid if the company did not conduct business or it turned out to be unprofitable. It is impossible to distribute as profit such funds as, for example, a loan taken by an organization for certain purposes, or to pay dividends when there are outstanding losses from previous years.

Profits from the activities of the company cannot be distributed in the following situations (Article 29 of the Law “On LLC”):

• the authorized capital is not fully paid;
• the company meets the signs of bankruptcy at the time the decision to issue dividends is made or will have such signs after their issuance;
• the value of the LLC's net assets is less than it authorized capital and the reserve fund or will become less than their size as a result of the decision to pay dividends;
• before payment of the actual value of the share or part of the share of a company participant;
• other cases provided by law or credit obligations organizations.

If these circumstances cease, then the LLC is obliged to pay its participants the profit, the distribution of which among the company’s participants was decided.

What are net assets

A separate article 30 of the Law “On LLC” is devoted to the funds and net assets of a limited liability company, so it’s worth finding out in a nutshell what they are.

Net assets are the difference between the assets and liabilities of an organization according to the balance sheet. Assets include all of the company’s property in all its types: cash, inventories (raw materials, finished products, shipped goods, costs in work in progress), fixed assets, accounts receivable, financial investments, etc. Liabilities are the organization’s debts (according to loans and credits, accounts payable, reserves for future expenses, etc.).

An accountant calculates net assets, and the owner’s opinion on how much of the profit can be received in the form of dividends will not always coincide with the balance sheet data.

In the company's annual report, a separate section should be devoted to the state of net assets. It reflects the dynamics of changes in the value of net assets and authorized capital over the last completed financial years. If the value of the company's net assets turns out to be less than its authorized capital, then it is necessary to analyze the reasons and factors that led to this state.

Measures must be taken to bring the value of net assets into line with the size of the authorized capital. If such compliance is not achieved within six months after the end of the financial year, then a decision must be made to reduce the authorized capital or liquidate the LLC.

How often can an LLC pay dividends?

Article 28 of the Law “On LLC” allows the distribution of dividends to company participants quarterly, once every six months or once a year. The frequency of dividend payments must be specified in the charter of the LLC. Dividends that are distributed not at the end of the year (but once every quarter or six months) are also called interim.

With regard to such periodicity there is next nuance- if at the end of the year the organization’s activities turn out to be unprofitable, then dividends cannot be distributed. In this case, those amounts that have already been paid to participants will be recognized not as dividends, but as payments individuals, which must be charged insurance premiums. In addition, you will have to make changes to the reports that have already been submitted, so distributing profits between participants on a quarterly basis only makes sense if there is a stable income.

How are dividends distributed?

Dividends can be distributed only on the basis of a decision of the general meeting of participants (or the decision of the sole participant of the LLC). At the general meeting, the organization’s financial statements are approved, the amount to be distributed in the form of dividends, and the specific amount of payments for each participant are determined. The decision is formalized by protocol in the usual manner.

In general, the profit of an LLC aimed at paying dividends is distributed among the participants in proportion to their shares in the authorized capital, but the charter of the company may establish a different procedure for distributing profits between the company's participants. Dividends must be paid to LLC participants no later than 60 days from the date of such decision.

The profit received at the end of the year does not have to be paid out in the form of dividends; you can leave it undistributed or create a reserve fund for the development of the organization (unlike a joint stock company, an LLC has the right, but is not obliged, to create a reserve fund).

It is surprising that, in the opinion of the Ministry of Finance, expressed in some letters, retained earnings from previous years cannot be used to pay dividends at the end of the reporting year. The ministry was unable to clearly comment on its response, and after several court decisions on this issue in favor of LLC participants, the legitimacy of the distribution of profits from previous years is no longer questioned.

Taxation of dividends

Insurance premiums are not charged on the amounts of dividends paid to individual participants, but personal income tax is withheld from the amount received. Before January 1, 2015, for residents of the Russian Federation (that is, staying in Russia for at least 183 days a year), it was 9%, in 2016 and 2017 - 13%. For example, out of 100,000 rubles in hand, the participant will receive only 87,000 rubles. It is kept by the organization's accounting department; you do not need to transfer it yourself.

If dividends are received by a participant who is legal entity, then dividends are subject to income tax. At the same time, dividends of participants that are Russian organizations with at least 50% of the participation share and a period of continuous ownership of shares of at least 365 days are taxed at a preferential zero rate.