Экономические науки/7. Учет и аудит

Tydykova T.D., Ovchinnikova I.V.

« T. F. Gorbachev Kuzbass state technical university», Kemerovo

Tax and accounting for charities

In modern Russia, many organizations are engaged in charity, that is a voluntary transfer of disinterested citizens or legal entities of the property, including cash, unselfish performance of work, provision of services and other support [1]. This activity does not bring revenue to businesses, only expenses. How does this affect her taxes? Consider this question below.

It’s worth noting that in order to transfer the property to another entity isn’t considered a normal gratuitous transfer, and charity, you must perform a number of conditions:

1) the recipient organization of charitable aid should not be a commercial organization and should not apply to political parties and movements;

2) the recipient of aid should not arise any obligations benefactor in return for its assistance;

3) the property must be used exactly as prescribed;

4) charitable assistance is provided only for the following purposes:

- social support and protection of citizens, including the improvement of the material conditions of the poor, the social rehabilitation of the unemployed, the disabled and other persons who, because of their physical or mental abilities or other circumstances can not independently realize their rights and legal interests;

- preparation of the population to overcome the consequences of natural disasters, ecological, industrial and other catastrophes, to prevent accidents;

- assistance to victims of natural disasters, ecological, industrial and other catastrophes, social, ethnic, religious conflicts, victims of repressions, refugees and internally displaced persons;

- promoting activities in the field of education, science, culture, art, enlightenment, spiritual development of a person;

- promoting activities in the field of prevention and health protection, and promotion of healthy lifestyles, improving the moral and psychological state of citizens;

- promoting activities in the sphere of physical culture and sports;

- protection of the environment and protection of animals;

- social rehabilitation of orphans and children left without parental care, street children, children in difficult circumstances;

- the provision of free legal aid and legal education of the population;

- promoting the production and (or) distribution of social advertising. [1]

Implementation of these conditions is necessary for the use of special, not generally accepted norms of the tax legislation. Property, including money, transferred within the framework of charitable aid, the costs in the calculation of income tax is not accounted for. Such a conclusion can be made on the basis of the Tax Code (claim 16, st.270) and letters of Russian Finance Ministry of 16.04.2010 № 03-03-06 / 4/42.

Charges of the organization, the transfer of funds (contributions, payments, etc.) related to charitable activities are included in other expenses of the organization. [2] Expenses are recognized in the period in which they took place, irrespective of the time of actual payment of cash and regardless of the intent to obtain revenue, other income or other. However, the costs of charitable assistance for tax purposes are not included. Thus, in accounting constitutes a permanent difference that results in a permanent tax liabilities (PTL). The amount of this obligation is determined by multiplying the constant difference in the rate of income tax. It is recognized in the accounting on the account of profit and loss account in correspondence with the credit account Accounting for Taxes and Levies [3].

Transactions that are not subject to VAT, are: the transfer of goods, works and services, as well as the transfer of property rights without compensation in the framework of charitable activities in accordance with the Federal Law "On charity and charitable organizations", except for excisable goods. [4] You can use this privilege only in the event that the organization will provide to the tax authorities the following documents [6]:

- an agreement (contract) between the taxpayer and the recipient charity for donation of goods (works, services) in the provision of charitable activities;

- copies of documents confirming the decision to register the recipient of charitable aid received free goods (works, services);

- acts or other documents proving the target use of the received (performed, provided) in the framework of charitable activities goods (works, services).

All transactions recognized the object of taxation for VAT, including exempt from taxation, the taxpayer is obliged to draw up an invoice without isolation of the corresponding amount of VAT labeled or stamped "Without tax (VAT)", and send it to the recipient of the goods (works, services) or property rights.

On 1.01.2012, the individuals who provide charitable assistance, including other individuals through charities and other socially–oriented non–profit organizations (which is specified in the Tax Code p.219), can receive social tax deduction irrespective of the source of funding for such organizations [7]. It is provided in the amount of expenses actually incurred, but not more than 25% of the income earned in the tax period and taxable.

Organizations engaged in charitable activities, have a number of benefits, as they pass their property voluntarily and without compensation. But in order to use them, you must clear a number of conditions listed above. If you do not follow them, the organization purchased extra costs, therefore, adversely affect the profit of the organization.

By supporting documents for social deduction are (letter MFTS of Russia in Moscow from 28.04.2010 № 20-14 /4/045.515):

- payment documents;

- an agreement on the donation (charitable aid) if it was drawn up;

- documents confirming the status of the organization, such as its founding documents.

Literature

1. Tax Code of the Russian Federation;

2. Federal Law No. 135-FZ of August 11, 1995 «On Charitable Activities and Charitable Organizations»;

3. Statute on Accounting 10/99 «The Company’s Costs»;

4. Statute on Accounting 18/02 «Accounting for corporate income tax»;

5. The letter of the Ministry of Finance of the Russian Federation from 16.04.2010 № 03-03-06/4/42;

6. The letter of the Federal Tax Service of the Russian Federation from 02.12.2009 № 16-15/126825;

7. The letter of the Ministry of Finance of the Russian Federation from 26.12.2011 № 03-04-05/5-1103/