How to determine the budget classification code

Accounting of tax revenues is carried out in strict accordance with codesand budget classification (KBK). This is necessary for many reasons: for statistical reporting, accounting, taxes and their distribution to budgets of various levels. Some taxes are distributed only in the Federal budget, while the budgets of the subjects of the Federation, some in the local. Some taxes, whose volumes are the most significant, for example, income tax, VAT, has been allocated to budgets at all three levels. Moreover, the allocation percentage for each subject of the Federation are different.

The structure of the CSC consists of four parts. The first three digits indicate the code of the chief administrator of budget revenues of the recipient who needs to track their receipts and to monitor the timely transfer of funds. This recipient are extra-budgetary funds, tax authorities, local authorities, etc.

The fourth digit of the code – the type of income it is tied to the source of receipt of funds. 1 means payment of the tax, 2 – the flow of funds grant funding 3 – the income from those engaged in entrepreneurial activities.

Bits 5-6 indicate the tax code. So, income tax is denoted by a two-digit code 01, social insurance – 02, VAT on goods sold on the territory of the Russian Federation – 03, VAT for the goods imported on the territory of the Russian Federation – 04, PT – 05, etc.

Article tax encrypted in grades 7-8, the sub – 9-11. They are specified in the payment documents in strict conformity with those of their values which are shown in the classification of budget revenues of the Russian Federation. Discharges 12-13 indicate the distribution between budgets of various levels. If the amount is income of the Federal budget code is 01, if the budget of the subject of Federation – the code 02, local budget – code 03, the Pension Fund – 06.

The revenue coded discharge 14. For the transfer tax or contribution is 1, if the penalty remitted is 2, the penalty is – 3. Category 15 and 16 always has the value zero. The last three digits in the classification of the income of the state. For example, tax revenues represent code 110, the sums of compulsory withdrawal code 140, etc.

To determine the code of the budget classification, are not required to be familiar with its structure in such detail. You will always be able to see the codesand used in the current year, on the website of the tax Inspectorate.