The financial component occupies an extremely important place in the life of everyone, relating to one degree or another to other areas. Therefore, any person regularly encounters terms that reflect this reality. Some of the terms are often used in the form of abbreviations, and it will be useful to know what is hidden behind it.
VAT - value added tax, is included in the group of indirect taxes. It is formed in the form of a premium to the price of products sold (goods, services) and is prescribed in contracts and documents for payment. An ordinary buyer who has made a purchase in a store can see it on a receipt.
Thus, the tax burden falls on the shoulders of end consumers, and VAT is paid by sellers once a quarter. This tax is included in the revenue items of the state (federal) budget. From January 1, 2019, the base VAT rate is 20%.
2-NDFL - a certificate of income of an individual, a standard reporting form, which is established by order of the Federal Tax Service. It is compiled by an organization that acts as a tax agent. The document contains information about the employer, the employee, the last income received (broken down by months), deductions, tax base, calculated and paid taxes.
Help 2-NDFL is used to assess the financial condition of an individual when applying for benefits, social benefits, loans, visas.
So, when applying for a mortgage for the purchase of finished housing in Sberbank with proof of income, the borrower submits this document.
3-NDFL is a standard form of a tax return, which is formed and submitted by an individual. It contains information about all income received, deductions, taxable base, calculated and paid taxes, as well as debts (overpayments) on them. An individual is required to fill out and submit a 3-NDFL declaration in the following cases:
Filling out and submitting the 3-NDFL declaration is carried out in paper or electronic form. The second option is available through the taxpayer's personal account on the website of the tax service. The deadline for filing the return is April 30 of the year following the reporting year (with the exception of the return for a tax deduction, which can be filed later).
The Federal Tax Service is the federal tax service, an executive body that controls compliance with legislation in the field of taxes and fees. The Federal Tax Service monitors the correctness of their calculation and the timeliness of payment to the budget. In addition, the Federal Tax Service controls the production and circulation of tobacco, the use of cash registers, and exercises currency control. The service is under the jurisdiction of the Ministry of Finance.
TIN - individual taxpayer number, a unique digital code. Assigned to individuals and legal entities at their location. The code is structured and reflects the territorial structure of the tax service.
An individual has the right (but not the obligation!) to obtain a certificate of assignment of a TIN by applying with a passport to the tax authority at the place of registration.
Legal entities are assigned a number during registration and issued as part of a package of documents. The TIN is indicated in many financial and other papers, and an individual may need it, for example, when filing a tax return or applying for a job.
IP - an individual entrepreneur, a status that reflects the conduct of entrepreneurial activities without the formation of a legal entity. An individual entrepreneur is registered with the tax authority at the location. Previously, the abbreviations PBOYuL and ChP were used to designate IP.
Anyone over the age of 18 can receive an "honorary title" of an IP.
For registration, the future individual entrepreneur submits to the tax authority an application, a passport and a receipt for payment of the state duty. Information is entered into the Unified State Register of Individual Entrepreneurs (EGRIP). The duties of an individual entrepreneur include the calculation and payment of taxes and fees in accordance with the accepted taxation scheme, as well as reporting. The entrepreneur has the right to hire employees, and is responsible for his obligations with all the property that he owns.
The minimum wage is the minimum wage, the legally established level in the amount of the subsistence minimum for the able-bodied population. Below it, a salary cannot be assigned if the employee is full-time. The indicator is also used when calculating the amount of certain benefits, taxes, fines and other payments, and assessing pension rights.
From January 1, 2020, the minimum wage at the federal level is set at 12,130 rubles.
Regional indicators can be equal to this value or exceed it. Organizations and enterprises in the regions (if they have not refused to join regional agreements) should be guided by them when assigning salaries to employees.
SNILS - insurance number of an individual personal account. This is an identifier that is indicated in the certificate of compulsory pension insurance. The document is issued in the form of a plastic card and is issued by the territorial body of the Pension Fund of the Russian Federation.
A person hired for the first time receives a certificate through the employer, keeps it with him and, if necessary, presents it along with his passport. When does such a need arise? When applying for a pension, social benefits, employment, obtaining a loan. So, in order to receive a “Cash Loan” at Alfa-Bank, the applicant must submit a passport, a 2-NDFL certificate and an additional document, which can be SNILS.
TFR is the total cost of the loan, the total amount that the borrower must pay in order to fulfill its obligations. The vast majority of it falls on the payment of the principal (loan body) and interest, but the contract may provide for other payments. Due to additional payments, the real interest rate will exceed the nominal one, including that indicated in promotional offers.
The value of the TIC is indicated on the first page of the loan agreement.
The font for displaying the UCS must be clear, legible and the largest size of all the fonts used on the page.
OFZ - federal loan bonds, securities with a validity period of several years, which are issued and placed by the Ministry of Finance on behalf of the Russian Federation on the debt market. If an individual or legal entity buys these securities, it becomes a creditor to the state, and the latter undertakes to repay the debt with the payment of coupon income. OFZs are traded on the exchange, bought and sold at current quotes, which may change over time and differ from the face value.
Federal loan bonds are a good way to invest money, since the yield on securities can exceed interest rates on bank deposits. At the same time, OFZs are liquid and can be sold at any time. These securities are considered a conservative investment tool, combining a moderate level of profitability with minimal risks of financial losses. At the same time, active market participants use OFZs to make speculative profits by playing on the dynamics of stock quotes.
PIF is a mutual investment fund, a collective investment instrument. Its participants own shares of property, which are stocks, bonds and other financial instruments. The property of the mutual investment fund is managed by the management company (MC). The task of the management company is to ensure the maximum return on investment of shareholders' funds.
A unit of property that is in shared ownership is a share, which is certified by a security. To become a member of a mutual fund, you need to buy at least one share. Further, all concerns for investing the invested funds are taken over by the management company. It monitors the situation in the markets and carries out operations, buying and selling assets in order to make a profit in accordance with the adopted strategy.
Mutual fund participants are not guaranteed to receive income, as the market situation may go in an unfavorable direction.
The activity of the management company in managing the funds of the fund can turn out to be both profitable and unprofitable. Therefore, cautious investors should choose mutual funds with conservative management strategies. For those who are willing to risk their money, risky investment schemes with large potential profits are suitable.
ETF (English exchange-traded fund) is an investment fund that issues and places its shares on the stock exchange. These shares can be purchased by anyone in order to earn on the change in their value over time. Unlike a mutual fund, with which an investor enters into a contractual relationship in order to acquire a share and entrust the funds to a management company, an ETF works according to a typical issuer scheme. From the point of view of law and trading techniques, the fund's securities are no different from shares, for example, of Sberbank or Gazprom.
ETF quotes are tied to the value of the underlying asset, which is usually a general or sectoral stock index, and the investor's income depends on the behavior of the asset. Profit is generated when the price of an ETF share exceeds the one at which it was bought. But since the direction of market movements is not guaranteed, losses may follow instead of profits. In this case, the investor, as traders put it, “catches the moose” (the option is “requalifies as a moose breeder”).