TAX

Municipal property and VAT - When it is necessary to pay

AleksandroVSD — Thu, 13 Oct 2011 12:53:41 GMT

When you purchase a municipal property VAT must be calculated at the time of transfer of money for it. This was once again explained the Russian Finance Ministry in its letter № 03-07-14/94 of September 27, 2011.

An individual entrepreneur has acquired municipal property from which the VAT must be paid to the budget. The property was purchased with installment payments over several years. Payments are transferred by a taxpayer each year. This raises the question of payment of value added tax.

The Office believes that the acquisition of municipal property, must pay VAT at every annual remittance. Ministry of Finance explained that the implementation of municipal property, which is not reserved for public enterprises and institutions, VAT must be listed to the tax agent. In our case, the name of a purchaser of such property.

Therefore, when an entrepreneur takes on municipal property by installments, the amount of VAT is determined at the time of the transfer of funds, but in our situation, every year. In turn, the officials noted that tax inspectors have no right to demand payment of VAT when the taxpayer receives title to the property.

In addition, on the issue of municipal property and VAT recall that at one time, the Ministry of Finance has already explained the issue in its letter № 03-07-14/64 dated July 7, 2009. Operations on the implementation of state and municipal property are recognized subject to VAT. If you pay the property tax agent should calculate the appropriate amount of tax payable to the budget.

Also at the time, we mentioned the following. At the conclusion of separate subdivisions of the lease of municipal property required to pay VAT on the organization of the place of registration organization in the tax department. Reported by the Finance Ministry in its letter № 03-07-11/448 on November 26, 2010.

Advertising expenditure tax authorities require illegal to distribute

AleksandroVSD — Thu, 13 Oct 2011 12:52:58 GMT

Advertising expenses were formed from the taxpayer with his participation in the exhibition. These costs are not standardized on the basis of paragraph 4 of Article 264 of the Tax Code. Tax, during a spot-check, this can be addressed only part of these costs.

Advertising costs were inflated by the taxpayer. This conclusion was verified by the control measures. Since the auditee participated in the exhibition together with a partner, and paid advertising services on their own, legitimate expenses are limited to the part that refers to the movement of goods and services of the taxpayer, rather than his partner.

The company did not agree with it and was forced to seek protection in court. The Federal Arbitration Court of the Volga region sided with the taxpayer. In its order number A65-24579/2010 on August 2, 2011 the arbitrators explained that the costs incurred by an organization closely associated with advertising of the goods that it sells.

In addition, a strong argument on the question of recognition of advertising costs served as a fact that inspectors have failed to show documented the relationship of the audited entity with its partners to promote the products. There is no agreement on joint financing of advertising services issued and signed. Accordingly, the court concluded that advertising costs the taxpayer was legally incorporated in its entirety.

In addition, remember that advertising spending on leaflets, for example, used for exhibitions, providing information about the organization or individual for services rendered by it are advertising costs to be considered for taxation of income under paragraph 4 of paragraph 4 of Article 264 Russia, and are non-normed.

And reassurance, recall that the advertising costs for production of souvenirs, which are often distributed at trade shows, are also established and may be considered in accounting. This is explained at the time the Supreme Arbitration Court of the Russian Federation in its ruling number VAS-12305/09 of September 28, 2009.

An electronic document can be used along with the paper

AleksandroVSD — Thu, 13 Oct 2011 12:52:14 GMT

An electronic document has the same legal value as designed on paper. On the equivalence of the recently recalled the Federal Tax Service in its letter № ED-4-3/16368 @ October 5, 2011.

An electronic document in the tax and accounting on the basis of existing legislation can be used in free form. This concerns not only the interaction between taxpayers, but also between organizations or individual entrepreneurs and tax authorities.

Officials explain that the law is no restriction on the use of electronic documents in the process of interaction between businesses themselves. Documents in electronic form, signed by electronic signature has the same legal value as paper szhivoy signature of responsible persons.

Decorated in an electronic form the primary document is a confirmation of costs incurred by the organization only if it is signed by electronic signature. Also, if the legislation does not provide the mandatory registration of a document on paper.

In addition to the question of the legality of electronic documents recall that April 8, 2011 entered into force on the Federal Law on Electronic Signature of the April 6, 2011 № 63-FZ "On electronic digital signature", which replaced the previous legislation - the Federal law № 1 -FZ of January 10, 2011

The new law on electronic signature establishes relations in the use of electronic signatures for:

    committing civil transactions,

    provision of public and municipal services,

    performance of state and municipal functions,

    in the commission of other legal actions between economic entities.

By the way, for confirmation of cost on the basis of electronic documents at the time expressed in the Ministry of Finance letter N 03-02-07/1-190 of June 14, 2011. The Office explained that once the law is a direct ban on registration of documents in electronic form, this document may be confirming charges

Legal address may be the place of residence of the founder

AleksandroVSD — Wed, 12 Oct 2011 15:02:44 GMT

Legal address may be the home address of one of the founders of the company. With this recently agreed to the Federal Tax Service in its letter № PA-21-6/293 of September 23, 2011.

Recall that the legal address of the residence located on the founder created a lot of questions from the inspection bodies. Often during the tax registration activities simply refused to register the society on such a location.

However, a recent opinion on the legal address of NRF organization dramatically changed. Office agreed that a limited liability company is entitled to be registered place of residence of the founder with only one condition - at this address is a real opportunity to contact the company.

In addition to material on the legal address of the organization, please note that from January 30, 2010 has been raised twice the size of the state fee for registration actions that commit tax in the creation and liquidation of legal entities, as well as for the registration of employers and the termination of the registration as an entrepreneur.

In addition, the Social Insurance Fund in the fourth quarter of 2011 has significantly simplified the registration procedure in his department. From October 1 to reduce the list of documentation needed for this.

Also at the time the Federal Tax Service explained the issues relating to the registration of the organization, composed of separate units, located on the territory of the Russian Federation. They are made by tax authorities on the location of each of its separate divisions.

In conclusion we would like to recall that according to the decision of the Moscow District of FAS 16.11.09 № KA-A40/11833-09 lack the legal address of the organization is not a valid excuse to her credit additionally taxes. The fact that the company failed to comply with tax for documents sent by mail, does not give them the right to refuse the deduction of VAT and tax credit additionally.

Verification of contributions will be held in conjunction with FTS

AleksandroVSD — Wed, 12 Oct 2011 15:02:01 GMT

Checks in payment of contributions will be combined with checks for taxes. Joint control over the payment of insurance premiums Social Insurance Fund has almost agreed with the Pension Fund. These two departments will attend insurers together. Now to the tandem and joined the Federal Tax Service.

Agreement on joint inspections of contributions has been signed between the funds in the summer of this year. The document approved by the Order № MMV-27-2/15 June 23, 2011, № 14-03-40/08-1767p. After which it held its first joint control measures.

True, now check the contributions, in most cases still are conducted separately. In this case the FSS and attend FIU policyholders with a difference in a few days. In the very agencies say it is a temporary measure and in the near future audits will be conducted jointly.

In the future FSS plans to invite the joint monitoring activities of tax officials, though not on a permanent basis. For example, the NRF will need to when you need help in determining the legality of the use of low rate of insurance premiums.

FNS, in turn, said that in carrying out joint inspections by the contributions of individual tax audits will not be made. Therefore, the results of control measures additional charges for taxes not provided. Decisions will be issued directly to the fund. However, tax authorities, in the conscientious actions can receive important information for taxpayers. After that will be able to initiate a tax audit is already on its part.

In addition, for joint inspections of contributions fiscal authorities are not always able to find at this time due to high load. Therefore, not every invitation from the fund will be considered favorably. Separately noted that the NSF will not refuse to dissolve the organization or situation at a high arrears.

In conclusion, the issue of checks in payment of contributions, we note that the agencies an opportunity to share information among themselves. For example, now wanted by Moscow's funds are not at their registered address of policyholders with the tax service.

The calculation of depreciation was refined Russian Ministry of Finance

AleksandroVSD — Wed, 12 Oct 2011 15:01:23 GMT

The calculation of depreciation has been recently clarified by the Ministry of Finance in its letter № 03-03-06/2/146 of September 23, 2011. Paragraph 1 of Article 258 of the Tax Code states that an organization or individual entrepreneurs have the right to increase the useful life of the asset after its use.

This is possible in the case after the upgrade of the operating system was an increase of its useful life to the organization. The useful life of the operating system can be carried out within the time period set for suspension group, in which the taxpayer has included it.

In a situation where the OS has been fully amortized and changed, according to officials, the cost increases in the cost of depreciation produced works. And the cost of these works must be amortized over those rules that were adopted during commissioning of the asset.

In addition to the calculation of depreciation, adding that if it sold fixed asset, it is not deprived of the right to recalculate depreciation in the period when owned by this object. Such clarification is contained in the resolution of the Ural region of FAS 12.01.10 № F09-7012/09-S3.

Property can absorb the non-profit organization

AleksandroVSD — Wed, 12 Oct 2011 15:00:46 GMT

Property lawfully nonprofit depreciate when it was acquired by funds from the business activity. It is also the property should then be used for activities of a commercial nature. This was recently voted the Russian Finance Ministry in its letter № 03-03-06/4/108 of September 28, 2011.

Expanding the question about the property-for-profit organization, the agency stated in the current tax legislation - Article 156, paragraph 1 of the Tax Code. Amortize legitimate not only property but also the results of intellectual activities which are in the organization or individual entrepreneur on the property. Recall, that this property should be used for commercial purposes.

Simultaneously, in subparagraph 2 of paragraph 2 of Article 156 of the Tax Code states that property NCB, which is used for non-commercial purposes is not subject to amortization action.

So officials have concluded that if the property was acquired by a nonprofit organization through cash from the business activity, it can absorb. If the target were spent money, it is not legally do under current legislation.

The tax rate on dividends will not change for violations of the payment

AleksandroVSD — Wed, 12 Oct 2011 15:00:01 GMT

The tax rate on dividends can not vary depending on the time of their payment. This was recently announced the Ministry of Finance in its letter № 03-04-06/3-225 September 19, 2011.

The tax rate on dividends is determined by paragraph 4 of Article 224 of the Tax Code. Recall that the payment of dividends under Article 42 of the Federal Law № 208-FZ dated 26 December 1995 amounts to no more than 60 days after the decision, if a shorter period is specified in the Articles of Association.

Officials noted that the tax rate on dividends of 9 percent (p.4 st.224 Tax Code) does not depend on the timing of their payments. Therefore, even if society and tightened with payments, the tax on personal income in this situation will not change, and will continue to be 9 percent.

In addition to the material, we note the following fact. Amounts paid to the founders of the first nine months can not be considered dividends, as the magnitude of net profit for the year less than for the period from January to September. Therefore, these payments will be subject to personal income tax at a rate of 13 percent. This was explained in the decision of the Moscow District of FAS 09.02.11 № KA-A40/17184-10.

In due time we will also publish material on payments of dividends and non-standard situations that have arisen in this case. More details can be consulted by clicking on the link.

In conclusion we would like to recall the practice of arbitration on the issues of tax rates on dividends. Arbitration at the time explained the issues of interim payments to the founders. When they were higher than on the basis of the calendar year, such payments are deemed received donated property.

Therefore, the founders must keep personal income tax on 13 percent rate. But if the founder is a legal person - 20 percent. This is also mentioned in a letter to the Federal Tax Service of Russia of 19.03.09 № @ SHS-22-3/210 and a letter from the Russian Ministry of Finance 24.12.08 № 03-03-06/1/721.

Mandatory transition to the USN provides FNS

AleksandroVSD — Mon, 10 Oct 2011 14:35:57 GMT

Mandatory transition to the SST expects the organization, annual reveues are less than 60 million rubles. Taxpayers will have a choice of two tax rates - 6 percent of revenue, or 15 percent of the difference between revenues and expenditures. This was recently announced Federal Tax Service of the Russian Federation.

In addition to the initiatives for mandatory transition to the USN Office prepared a series of amendments on also:

expand the scope of the patent system of taxation, with a 6-percent rate on income

cancellation of a single tax on imputed income from 2014.

FTS is currently discussing the planned changes with the Ministry of Finance. As director of the Department of Finance, Ilya Trunin discussed changes aimed at reducing the tax burden of business, as well as to mitigate the tax administration and do not relate to the purpose of improving tax collection.

Mandatory transition to the USN, as the official said, will be adopted is not soon. Accordingly, all changes in the matter will be promptly posted on our website in specialized headings - "USN" and "basis".

Tax recoverable may reduce penalties

AleksandroVSD — Mon, 10 Oct 2011 14:35:06 GMT

Tax receivable has been brought to the organization of her tax check. After control measures tax office made a decision to refuse the deduction of VAT on certain invoices. After that, the controllers have calculated the 20 percent penalty under Article 122 of the Tax Code of the PF.

However, previously filed tax organization for reimbursement. Fiscal authorities did not dispute the amount of data and had not yet distinguish them from the budget for the account of the taxpayer. This amount is an overpayment and deducted from the additional charges.

The penalty should be levied only with the actual debt of the taxpayer. This is stated in the current tax law, article 122 of the Tax Code. It also agreed with this Federal Arbitration Court for the Eastern Siberian region in its ruling number A78-6877/2010 October 3, 2011. Therefore, the tax receivable actually helped to reduce the amount of penalties.

We remind that in addition to issues related to taxes receivable in our specialized headings - "VAT", "overpayment of taxes," you can get other useful and relevant information. Additionally, in order to be always aware of the latest changes in tax and accounting, we can arrange a free subscription to the daily distribution of fresh information.