Individuals, and above all civil servants, can contact their employer to confirm their income during each calendar year, quarter, and half-year. The main supporting document is a certificate of income in Form 2 of the personal income tax (Article 20 of the Russian Federation No. 79-FZ). It is necessary to provide it to various institutions in order to receive benefits and loans. But individual entrepreneurs are not, in the full sense, individuals, they carry out entrepreneurial activities and communicate directly with the Federal Tax Service, so a standard certificate is not suitable for them. Let's talk about ways to obtain a certificate of income specifically as an individual entrepreneur, in more detail.
What is an income certificate
An individual entrepreneur’s income certificate is an officially approved document confirming an employee’s income for a specific accounting period, usually a year. An individual needs it to present it upon request, for example, to a bank. To obtain a loan, bank employees often require this document from potential clients.
IP
Sometimes a certificate is needed to obtain:
- benefits;
- certain payments due to certain categories of citizens (poor people, large families, single mothers).
An individual entrepreneur needs a certificate from an individual entrepreneur for an individual entrepreneur for the same purposes. But since he works for himself, it is necessary to study the rules for issuing certificates of this kind specifically for individual entrepreneurs, find out where and how to get information, and how to correctly submit the information received.
Sample certificate of individual entrepreneur
Is it possible to make it yourself
Certificate of employment for an individual entrepreneur for a visa - sample design
The individual entrepreneur will have to provide a certificate of income to himself if he works under the simplified tax system or UTII. When working in the standard OSNO system (used by default), he can contact the Federal Tax Service for the relevant information or fill out a certificate in form 3-NDFL. It will also do.
In other cases (STS and KNVD), the individual entrepreneur independently prepares all documents, including a certificate.
Help 2-NDFL
General provisions
A certificate of income may mainly be needed in the following circumstances:
- for obtaining a loan;
- upon receipt of a visa to travel abroad;
- for payment of social assistance.
The certificate is issued to an individual - a citizen of the Russian Federation in order to display information about his income for a certain period. Income in this case are funds paid to an individual by an enterprise or organization that is a tax agent for him.
Thus, a certificate of income submitted by an individual entrepreneur for himself is fundamentally different from the declarations prepared by tax agents, payers of taxes on their employees.
Typically, a certificate of income of an employee is drawn up in form 2-NDFL.
The income certificate for individual entrepreneurs is filled out on a standard form according to form 2-NDFL
Presidential Decree No. 460 of June 23, 2014 approved special forms of certificates for government officials holding positions associated with a high degree of involvement in corruption schemes.
As you can see, for an individual entrepreneur, a self-reported income certificate drawn up in Form 2-NDFL is absolutely not suitable. The principles of drawing up a certificate of income for oneself for an individual entrepreneur differ sharply from drawing up a certificate of income for an employee or employee.
Sample certificate
Certificate from the place of work with an individual entrepreneur - how to do it correctly
The form of filling out and issuing a certificate of income of an individual entrepreneur depends on its purpose. Most often, the document is drawn up for:
- Jar. To get a loan, an individual entrepreneur must contact the bank and clarify what form the particular financial institution accepts. Some banks have developed their own sample certificate forms to fill out. Separately for individuals and separately for individual entrepreneurs. In the certificate on the bank form for individual entrepreneurs, it is important to indicate, in addition to the name of the individual entrepreneur and data on the period of its existence, also the amount of revenue received by the entrepreneur for the last six months or 3 quarters.
- Visa Center. To travel abroad in most cases you need to prove your own worth. The supporting document for individuals is a certificate of income, and for individual entrepreneurs it can also be a tax return or a document drawn up independently based on information from the book of income and expenses. It is certified with your own signature and the signature of a notary. In addition to information about the amount of income, indicate information about the individual entrepreneur, the number of the registration certificate and bank account.
- Vessels. Only tax returns are accepted for consideration from individual entrepreneurs. The document is received by the Federal Tax Service after submitting the appropriate application (drawn up in any form).
Important! Each individual institution can independently establish the samples of income certificates they accept.
The form for drawing up such documents is largely standard. The header contains all the information about the entrepreneur, for example:
- IP Govorukhin Alexey Danilovich;
- INN – 123127689563454982
- OGNIP – 578716728376x83974
- account number at UralSib Bank - 389639514284905469
- City Ufa.
The information in the header is presented on both sides - on the left and on the right, the left side is reserved for information about the TIN and OGRNIP, the information about the bank account and place of registration is indicated on the right. After completing the header, it is signed with the full name of the individual entrepreneur.
In the main part, the information is usually duplicated, with a note about the amount of income. The document is again signed, stamped, and in some cases also certified.
Standardized certificate template
Confirmation of individual entrepreneur's profit on UTII and PNS
How to confirm the income of an individual entrepreneur on UTII? Credit organizations know that the declaration that a businessman submits to the tax office every year does not reflect the real picture of his profit.
The Ministry of Finance recommends choosing one of the following confirmation methods:
- using primary documentation;
- switch to a simplified profit accounting scheme.
In addition, each individual entrepreneur on UTII keeps records of profits on his computer or on paper. However, such records do not constitute documentary evidence of profit for the bank. Accordingly, the question arises of how to prove to the bank that the individual entrepreneur is solvent. For this purpose, a special book is created, which is assigned the status of an internal accounting register. The book form is established depending on the preferences of the business entity.
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The document must contain the following information:
- Name;
- date of its registration;
- data of an individual entrepreneur (full name, registration number, TIN);
- the period for which records are kept;
- signature of the business entity.
All records are kept in chronological order. Each entry must have its own serial number and name. A copy of the document certified by a notary is proof of profit for the bank. Typically, such a document is maintained by entrepreneurs who work without a current account. Most businessmen who are on the PSN ask the question how to confirm the income of an individual entrepreneur on a patent in a year?
Here the situation is the same as for an entrepreneur on UTII. It is necessary to keep a book of income. You can also provide a bank account statement.
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Free form
Since individual entrepreneurs working under the simplified tax system or UTII in terms of drawing up income certificates do not have a specific template, they can issue an individual entrepreneur’s salary certificate for themselves in free form. To do this, the following information is indicated in its header:
- Full name IP;
- passport number, who issued it;
- TIN;
- OGRNIP;
- registration certificate number;
- legal address;
- bank account number, bank name;
- where and when the document was drawn up (city, date).
Note ! The form in which information is presented in the header does not play a role in the arbitrary preparation of a document.
In the main part, after the word “certificate”, the individual entrepreneur notes that he confirms all the information presented in the header, he really is an entrepreneur, and his income minus taxes paid (as of April 2020 - example) is (specific figure).
The individual entrepreneur must attach some document confirming his words to the certificate. It can be:
- declaration form 3-NDFL for the required period;
- bank account statements;
- receipts for payment for specific services provided by the individual entrepreneur;
- any other documents evidencing financial activities.
The certificate is completed by the signature and seal of its originator. If an individual entrepreneur does not work alone and he has a person officially responsible for accounting, then he also puts his signature on the document.
Declaration 3-NDFL
Is a 2-NDFL certificate issued for individual entrepreneurs?
To receive social benefits or financial assistance from federal or municipal authorities, individuals usually need to provide a certificate of their income, because the amount of such assistance directly depends on the amount of income of the applicant.
In order to confirm their income, ordinary citizens submit certificates issued and executed by employers according to the 2-NDFL form approved by law. Income certificates are also required for citizens for other purposes, for example, to obtain a loan. When talking about the 2-NDFL certificate for individual entrepreneurs, you need to consider the following.
Firstly, they will be able to receive this certificate from their employer if they combine entrepreneurial activity with hired work. Then the individual entrepreneur turns to the employer, who issues him a 2-NDFL certificate in the usual manner. But he receives a certificate only regarding “salary” income. There will be no income from your own business.
Secondly, in practice, there are other situations when an individual entrepreneur engaged exclusively in business may encounter a requirement for a 2-NDFL certificate, for example, when he applies to a bank for a loan, but not as an individual entrepreneur, but as an ordinary individual. In this case, he, like all citizens, receives from the bank a list of documents required for submission, among which is a 2-NDFL certificate.
However, it should be understood that in this case we may not be talking about 2-NDFL, but about a similar income certificate drawn up by an entrepreneur in free form (or in the form of the requesting authority), since 2-NDFL is issued by tax agents, and an individual entrepreneur is only one towards their employees. This means that he can apply for 2-personal income tax for them, but not for himself.
See also the article “Who has the right to sign a 2-NDFL certificate?” .
You should also take into account the nuances of the tax regime applied by individual entrepreneurs. In most situations, an individual entrepreneur who is on a general or simplified taxation system, instead of a certificate, can provide copies of 3-NDFL or simplified tax declarations submitted to the Federal Tax Service, respectively. In this case, a tax return with a mark from the Federal Tax Service (or a printed receipt confirming the acceptance of the report by the tax service operator) can completely replace the income certificate.
Attention! You need to submit 3-NDFL for 2020 using a new form. Read our article about filling out the individual entrepreneur declaration.
However, not all authorities can agree with such a replacement, because the law confirming the income of an individual entrepreneur is not clearly established, and bureaucratic instructions specifically for individual entrepreneurs will not be rewritten. Therefore, if an institution insists on 2-personal income tax on income from business activities, it is worth clarifying whether a free-form income certificate is suitable. Otherwise, it won't be possible to imagine it.
In certain cases, an individual entrepreneur may require a certificate of the amount of insurance premiums paid. Where such a certificate is submitted, how and where to get it (and for different periods it is issued by different different authorities), you can find out in ConsultantPlus. Get trial access to the system for free and proceed to expert explanations.
How to make a certificate for social security
If an individual entrepreneur has the right to benefits and a document confirming them (certificate of income), he can count on:
- compensation for kindergarten;
- discounted travel on public transport;
- social assistance (discount, free provision of a number of medicines, food, clothing);
- discount on utility bills;
- land plot;
- receiving monthly child benefits;
- more favorable mortgage lending conditions.
To take advantage of the benefits, you must state the amount of income for the last 3 months, and for this you must draw up a special document. It lists:
- Full name and all data related directly to the individual entrepreneur (TIN, OGRNIP, place of registration as a taxpayer - city, date, Federal Tax Service branch number);
- How much and when did you earn monthly?
Example. I, D. A. Lyutikov, are an individual entrepreneur (TIN and OGRNIP numbers are indicated) registered with the Federal Tax Service No. 3 in Moscow. In January 2020 I earned 10 thousand rubles, in February 2019 - 7 thousand rubles, and in March 2020 - 12 thousand rubles. My total income was 29 thousand rubles. All information I have provided is true (date, signature).
The certificate may indicate that income was calculated net of income taxes. It is advisable to attach to the document receipts confirming the work activities of the individual entrepreneur, as well as statements from the bank account where the funds raised in the process are received. This will avoid problems when resolving the issue of how an individual entrepreneur can confirm his income for social security .
How to confirm your income as an individual entrepreneur
If the taxpayer works according to the basic taxation system, then, as mentioned above, he does not have problems with confirming income. The 3-NDFL declaration is used as a certificate of income. The entrepreneur fills out this document independently, but its accuracy must be checked by a tax officer. The individual entrepreneur is responsible for providing incorrect data in accordance with current legislation.
Note ! When registering a declaration, the person submitting it has the right to make at least 3 copies of this document. Copies are certified by a Federal Tax Service employee; if necessary, they are provided to institutions and bodies that require a certificate of income.
If the organization with which the individual entrepreneur cooperates needs a certificate, then the easiest way is to draw it up on the basis of a tax return. To do this, the entrepreneur:
- transfers all the data from it to a new document, not forgetting to indicate his full name, legal address, registration certificate number and other data that allows him to be identified as an individual entrepreneur;
- sign the certificate, affix a stamp if there is one, and have it certified by a notary, not forgetting to attach one of the copies of the declaration to it.
With confirmation of the income of individual entrepreneurs working under UTII, simplified tax system or a patent, everything is somewhat more complicated.
On UTII
If an entrepreneur pays tax according to UTII, then the amount of income is not indicated in the declaration sent to the Federal Tax Service, which does not allow this document to be used to replace a certificate of income or document the very fact of their existence. The UTII declaration contains only the base of activities in which the individual entrepreneur operates.
Note ! The only legal way to confirm income is to save primary documentation and use cash registers. Then the entrepreneur will have cash receipts and pay slips at his disposal, which he can use to provide proof of income.
On the simplified tax system (simplified)
Since the real amount of income of an individual entrepreneur under the simplified tax system is difficult to understand, when drawing up a certificate, they use a supporting document such as a journal of income and expenses. Copies are made from it, certified by a notary and, together with the originals of bank payment receipts, attached to the certificate.
The form in which the certificate is written depends on the institution, but the data is usually standard. As a rule, it is important for organizations to know that a specific individual entrepreneur not only exists, but also earns money, and in what form documents are submitted, arbitrary or officially standardized, is not so important.
Receipt cash order
On PSN (patent)
Individual entrepreneurs working under a patent undertake to keep a book of income and expenses and record all important information in it. The form of the book and record keeping has been officially approved. Entrepreneur:
- reflects in the book income received through the cash register or directly to a bank account; the category of income subject to accounting is determined by Art. 346.53 Tax Code of the Russian Federation;
- must stitch the book, affix the pages with his signature and the seal of the individual entrepreneur (the document is brought into compliance with the rules established for journals).
If there is other primary documentation, then it is also used when drawing up a certificate of earnings. In other cases, the entrepreneur uses only the book, completing all the necessary documentation himself.
Payslip
Important! Individual entrepreneurs operating under a patent, simplified tax system or UTII do not report the amount of their earnings to the tax service, so it is useless to apply for information about the income of this category of persons to the Federal Tax Service.
