Article 248 of the Tax Code of the Russian Federation. The procedure for determining income. Income classification (current version)

General characteristics of corporate income tax

The corporate income tax is a direct federal tax levied on collective entities (organizations), the object of taxation of which is the main economic result of the activities of organizations of all forms of ownership - profit. Russian corporate income tax is an analogue of corporate tax abroad.

Corporate income tax is one of the most significant for the Russian budget system. Despite the fact that this tax is federal, it has the greatest fiscal significance for regional budgets, since from the base tax rate of 20%, 18% is credited to the regional budget, and only 2% to the federal budget. Thanks to this, the tax ensures the generation of budget revenues of the subject of the Federation where the taxpayer organization is located and operates. Thus, in 2021, corporate income tax amounted to about 31% of tax revenues of the consolidated budgets of the constituent entities of the Russian Federation. For example, in the consolidated budget of the Voronezh region, the share of income tax in 2021 amounted to 17.2% of total revenue.

Taxpayers of this tax are:

1. Russian organizations;
2. foreign organizations (a) operating in the Russian Federation through permanent representative offices or (b) receiving income from sources in the Russian Federation;
3. organizations that are responsible participants in a consolidated group of taxpayers.

A consolidated group of taxpayers (hereinafter referred to as the CTG) is recognized as a voluntary association of taxpayers of corporate income tax on the basis of an agreement on the creation of a CTG for the purpose of calculating and paying corporate income tax, taking into account the total financial result of the economic activities of these taxpayers (Article 25.1 of the Tax Code of the Russian Federation). The responsible participant of the consolidated group of taxpayers is the participant of the consolidated group of taxpayers who, in accordance with the agreement on the creation of the consolidated group of taxpayers, is entrusted with the responsibilities for calculating and paying corporate income tax under the consolidated group of taxpayers and who exercises the same rights and bears the same responsibilities as income tax payers.

Russian organizations include taxpayers who have the status of a legal entity. Consequently, simple partnerships, as well as branches, representative offices and other separate divisions of legal entities are not included in the income tax payers. In terms of their tax and legal status, foreign organizations recognized as tax residents of the Russian Federation are equal to Russian organizations.

Tax residency of organizations is a new institution of Russian tax law, the application of which began on 01/01/2015. Its appearance is due to such a principle of corporate taxation as the need to ensure the payment of income tax to the budget of the state where the organization’s management center is located.

According to paragraph 1 of Art. 246.2 of the Tax Code of the Russian Federation, the following are recognized as tax residents of the Russian Federation: a) Russian organizations; b) foreign organizations recognized as tax residents of the Russian Federation in accordance with an international treaty on taxation issues; c) foreign organizations whose place of actual management is the Russian Federation, or otherwise not provided for by an international tax treaty.

The place of actual management of a foreign organization is determined according to the rules of paragraphs 2-8 of Art. 246.2 Tax Code of the Russian Federation.

Accounting for income and expenses

Aubakir L.V.

KSTU

Topic 12 Accounting for income and expenses

Plan

• Concept and classification of income and expenses
• Accounting for income and expenses for core and non-core activities
• Accounting for other income and expenses
• Recognition and accounting of period expenses
• The procedure for including expenses of the period in the financial result of the organization’s activities
• Accounting for financial results and use of profits

• Concept and classification of income and expenses

In the course of their activities, business entities earn income and incur expenses.

Income is an increase in economic resources through the inflow or growth of assets, or through a decrease in liabilities, as a result of the ordinary activities of the entity.

Owner contributions to equity are not income, and distributions of equity by owners are not expenses.

Total annual income is the income of a legal entity and an individual from various sources during a calendar year. Total annual income includes income derived from continuing and discontinued operations. Income from continuing activities can be received from the sale of finished products (works, services), from the sale of purchased goods, from the sale of construction and installation, scientific and survey materials, etc. works, as well as in the form of remuneration, interest, dividends, fees, royalties, as well as from the sale of intangible assets and fixed assets, securities, etc.

While earning income, the company incurs certain expenses.

Expenses are a decrease in assets, or the occurrence of liabilities (or both at the same time) as a result of the production and sale of products (works, services) and other activities.

Expenses are recognized in connection with the corresponding income for one reporting period. Expenses are divided into current, reflected in the income statement, and deferred, reflected in the balance sheet, the so-called deferred expenses.

Production costs are divided into direct and overhead. Direct expenses - form the cost of sales. In financial accounting, distribution of overhead costs is not required; they are recognized as expenses of the period in which they were incurred.

Administrative expenses include wages of the AUP, taxes, postal and telegraph costs, etc.

General expenses include salaries of general business employees and managers, depreciation of long-term assets, utilities, travel expenses, etc.

Administrative and general expenses are more commonly referred to as administrative expenses.

Business expenses include: salaries of sales employees, transportation costs for delivering goods to customers, etc.

• Accounting for income and expenses for core and non-core activities

Income accounting is carried out in accordance with IFRS 18 “Revenue”.

Income from the sale of goods (services) is recognized when the following conditions are met:

• the enterprise has transferred all risks and rewards associated with ownership of the goods to the buyer;
• the enterprise does not control the goods sold and does not participate in management to the extent usually associated with ownership;
• income can be reliably estimated;
• there is confidence that benefits from the transaction will be obtained;
• the costs associated with the transaction can be reliably estimated.

Revenue is measured at the fair value of the consideration received or expected to be received for goods and services.

The accounts of section 6 “Income” are intended to reflect the income of the enterprise. The credit of the accounts reflects income from the sale of products (works, services); income received in the previous period, but related to the reporting period; income from the disposal of fixed assets, intangible assets, financial investments, the amount of positive exchange differences received and other income.

In Section 6 “Revenue” there are subsections 6020 “Return of sold products” and 6230 “Discounts on prices and sales”. All returns and trade discounts must be deducted from income. They are treated as a reduction in income rather than as an expense. Discounts are given to encourage the buyer to pay for inventory early.

At the end of the year, the accounts of section 6 “Revenue” are closed with account 5610 “Total profit (total loss)”. Consequently, they have no balances on January 1 and December 31.

Correspondence of income accounting accounts

Active, temporary accounts in Section 7 “Expenses” are intended to account for expenses of the period. Expenses are accumulated on the debit of accounts, and written off as a credit to the debit of account 5610 “Total profit (total loss)”.

Correspondence invoices for expense accounting

The results of the financial and economic activities of the enterprise are reflected in group account 5610 “Total profit (total loss)” and the result is determined by comparing income and expenses, which at the end of the reporting period are written off to this account: income is credited, and expenses are debited.

Basic literature [1-9]

Further reading [1-15]

Test tasks for SRS

1. Concept and classification of income and expenses.
2. Accounting for income and expenses for core and non-core activities.
3. Accounting for income and expenses of future periods.
4. Accounting for other income and expenses.
5. Recognition and accounting of period expenses.
6. The procedure for including period expenses in the financial result of the organization’s activities.
7. Accounting for financial results and use of profits.

Tax rates, tax and reporting periods for corporate income tax

Tax rates for corporate income tax are varied. Their differentiation is determined by the tax jurisdiction of the taxpayer organization and the nature of the activity generating taxable income (Article 284 of the Tax Code of the Russian Federation).

The basic income tax rate is set at 20%. In this case, the tax amount calculated at a tax rate of 2% is credited to the federal budget, and the tax amount calculated at a tax rate of 18% is credited to the budgets of the constituent entities of the Russian Federation.

Representative (legislative) bodies of state power of the constituent entities of the Russian Federation are given the right to reduce the tax rate credited to regional budgets for certain categories of taxpayers, but not lower than 13.5%. Thus, the principle of federalism in taxation is implemented and the regulatory function of corporate income tax is carried out.

Corporate income tax differs significantly from most federal taxes in the procedure for transfer to budgets of various levels. The amount of income tax on income in the form of dividends, interest from transactions with state or municipal debt obligations and from income of foreign organizations received from Russian sources is credited to the federal budget. In the remaining part, in legal essence, the income tax is “split”, since in certain percentage shares it goes to the federal budget, the budgets of the constituent entities of the Russian Federation and the budgets of municipalities.

At a base rate of 20%, the profits of most Russian and foreign organizations are taxed.

A reduced tax rate of 10% applies to the income of foreign organizations not related to activities in the Russian Federation through a permanent establishment, from the use, maintenance, or rental of ships, aircraft and other vehicles or containers for international transport.

A tax rate of 13% is used to calculate tax on the income of Russian organizations received in the form of dividends, as well as foreign organizations - tax residents of the Russian Federation that have the actual right to receive income (clause 1.1 of Article 312 of the Tax Code of the Russian Federation).

A rate of 15% applies to income of foreign organizations in the form of dividends from Russian organizations. Also, the income of Russian organizations on various state and municipal securities issued after 01/01/2007 and other income are taxed at a rate of 15%.

At a rate of 9%, income is taxed, in particular, on municipal securities issued before 01/01/2007 for a period of at least 3 years. Taking into account the importance of the development of the market for state and municipal securities, as well as taking into account their still low liquidity and profitability, the legislator applies reduced tax rates on profits from transactions with these types of debt obligations.

There is also a 0% rate for income tax. It applies, for example, to the income of Russian organizations in the form of dividends, if such an organization owns at least 50% of the authorized capital of the dividend-paying organization for at least 365 days; income of organizations on state and municipal bonds issued before 01/20/1997; income of organizations providing social services to citizens.

For resident organizations of various special economic zones (SEZ) and territories of advanced socio-economic development (TOR), a tax rate of 0% is established only for the tax credited to the federal budget. The “zero” tax rate is also applied by organizations carrying out educational or medical activities, subject to the conditions determined by Art. 284.1 Tax Code of the Russian Federation.

There are characteristic features in the taxation of profits of the Central Bank of the Russian Federation, due to its status as a state bank. Profit received by the Central Bank of the Russian Federation as a result of the implementation of the functions assigned to it by the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)” is taxed at a rate of 0%. Profit received by the Central Bank of the Russian Federation from all other types of activities is subject to taxation on a general basis, i.e. at a rate of 20%.

There is also an increased income tax rate compared to the basic one. It is 30% and is applied to income on securities issued by Russian organizations, the rights to which are recorded in the securities account of a foreign nominee holder. The condition for applying the increased rate is the failure to provide the tax agent with information about the recipient of such income (beneficiary). This approach is consistent with the global practice of disclosing the ultimate beneficiary (beneficiary).

The tax period for corporate income tax is one year. The reporting period is a quarter (Article 285 of the Tax Code of the Russian Federation).