Economics
Accounting and
audit
Peculiarities of tax
distribution on profit according to types of activity both patented and not
patented
E.A.Kurteyeva, post-graduate student of “Crimean
Engineering Pedagogical University” (Republic Higher Education Establishment)
This article
considers the main issues connected with the definition of the profit tax when
implementing activities that both should be patented and not be patented.
Key
words. Taxes, taxpayer, patent,
balance cost, deterioration, gross revenue, profit.
I.
Introduction.
In order to reduce the
sum of supplemented profit tax from those types of activities, for which
patents were gained, independent stock-tacking cost of trade patents is used.
Therefore the object of taxing, received from activity which is not patented and is not reduced by taxpayer on
negative meaning of taxing, received from activity which is patented and vice
versa. It depends on that such payer proclaims general sum of tax obligation
according to all types of activity in tax profit declaration where this
negative meaning is taken into account while defining general tax obligation.
Changes, introduced into the profit law, procedure of tax reduction on profit
which is payable for the cost of trade patents, is regulated and has been used
since 1st January 2005. In
present procedure, tax profit is defined separately on each type of
activity which is patented and separately – on the different activity. In order
to determine tax obligation of accounting period it is allowed to reduce only
that part of profit taxation which is got from type of activity liable to
patenting according to law of Ukraine “About patenting some types of
industrialist activity”.
II.
Raising of
task. Aim of project – taxation
optimization of undertaking under realization types of activity which are
liable and not liable to patenting.
Methods of study – the framework of
research methodology is the analysis of state accountant’s calculating and
audit, economics, works of native and foreign scholars in the field of
industrialist activity.
It is
essential to mention, that types of activity, which are liable to patenting, do
not coincide with the species of economical activity. They are established by
National Classifier NC 009-96 “Classification of economical activities’ types”
which is approved by State committee’s command on standardization metrology and
certification from 22.10.96 ¹ 441 2 types of license which are defined by law
of Ukraine “About license of definite types of business activity or special laws
[4].
While carrying out
at the same time several types of activity which can be patented and can not be
patented, difficulties arise in definition, balance cost of goods.
As a result – some
difficulties, connected with tax profit.
III.
Results.
According to the law,
there are 4 types of business activity, authority of which is allowed the
presence of trade patent:
-
Trade
activity by cash. Under trade activity, retail and wholesale are understood,
trade activity in the commercial-industrial field by cash, by another payment
and by credit cards.
-
Activity
on exchange of cash foreign values. (Sale of cash foreign currency, another cash payment, conveyed in foreign
currency)
-
Activity
on giving service in the field of gambling. Under gambling business is
considered to take activity connected with the casino, gambling places
(houses), slot machine, winning with the monetary and property lotteries,
winning organization.
-
Activity
on giving everyday services. Under everyday services are consider to take the
activity connected with pay services to satisfy individual clients’ needs by
cash and also by using other forms of payment including credit cards [2].
In order to
determine the profit received from patent activity according to profit law, it
is directed to lead separate calculation of:
-
Gross
revenue, received from realization activity which is liable to patenting
-
Gross
expenses, carried because of running such activity
-
Balance
cost of goods, which are used in such activity
-
Shock-absorbing
calculations, related to given activity[1]
We will not face
the difficulties if we abstract from total gross revenue of that part of
accounts period which is received from patent activity. For business companies,
independently what kind of business they lead, according to the code CBED, the
revenue from patented activity is the resource, received by cash or by credit
cards. According to the data’s accounting, it is not hard to define revenue for
other patented activities [1]. Distribution of gross expenses by kinds of
patented activity is more problematical task, because accounting’s methodology
does not provide expenses distribution. Such method is not developed by tax
law.
The necessity of
balance cost of goods distribution clashes with impossibility of realization.
The procedure of calculation grow (diminution) balance cost stocks which is
established by profit law, issues from, that it is necessary to know not only
stocks used in given activity for accounting period but also debris of such
stocks for the beginning of the period to define the right growth (diminution).
They should be
gained only for this activity and be in uncompleted production. In normative
document regulated as accounting and tax calculation, conditions and criterion
are lacking. In accordance with them, obtained goods (stocks) primordially are
fixed and they are used directly. ( for example – only sold by cash). It is
virtually impossible to calculate the growth of stock without such normative
framework.
There are also some difficulties when we are
talking about distribution of shock-absorbing deduction on patented or other
activity. In this case, it will be rational to use simplified method.
According to item 16.3 article 16 of Profit
Law, the main funds are used for realization activity which is liable to
patenting and for other activities and also to define the object of taxation
for different kinds of activity. The method of proportional sum distribution of
shock-absorbing deduction is used and it depends on position of income which
comes to each type of activity. It is also confirmed that separate calculation
of growth (diminution) balance cost of good is not given into practical
realization. Taxpayer has to distribute this quantity with the help of
proportional method.
IV.
Conclusion
1.
It is
seen from the given Tax Administration’s letter from 05.08.2005 ¹
15614/7/11-111 about procedure of defining profit from patented types of
activity that specialists met the same problem to distribute the index growth
of balance cost of goods on content with patents. And as one of the way to
solve this problem tax administration offered to distribute equalized gross
profits and equalized gross expenses compounded with individual component
meaning stock's growth.
More interesting this problem was solved by tax
administration in the table 3 in appendix K6. Special lines for reflection of
growth meaning of balance good's cost can be seen there. They are reflected as
constituent of equlized gross profit's quantity. They have informative
character. It is recommended to keep individual calculation of stocks on
patented and non-patented types of activity. It is also advised to enter
additional sub calculations. For example, we have a patented activity
"Crude and materials" and it will be considered according to sub
calculation 2011, but if we have another activity, the sub calculation will be
2012.
Tax
administration has not determined yet the fact about distribution of trade
patented and non-patented activity. They made provision for businessman to be
busy with 3 types of activity: wholesale, retail and gambling. Patents are got
on wholesale and gambling. But it is mentioned in the example that wholesale
activity is considered as non-patented activity but it should be mentioned as "another
activity" in the law profit terminology. Then, wholesale activity can be referred
to patented activity if it is carried through the trade object with cash
calculations.
2. After studding the calculation problems in tax
registration, it is appropriate to take into account profits, expenses,
industrial stocks and also to distribute amortization proportionally to gross
revenue.
Literature
1.
Law of
Ukraine "About business profit tax" from 28.12.94 ¹ 334/94 VR with
changes and additions.
2.
Law of
Ukraine "About patenting of some types of industrialist's activity"
from 23.03.96 ¹ 98/96-VR, added and changed.
3.
Law
of Ukraine "About financial
book-keeping in Ukraine" changed and added from 16.07.99. ¹ 996
4.
Law of
Ukraine "About lincence definite types of economic activity" from
01.06.2000 ¹ 177-3
5.
State
tax administration's letter ¹ 15614/7/11-111 from 05.08.2006
6.
Tax
view in Ukraine, redacted by Hom'yaka R.L., L'vov, 2007
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