How to obtain exemption from paying income tax for a medical organization? Income tax in a budgetary institution and the features of its calculation Income tax in budgetary healthcare institutions.
Galina Rumyantseva
One of the main trends in the internal policy of the state today is the increasing attention to the problems of forming a socially oriented economy in the Russian Federation
When developing the healthcare system to attract different forms of financing, tax preferences such as reduced rates and
Tax benefits, application of tax deductions.
Part 1 . Tax benefits, preferential rates and the procedure for their application when carrying out medical activities
The following tax benefits and preferences apply to paid medical services.
Value added tax (VAT)
Based on paragraph 2, paragraph 2, Article 149 of the Tax Code of the Russian Federation (hereinafter referred to as the Tax Code of the Russian Federation), medical services, which include:
- services provided under compulsory health insurance;
- collection of blood from the population (under contracts with medical organizations that provide medical care in outpatient and inpatient settings);
- emergency medical services to the population;
- duty of medical personnel at the patient’s bedside;
- pathological services;
- services provided to pregnant women, newborns, disabled people and drug addicts;
- services provided to the population for diagnosis, prevention and treatment, regardless of the form and source of payment according to the List approved by Decree of the Government of the Russian Federation of February 20, 2001 No. 132 (hereinafter referred to as the List)
In this article we will consider the benefit only in relation to medical services provided to the population for diagnosis, prevention and treatment, regardless of the form and source of payment according to the List approved by the Government of the Russian Federation (paragraph 3, paragraph 2, paragraph 2, Article 149 of the Tax Code of the Russian Federation ).
Corporate income tax
From January 1, 2011 to January 1, 2020, organizations engaged in medical activities have the right to apply a 0% tax rate based on clause 1.1. Art. 284 of the Tax Code of the Russian Federation, in the manner provided for in paragraphs. Art. 284.1 Tax Code of the Russian Federation. Personal income tax (NDFL)
Persons who have paid for their treatment or the treatment of close relatives, as well as the cost of medicines for medical use, have the right to receive a tax deduction for personal income tax on the basis of paragraph 3 of paragraph 1 of Art. 219 of the Tax Code of the Russian Federation and in the manner provided for in paragraphs. 3 clause 1 and clause 2 art. 219 of the Tax Code of the Russian Federation.
Regional benefits. Property tax
When paying property tax, if an organization pays it based on the cadastral value of real estate, calculated in relation to premises used for medical activities located in administrative and business centers and shopping centers (complexes), the taxpayer has the right to pay a tax in the amount of 25% of the cadastral value cost, in the manner provided for in paragraph 2 of Art. 4.1 of the Law of Moscow dated November 5, 2003 N 64 “On the property tax of organizations.” Such a benefit can be established in other regions of the Russian Federation, since the right to provide this benefit is reserved for the constituent entities of the Russian Federation, paragraph. 2 p. 3 art. 56 Tax Code of the Russian Federation.
The procedure for obtaining, applying benefits and the consequences of their loss
In general, the procedure for applying benefits and the consequences of their loss are shown in Table 1. “The procedure for obtaining, applying benefits and the consequences of their loss.”
A general condition for applying benefits for all taxes is that medical organizations have a license to carry out medical activities. Obviously, without confirming the benefit, the taxpayer will have to recalculate the tax base and will have to pay a fine for underestimating the tax base and penalties for late payment of tax, this applies to VAT, income tax, and property tax.
Benefits for various taxes differ not only in the procedure/right of use, conditions of application, but, what is important, each tax has its own subject of benefit: for VAT it is medical services, for Income Tax it is medical activity, for personal income tax it is treatment expenses, for Property tax is premises used for medical activities. Therefore, it is also important to understand what is meant by each of these terms.
Table 1. The procedure for obtaining, applying benefits and the consequences of their loss.
Benefit | Receipt procedure | Conditions for applying benefits, reduced rates | Consequences of loss or failure to comply with the conditions or procedure for providing tax benefits |
Exemption from taxation on value added tax for medical services (VAT) pp. 2 p. 2 art. 149 Tax Code of the Russian Federation | If there is a right to apply, the benefit is applied without fail. You can't refuse. | availability of a license for medical activities (clause 6 of Article 149 of the Tax Code of the Russian Federation) | If the organization does not have a license, all medical services are subject to VAT. |
Compliance of services with the List approved by Decree of the Government of the Russian Federation of February 20, 2001 N 132 “On approval of the List of medical services for diagnosis, prevention and treatment provided to the population, the implementation of which, regardless of the form and source of payment, is not subject to value added tax” (hereinafter List) (clause 2, clause 2, article 149 of the Tax Code of the Russian Federation) | Services that do not comply with the List are subject to VAT. | ||
Maintaining separate accounting in the presence of taxable and non-taxable transactions (clause 4 of article 149 of the Tax Code of the Russian Federation, clause 4 of article 170 of the Tax Code of the Russian Federation) | - If the taxpayer has not organized separate accounting, for example, of a complex service consisting of both taxable and non-taxable services, such a service will be subject to VAT in full. (Resolution of the Federal Antimonopoly Service of the Volga Region dated August 23, 2011 N A55-36986/2009) If the taxpayer has not organized separate accounting of received goods, works, services participating in both taxable and non-taxable transactions, for such goods, works, services, all input VAT cannot be deducted. (Determination of the Constitutional Court of the Russian Federation dated June 4, 2013 N 966-O). |
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does not apply to the provision of cosmetic, veterinary and sanitary-epidemiological services (Clause 2, Clause 2, Article 149 of the Tax Code of the Russian Federation) | These services are subject to VAT. | ||
activities are carried out in one’s own interests (clause 7 of article 149 of the Tax Code of the Russian Federation) | The exemption does not apply when carrying out business activities in the interests of another person on the basis of agency agreements, commission agreements or agency agreements | ||
0% rate on income tax for organizations engaged in medical activities (Article 284.1 of the Tax Code of the Russian Federation) | Notification nature, at the request of the organization. No later than one month before the start of the tax period, starting from which the 0 percent tax rate is applied, submit an application and copies of the license to the tax authority at the place of its location (clause 5 of Article 284.1 of the Tax Code of the Russian Federation) | - services must comply with the List of types of medical activities approved by Decree of the Government of the Russian Federation of November 10, 2011 N 917 (Clause 1 of Article 284.1 of the Tax Code of the Russian Federation) If the organization has a license (licenses) to carry out medical activities, issued (issued) in accordance with the legislation of the Russian Federation; If the organization’s income for the tax period from medical activities, taken into account when determining the tax base in accordance with Chapter 25 of the Tax Code of the Russian Federation, amounts to at least 90 percent of its income taken into account when determining the tax base in accordance with Chapter 25 of the Tax Code of the Russian Federation, or if the organization period does not have income taken into account when determining the tax base in accordance with Chapter 25 of the Tax Code of the Russian Federation If in the staff of an organization carrying out medical activities, the number of medical personnel with a specialist certificate in the total number of employees continuously during the tax period is at least 50 percent; If the organization continuously employs at least 15 employees during the tax period; If the organization does not carry out transactions with bills and financial instruments of futures transactions during the tax period. At the end of each tax period during which they apply a tax rate of 0 percent, simultaneously with the tax return, they submit the following information to the tax authority at their location (clause 6 of Article 284.1 of the Tax Code of the Russian Federation):
| Organizations that applied a tax rate of 0 percent in accordance with this article and switched to the application of the tax rate established by paragraph 1 of Article 284 of the Tax Code of the Russian Federation, including due to non-compliance with the conditions established by paragraph 3 of this article, do not have the right to switch to the application of the tax rate again 0 percent for five years starting from the tax period in which they switched to the application of the tax rate established by paragraph 1 of Article 284 of the Tax Code of the Russian Federation. |
Deductions for Personal Income Tax on paid treatment services (NDFL) pp. 3 p. 1 art. 219 Tax Code of the Russian Federation | By submitting a tax return for personal income tax to the tax authority at the place of residence (in Form 3-NDFL) and providing the necessary documents on payment and treatment performed and no later than 3 years from the date of payment of the tax. (Clause 2 of Article 219 of the Tax Code of the Russian Federation, Letter of the Federal Tax Service dated November 22, 2012 No. ED-4-3/19630) Note: From January 1, 2016, the social tax deduction provided for in paragraphs. 3 p. 1 art. 219 of the Tax Code of the Russian Federation, can be provided to the taxpayer by the employer upon availability of a written application and confirmation from the tax authorities (amendments were made by Federal Law of the Russian Federation No. 85-FZ of 04/06/2015) | - taxpayers who are residents of the Russian Federation, as well as individuals who receive income from sources in the Russian Federation, who are not tax residents of the Russian Federation and who pay personal income tax at a rate of 13 percent (clause 1 of Article 207, clause 3 of Article 210 and Clause 1 of Article 224 of the Tax Code of the Russian Federation, Determination of the Constitutional Court dated April 3, 2009 N 480-О-О) Personal income tax payers are recipients of income taxed at a rate of 13% (Clause 1, Article 219 of the Tax Code of the Russian Federation) Compliance with the Lists approved by Decree of the Government of the Russian Federation dated March 19, 2001 N 201 (clause 3, clause 1, article 219 of the Tax Code of the Russian Federation) - if the treatment was carried out in medical organizations, individual entrepreneurs who have appropriate licenses to carry out medical activities, issued in accordance with current legislation of the Russian Federation (paragraph 5, paragraph 3, paragraph 1, article 219 | If at least one of the conditions or procedure for receipt is not fulfilled, the deduction is not provided. The period for provision is limited to 3 years from the moment the taxpayer has the right to deduct. |
Organizational property tax, calculated at the cadastral value of premises used for medical activities (Part 1, Article 4.1 of Moscow Law No. 64 “On Organizational Property Tax”) | The Tax Code does not contain requirements for submitting documents confirming the right to benefits along with the declaration. But tax authorities have the right to request such documents during a desk audit (Clause 6 of Article 88 of the Tax Code of the Russian Federation) | - when calculating property tax, calculated on the basis of the cadastral value of premises located in administrative and business centers and shopping centers (complexes) and used for medical activities (Part 1, Article 4.1 of Moscow Law No. 64 “On Tax on property of organizations") |
Problems and tasks facing an accountant to ensure the right to apply benefits from a commercial organization providing paid medical services
Lists of preferential services. The first feature that creates a problem with the validity of the application of benefits is the lack of a single unified terminology for all regulations relating to medicine and taxation. The lists of preferential services referred to by the Tax Code do not have enough specificity to easily and simply compare the services of any medical organization with it, and divide them into preferential and non-preferential, medical and non-medical. In Clinics that provide a wide range of services, this problem becomes very acute. The competence of an accountant is not enough here; an assessment by a specialist from medicine is required, with a fairly broad profile and a high level of competence.
The second feature is that the List of preferential services is different for each of the taxes: VAT, personal income tax, and income tax. Consequently, the accountant must organize several types of accounting to ensure that each tax benefit is received.
Licensing. As mentioned above, the general condition for applying the benefit is the presence of a license to carry out activities licensed in accordance with the legislation of the Russian Federation. In order to implement the possibility of applying the benefit, it is necessary to compare the entire range of services with the license the Clinic has, identify services for which it does not have a license permit and correctly organize the accounting of such services. Clinics are not always licensed for all types of licensed medical activities and often use the services of contractors, which raises questions regarding the applicability of benefits to services provided by contractors.
Explanations from regulatory authorities and court decisions relate mainly to value added tax, and boil down to the fact that services performed by a contractor are also preferential if the contractor has a license for the relevant type of activity, within the limits of the cost of services from the contractor (Letter of the Federal Tax Service of Russia dated October 19, 2005 N MM-6-03/886@ Letter of the Federal Tax Service of Russia dated March 27, 2013 N ED-18-3/313@, Resolution of the Federal Antimonopoly Service of the Moscow District dated March 10, 2005 in case N KA-A40/1214-05).
With a large volume and range of services provided and the involvement of several performers with different tariffs, the problem arises of calculating the cost of the medical part of the services itself - within the cost of contractors and additional income - an amount exceeding the cost of the contractor; as well as the correct execution of contracts and documents.
Other criteria. As can be seen from the table, the set of criteria for applying benefits for each tax is different, therefore control over compliance with the criteria and the necessary calculations for them must be provided separately for each tax. To confirm the right to VAT benefits and reduce the tax burden, it is necessary to maintain separate records of taxable and non-taxable services. To assess the share of medical activities in the total amount of income taken into account for profit taxation, separate accounting of services related to medical activities is necessary. To apply the personal income tax deduction, you must keep records of expensive and non-expensive types of treatment.
Software. With a large range of services, which number in the thousands, and the volume of services provided, the number of which amounts to tens of thousands, standard accounting software is not enough; a high-quality software resource is needed that actually accompanies medical activities (registration, scheduling, medical history) and allows you to keep personalized records of the services provided , ensuring differentiation of preferential and non-preferential services and integration of this data into standard accounting programs for further correct formation of tax registers.
Now that the general range of problems has been outlined, you can proceed to the second part of the article and dive into the details and realities of applying benefits, going through a number of important problems in their application for each of the taxes. Such detail may be of interest to accountants of medical organizations, methodologists and auditors.
What tax incentives exist for healthcare institutions? When a medical organization can apply a zero rate for income tax - read the article.
Question: How to obtain exemption from paying income tax for a medical organization?
Answer: If certain conditions are met, a medical institution has the right to apply a reduced income tax rate of 0 percent (clause 1.1 of Article 284, Article 284.1 of the Tax Code of the Russian Federation). This rate applies to the entire tax base throughout the entire tax period (except for dividends and income from transactions with certain types of debt obligations).
An organization can use this rule if:
Conducts medical activities included in the List of types of medical activities, approved by Decree of the Government of the Russian Federation of November 10, 2011 No. 917;
Has a license to conduct medical activities;
The relationship between the amount of income from medical activities and the total amount of income received by the organization. This ratio should not be less than 90 percent (subclause 2, clause 3, article 284.1 of the Tax Code of the Russian Federation);
The number of full-time medical staff with a specialist certificate in the total number of employees continuously during the tax period is at least 50%;
There are at least 15 employees on staff continuously throughout the year;
During the year he does not carry out transactions with bills of exchange and financial instruments of futures transactions.
If at least one of the specified conditions is not met, the right to apply the zero rate is lost.
In accordance with paragraph 5 of Article 284.1 of the Tax Code of the Russian Federation, one month before the beginning of the year from which the organization will charge income tax at a rate of 0 percent, it must submit an application and the necessary package of documents to the tax office.
The right to apply the zero tax rate must be confirmed annually. To do this, no later than March 28 of the next year, together with income tax returns, medical and educational organizations must submit information to the tax inspectorate in the form KND 1150022:
- on the share of income from medical (educational) activities;
- about the number of employees;
- on the number of full-time certified specialists (for medical organizations).
The form was approved by order of the Federal Tax Service of Russia dated November 21, 2011 No. ММВ-7-3/892. It should be filled out on the basis of tax accounting data (tax registers) and personnel records (staffing schedule, employment contracts, orders for hiring and dismissal, certificates, etc.).
Such requirements are contained in paragraph 6 of Article 284.1 of the Tax Code of the Russian Federation.
Rationale
Tax benefits for healthcare, education, culture, as well as physical education and sports institutions
Benefit | Base | Note |
Medical, pharmacy institutions* | ||
Income tax | ||
When determining the tax base, the following funds are not taken into account: | ||
- Compulsory medical insurance; | para. 19 subp. 14 clause 1 art. 251 Tax Code of the Russian Federation | |
- targeted funding in the form of a grant for the implementation of specific programs in the field of health protection | para. 7 subp. 14 clause 1 art. 251 Tax Code of the Russian Federation | Targeted funding is a grant from a citizen, a non-profit organization, as well as a foreign, international organization or association according to the list approved by Decree of the Government of the Russian Federation of June 28, 2008 No. 485 |
Other benefits established for all organizations may also apply | ||
If certain conditions are met, institutions are entitled to apply a reduced tax rate of 0 percent* | clause 1.1 art. 284, Tax Code of the Russian Federation |
At what rate should I pay income tax?
When can a medical organization apply a zero income tax rate?
With regard to the profits of organizations that conduct medical activities (except for dividends and income from transactions with certain types of debt obligations), if certain conditions are met, a tax rate of 0 percent is applied (clause 1 of Article 284.1 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated August 23, 2017 No. 03-03-06/1/53976). The list of types of medical activities, income from which is taxed at a rate of 0 percent, was approved by Decree of the Government of the Russian Federation of November 10, 2011 No. 917. At the same time, for the purpose of applying the 0 percent rate, medical activities do not include activities related to sanatorium and resort treatment.
The conditions for applying the zero rate are defined in paragraph 3 of Article 284.1 of the Tax Code of the Russian Federation. One of them is the relationship between the amount of income from medical activities and the total amount of income received by the organization. This ratio should not be less than 90 percent ().* Moreover, if, along with medical activities, the organization provides educational services and (or) is engaged in social services for the population, the income limit of 90 percent must be calculated separately - only for medical activities. If the total income from medical, educational, social activities is 90 percent or more, and from medical activities - less than 90 percent, a zero rate cannot be applied. Such clarifications are given in the letter of the Ministry of Finance of Russia dated July 17, 2015 No. 03-03-10/41223 (communicated to the tax inspectorates by letter of the Federal Tax Service of Russia dated August 14, 2015 No. GD-4-3/14370).
Medical organizations created during the year can apply a zero tax rate no earlier than from the beginning of the next tax period. In accordance with paragraph 5 of Article 284.1 of the Tax Code of the Russian Federation, one month before the beginning of the year from which the organization will charge income tax at a rate of 0 percent, it must submit an application and the necessary package of documents to the tax office. Newly created organizations cannot fulfill this condition, therefore, they have the right to a zero tax rate only from the next year. This is stated in the letter of the Ministry of Finance of Russia dated March 15, 2012 No. 03-03-10/23 *.
For the same reason, medical organizations that applied the simplified tax regime and lost the right to this special regime within a year are not entitled to apply a 0 percent income tax rate. For the current year, they must charge a tax at a rate of 20 percent and only from the beginning of the next tax period (subject to the fulfillment of the conditions provided for in paragraph 3 of Article 284.1 of the Tax Code of the Russian Federation) will they be able to take advantage of the zero income tax rate. Such clarifications are contained in the letter of the Ministry of Finance of Russia dated August 30, 2012 No. 03-03-06/4/90.
As a general rule, a medical organization that has lost the right to a zero income tax rate can reapply this rate no earlier than five years later (clause 8 of Article 284.1 of the Tax Code of the Russian Federation). This limitation does not apply in the following cases.
First when a medical organization declared an income tax benefit, but never took advantage of it. That is, before the deadline for submitting the declaration for the first reporting period of the year for which the benefit was declared, the organization voluntarily submitted to the tax office an application to pay income tax on a general basis (letter of the Federal Tax Service of Russia dated April 5, 2013 No. ED-4-3/6093
Alexander Sorokin answers,
Deputy Head of the Operational Control Department of the Federal Tax Service of Russia
“Cash payment systems should be used only in cases where the seller provides the buyer, including its employees, with a deferment or installment plan for payment for its goods, work, and services. It is these cases, according to the Federal Tax Service, that relate to the provision and repayment of a loan to pay for goods, work, and services. If an organization issues a cash loan, receives a repayment of such a loan, or itself receives and repays a loan, do not use the cash register. When exactly you need to punch a check, see the recommendations.”
a. difference between gross income and economic costs
b. sum of explicit and implicit costs
c. the difference between gross income and the sum of explicit and implicit costs
d. difference between gross income and explicit costs
Your answer is partially correct.
You chose 1 correctly.
Correct answer: the difference between gross income and economic costs, the difference between gross income and the sum of explicit and implicit costs
Question 3
Points: 1.0 from a maximum of 1.0
Mark a question
Question text
Indirect costs of a medical institution:
Select one answer:
a. medicines;
b. Food;
c. travel allowances
d. medical equipment;
Correct answer: travel allowances
Question 4
Points: 1.0 from a maximum of 1.0
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Question text
Auxiliary units of a medical institution
Select one or more answers:
a. clinic departments
b. registry
c. diagnostic centers
d. catering unit
Your answer is correct.
Correct answer: reception, catering department
Question 5
Points: 1.0 from a maximum of 1.0
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Question text
Cost + profit:
Select one answer:
a. dumping price;
b. break-even;
c. profitability point;
d. ensuring profitability;
Correct answer: ensuring profitability;
Question 6
Points: 1.0 from a maximum of 1.0
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Question text
Net profit can be used
Select one or more answers:
a. for the purchase of new equipment
b. to pay taxes
c. for the creation of material incentive funds
d. for workers' compensation
Your answer is correct.
Correct answer: to create financial incentive funds, to purchase new equipment
Question 7
Points: 1.0 from a maximum of 1.0
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Question text
The most effective method for calculating costs is to distribute indirect costs proportionally:
Select one answer:
a. occupied areas;
b. basic unit
c. salaries of key personnel;
d. volume of work performed;
Correct answer: wages of key personnel;
Question 8
Points: 1.0 from a maximum of 1.0
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Question text
The normal profit of a medical institution includes:
Select one answer:
a. into explicit and implicit costs.
b. economic profit
c. implicit costs
d. obvious costs
Correct answer: explicit and implicit costs.
Question 9
Points: 1.0 from a maximum of 1.0
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Question text
Expenses that can be directly attributed to certain types of medical services provided:
Select one answer:
a. straight;
b. indirect;
c. auxiliary;
d. variables.
Correct answer: straight;
Question 10
Points: 1.0 from a maximum of 1.0
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Question text
Expenses that cannot be directly attributed to specific types of services:
Select one answer:
a. indirect;
b. gross;
c. straight;
d. permanent;
Correct answer: indirect;
Question 11
Points: 1.0 from a maximum of 1.0
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Question text
In the “Electronic Documents” section we talk about the implementation and work with electronic documents, their advantages, risks and types. In addition, attention is paid to the automation of electronic documents in private clinics.
Any use of materials is permitted only with a hyperlink.
In the “Electronic Documents” section we talk about the implementation and work with electronic documents, their advantages, risks and types. In addition, attention is paid to the automation of electronic documents in private clinics.
Any use of materials is permitted only with a hyperlink.
In the “Profit of Medical Organizations” section we talk about how to plan work so that the medical business becomes profitable. We learn to calculate payback, draw up reports, conduct financial transactions, and evaluate investments.
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Private medical institutions periodically have to make changes to the list of clinic services - for example, to differentiate themselves from competitors, to attract more clients, or simply to keep up with the times. Before the price list with the clinic’s services is added to the next line with the name of the service, it is necessary to carry out quite difficult analytical work in order to assess how profitable the appearance of a new service will be. 713
By analyzing the profit of a medical organization, you can understand how efficiently it operates. The performance results of a medical enterprise's economics are derived from various factors. The price list for the provision of medical services is influenced by the cost of the services provided, the level of income of the clinic itself, etc. Read what formulas are used to calculate the efficiency of a private clinic in our article today. 8994
State employees also pay income tax. Today this will surprise few people.The entrepreneurial activity of budgetary organizations is a source of their additional financing. Therefore, almost every budgetary institution (with rare exceptions) organizes activities that, in accordance with the rules of the new Budget Accounting Instructions, are called “income-generating activities.” And if there is income, then there is also a profit tax. In this article we will look at what income and under what conditions are taken into account when determining the tax base for income tax. In accordance with standards Ch. 25 “Organizational profit tax” of the Tax Code of the Russian Federation Russian organizations are also recognized as income tax payers (Article 246 of the Tax Code of the Russian Federation). Since, according to the Civil Code, budgetary institutions are classified as organizations ( Art. 120 Civil Code of the Russian Federation ), they are, on a general basis, payers of corporate income tax, since the implementation Ch. 25 Tax Code of the Russian Federation
Before calculating income tax, you need to determine the object of taxation by this tax. Article 247 of the Tax Code of the Russian Federation establishes that the object of taxation for corporate income tax is the profit received by the taxpayer. Profit for Russian organizations, in turn, is recognized as income received, reduced by the amount of expenses incurred, which are determined in accordance with Chapter. 25 Tax Code of the Russian Federation. Thus, the object of taxation is the difference between income received and expenses, and the monetary value of this difference is recognized as the tax base for this tax. Article 274 of the Tax Code of the Russian Federation contains a list of taxpayers for whom the specifics of determining the tax base are established. Budgetary organizations are not included in this list.
Chapter 25 of the Tax Code of the Russian Federation distinguishes two types of income: income from the sale of goods (work, services) and property rights, as well as non-operating income. In addition, a separate list of income that is not subject to taxation is given. Let's consider these types of income.
Income from sales
Sales income is recognized as proceeds from the sale of goods, works, services, both self-produced and purchased externally, as well as proceeds from the sale of property rights. At the same time, the Tax Code contains definitions of goods, works, services ( Art. 38 Tax Code of the Russian Federation).
Product any property being sold or intended for sale is recognized. In order to regulate relations related to the collection of customs duties, goods also include other property determined by the Labor Code of the Russian Federation.
Work For tax purposes, activities are recognized whose results have a material expression and can be implemented to meet the needs of the organization and or) individuals.
Service For tax purposes, activities are recognized whose results do not have material expression and are sold and consumed in the process of carrying out this activity.
For your information: in Instruction No. 25n the word “product” does not appear. In addition, in the Chart of Accounts for Budget Accounting (as amended by Order of the Ministry of Finance of the Russian Federation No. 25n), the name accounts 401 01 130“Income from market sales of goods, works, services.” Now it is called “Income from market sales of finished products, works, services.” Consequently, it can be assumed that for budgetary organizations, legislators exclude the possibility of carrying out transactions with goods. However, in my opinion, for the purposes of application Ch. 25 Tax Code of the Russian Federation Finished products of budgetary institutions can be recognized as goods if they are intended for sale.
When determining income, the amounts of taxes charged to the buyer of goods, works, services, and property rights are excluded from them. Thus, if the income-generating activities of an institution are subject to VAT, then this tax does not need to be included in taxable income.
So, sales income is considered to be proceeds from the sale of goods, works, services, and property rights. What does it actually mean? implementation ?
Thus, sale is the transfer of ownership of goods, work or provision of services, both on a paid and gratuitous basis.
How revenue is determined ? Firstly, based on all receipts associated with payments for sold goods, works, services, property rights, both in cash and in kind. Secondly, it is recognized either on an accrual basis or on a cash basis, which must be approved in the accounting policies of the organization.
When using the accrual method, income is recorded in the period in which it occurred, regardless of the actual receipt of funds. Under the cash method of accounting, the date of receipt of income is the day the funds are received in bank accounts or at the cash desk.
Non-operating income
Income taken into account when determining profit also includes non-operating income, which is determined in the manner established Art. 250 Tax Code of the Russian Federation. The list of non-operating income is quite extensive. In relation to budgetary organizations, the following non-operating income can be noted:
1. Positive (negative) exchange rate difference, which is formed as a result of 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.
2. Fines, penalties and (or) other sanctions recognized by the debtor or subject to payment 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.
3. Income from leasing (subleasing) property, if they are not determined by the taxpayer in the manner established Art. 249 Tax Code of the Russian Federation, that is, they do not relate to sales income.
4. Income from the provision for use of rights to the results of intellectual activity and equivalent means of individualization (in particular, rights arising from patents for inventions, industrial designs and other types of intellectual property), if such income does not relate to income from sales, then Yes, if this type of activity is not the main one for the institution.
5. Interest received under loan, credit, bank account, bank deposit agreements, as well as on securities and other debt obligations.
6. Amounts of restored reserves, the costs of the formation of which were accepted as part of expenses in the manner and under the conditions established by the Tax Code of the Russian Federation.
7. Freely received property (work, services) or property rights, except for the cases specified in Art. 251 Tax Code of the Russian Federation.
Assessment of income when receiving property (work, services) free of charge is carried out based on market prices determined taking into account the provisions Art. 40 Tax Code of the Russian Federation, but not lower than the established residual value - for depreciable property and not lower than the costs of production (purchase) - for other property (work performed, services rendered). Information on prices must be confirmed by the taxpayer - the recipient of the property (work, services) documented or through an independent assessment.
note: financial authorities also include income from the gratuitous use of property here. So, in Letter No. 03-03-04/1/359 The Ministry of Finance indicates that for profit tax purposes, receiving property for free use should be considered as free receipt of property rights. At the same time, for the taxpayer-lender, the provision of property for free use does not lead to the generation of income. Income in the form of gratuitously received property rights is subject to inclusion in the non-operating income of the borrower. It should be taken into account that the judicial authorities (Information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated December 22, 2005 No. 98 “On the practice of resolving cases by arbitration courts related to the application of certain provisions of Chapter 25 of the Tax Code of the Russian Federation”) do not classify the gratuitous use of property as taxable income if it is provided to an institution owner of the institution's property. In this case, the courts interpret the gratuitous use of property as saving money, and not as receiving income.
8. Income of previous years identified in the reporting (tax) period.
9. Positive exchange rate difference arising from the revaluation of property in the form of foreign currency values (except for securities denominated in foreign currency) and claims (liabilities), the value of which is expressed in foreign currency, including on foreign currency accounts in banks, carried out in connection with with a change in the official exchange rate of foreign currency to the Russian ruble, established by the Central Bank of the Russian Federation.
A positive exchange rate difference is an exchange rate difference that arises when revaluing property in the form of foreign currency assets (with the exception of securities denominated in foreign currency) and claims denominated in foreign currency, or when devaluing liabilities denominated in foreign currency.
10. The amount difference, if the amount of obligations and claims incurred, calculated at the rate of conventional monetary units established by agreement of the parties on the date of sale (receipt) of goods (work, services), property rights, does not correspond to the actual amount received (paid) in rubles.
11. The cost of materials or other property received during dismantling or disassembly during the liquidation of fixed assets being decommissioned (except for cases of their destruction established by Article 5 of the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on Their Destruction and Part 5 of the Annex on verification to the said convention).
12. Income from property used for other than its intended purpose, including funds, works, services received as part of charitable activities (in the form of charitable assistance, donations), targeted revenues, targeted financing, with the exception of budgetary funds. In relation to budget funds used for purposes other than their intended purpose, the provisions of the budget legislation of the Russian Federation are applied.
13. Accounts payable (liabilities to creditors), written off due to the expiration of the statute of limitations or for other reasons.
14. The cost of surplus inventories and other property that are identified as a result of the inventory.
Income not taken into account when determining the tax base
First of all, budgetary organizations have a question: whether to include funds from the budget in taxable income, that is, funds received as part of the estimate of income and expenses. The answer is contained in pp. 14 clause 1 art. 251 Tax Code of the Russian Federation.
Thus, in accordance with the Tax Code of the Russian Federation, not all income received by an organization is taken into account when determining profit. The list of income that may not be included in the tax base for income tax is contained in Art. 251 Tax Code of the Russian Federation. Let us immediately make a reservation that this list is closed, and this, in turn, means that all income not named in this article should be taken into account when determining the taxable base.
Since the list of non-taxable income is quite large, we will focus only on those that may be related to the activities of budgetary institutions - these are:
- special-purpose financing;
– targeted revenues;
– other income not taken into account when determining the tax base.
Special-purpose financing
What funds belong to targeted financing has been established pp. 14 clause 1 art. 251 Tax Code of the Russian Federation. A prerequisite for including targeted financing in non-taxable income is separate accounting of income (expenses) received (produced) within the framework of such financing. In the absence of separate accounting, these funds are subject to taxation from the moment they are received. If these funds are not used during the tax period or are not used for their intended purpose, then the norms of the budget legislation of the Russian Federation are applied to them.
Funds of targeted financing include property received by an organization and used by it for its intended purpose, determined either by the source of financing (organization or individual) or by federal law. In addition to funds from budgets of all levels, state extra-budgetary funds allocated to budgetary institutions according to estimates of income and expenses, targeted funding includes:
1. Grants. They are provided on a free and irrevocable basis by Russian individuals, non-profit organizations, as well as foreign and international organizations and associations according to the list of such organizations approved by the Government of the Russian Federation, for the implementation of specific programs in the field of education, art, culture, public health, environmental protection , protection of human and civil rights and freedoms provided for by the legislation of the Russian Federation, social services for low-income and socially vulnerable categories of citizens, as well as for conducting specific scientific research on the terms determined by the grantor, with the obligatory submission to the grantor of a report on the intended use of the grant. If the allocated funds simultaneously meet all of the above criteria, then they can be recognized as grants.
2. Investments for holding investment competitions (bidding) in the manner established by the legislation of the Russian Federation.
3. Investments from foreign investors to finance capital investments for production purposes, subject to their use within one calendar year from the date of receipt.
4. Funds of shareholders and investors accumulated in the accounts of the developer.
5. Funds received from the Russian Foundation for Basic Research, the Russian Fund for Technological Development, the Russian Humanitarian Science Foundation, the Fund for Assistance to the Development of Small Enterprises in the Scientific and Technical Sphere, the Federal Fund for Manufacturing Innovation.
6. Funds received for the formation of the Russian Technological Development Fund, as well as other industry and inter-industry funds for financing research and development work, registered in the manner prescribed by the Federal Law “On Science and State Science and Technology Policy”.
7. Funds received by medical organizations carrying out medical activities in the compulsory health insurance system for the provision of medical services to insured persons from insurance organizations providing compulsory medical insurance to these persons.
Target revenues
Chapter 25 “Organizational profit tax” of the Tax Code of the Russian Federation also contains a definition of target revenues. In accordance with clause 2 art. 251 Tax Code of the Russian Federation These include targeted revenues from the budget to budget recipients and targeted revenues for the maintenance of non-profit organizations and the conduct of their statutory activities, received free of charge from other organizations and (or) individuals and used by these recipients for their intended purpose. Accounting for income (expenses) received (produced) within the framework of target revenues must also be separate.
The list of targeted revenues for the maintenance of non-profit organizations and the conduct of their statutory activities is limited by tax legislation. Here it would be useful to remember that budgetary institutions are classified as non-profit organizations in accordance with Art. 9 of the Federal Law of January 12, 1996 No. 7-FZ “On Non-Profit Organizations”. Therefore the list ( pp. 1 – 12 p. 2 tbsp. 251 Tax Code of the Russian Federation), which defines the types of targeted revenues for the maintenance of non-profit organizations and the conduct of their statutory activities, is also applicable to budgetary organizations.
However, not all types of income are relevant to them. In this list, we can highlight revenues related to the activities of budgetary institutions:
1. Donations recognized as such in accordance with the Civil Code of the Russian Federation. The gratuitous transfer of property can be made either by donation or by gift. Only donations are exempt from taxation, so these concepts should be distinguished. According to Art. 572 Civil Code of the Russian Federation under a gift agreement, one party (the donor) gratuitously transfers or undertakes to transfer to the other party (the donee) an item or property right into ownership. A donation is the donation of a thing or right for generally beneficial purposes ( clause 1 art. 582 Civil Code of the Russian Federation). Donations can be made to citizens, medical, educational institutions, social protection institutions and other similar institutions, charitable, scientific and educational institutions, foundations, museums and other cultural institutions, public and religious organizations, as well as the state and other subjects of civil law.
The institution accepting the donation must maintain separate records of all transactions involving the use of such property. The accountant should pay attention to documenting the receipt of the donation. To avoid claims from the tax authorities, the donation agreement is drawn up in writing, as required by civil law. In accordance with clause 2, 3 art. 574 Civil Code of the Russian Federation a contract of donation of movable property must be concluded in writing when:
– the donor is a legal entity and the value of the gift exceeds five minimum wages established by law;
– the contract contains a promise of a gift in the future.
A real estate donation agreement is subject to state registration.
According to the norms of civil legislation, when donating property to a legal entity, the donor may, but is not obliged to, stipulate the direction of use of the property ( clause 3 art. 582 Civil Code of the Russian Federation). However, given that property used for other purposes is subject to taxation, the contract should indicate the purpose of its use. The institution that received the property can draw up a report on its intended use. If the donated property cannot be used in accordance with the specified purpose, then with the consent of the donor it can be used for other purposes.
note: Funds cannot be considered donations if the payment order contains the wording “financial assistance,” “material assistance,” “sponsorship,” or “charitable assistance.” In accordance with Federal Law of July 18, 1995 No. 108-FZ “On Advertising” The sponsorship contribution is recognized as a payment for advertising, that is, it is not gratuitous.
The payment order and other documents do not indicate the VAT amount, and there is no need to issue an invoice for the donated property.
2. Targeted revenues for the formation of the Russian Technological Development Fund, as well as other industry and inter-industry funds for financing research and development work, registered in the manner prescribed by the Federal Law “On Science and State Science and Technology Policy”.
3. Amounts of financing from the federal budget, budgets of constituent entities of the Russian Federation, local budgets, budgets of state extra-budgetary funds allocated for the implementation of the statutory activities of non-profit organizations ( pp. 3 p. 2 art. 251 Tax Code of the Russian Federation).
Other income not taken into account when determining the tax base
In addition to the listed targeted revenues and targeted financing, non-taxable income includes:
1. Amounts of advances (including in the form of property, property rights, works or services) received by institutions that determine income and expenses on an accrual basis.
note: if an institution accounts for income from business activities on a cash basis and the average volume of revenue for the previous four quarters does not exceed one million rubles for each quarter, then it must include the amounts of advances received in the calculation of taxable profit ( Art. 271 Tax Code of the Russian Federation).
2. Property, property rights that are received in the form of a pledge.
3. Free assistance (cash, other property) received in accordance with Federal Law No. 95-FZ dated 04.05.99 “On gratuitous assistance (assistance) of the Russian Federation and amendments and additions to certain legislative acts of the Russian Federation on taxes and on the establishment of benefits on payments to state extra-budgetary funds in connection with the implementation of gratuitous assistance (assistance) to the Russian Federation.” It should be borne in mind that gratuitous assistance includes humanitarian or technical assistance on a gratuitous basis from foreign states, from their federal or municipal entities, international and foreign institutions or non-profit organizations, as well as individuals, provided that the specified funds ( humanitarian assistance) there are documents confirming their belonging to humanitarian or technical assistance.
4. Property received by budgetary institutions by decision of executive authorities at all levels.
5. Property (including funds) received under a commission agreement, agency or other similar agreement in connection with their execution, except for commission, agency or other remuneration.
6. Amounts of credit or loan (other similar funds or property), regardless of the form of registration of borrowings, including securities under debt obligations, as well as funds or other property received to repay such borrowings. Here I would like to draw the attention of accountants to economic relations with the lender. Loan amounts received from a counterparty with whom an agreement for the provision of services has been concluded or for which accounts receivable are recorded may be classified by the tax authorities as amounts of advance payment or income received.
7. Amounts of interest received from the budget (non-budgetary fund) for violation of the deadlines for the return by tax authorities of overpaid taxes or fees.
9. Amounts written off and (or) otherwise reduced in accordance with the legislation of the Russian Federation or by decision of the Government of the Russian Federation of the taxpayer’s accounts payable for the payment of taxes and fees to budgets of various levels.
10. Property received free of charge by state and municipal educational institutions, as well as non-state educational institutions licensed to conduct educational activities, if it is used in statutory activities.
11. Fixed assets received by organizations included in the structure of the Russian Defense Sports and Technical Organization (ROSTO) (when transferred between two or more organizations included in the structure of ROSTO), used in accordance with the legislation of the Russian Federation for the purpose of training citizens in military registration specialties, military-patriotic education of youth, development of aviation, technical and military-applied sports.
12. The amount of positive difference obtained when revaluing securities at market value.
13. Property (work, services) received by medical organizations carrying out medical activities within the framework of compulsory health insurance, from insurance organizations providing compulsory health insurance, at the expense of the reserve for financing preventive measures, used in the prescribed manner.
14. Capital investments in the form of inseparable improvements to the leased property made by the tenant.
From the editor. In the next issue of the journal “Budgetary Organizations: Accounting and Taxation” the second part of L. Salina’s article “Expenses in calculating income tax” will be brought to the attention of readers.
Instructions for budget accounting, approved. By Order of the Ministry of Finance of the Russian Federation dated 10.02.06 No. 25n (hereinafter referred to as Instruction No. 25n).
Letter of the Ministry of Finance of the Russian Federation dated April 19, 2006 No. 03-03-04/1/359 “On the procedure for determining the tax base for corporate income tax when receiving property for free use.”
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