Now, probably, there is not a single entrepreneur who would not have a bank account. Therefore, more and more often questions arise related to how to correctly reflect the payment for settlement and cash services of the bank, whether it can always be included in the expenses of the general system manager.

When we talk about the expenses of the entrepreneur, we automatically mean the entrepreneur on the general taxation system. Since the sum of expenses does not play any role for single tax payers.

So, cash settlement services for banks is that rare item of expenditure, which is directly indicated in paragraphs. 177.4.4 GCC. So, without a doubt, the entrepreneur can take these costs into account.

But there is one caveat: sometimes the transfer of money from an entrepreneurial account is not connected with business activity. In this case, the commission withdrawn by the bank should not be charged to expenses. Settlement and cash services is a payment for the bank’s services for opening / closing an account, transferring money from one account to another.

Often entrepreneurs ask: is it possible to transfer money from an entrepreneurial account to the personal account of the same entrepreneur (individual account)? Sure you may. There are no prohibitions on this.

But on the cards of other individuals (including relatives), beware of transferring money from an entrepreneurial account (if this is not related to business)! This can be fraught with problems with personal income tax, military assembly and uniform number 1DF.

What is business activity for an entrepreneur? The legislation has a specific answer to this question: “… activities carried out to achieve economic and social results and with the aim of making a profit” (part 2 of article 3 of the CCU).

As you can see, one of the main goals of an entrepreneur’s business is to make a profit. In this light, the withdrawal by the entrepreneur of profit in the form of cash (or a bank transfer to his personal card), in our opinion, fits into the framework of economic activity. So, the commission paid to the bank in this case can be taken into account in the expenses of the entrepreneur.

If we spend money from an entrepreneurial card in the course of economic activity, there are no problems. Settlement and cash services (banking commission) definitely goes to expenses. But it happens that money from an entrepreneurial account goes directly to personal needs (for example, they bought household appliances for the family). Such a purchase does not fit into the entrepreneurial activity. So, you can not put in expenses:

– no money spent on personal needs;

– nor the bank commission for them, since there is no connection with business activity.

To understand whether it is possible to include in the expenses the bank commission withheld by him when repaying debt on a loan or returning financial assistance, you only need to answer the question: are such operations related to the entrepreneurial activity? If a return financial assistance / loan agreement is concluded:

– on behalf of the entrepreneur (the data on state registration are indicated in the contract);

– in order to raise funds to solve problems related to business, the connection with business activity is obvious.

Therefore, the bank commission in this case may well be included in expenses. And this despite the fact that the return of financial assistance / credit itself is not included in the expenses of the entrepreneur.

However, everything is quite logical here: since receiving the indicated amounts is not income, then their return is not expenses.

Nevertheless, the use of funds, as well as their return, is carried out within the framework of economic activity. This means that the bank commission paid upon repayment of the debt is connected with the business activity and falls into the costs of establishing the items 177.4.4 GCC as settlement and cash services.

If an entrepreneur bought a car for personal use, and paid for it from an entrepreneurial account, then, of course, the bank commission is not included in expenses. Indeed, in this case there is no connection between expenses and economic activity.

If the car was bought for use exclusively in business (for which there is a written order, delivery contracts, TTN, waybills, etc.), then, in our opinion, the commission withheld by the bank when paying for a car from an entrepreneurial account may well be reflected in costs. After all, both conditions are satisfied:

1) the purchase of a car (and therefore the banking commission) is associated with the business activities of the entrepreneur;

2) settlement and cash services (bank commission) are included in expenses on the basis of paragraphs. 177.4.4 GCC.

Therefore, settlement and cash services can be put into expenses (but with an eye to whether you are ready to argue with the tax authorities).

Author: Kristina Vorozhbitova

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