What is non-operating income?
According to Art. 172 of the Tax Code of the Russian Federation when purchasing goods (works, services), property rights under contracts, the obligation to pay for which is provided in rubles in an amount equivalent to a certain amount in foreign currency, or in conventional monetary units, tax deductions for subsequent payment of these goods (works, services), property rights are not adjusted. The difference in the amount of tax that arises for the buyer upon subsequent payment is taken into account as part of non-operating income.
In accordance with Article 250 of the Tax Code of the Russian Federation, non-operating income is the following income:
| Income | A comment |
| From equity participation in other organizations | With the exception of income allocated to pay for additional shares (shares) placed among the shareholders (participants) of the organization |
| In the form of a positive (negative) exchange rate difference resulting from deviation of the sale (purchase) rate of foreign currency from the official rate established by the Central Bank of the Russian Federation | On the date of transfer of ownership of foreign currency |
| In the form of fines, penalties and (or) other sanctions recognized by the debtor or payable by the debtor on the basis of a court decision that has entered into legal force | For violation of contractual obligations, as well as amounts of compensation for losses or damages |
| From leasing property (including land plots) (subleasing) | If such income is not determined by the taxpayer |
| From granting for use rights to the results of intellectual activity and rights to equivalent means of individualization | If such income is not determined by the taxpayer |
| In the form of interest received under loan agreements, credit agreements, bank accounts, bank deposits, as well as on securities and other debt obligations | |
| In the form of amounts of restored reserves, the costs of the formation of which were accepted as part of expenses | |
| In the form of gratuitously received property (work, services) or property rights | When receiving property (work, services) free of charge, income is assessed based on market prices |
| In the form of income distributed in favor of the taxpayer with his participation in a simple partnership | |
| In the form of income from previous years identified in the reporting (tax) period | |
| In the form of a positive exchange rate difference | With the exception of positive exchange rate differences arising from the revaluation of advances issued (received). For the purposes of this chapter, a positive exchange rate difference is an exchange rate difference that arises when revaluing property in the form of foreign currency assets (except for securities denominated in foreign currency) and claims, the value of which is expressed in foreign currency, or when devaluing liabilities, the value of which is expressed in foreign currency. currency. |
| In the form of fixed assets and intangible assets received free of charge in accordance with international treaties of the Russian Federation or with the legislation of the Russian Federation by nuclear power plants to improve their safety, used for non-production purposes | |
| In the form of the cost of received materials or other property during dismantling or disassembly during the liquidation of decommissioned fixed assets | |
| In the form of property (including funds) used for other purposes than for its intended purpose, works, services received as part of charitable activities (including in the form of charitable assistance, donations), targeted income, targeted financing, with the exception of budgetary funds | |
| In the form of funds used for purposes other than their intended purpose by enterprises and organizations that include especially radiation-hazardous and nuclear-hazardous production and facilities, funds intended for the formation of reserves to ensure the safety of these production and facilities at all stages of their life cycle and development | |
| In the form of amounts by which in the reporting (tax) period there was a decrease in the authorized (share) capital (fund) of the organization, if such a decrease was carried out with a simultaneous refusal to return the cost of the corresponding part of the contributions (contributions) to the shareholders (participants) of the organization | |
| In the form of refund amounts from a non-profit organization of previously paid contributions (contributions) in the event | If such contributions (contributions) were previously taken into account as expenses when forming the tax base |
| In the form of amounts of accounts payable (liabilities to creditors), written off due to the expiration of the statute of limitations or for other reasons | Does not apply to the write-off by a mortgage agent of accounts payable in the form of obligations to the owners of mortgage-backed bonds, as well as to the write-off by a specialized company of accounts payable in the form of obligations to the owners of bonds issued by it |
| In the form of income received from transactions with derivative financial instruments | |
| In the form of the value of surplus inventories and other property that are identified as a result of inventory | |
| In the form of the cost of media products and book products, subject to replacement upon return or write-off of such products | |
| In the form of adjustments to the taxpayer’s profit due to the application of methods for determining for tax purposes the conformity of prices used in transactions with market prices (profitability) | |
| In the form of the cash equivalent of real estate and (or) securities transferred to replenish the endowment capital returned to the donor or his legal successors | The cost at which the securities were taken into account in the tax accounting of the donor on the date of their transfer to replenish the target capital of a non-profit organization |
| In the form of the difference between the amount of tax deductions from the excise tax amounts | |
| As profit of a controlled foreign company |
What indicators are included in non-operating expenses
This expense portion is not associated with trading goods, making a profit, or paying contractors for services provided. This type also includes certain types of losses.
For expenses to be non-operating, they must, like income, not be related to the main activity.
For example, if a trading company concluded that it has excess warehouse space and decided to rent it out, having previously spent money on repairs, then such waste is non-operating, but if renting is the main activity of the company, then repair costs act as production
A complete list of expenses that do not belong to the main activity is contained in Art. 256 of the Tax Code of the Russian Federation, this includes the following positions:
- expenses for the operation and ownership of items received for rent/leasing
- interest taken into account during the period of reporting on loans or other liabilities
- expenses for the production of own shares and servicing received
- expenses for registration
- losses due to currency market fluctuations
- liquidation of OS
- expenses for conservation of materials
- expenses for containers or packaging of products
- expenses for corporate events, meetings of founders
- expenses for paying penalties or fines
- losses due to markdown of goods
In addition, there may be other expenses that comply with all the norms of the Tax Code and are documented.
For example, such expenses may include:
- discounts on goods and services
- banking settlement
- legal costs or for loans
It should be remembered that interest is a separate expense item, that is, they are regarded according to the Tax Code of the Russian Federation as an independent expense.
What does non-operating income look like in the income tax return?
The tax return form was approved by Order of the Federal Tax Service dated October 19, 2021 No. ММВ-7-3/ [email protected] “On approval of the tax return form for corporate income tax, the procedure for filling it out, as well as the format for submitting the tax return for profit of organizations in electronic form”, where in Appendix No. 1 (to Sheet 02) the following information must be indicated:
| Line | Explanation |
| 100 | The total amount of non-operating income for the tax period |
| 101-106 | Decoding of non-operating income for the tax period |
The total amount of non-operating income for the tax period indicated in line 100 is duplicated in line 020 of Sheet 02, where it is necessary to calculate the tax.
Postings in accounting
So, accounting for income tax income is the identification of amounts for the past period that may affect the size of the tax base up or down.
To understand how accounting occurs, you can consider the following example:
According to the court decision to recover compensation from the purchaser of products for which he did not pay, the applicant organization received it, while the court decided to collect from the defendant the amount of state duty in the amount of 4,300 rubles.
After which the company accountant made the entries indicated in the table.
| Account correspondence | Sum | Definition | |
| Debit | Credit | ||
| 68 | 51 | 4,300 rubles | Payment of the state fee for filing a claim |
| 91, 91.2 | 68 | 4,300 rubles | Accounting for state duty in non-sales amounts at the time of consideration of the claim |
| After the court decision comes into force | |||
| 76 | 91, 91.1 | 4,300 rubles | Instruction for the defendant's debt regarding the payment of state fees for legal costs |
| 51 | 76 | 4,300 rubles | Indication of receipts from the defendant |
In addition, entries regarding other income may be of a different nature.
| Postings | Explanation |
| Dt 76, 62 Kt 91 | Accrual of income from OS rental |
| Dt 50, 51 Kt 76 | Receipt from the tenant |
| Dt 01.09, Tt 01.01 | Write-off of a fixed asset from the balance sheet when it is sold after 5 years of operation |
| Dt 91.09, 01 Kt 91, 99 | Receiving funds from the buyer of a written-off OS |
| Dt 76.05, Kt 91.01 | Accrual of penalties for broken agreements |
| Dt 60, 76, Kt 91 | Write-off of bad debts |
| Dt 62, 60 Kt 91 | Calculation of the difference at the rate |
In the process of determining the amount of income, accounting and tax accounting have practically no differences; they exist only with a few exceptions:
- In the process of selling fixed assets with a difference in depreciation, the amount for which is allocated monthly
- Sale of operating systems with different initial costs, for example, during leasing
- In the process of occurrence of differences in amounts arising only in tax accounting
How to correctly enter non-operating income into the VAT return?
The tax return form was approved by Order of the Tax Service dated October 29, 2014 No. ММВ-7-3/ [email protected] “On approval of the tax return form for value added tax, the procedure for filling it out, as well as the format for submitting the tax return for value added tax value in electronic form”, which does not provide for entering data on non-operating income. Basically, the tax legislation of the Russian Federation does not provide for the imposition of VAT on non-operating income, but if non-operating income is income in the form of interest on a loan, then this amount must be included in Section 7 of the tax return for value added tax. However, this amount will not be the tax base.
Difference in non-operating income in declarations
Non-operating income in the income tax return will differ from the value added tax return:
| Non-operating income | Income tax return | Value added tax declaration |
| In the form of gratuitously received property (work, services) or property rights | Non-operating income | Not included in the declaration |
| In the form of fines, penalties and (or) other sanctions recognized by the debtor or payable by the debtor on the basis of a court decision that has entered into legal force | ||
| In the form of amounts of accounts payable (liabilities to creditors), written off due to the expiration of the statute of limitations or for other reasons | ||
| In the form of interest received under loan agreements, credit agreements, bank accounts, bank deposits, as well as on securities and other debt obligations | ||
| In the form of a positive (negative) exchange rate difference resulting from deviation of the sale (purchase) rate of foreign currency from the official rate established by the Central Bank of the Russian Federation | ||
| In the form of amounts of restored reserves, the costs of the formation of which were accepted as part of expenses | ||
| In the form of the cost of received materials or other property during dismantling or disassembly during the liquidation of decommissioned fixed assets |
Results
In the article, we briefly described non-operating income and indicated in which lines of the profit declaration their value for the reporting/tax period is given.
Very often, transactions related to the receipt of specified income are not subject to VAT and are not included in the VAT return. In this connection, a difference is formed between the income indicators involved in calculating the profit base and the amount of transactions subject to VAT. But, for example, the accrual of interest on borrowed funds should still be reflected in the VAT report, despite the fact that this type of non-operating income does not form a base for it. But rental income will participate in the formation of the tax base for both income tax and VAT. Rental income must be reported on both returns.
Let us first consider the situation that developed in 2000.
“Non-operating income is:
3. proceeds to compensate for losses caused to the organization;
4. profit of previous years identified in the reporting year;
5. amounts of accounts payable and depositors for which the statute of limitations has expired;
6. exchange rate differences;
7. the amount of additional valuation of assets (except for non-current assets);
1. fines, penalties, penalties for violation of the terms of contracts: subject to VAT (clause 2, clause 1, article 162 of the Tax Code of the Russian Federation);
2. assets received free of charge, including under a gift agreement: according to clause 1 of Art. 146 of the Tax Code of the Russian Federation are subject to VAT;
3. proceeds to compensate for losses caused to the organization;
4. profit of previous years identified in the reporting year;
5. amounts of accounts payable and depositors for which the statute of limitations has expired;
6. exchange rate differences;
7. the amount of revaluation of assets;
8. other non-operating income.
Accountant-consultant A. A. Lutskaya answered the question. Material provided by SPUTNIK-101, St. Petersburg
Theoretically, at some point someone might have equality:
But this is rather an exception. In most cases, these indicators will not be equal.
Firstly, there will always be transactions that lead to the appearance of income included in the income tax base, but do not form an object of taxation under VAT clause 1 of Art. 146 Tax Code of the Russian Federation. For example:
- receipt of property during the liquidation of decommissioned OS, clause 13, Art. 250 Tax Code of the Russian Federation;
- identification of surpluses during inventory and paragraph 20 of Art. 250 Tax Code of the Russian Federation;
- receiving income in the form of positive sum and exchange rate differences. 2, 11 art. 250 Tax Code of the Russian Federation;
- restoration of the reserve in clause 7 of Art. 250 Tax Code of the Russian Federation;
- write-off of accounts payable upon expiration of the statute of limitations and clause 18 of Art. 250 Tax Code of the Russian Federation;
- sale of works, services, the place of sale of which is not recognized as the territory of the Russian Federation, Articles 147, 148, sub. 1 clause 1 art. 248, paragraph 1, art. 249 Tax Code of the Russian Federation; Letter of the Ministry of Finance of Russia dated January 29, 2010 No. 03-07-08/21. By the way, this implementation can be seen in the VAT return in section 7 on line 010, column 2 with codes 1010811 and (or) 101081 2, clause 44.3 of the Procedure for filling out the value added tax return, approved. By Order of the Ministry of Finance of Russia dated October 15, 2009 No. 104n (hereinafter referred to as the Procedure); Appendix No. 1 to the Order;
- receiving interest on loans issued or even interest accrued on the balance of money in a bank account, clause 6 of Art. 250 Tax Code of the Russian Federation. After all, the latter are accrued monthly to almost all organizations if there is a certain amount of money in the account. This amount is included in the income tax return, but not in clause 6 of Art. 250 Tax Code of the Russian Federation.
Discrepancies in information in VAT and profit returns periodically occur among all taxpayers
- for income tax - in the period of sale of goods (works, services) clause 1 of Art. 249, paragraph 3 of Art. 271 Tax Code of the Russian Federation;
- for VAT - during the period of paragraph 9 of Art. 165, paragraph 9 of Art. 167 Tax Code of the Russian Federation:
- collecting documents confirming the validity of applying the zero VAT rate;
- when 180 days have passed from the date of shipment.
Questions and answers
- How can we take into account the return of previously paid contributions from a non-profit organization as non-operating income?
Answer: According to Art. 250 of the Tax Code of the Russian Federation, such contributions (contributions) must be taken into account as expenses when forming the tax base.
- We dismantle expensive equipment in order to liquidate it and remove it from fixed assets. Can we consider the income received as a result of dismantling as non-operating?
Answer: In accordance with Art. 250 of the Tax Code of the Russian Federation, non-operating income is recognized as income received in the form of the cost of received materials or other property during dismantling or disassembly during the liquidation of fixed assets being decommissioned. Thus, you can treat the resulting income as non-operating income.
Acceptance of registration of assets transferred free of charge
From clause 8 of Art. 250 follows a logical conclusion about the need to include in non-operating income not only the free transfer of assets, work performed, services, but also the rights to use property. This position is given in paragraph 2 of the information letter of the Supreme Arbitration Court of the Russian Federation dated December 22, 2005 No. 98: the acquired right to use a non-residential property is recognized as income not related to the sale. This position is confirmed by a number of court decisions, for example, the resolution of the Federal Antimonopoly Service of the Volga-Vyatka District dated September 11, 2012 No. A29-10589/2011. The opinion of employees of the financial department also coincides with this point of view (letter of the Ministry of Finance of Russia dated May 12, 2012 No. 03-03-06/1/243).
NOTE! Non-operating income also includes amounts of debt that the creditor refused to collect (that is, “forgave” the debt), and they are not subject to return. Such “forgives” are equivalent to assets transferred free of charge.
If the person who provided the money free of charge was one of the owners of the company, the volume of net assets increases. At the same time, the content of clause 1 of Art. begins to apply to these amounts for the borrower. 251 of the Tax Code of the Russian Federation, that is, they will not be included in the income considered as an object of taxation for profit tax immediately after writing off obligations on the basis of Art. 415 of the Civil Code of the Russian Federation. The size of the obligation “forgiven” by the owner under the loan agreement, as well as the volume of his share in the authorized capital, do not in any way affect the non-recognition of the debt as non-operating income. The described position is fully confirmed by officials, which is reflected in some of their explanations (letter of the Ministry of Finance of Russia dated June 25, 2014 No. 03-03-06/1/30267).
the income tax described does not increase, it is necessary that the owner writing off the debt issue a decision that the operation was carried out to expand the volume of net assets. In such a case, the likelihood of disputes with tax authorities is practically eliminated. However, the described provision is relevant only for the loan itself. Forgiveness of accrued interest under the agreement will increase non-operating income on a general basis (clause 18 of Article 250 of the Tax Code of the Russian Federation).
If we study the provisions of sub-clause in more detail. 3.4 clause 1 art. 251 of the Tax Code of the Russian Federation, it can be seen that property received from the parent company in order to increase the volume of net assets by a dependent (subsidiary) enterprise is not recognized as an object from which income tax is calculated. The owner's share in the authorized capital does not matter. But if a dependent company, within a year from the moment of transfer (for free), transfers property previously received from a participant to third parties, it will be obliged to take into account as non-operating income the value of the property that it received earlier and then transferred (letter from the Ministry of Finance of Russia dated April 18, 2011 No. 03-03-06/1/243).
IMPORTANT! The approach of not recognizing as income the property contributed free of charge by the founder does not apply to non-profit institutions, business partnerships, and unitary enterprises. Officials of the financial department, in a letter dated July 4, 2013 No. 03-03-07/25624, prohibit them from using the provisions of Art. 251.
