In their explanations, tax authorities often appeal to P (C) BU 15 to justify the inclusion of a particular payment in the single tax base for group 3 legal entities. Therefore, we will now find out to what extent single taxpayers should be guided by accounting provisions -profitable standard in calculating the tax base.
GCC does not contain a clear definition of the concept of “income”. But paragraph 5.3 of the TCU recommends the terms that are used in the Code and not decrypted in it, to use the meaning established by other laws. That is, the Code itself sends us for the definition of the term “income” to the Law on Accounting and P (C) BU 15. In addition, paragraphs. 296.1.3 of the TCU also says that the co-payers of group 3 (legal entities) use the data of simplified accounting of income and expenses, taking into account the provisions of paragraphs. 44.2 and 44.3 of the TCU.
But again, the question is: to what extent should the co-payer be guided by P (C) BU 15 when determining the object of taxation?
The definition of single-tax income is found in paragraph 292.1 of the TCU. It provides that the income of a single tax payer (EH) is:
1) any income, including the income of representative offices, branches, branches of a legal entity, received during the tax (reporting) period in cash (cash and / or non-cash). The date of receipt of the money income of the unified person is the date of receipt of funds in cash (paragraph 292.6 of the TCU).
2) income received in tangible or intangible form, established by paragraph 292.3 of the TCU. The reference to paragraph 292.3 of the TCU indicates that this group of income (tangible / intangible, but not monetary) includes only those revenues that are listed in it. And this:
(a) the value of goods received free of charge during the reporting period;
(b) the amount of accounts payable for which the limitation period has expired (for group tax payers of group 3 – VAT payers);
(c) the cost of goods (works, services) sold in the reporting period, prepayment for which was received during the period of stay on the general taxation system (also for group 3 tax collectors).
Let’s start with cash income. When determining their amount, recklessly follow the rules of P (C) BU 15 is not worth it. At least because in accounting, incomes are reflected at the time of their occurrence, regardless of the date of receipt of funds (Article 4 of the Law on Accounting). But the “single-taxed” income in most cases is reflected precisely on the basis of the receipt of funds (paragraph 292.1 of the TCU). And already therefore accounting and tax income, as a rule, do not coincide.
In P (C) BU 15, group 3 co-payers should be guided rather to determine whether a particular receipt on the account (at the cash desk) meets the criteria for recognition of income or not.
according to paragraph 5 P (C) BU 15, income is recognized during an increase in an asset or a decrease in a liability that causes an increase in equity (with the exception of an increase in capital from contributions from participants in an enterprise), provided that the estimate of income can be reliably determined.
For example, on this basis (non-compliance with the criteria for recognition of income), the following are not included in the EH base:
– refund of funds from the deposit account of a legal entity-taxonomy to his current account;
– the amount of funds transferred from one current account of the enterprise to another current account;
– erroneous money received by the joint payer and returned to the sender;
True, the tax authorities insist: if the return occurred in the next reporting period, then in the period of erroneous receipt of funds, it is necessary to include their amount in the taxable income of the payer ЕН with the recalculation of income in the next reporting period.
– payment by a shareholder of a share to a participant of the enterprise upon his withdrawal from the founders;
– funds contributed by the joint payer in the authorized capital of another legal entity and returned to him in connection with his withdrawal from the founders.
And now for non-cash income. From paragraph 292.1 of the TCU, it follows that the income of the co-payer of group 3 will include only those non-monetary incomes that are mentioned in paragraph 292.3 of the TCU. In any other case, a reference to P (C) BU 15 to substantiate the non-monetary income of the group taxpayer of group 3 contradicts the requirements of the TCU. For example, non-cash income such as income from participation in capital (to the amount that is the investor’s share in the net profit of the investee for the reporting period), income from restoration of utility of assets and revaluation of fixed assets, income from increase on the balance sheet date of the net realizable value of non-current assets (disposal groups) held for sale, and other income that is recognized under accounting rules. But, unfortunately, tax specialists do not always take this into account.