In this case, calculate the number of days of the reporting month during which the bond is owned by the organization:
From the day following the day when the bond was received into ownership (for the month in which it was acquired);
Or from the beginning of the reporting month (if the bond was purchased in previous periods).
This procedure follows, in particular, from the letter of the Department of Tax Administration of the Russian Federation for Moscow dated February 18, 2004 No. 26-08/10738.
An example of calculating coupon yield on a corporate bond for the reporting month
On November 30, Alfa CJSC purchased for 10,249 rubles. (including NKD - 249 rubles) corporate bond with a nominal value of 10,000 rubles. The coupon income on the bond is 10 percent per year. The bond issue date is August 30. The start date for coupon accrual is September 1. Payment of coupon income in reporting year is not implemented. Alpha uses the accrual method and pays income tax monthly.
For accounting and tax purposes, Alpha must calculate the amount of coupon income attributable to December (from December 1 to December 31).
10,000 rub. × 10%: 366 days. × 31 days = 85 rub.
Method applied to government securities
Calculate coupon income can be based on data on the amounts of accumulated coupon income (ACI) accrued at the end of the reporting month, at the end of the previous month (or ACI paid to the seller), and the amount of coupon payments in the reporting month.
This procedure is established by paragraphs 6-7 of Article 328 of the Tax Code of the Russian Federation.
Calculate coupon income according to these rules.
If the organization did not receive payments from the issuer in the reporting month, calculate the amount of coupon income as follows:
Coupon income for the reporting month = cash income at the end of the reporting month - cash income paid when purchasing the bond
In subsequent reporting months (in the absence of payments from the issuer), determine the coupon income as follows:
Coupon income for the reporting month = cash income at the end of the current reporting month - cash income at the end of the previous reporting month
Thus, the coupon income for the reporting month (in the absence of payments from the issuer) will be equal to the amount of income for the time that the bond is owned by the organization in a given month.
An example of calculating coupon yield on a corporate bond for the reporting month. The organization did not receive coupon payments from the issuer
On November 30, Alfa CJSC purchased for 10,249 rubles. (including NKD - 249 rubles) corporate bond with a nominal value of 10,000 rubles. The coupon income on the bond is 10 percent per year. The bond issue date is August 30. The start date for coupon accrual is September 1. There is no payment of coupon income in the reporting year. At the end of the year, the bond issuer announced the amount of NKD equal to 334 rubles.
The Alpha accountant calculated the amount of coupon income on the bond for December as follows:
334 rub. - 249 rub. = 85 rub.
If the organization received payments from the issuer in the reporting month, then calculate the amount of income as follows.
When receiving payment for the first time:
Coupon income for the reporting month = Amount of paid coupon - ACI at the end of the previous reporting month (ACI paid to the seller when purchasing a bond) + ACI at the end of the current reporting month
For subsequent payments:
Coupon income for the reporting month = Payment amount + accrual income at the end of the current reporting month
Please note that after receiving a coupon, the coupon period, and therefore the accumulated coupon income, is calculated from the moment of this payment. For example, the cash flow indicator at the end of the reporting month should be calculated from the moment of the last payment until the end of the reporting month. This procedure follows from paragraph 2 of paragraph 4 of Article 280 of the Tax Code of the Russian Federation.
The amount of accrual tax for such calculations can be found out from the trade organizers, the issuer, and can be calculated on specialized websites using accounting program or independently, using the calculation procedure established in the issuance documents.
An example of calculating coupon yield on a corporate bond for the reporting month. The organization received coupon payments from the issuer
On November 30, Alfa CJSC purchased for 10,249 rubles. (including NKD - 249 rubles) corporate bond with a nominal value of 10,000 rubles. The coupon income on the bond is 10 percent per year. The bond issue date is August 30. The start date for coupon accrual is September 1. The payment of the next coupon income in the reporting year was made on December 15 in the amount of 290 rubles.
Alpha uses the accrual method and pays income tax monthly. For accounting and tax purposes, Alpha must take into account the amount of coupon income due in December.
To do this, Alpha’s accountant calculated the amount of income tax on the bond for the period from December 16 (after payment of coupon income) to December 31:
10,000 rub. × 10%: 366 days. × 16 days = 44 rub.
The Alpha accountant calculated the amount of coupon income on the bond for December as follows:
290 rub. - 249 rub. + 44 rub. = 85 rub.
A bond is an issue-grade security that gives its owner the right to receive, within a specified period, from the issuer (that is, the organization that issued it) a certain amount of money or part of property equal to its face value. In some cases, a bond involves receiving a coupon income from its face value and other property rights. In this article we will look at in simple language what bonds are and we will try to understand how any individual can make money on them.
Bond as an investment instrument
If you look at essence bonds, it turns out that in its own way essentially they are no different from the same bills or promissory notes - namely, they are issued in order to attract additional funds to the company (analogous to a loan). As a rule, borrowed funds are used to finance those areas of activity that in the future can generate income and cover interest on bonds. Since bonds can be considered as an ordinary loan provided from one person (individuals, legal entities) to another person (legal entity), this allows one to calculate the potential profit for the lender and possible additional costs for the borrower. The company that issued the bond does not need to confirm its financial security with collateral, and plus, the right to claim the bond can be transferred from one person to another. As a rule, exchange-traded securities have maturities of 1 year or more (up to 30 years), but, of course, owners do not need to hold the security (CB) for such long term, especially if you need money urgently.
Bonds, like other financial instruments, have their advantages and disadvantages. Among the positive points we can note:
- Forecasted from high probability profitability
- Minimal investment risk
The main disadvantage could justifiably be attributed to low profitability. In general, the price (and, accordingly, profitability) of regions depends largely on interest rates on bank deposits. Bonds usually have a fixed coupon yield (more on this a little later) and have a certain nominal value, which the investor valid on the bond's maturity date must ultimately receive. Investors evaluate future profitability based on the current market price of the region (since interim payments and nominal value are known). The higher the price of the region at the current moment, the smaller the difference between the nominal and current value and the lower the yield of the bond. With an increase in interest rates on deposits market price on the region and falls, increasing them potential profitability. But in general, changes in the interest rate on bank deposits with similar yields are not the only factor influencing the current value of a debt security. In addition, the maturity of the bond is important: over time, the value of the security increases, reducing the potential profitability.
The main difference between regions and bank deposits is the greater liquidity of the former. The property can be sold at any time with a certain profit, and in order to save interest, it is advisable not to cash out the deposit before its expiration date.
However, the price of the bond may currently exceed the nominal value, that is, sold at a premium (and not a discount) - in the case of a discount bond, this happens if the security is redeemed not in cash, but in other assets for a larger amount. Well, interest-bearing bonds (which, as a rule, have coupon income) can cost more than their face value, because they include additional potential income from coupons in their price.
Accommodation
Of course, not all organizations can issue bonds. As a rule, a joint stock company (or LLC) does not have the right to produce if the company has existed for less than three years. In addition, the nominal value of all issued debt securities should not exceed the amount authorized capital company and (and sometimes) exceed the amount of security of third parties (if third parties take responsibility for the security of payments on bonds). The placement (the process of transferring ownership from the issuer to the primary owners) of bonds, as a rule, takes place very quickly (in a day). Before this event takes place, the procedure for making a decision on placement and approving the decision on release takes place. Next, the prospectus for issuing debt securities must pass state registration(in Russia this is done federal Service By financial markets). Upon completion of the placement, you must report (register a report) on its results.
Kinds
The basis for classification can be quite varied. So, according to the type of issuer, bonds are distinguished:
- Public – issued on behalf of the government or local authority (but guaranteed by the government) to cover deficits state budget. Let’s take, for example, GKOs (state short-term regional bonds) and OFZs (regional federal loan). GKO is a non-documentary security (contained as an entry in a securities account) that does not have a coupon (we will talk about it later) and with a circulation period of up to one year. OFZ is a coupon bond intended primarily for medium-term investment.
- Municipal – loans secured by municipal property and aimed at financing projects of the municipality (state, district, city, etc.)
- Corporate – loans various types organizations.
Based on the type of income, one can divide into the following types of regions:
- Discount - do not have a coupon, the profit is formed due to the discount (difference) between the nominal and current market values. The nominal price is fixed, so, naturally, the market price will increase (and profit, accordingly, decrease) as the maturity date of a given security approaches. Discount debt securities have a lower trading volume and prevalence than the next type.
- With a fixed interest rate - a debt securities bank that has a coupon income at a fixed interest rate. Coupon payments occur mainly once every 4 months (sometimes once every 3 months, sometimes the frequency of payments is different).
- With a floating interest rate - a debt Central Bank that has a variable coupon, the size of which is tied to certain macroeconomic indicators, such as rates on other securities or. Such securities are issued less frequently than fixed-rate securities.
What is a bond coupon? Accumulated coupon income
Coupon is a cut-off part of a debt securities bank, having a certain denomination (size) and payment terms. Of course, now no one cuts coupons anymore, since bonds exist and are stored in in electronic format, but, nevertheless, the coupon income is the income of the lender, which is paid to him periodically (once every 3-4 months) by the borrower. Knowing the frequency of payments on the security and the amount of coupon payments ( interest rate to the nominal value of the debt securities), you can calculate how much has “accumulated” on the bonds from the moment of the previous coupon payment until the current moment. On the payment day and the next following day, the accumulated coupon income (ACI) will be equal to zero. When purchasing a debt securities from another investor on the stock exchange, the investor pays not only the current market value of the bond, which is less than the nominal price, but also the non-current income tax, which may ultimately lead to the purchase price exceeding the nominal value of the securities.
What is an offer?
When a bond is issued, it has a known maturity date - the day after which payments on the bonds will not be made, that is, the owner of the bond will not receive income. However, some bonds have the opportunity to be repaid by the issuing company before the maturity date announced by the Central Bank - the presence of a so-called offer. If you decide not to wait for the repayment period, but to return the invested money earlier, as an option you can receive the money on the day of the offer.
How to buy?
Now, government and corporate bonds are in free circulation on the so-called secondary market and the procedure for purchasing them is similar to that with shares. That is, to begin with, we open a brokerage account and install a terminal. Then select a security with the yield to maturity you need (this information may be available in the trading terminal, but is also freely available). Submit, in fact, an application to the exchange (in Russia, trading is carried out mainly on the Moscow Exchange) and wait until it is satisfied from the opposite side. It should be noted that the current value of bonds, as a rule, corresponds to a percentage of the par value, and the par value of most bonds is at Russian market equal to 1000 rubles. But, nevertheless, it is advisable to invest in bonds, starting with an amount of at least 50,000 rubles, in order to make the costs of brokerage and depository services insignificant in percentage terms.
Difference from bill of exchange
Well, finally, let’s note what are the main differences in such seemingly similar financial instruments, as ob-gation and:
- A bond is an emission security, and a bill is a non-emission security
- A bill of exchange is issued only in documentary form, bonds are issued mainly in electronic form
- The issuer of the bill may be individual, issuer of the region - only legal
- A bill of exchange can be used as a means of payment and settlement, but a region cannot.
In general, of course, profitability bonds is inferior to the profitability of instruments such as futures, options and the same shares, however, by investing in debt securities, you will receive a stable income higher than from bank deposits.
Valid for visitors to our website special offer- you can get a consultation completely free of charge professional lawyer, simply leaving your question in the form below.
Thus, a bond is a very interesting way to invest free funds, however, not the most common among private investors in Russia, due to the lack of a correct understanding of them.
The current yield of a bond is the ratio of periodic payments to the purchase price of the bond. Since coupon bonds are usually traded at a price above par, the current yield will be lower coupon rate on this bond. If the bond is trading at a price below par, the situation will be reversed. Accordingly, using a financial calculator, having determined the current yield of a bond, you will get an idea of what yield in % per annum you can expect on this bond.
Total: Current bond yield: Enter the data % per annum.
Bond yield to maturity
A bond's yield to maturity calculator is an interest rate at a discount rate that equates the value of the announced coupon payment stream to the current one market value bonds. This indicator is calculated assuming that you intend to hold the bonds until their maturity. The more expensive you bought the bond, the lower the yield to maturity.
Total: Bond yield to maturity: Enter the data % per annum.
Bond yield for sale
The bond yield calculator is an interest rate at a discount rate that equates the value of the announced coupon payment stream to the current market value of the bond. The more expensive you bought the bond, the lower the yield on sale.
Total: Bond yield for sale: Enter the data % per annum.
Current bond price
A financial calculator of the present (current, fair) value of a bond is an estimate of how much a bond, the parameters of which are known, should currently cost.
Total: Current bond price: Enter the data in rubles.
Amount of coupon income on the bond
The calculator allows you to calculate the amount of coupon payment for 1 bond, which you can count on, saving it until the coupon payment date.
Total: Amount of coupon income on the bond: Enter the data in rubles.
Accumulated coupon income
The calculator allows you to calculate the amount of accumulated coupon income per given date per 1 bond, i.e. the amount that will have to be paid when purchasing 1 bond on a given date.
Total: Accumulated coupon income: Enter the data in rubles.
Advantages
The main advantages of a bonded loan:
- big investments Money without the threat of interference by bondholders in the management of the organization;
- attracting funds from private investors (public) and legal entities for a sufficiently long period and possibly for more favorable conditions than shares and other securities;
IN difference from promotion, which represents equity joint-stock company, a bond is a representative of borrowed capital. Shares are issued only joint stock companies, bonds - any commercial organizations and the state.
Bond face value - sum of money A security listed on a security that the issuer borrows and promises to repay at a specified maturity date and under specified interest rate terms.
By timing- There are urgent and indefinite.
Kinds
Government bonds- securities issued to cover budget deficits on behalf of the state or local authorities, but necessarily guaranteed by the government.
The state establishes the same. issue rate - the price at which bonds are sold to banks. The market price is the price at which they are sold and bought on the loan capital market.
Corporate bonds- securities issued by corporations ( legal entities) to invest in their activities. They are typically long-term debt instruments with a maturity of more than a year.
Coupon bonds- securities containing cut coupons, on which interest income is accrued and paid after a specified period.
Determination of coupon income, calculation procedure
Information on determining coupon income, calculation procedure
Definition of the term coupon income
Coupon income on corporate bonds
How to calculate coupon income
General procedure reflection of coupon income in tax return.
Accounting for accumulative coupon income on securities government securities.
Definition of the term coupon income
Coupon income is income from government savings loan coupon bonds.
Accumulated coupon income (ACI) is a part of the coupon interest income on a bond, calculated in proportion to the number of days that have passed from the date of issue of the coupon bond or the date of payment of the previous coupon income.
The formula for calculating the income tax implies the need to calculate the number of calendar days from one date to another or the duration of the period determined by two dates. Depending on the type of bond, there are several bases for calculating these indicators, for example “365/366”, when the duration of the period from date T1 to date T2 is defined as the difference in dates: T2 - T1.
The amount of accumulated coupon income can be expressed through the size of the coupon in monetary units or through the coupon rate as a percentage and face value.
The standard formula for calculating the ACI on Russian bonds from the rate is as follows:
N - nominal
C - current coupon rate (in percent per annum)
T - number of days from the start of the coupon period to the current date
B - calculation base (365 days)
Accumulated coupon income is part of the coupon income calculated at the face value of the bond and in proportion to the number of days that have passed from the date of issue of the bonds or the date of payment of the previous coupon income.
Coupon income on corporate bonds
Bonds are a type of valuable securities, the owners of which have the right, within a certain period, to receive from the issuer their nominal value, as well as the interest (coupon) income declared on them. When bonds are sold, coupon income is included in their sale price. The article highlights the features tax accounting coupon yield on corporate bonds, and explains the procedure for filling out income tax returns by bondholders.
According to paragraph 3 of Article 43 of the Tax Code of the Russian Federation, interest is understood as any pre-declared (established) income, including in the form of a discount, received on a debt obligation of any type, regardless of the method of its execution. That part of the interest (coupon) income, the payment of which is provided for by the terms of the security issue, and the amount is calculated in proportion to the number of days that have passed from the date of issue of the security or the date of payment of the previous coupon income to the date of the transaction (date of transfer of the security), is called accumulated interest ( coupon income (NKI). This definition is given in paragraph 4 of Article 280 of the Tax Code of the Russian Federation. Calculation of income tax is carried out by the owners of state and municipal valuable papers, as well as corporate bonds, the issuer of which is not the state, but organizations.
Before moving on to the issue of calculating income tax and the procedure for reflecting income on corporate bonds in the income tax return, let us dwell on general rules tax accounting of coupon income.
Procedure for tax accounting of interest (coupon) income
According to paragraph 6 of Article 250, interest (including coupon, discount) received on securities is recognized as non-operating income. The specifics of maintaining tax accounting for income (expenses) in the form of interest on securities are established by Article 328 of the Tax Code of the Russian Federation. Paragraph 1 of this article provides that the taxpayer, on the basis of analytical accounting non-operating income and expenses deciphers income (expenses) in the form of interest on various debt obligations. Income (expenses) on securities are reflected in the amount of interest due in accordance with the terms of the issue.
Bond owners take into account in analytical accounting the amount of income in the form of interest (coupon) based on the yield established by this species bonds, and the validity period of these debt obligations in the reporting period.
Taxpayers using the accrual method1 determine the date of recognition of income on securities based on paragraph 6 of Article 271 of the Tax Code of the Russian Federation. If the duration of the debt obligation (the circulation period of the security) falls on more than one reporting period, then for tax purposes the income is recognized as received and reflected in the tax base at the end of the corresponding reporting period. When a debt obligation (sale of a security) is repaid before the end of the reporting period, income is recognized on the date of repayment of the debt obligation (sale of a security).
Interest (coupon) income received by owners of securities is taxed at a rate of 24% when calculating income tax.
How to calculate coupon income. IN Tax Code, namely in paragraph 7 of Article 328, the procedure for tax accounting of income tax on state and municipal securities traded on the organized securities market (ORSM) is spelled out in detail. And there are no special rules in the Code for corporate bonds. The question arises: is it possible to apply the provisions of paragraph 7 of Article 328 of the Code to account for income accrual on corporate bonds? To answer this question, let's compare these types of securities.
Government (municipal) securities and corporate bonds are very similar in terms of the rules of issue and circulation. Both for state and municipal securities, and for corporate bonds when they are issued in mandatory coupon income is announced in advance. This income is accrued by the issuer at a certain frequency and paid to the owners of securities according to the rules stated at the time of issue. When selling both securities, the NKD is included in the transaction price. All this gives grounds to apply to corporate bonds the same rules that are provided for in paragraph 7 of Article 328 of the Tax Code of the Russian Federation for accounting for coupon income on state and municipal securities.
Let us consider in detail how interest (coupon) income on corporate bonds is calculated by taxpayers using the accrual method.
Those who owned bonds during the reporting (tax) period must calculate interest (coupon) income on them and reflect it in tax accounting. If at the end of the reporting (tax) period the bond has not been sold, then the taxpayer is obliged to accrue on the last day of the reporting (tax) period the amount of interest income due on this security for the given period.
Interest (coupon) income on corporate bonds is calculated as follows:
or in the form of the difference between the amount of income tax calculated at the end of the reporting (tax) period in accordance with the terms of the issue, and the amount of income tax calculated at the end of the previous reporting (tax) period;
or in the form of the difference between the amount of accrued income calculated at the end of the reporting (tax) period in accordance with the terms of the issue, and the amount of accrued income paid when purchasing the security.
or by determining the amount of interest for the actual time the security is on the organization’s balance sheet.
This procedure for calculating coupon income is applied if the issuer has not made interest payments (coupon redemption) for the current reporting (tax) period.
On December 11, 2003, the Beta company purchased for 1,040 rubles. (including NKD - 40 rubles) corporate bond issued by the Alfa issuer. The parameters of the bond issue are as follows:
par value of the bond - 1000 rubles;
coupon according to the terms of the issue - 366 rubles. per year (that is, 1 rub. for one day);
IN accounting policy The Beta company has established that income and expenses are determined on an accrual basis, and the reporting period for tax purposes is a quarter, half a year, 9 months.
At the end of 2003, the amount of accrued income on the bond was 61 rubles. (1 ruble per 61 days from the date of bond issue - November 1, 2003 until the end of the year - December 31, 2003).
The amount of non-operating income in the form of interest (coupon) income on the bond for 2003 was calculated as follows:
61 rub. – 40 rub. = 21 rub.,
where 61 rub. - NKD, calculated from the moment the bond was issued until the end of 2003;
40 rub. - NKD paid to the seller in the purchase price of the bond.
When forming tax base for the first quarter of 2004, the amount of non-operating income in the form of interest on the bond was calculated as follows. First, the accountant of the Beta company determined the amount of the income tax for the period from the date of issue of the bond (November 1, 2003) to the end of the first quarter of 2004 (152 days). It amounted to 152 rubles. This amount was reduced by the amount of coupon income included in non-operating income at the end of 2003 (21 rubles) and by the amount of the income tax paid when purchasing the bond (40 rubles).
Thus, the amount of non-operating income in the form of interest on the bond for the first quarter of 2004 was:
152 rub. – 21 rub. – 40 rub. = 91 rub.
If in the current reporting (tax) period the issuer made interest payments (coupon redemptions), then the taxpayer, when forming the tax base for this period, takes into account as income the interest calculated and taken into account during such payments (redemptions), as well as the amount of income tax accrued at the end reporting (tax) period.
Income received when the issuer pays interest (coupon redemption) is accounted for as follows. At the first payment of interest (redemption of a coupon) in the reporting (tax) period, income in the form of interest is calculated as the difference between the amount of interest paid (redeemed coupon) and the amount of income tax calculated at the end of the previous tax period. For subsequent interest payments (coupon redemptions) in the reporting (tax) period, income is recognized equal to the amount of interest paid (coupon redemption).
Let's change the conditions of example 1. Let's assume that the frequency of coupon payments on the bond of the issuer "Alpha" is three months. That is, the issuer pays the bond coupon on February 1, May 1, August 1 and November 1, 2004.
In this case, the duration of the first coupon period is 92 days (from November 1, 2003, the date of issue of the bond, to February 1, 2004, the date of redemption of the first coupon). This means that the amount of NKD paid on February 1, 2004 by the issuer of the Beta organization (bond holder) is equal to 92 rubles. (1 rub. per day).
When forming the tax base for the first quarter of 2004, the Beta company (bond owner) will calculate the amount of non-operating income in the form of interest on the bond as follows:
92 rub. – 21 rub. – 40 rub. + 60 rub. = 91 rub.,
21 rub. - the amount of coupon income included in non-operating income as of December 31, 2003;
40 rub. - NKD paid to the seller in the purchase price of the bond;
60 rub. - NKD for the period from the date of redemption of the first coupon (February 1, 2004) to the end of the first quarter of 2004 (60 days).
As we can see, the amount of non-operating income in the form of coupon income on the bond for the first quarter of 2004 is the same amount in both the first and second examples. That is, the mere fact of repaying a bond coupon during the reporting (tax) period does not lead to a change in the amount of non-operating income for the given period for the bond owner.
If bonds were purchased by a taxpayer in the current tax period, then interest income is calculated according to the same rules. But instead of the amount of income tax calculated at the end of the previous tax period, the amount of income tax paid by the taxpayer to the seller of the security in the transaction price is taken into account.
On October 11, 2004, the Gamma company acquired a corporate debt security (bond) of the Delta issuer for 1,071 rubles, including NKD - 71 rubles. The bond issue date is August 1, 2004, maturity date is August 1, 2005. Coupon according to the terms of the issue - 365 rubles. per year (that is, 1 rub. per day). The coupon is paid by the issuer once every three months - November 1, 2004, February 1, May 1 and August 1, 2005.
When forming the tax base for 2004, the Gamma company calculated the amount of non-operating income in the form of interest on the bond as follows.
First, income was calculated for the period from the date of purchase of the bond (October 11, 2004) to the date of payment of the first coupon (November 1, 2004):
92 rub. – 71 rub. = 21 rub.,
where 92 rub. - this is the amount of the first coupon due on the bond for the period from the date of its issue (August 1, 2004) to the date of payment of the first coupon (November 1, 2004), that is, for 92 days;
71 rub. - this is the amount of NKD paid to the seller when purchasing a security on October 11, 2004.
Then the amount of income tax attributable to the bond from the date of payment of the first coupon to the end of the tax period was determined. It is equal to 61 rubles. (1 ruble per 61 days - from November 1 to December 31, 2004).
Hence, total amount The coupon yield on the issuer's bond "Delta" for 2004 is:
61 rub. + 21 rub. = 82 rub.
If during the reporting (tax) period there was a disposal (sale, redemption) of bonds, then income in the form of interest is calculated according to the same rules. But the amount of income tax calculated at the end of the reporting (tax) period is replaced when calculating interest income by the amount of income tax calculated on the date of disposal of the bond.
On April 5, 2004, the Well company acquired the bond of the Omega issuer at a price of 1,035 rubles, including NKD - 35 rubles. The nominal value of the bond is 1000 rubles. Its issue date is March 1, 2004, maturity date is April 5, 2005. Coupon according to the terms of the issue - 365 rubles. per year (that is, 1 rub. per day). The coupon is paid by the issuer once every three months - June 1, September 1, December 1, 2004 and April 1, 2005.
The first coupon on the bond was received by the Well company in the amount of 92 rubles. (for 92 days that passed from the bond issue date - March 1 to the date of accrual of the first coupon - June 1, 2004).
Income from this operation was taken into account when calculating income tax for the first half of 2004.
The amount of interest income on the bond for the six months was calculated as follows:
30 rub. + (92 rub. – 35 rub.) = 87 rub.,
where 30 rub. - the amount of income tax calculated from the date of payment of the first coupon (June 1, 2004) until the end of the reporting period (June 30, 2004), that is, for 30 days;
92 rub. - the amount of the first coupon due to the taxpayer for the period from the date of issue of the bond (March 1, 2004) to the date of payment of the first coupon (June 1, 2004), that is, for 92 days;
The bond was sold on July 16, 2004 for 1,045 rubles, including NKD in the amount of 45 rubles accrued from the date of payment of the first coupon (June 1, 2004) until the date of sale, that is, 45 days.
When forming the tax base for income tax for 9 months of 2004, the amount of interest (coupon) income on the bond was calculated as follows:
45 rub. + (92 rub. – 35 rub.) = 102 rub.
General procedure for reflecting coupon income in the tax return. When filling out an income tax return2, interest (coupon) income received by the taxpayer on bonds is reflected in non-operating income.
First, let's look at the situation when the taxpayer, the owner of the bonds, did not sell these securities during the reporting (tax) period and did not present them for redemption to the issuer.
In the declaration for the reporting period, the amount of coupon income on corporate bonds, calculated as of the last day of the reporting period, is reflected on line 030 of sheet 02 along with the rest of the organization's non-operating income.
When filling out a declaration for the tax period, the taxpayer must provide a breakdown of the composition of non-operating income in Appendix No. 6 to sheet 02 of the declaration. Interest received by the taxpayer on corporate bonds is reflected on line 030 of this application. Then the total amount of non-operating income is calculated (line 010 of Appendix No. 6 to sheet 02), which the taxpayer transfers to line 030 of sheet 02 of the declaration.
Let's use the conditions of example 3 and see how in annual declaration The income tax reflects interest (coupon) income on unsold (outstanding) bonds.
Let us recall that the amount of interest income for the period from the date of purchase of the bond (October 11, 2004) to the date of payment of the first coupon (November 1, 2004) is 21 rubles, and the amount of income tax attributable to the bond from the date of payment of the first coupon to the end of the tax period , - 61 rub. Thus, the total amount of interest income on this bond for 2004 is equal to 82 rubles.
Accounting for accumulative coupon income on government securities.
As a result of the innovation of the state's obligations under GKOs - OFZs, their owners were provided, in particular, with federal loan bonds with a fixed coupon income (OFZ - FD) with circulation periods of 4 and 5 years.
Coupon income on these bonds is accrued starting from August 19, 1998. The amount of coupon income is 30% per annum in the first year, 25 in the second, 20 in the third, 15 in the fourth, then 10% per annum (clause 2 , 3 Basic conditions for the implementation of innovation on government short-term zero-coupon bonds and federal loan bonds with constant and variable coupon income with maturities before December 31, 1999 and issued before the Government Statement Russian Federation And Central Bank of the Russian Federation dated August 17, 1998, approved by Order of the Government of the Russian Federation dated December 12, 1998 N 1787-r (as amended as of March 3, 1999) “On innovation on government securities”).
In addition, state savings loan bonds (OGSS) and domestic currency loan bonds (OVVZ) continue to circulate on the market, for which the right to receive coupon income is established by the conditions of their issue (clause 4 of the General Conditions for the Issue and Circulation of State Savings Loan Bonds, approved by the Resolution Government of the Russian Federation dated 08/10/1995 N 812, clause 2 of the Conditions for issuing domestic government currency bonded loans, approved by Decree of the Government of the Russian Federation dated 03/15/1993 N 222.
In this regard, it seems relevant to consider the procedure for reflecting accumulated coupon income in the accounting records of organizations.
Coupon income is a form of income on bonds as a type of securities in the form of a predetermined (fixed) or “floating” (variable) interest accrued to their nominal value after a certain period in accordance with the terms of the issue. If specified period shorter than the bond's circulation period (i.e., income is accrued more than once - simultaneously with the redemption of the bond), then the right to receive it is fixed by a cut-off coupon usually included in the bond form (in its documentary form), traditionally called a "coupon" (from the French coupon - balance, coupon, receipt). Therefore, such income is called coupon income. Accordingly, the accumulated coupon income (ACI) is “part of the coupon income in the form of a percentage of the nominal value of the bond, calculated in proportion to the number of days that have passed from the date of issue of the bonds or the date of payment of the previous coupon income, and included in the transaction price” (clause 2 of the Letter of the Ministry of Finance of Russia and the State Tax Service of Russia dated June 13, 1995 N 53 “On some issues related to the taxation of bonds with variable coupon income”).
Thus, the purchase price of government bonds with coupon income consists of two parts - the principal value and the value of the coupon income accumulated on the day of purchase. And as long as the income tax rate on government bonds differs from the general income tax rate, the income tax will have to be taken into account separately from the principal value of the bond
Currently, experts have proposed four ways of reflecting accrued income in accounting - according to account 31 “Deferred expenses”, 58 (06) “Short-term (long-term) financial investments", 76 "Settlements with other debtors and creditors" and 83 "Deferred income". Let's consider which of them is more consistent with the economic nature of both the income tax paid (when purchasing a bond) and the income income received (when paying it off or selling a bond).
If the received documentation is non-operating income, which manifests itself when it is paid on time without any movement of the bond itself, then the nature of the ACD paid is ambiguous:
on the one hand, this is part of the investor’s actual costs, and as such, the income tax paid should be accounted for as a debit in the securities accounts;
with another - non-operating expense investor associated with future income, which provides the basis for accounting for the income tax paid in the debit of account 31 “Deferred expenses” or 83 “Deferred income”;
on the third side, this is a debt (of the state or a future buyer), which will definitely be repaid, which makes it possible to take into account the income tax paid in the debit of account 76 “Settlements with other debtors and creditors”.
We believe there is no clear solution.
In our opinion, a preferable method of accounting is one that allows us to take into account the first and second properties of the accrual income paid (accountable accrual as part of the actual acquisition costs and as a non-operating expense), each of which, from our point of view, is in all respects more significant than the third (accountable accrual as accounts receivable), i.e. reflection of the income tax paid:
when purchasing a bond - in the subaccount of account 06 "Short-term financial investments" (for OVVZ new OFZ - FDs acquired with the intention of receiving income on them for more than a year) or 58 "Short-term financial investments" (in all other cases);
upon sale (redemption) of a bond or payment of income tax - in correspondence directly with the debit of account 80 "Profits and losses" without using sales accounts
Sources
Wikipedia.org - free encyclopedia
Yandex. Dictionaries.
Academic. ru - dictionaries and encyclopedias
Mirslovarei.com – collection of dictionaries and encyclopedias
Rnk.ru – Russian tax courier
Top-audit.ru – auditing and consulting group (ACG) "RSM Top-Audit"
October 27, 2016Greetings! Bonds are a unique security that can generate several types of income at once: coupons, difference in price at maturity, and even indexation.
Almost all Russian bonds provide for regular coupon payments. So, the coupon income on bonds is small but regular cash flow. Which will certainly not be superfluous in a crisis.
Have you heard the expression: “coupon clipping”? This is just about bonds and their income part. Previously, bonds were issued in paper form. And the coupon served as a cut-off part, which was exchanged for a cash premium on the bond.
Today, of course, no one cuts off coupons anymore. Most debt securities are issued electronically and exist as digital entries in accounts. But the historical name “coupon income” stuck.
The coupon rate is annual interest income to the face value of the bond. For example, if the coupon rate is 12% per annum, and the bond costs 1,000 rubles, then the owner of the bond will receive a coupon income of 120 rubles per year. It's simple!
In Russia, coupons are usually paid twice a year. Therefore, the owner of the bond in the hypothetical example will receive 60 rubles twice. And even if you decide to sell the paper without waiting for payment, the interest accumulated during ownership will still fall into your pocket. After all, unlike bank deposit The mechanism is at work here!
Note! The coupon rate is always applied to the face value of the bond! Even if by the time of maturity the bond price falls to 500 or rises to 2,000 rubles, 6% per annum will still be charged on the nominal thousand.
Coupon payment options
Fixed permanent coupon
The coupon size as a percentage is known in advance. From the date of placement until maturity, its value does not change.
Example. Federal loan bond “OFZ-26217-PD” with a circulation period of 2121 days with a coupon of 7.5% per annum. The coupon is paid twice a year.
Fixed variable coupon
The coupon yield is only partially known in advance. In the coupon payment schedule, the issuer enters the value of the rates until a certain date. After which the size of the new coupon is determined: either it changes or remains the same.
Example. “Sberbank-17-bob” with a circulation period of 1826 days. The coupon is paid every six months. Initially, the coupon was fixed at 10% per annum (for the first coupon period).
At the end of the first half of the year, a note appeared in the “Coupons” section (website http://www.rusbonds.ru): “The rate of coupons 2-4 is equal to the rate of the 1st coupon.” This means that for the next three coupon periods (second, third and fourth) the rate is fixed at 10% per annum.
After April 8, 2018 (end date of the fourth period), the coupon size of the BO-17 series will be revised again.
Floating (indexed) coupon
In such bonds, the coupon rate is constantly changing because it is tied to some indicator.
The coupon rate may depend on:
- Dollar exchange rate
- Index consumer prices(inflation rate)
- Central Bank key rate
- RUONIA bets
Example No. 1. "AHML-13-ob" with a circulation period of 3153 days (since August 27, 2009). The coupon is paid twice a year. On the Rusbonds website we are looking for AHML-13-ob bonds. and go to the “Coupons” section.
The note says: “The coupon size is equal to the refinancing rate one business day before the end of the coupon period and a premium of 2.5%, but not more than 20%.” The calculation formula is tied to the refinancing rate - the higher it is, the higher the coupon yield.
In the column “Rate % per annum” we see how the coupon size has changed since mid-2010. In certain coupon periods, AHML bondholders received 12.5% and even 13.25%. And during periods of lower refinancing rates, bond yields fell to 10.25-10.75% per annum.
Example No. 2. "RZD-10-bob" with a circulation period of 5460 days. The coupon is paid twice a year. The note to the “Coupons” section states that the rate of 2-30 coupons (that is, from the second to the thirtieth period) is calculated as the annual inflation rate plus 1% per annum.
In the section “Rate % per annum” we see that in different coupon periods the size of coupons was different: from 7.5% (in 2014) to 17.4% (at the end of 2015).
Coupon income and taxes
The bond holder pays personal income tax in the amount of 13% of:
- Coupon amounts
- Positive difference between purchase and sale prices
Coupons for federal loan bonds and municipal bonds (unlike securities of the same Gazprom or Sberbank) are exempt from taxation. Plus(!) you can save on taxes using an IIS. If you buy a bond and do not sell it within three years, you are entitled to a 13% tax deduction.
Which coupon should I choose?
The bond market is conventionally divided into two large segments: low-risk and high-risk bonds. The first include OFZs and municipal bonds. The second category includes corporate bonds of companies of the second and third echelons. The category of the issuer is determined using. Now I will not go into detail about how exactly this happens, perhaps in the future I will make a separate article on this subject...
But in any case, bonds are a conservative instrument that is not suitable for active speculation. Investments in bonds are usually thought of when you need to ride out a “storm” in the stock market or during periods of high market volatility.
Fixed coupon bonds provide a safe haven in case of panic. A small but constant coupon is guaranteed. If the market expects rates to rise, then bonds with a variable coupon look more attractive.
The best option is to make up several types of bonds. For example: short-term bonds for current savings, corporate bonds with high yield for 2-3 years and Eurobonds for protection against currency risks.
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P.S. By the way, for those who like to tickle their nerves, there is a very high-risk strategy - "Junk Bonds"(literally - Junk bonds). But I'll tell you about it another time.
The material uses slides from the Moscow Exchange presentation.