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Fixed assets can be purchased for a fee or created at the industrial enterprise itself. In both cases, the company incurs certain costs.
Undoubtedly, the correct calculation of the initial cost of a fixed asset is important. It depends on whether the object is classified as depreciable property, whether depreciation is calculated correctly and whether the residual value upon disposal of the property is calculated correctly.
Should all expenses be included in the initial cost? Or can some of them still be taken into account in the current reporting period? How many years has Ch. 25 of the Tax Code of the Russian Federation, there are so many disputes about this. The article discusses a number of expenses that raise the most questions among taxpayers.
Purchasing from third parties
An enterprise, when purchasing a fixed asset from third parties under a purchase and sale agreement, in addition to the amounts paid to the supplier under this agreement, may incur significant costs associated with bringing this fixed asset to completion. How do they influence the formation of the initial cost? Let's try to figure it out and start with accounting.
According to clause 8 of PBU 6/01 “Accounting for fixed assets”, the initial cost of fixed assets acquired for a fee is recognized as the amount of the organization’s actual costs for acquisition, construction and production, excluding VAT and other refundable taxes (except for cases provided for by the legislation of the Russian Federation). Actual costs are:
- amounts paid under the contract to the supplier (seller), as well as for delivery of the object and bringing it into a condition suitable for use;
— amounts paid to organizations for carrying out work under a construction contract and other contracts;
— amounts paid to organizations for information and consulting services related to the acquisition of fixed assets;
— customs duties and customs fees;
— non-refundable taxes, state duty paid in connection with the acquisition of fixed assets;
— remunerations paid to the intermediary organization through which the fixed asset was acquired;
— other costs directly related to the acquisition, construction and production of fixed assets.
In tax accounting in accordance with paragraph 1 of Art. 257 of the Tax Code of the Russian Federation, the initial cost of a fixed asset is defined as the sum of expenses for its acquisition, construction, production, delivery and bringing it to a state in which it is suitable for use, excluding VAT and excise taxes, except in cases provided for by the Tax Code of the Russian Federation.
If we compare this definition with the “accounting” one, then in essence they are identical. However, a number of expenses in tax accounting that can be directly related to the acquisition of a fixed asset relate to non-operating expenses (interest on borrowed funds) or other expenses (for insurance, for business trips, for legal, information, consulting services, for preparation and development of new production facilities, workshops and units, customs and government duties, commission fees).
Thus, if, in addition to paying the supplier, the taxpayer incurred expenses that can be found in the list of other or non-operating, then the question arises: should they be included in the initial cost of the fixed asset or recognized at a time?
It would seem that the answer is obvious - expenses for which a special procedure has been established for the purpose of calculating profit are not included in the initial cost of the fixed asset item. They must be recognized in tax accounting at a time as other or non-operating expenses. On the one hand, this is beneficial for the taxpayer - the tax base is reduced in the period when these expenses are incurred, and not through depreciation over the entire useful life of the object. On the other hand, differences between accounting and tax accounting data in terms of the formation of the initial cost will lead to differences in accordance with PBU 18/02 “Accounting for calculations of income tax of organizations” (about what these differences can be, permanent or temporary, we'll tell you at the end of the article).
In addition, on this issue, taxpayers have disagreements with the tax authorities, who often want to see these expenses in the initial cost of the fixed asset, and not in the expenses of the reporting period.
Interest on borrowed funds taken for the purchase of fixed assets
Expenses in the form of interest on borrowed funds are included in non-operating expenses. This is stated in paragraphs. 2 p. 1 art. 265 Tax Code of the Russian Federation. It is also stated here that interest on debt obligations of any type is recognized as an expense, regardless of the nature of the credit or loan provided (current and (or) investment). The norm is clearly stated, but a question nevertheless arises.
The opinion of the Ministry of Finance is this: even if borrowed funds were raised for the construction or acquisition (creation) of a fixed asset, interest will not increase the initial cost of the fixed asset (Letters dated 02.11.2009 N 03-03-06/1/720, dated 18.06.2009 N 03-03-06/1/408).
In practice, situations are possible when a fixed asset is purchased under a purchase and sale agreement with installment payment. In this case, in accordance with the terms of the agreement, interest is accrued on funds provided in installments. These interests are subject to reflection in non-operating expenses in accordance with paragraphs. 2 p. 1 art. 265 of the Tax Code of the Russian Federation (see Letter of the Ministry of Finance of Russia dated March 4, 2010 N 03-03-06/1/113). That is, just like for an “ordinary” loan, they are not included in the initial cost of the fixed asset.
Customs duties and fees
In tax accounting, the question of where to include customs payments for the purpose of calculating income tax is controversial. On the one hand, Art. 257 of the Tax Code of the Russian Federation does not contain a list of expenses that form their initial cost. On the other hand, the possibility of one-time inclusion of customs duties in other expenses is provided for in paragraphs. 1 clause 1 art. 264 of the Tax Code of the Russian Federation, where this duty is named as a separate type of expense.
The Ministry of Finance has been insisting for a number of years that customs duties paid on acquired (constructed) fixed assets should increase the initial cost of these assets (Letters dated 06/19/2009 N 03-03-06/1/417, dated 04/22/2008 N 03- 03-06/1/286, dated 06/01/2007 N 03-03-06/2/101).
According to the author, it is much more profitable for the taxpayer to write off customs payments as expenses at a time than to write them off gradually through depreciation, especially if the cost of the issue is quite high. However, in this case, you need to be prepared for disputes with tax inspectors, and possibly to defend your position in court.
In arbitration practice, there are cases where the courts did not support the tax authorities in their desire to remove customs duties from other expenses and increase the initial cost of the fixed asset by this amount. For example, the judges of the FAS PO in the Resolution of January 14, 2010 N A65-12101/2009 indicated: a direct reference to the fact that the customs duty paid in connection with the acquisition of fixed assets is taken into account as part of the initial cost of this property, in Art. 257 of the Tax Code of the Russian Federation is not available.
In the reference legal systems there are other, earlier decisions of various FAS. However, keep in mind that until 2005 in paragraphs. 1 clause 1 art. 264 of the Tax Code of the Russian Federation there was no mention of customs duties. In this regard, we recommend paying attention to what period is considered in a particular resolution.
State fees
If an organization acquires a piece of real estate or a vehicle, then it must pay a state fee for state registration of rights to real estate or registration of vehicles. By analogy with customs duties, the attribution of state duty to an increase in the initial cost of a fixed asset also causes disputes, sometimes leading to litigation.
Let us recall that in accordance with paragraphs. 1 clause 1 art. 264 of the Tax Code of the Russian Federation, other expenses include the amounts of taxes and fees accrued in the manner established by the legislation of the Russian Federation.
As follows from the definition given in paragraph 1 of Art. 333.16 of the Tax Code of the Russian Federation, state duty is a fee levied on organizations and individuals when they apply to government bodies for committing legally significant actions in relation to these persons, provided for in Chapter. 25.3 Tax Code of the Russian Federation. Thus, the state duty should be reflected in other expenses. Once upon a time, the Ministry of Finance adhered to precisely this point of view (Letters dated 02/16/2006 N 03-03-04/1/116, dated 06/30/2005 N 03-03-04/2/14). However, recently financiers have changed their opinion and insist on including state duty in the initial cost of the fixed asset. This applies to both the fee paid in connection with registering a vehicle with the State Traffic Safety Inspectorate (Letter dated 01.06.2007 N 03-03-06/2/101) and the fee paid for state registration of ownership of a property - a building (Letter dated 03/04/2010 N 03-03-06/1/113, dated 05/19/2009 N 03-05-05-01/26), land plots (Letter dated 03/27/2009 N 03-03-06/1/195) .
In arbitration practice, there are examples where judges came to the conclusion that the costs of registering a vehicle are taken into account in other expenses, since registration with the traffic police does not mean bringing the vehicle to a state of suitability (Resolution of the Federal Antimonopoly Service of Ukraine dated November 25, 2008 N F09-8694/08 -C3, FAS CO dated 04/07/2006 N A08-601/05-9).
But the state duty paid when transferring a land plot owned from the category of agricultural land to the category of land for development, according to the Ministry of Finance, should be taken into account in other expenses (Letter dated April 23, 2009 N 03-03-06/1/274 ).
According to the author, the amount of state duties (as opposed to customs) is not so significant, therefore, in order to avoid disputes with the tax authorities, as well as in order to bring accounting and tax accounting closer together, it can be recommended to take into account the state duty in the initial cost of the fixed asset. Naturally, this provision must be enshrined in the accounting policy.
Commissioning works
Many industrial enterprises purchase machines and equipment. At the same time, they incur significant costs associated with commissioning work. With regard to the tax accounting of these works, the Ministry of Finance in Letter dated August 24, 2004 N 03-03-01-04/1/9 also made a distinction:
— expenses for commissioning work “idle” are not accepted as current expenses, but are included in the capital expenses of the organization;
— expenses for commissioning work “under load” as non-capital expenses incurred after the initial cost of depreciable property (fixed assets) has been formed, are taken into account as part of others in accordance with paragraphs. 34 clause 1 art. 264 Tax Code of the Russian Federation.
Often, tax authorities insist on including in the initial cost the costs of all commissioning work, including “under load”. Let us give two examples from arbitration practice where enterprises were able to defend their position (at the same time, we draw the readers’ attention to the conclusions made by the arbitrators).
Let's start with the Resolution of the Federal Antimonopoly Service of the Moscow Region dated September 1, 2009 N KA-A40/8619-09. As follows from the case materials, based on the results of commissioning work “without load”, an act of the working commission was drawn up on acceptance of the equipment, which states that the installation is in a condition suitable for use, ready for operation and production of products provided for by the project, in the amount corresponding standards for development of design capacities. Taking into account the provisions of paragraph 1 of Art. 257 of the Tax Code of the Russian Federation, the courts made a reasonable conclusion that after commissioning “without load” the initial cost of the installation was formed.
The courts also established that in connection with the completion of construction and installation work and on the basis of the act of the working commission, the company carried out start-up work to conduct a comprehensive test of the installation equipment “under load”. Commissioning work ended with the release of finished products, as evidenced by the reports. The costs of commissioning “under load” of the installation were approved in a separate cost estimate, were not provided for in the design and estimate documentation and are not of a capital nature in their content. In this regard, they are rightfully included in other expenses.
Similar conclusions were made in the Resolution of the Federal Antimonopoly Service dated January 15, 2009 N A55-5612/2008 (note that the “issue price” in this case was 517 million rubles): the main criterion for classifying costs as expenses to be included in the initial cost of the main means is their focus on the formation of a specific fixed asset and its subsequent bringing to a state of suitability for use, but without releasing finished products.
Commissioning work “under load” with trial production of finished products, that is, comprehensive testing of equipment, is carried out before the facility is accepted into operation, when the fixed asset has already been formed, but is not put on the balance sheet of the enterprise. This means that the costs of such work are subject to inclusion in the cost of manufactured products when they are not included in the construction estimate and only from the moment the production operation of new units and production facilities begins.
So, in controversial situations such as those listed above, the decision on the procedure for tax accounting of expenses associated with the acquisition of a fixed asset will be made by the enterprise itself. Let us remind you: in accordance with paragraph 4 of Art. 252 of the Tax Code of the Russian Federation, if some expenses with equal grounds can be attributed simultaneously to several groups of expenses, then the taxpayer has the right to independently determine which group he will assign such expenses to. The chosen procedure must be reflected in the accounting policies.
Asset insurance.
Premiums paid to insurance companies cannot be capitalized but may be taken into profit or loss in accordance with the terms of the insurance policy.
The reason is that these costs are not necessary to move the item of property, plant and equipment to its place of use or to put it into operation in accordance with management's objectives.
In fact, these costs are incurred to protect the asset from some risks over a period and therefore it would be incorrect to include these costs in the initial cost of the asset and to include them in profit or loss through depreciation over the useful life of the asset.
Some time ago, a CFO raised a question on this issue. He declared:
“We are taking out a loan to purchase a plant, and our bank insists on insuring this facility. Otherwise we will not receive the loan. Without an insurance policy, we cannot purchase the plant, so I think the cost of insurance should be capitalized, since these costs are inevitable to get the facility into operation.”
This is a good argument, but the truth is that a CFO needs an insurance policy to obtain a loan, not to purchase an asset. In other words, this company could purchase the plant without a loan, for cash or cash equivalents, in which case an insurance policy would not be needed.
Finished products have become fixed assets
Part of the enterprise's own products (machines, cars, instruments, etc.) can be left for its own consumption and used as an item of fixed assets. In this case (see paragraph 9, paragraph 1, Article 257 of the Tax Code of the Russian Federation), the initial cost of such objects is determined as the cost of finished products, calculated in accordance with paragraph 2 of Art. 319 of the Tax Code of the Russian Federation, that is, on the basis of only direct expenses.
Note! The specified procedure for determining the value of fixed assets of own production applies to those that are produced by the taxpayer on an ongoing basis and are included in its product range. All other fixed assets manufactured by the taxpayer independently and used by him for his own purposes are considered fixed assets manufactured in an economic way (see Letters of the Ministry of Finance of Russia dated March 15, 2010 N 03-03-06/1/135, dated September 22, 2004 N 03- 03-01-04/1/55).
The assessment of finished products is carried out based on direct costs, an approximate list of which is defined in paragraph 1 of Art. 318 Tax Code of the Russian Federation:
— material costs for the purchase of raw materials and materials, as well as components;
— expenses for remuneration of personnel involved in the production process of goods, together with deductions;
— the amount of accrued depreciation on fixed assets used in the production of goods, works, and services.
All other expenses (the cost of auxiliary production services provided for the main production - transportation costs, utilities (electricity, heat, water), etc.) are indirect and are not included in the cost of manufactured products of the main production, but are taken into account as part of indirect expenses.
Note! The taxpayer independently determines in the accounting policy for tax purposes a list of direct expenses associated with the production of goods (performance of work, provision of services).
Example 1. A machine-building plant produces lathes. Tax records for July 2010 reflect the following data.
The cost of the work in progress (clause 1 of Article 319 of the Tax Code of the Russian Federation) as of July 1 amounted to 1,800,000 rubles.
Direct production costs in July amounted to RUB 25,500,000, including:
— material costs — 12,300,000 rubles;
— salary (including deductions) of production workers — 12,000,000 rubles;
— depreciation of production equipment — RUB 1,200,000.
The cost of the work in progress as of August 1 was RUB 2,100,000.
As of July 1, 2010, 10 machines remained in the warehouse, the amount of direct costs for their production amounted to 6,000,000 rubles. During the month, 40 machines were produced, 44 machines were sold.
In July 2010, two machines are transferred as fixed assets to the production workshop. How to determine their initial cost?
The cost of products produced per month can be determined by the formula:
GPmes. = WIPbeg.month. + PR - WIPcon.month,
where GPmes. - cost of finished products produced per month;
PR - direct expenses for the month;
WIP start month, WIP end month — balance of work in progress at the beginning and end of the month.
The cost of products released in July will be 25,200,000 rubles. (1,800,000 + 25,500,000 – 2,100,000). Then you need to determine the average cost per unit of production per month:
Unit cost = (GPconst start + GP month)/(Quantity GP Constant start + Quantity GP month)
where GPost.start. — the cost of finished product balances at the beginning of the month;
Quantity G Post.start + Quantity GPmes. — balances of finished products at the beginning of the month and those produced during the month in quantitative terms.
The average cost per unit of production per month is 624,000 rubles. ((RUB 6,000,000 + RUB 25,200,000) / (10 pcs. + 40 pcs.)).
The initial cost of the fixed asset (lathe) according to tax accounting data will be 624,000 rubles.
The amount of direct expenses, which in July 2010 will reduce the taxable base for income tax, will be 27,456,000 rubles. (RUB 624,000 x 44 pcs.).
In total, at the end of the month there were 4 machines left in the warehouse (10 + 40 - 44 - 2). Thus, the cost of finished products as of August 1, 2010 is equal to 2,496,000 rubles. (RUB 624,000 x 4 pcs.).
Fixed assets purchased during the period of application of the simplified tax system
To include in expenses the cost of fixed assets acquired during the period of application of the simplified tax system, they must be paid for, put into operation and used to generate income. If a company acquired (built, manufactured) fixed assets while already working on a simplified basis, then it must take them into account as expenses at their original cost.
The initial cost of fixed assets must be determined according to accounting rules. This is stated in paragraph 3 of Article 346.16 of the Tax Code. Consequently, the initial cost of fixed assets is recognized as the sum of the company’s actual costs for the acquisition, construction and production, with the exception of VAT and other refundable taxes (clause 8 of PBU 6/01), and the costs of bringing fixed assets to actual readiness for operation.
Read also “Cost of fixed assets under the simplified tax system”
Expenses for the acquisition of fixed assets
The actual costs for the acquisition, construction and production of fixed assets are:
- amounts paid in accordance with the contract to the supplier (seller), as well as amounts paid for delivering the object and bringing it into a condition suitable for use (transportation of the fixed asset to the place of its use, installation costs);
- amounts paid to organizations for carrying out work under construction contracts and other contracts;
- amounts paid to organizations for information, consulting and intermediary services related to the acquisition of fixed assets;
- customs duties and customs fees;
- non-refundable taxes, state duties paid in connection with the acquisition of fixed assets;
- other costs directly related to the acquisition, construction and production of fixed assets.
You can write off the initial cost as expenses from the moment the paid fixed assets are put into operation.
Expenses for the acquisition of fixed assets are accepted in equal shares throughout the year, starting from the reporting period in which such expenses were incurred (see letter of the Ministry of Finance of Russia dated November 17, 2006 No. 03-11-04/2/244). EXAMPLE.
HOW TO WRITE OFF THE COST OF ASSEMBLY PURCHASED UNDER THE STS A company using the simplified tax system (“income minus expenses”) purchased a fixed asset – a passenger car worth 300,000 rubles. The car was paid for on April 25, and put into operation on April 28 of this year. The entire cost of the car can be included in expenses in the current year. There are still 3 quarters left before the end of the tax period (year) (including the quarter of acquisition of fixed assets). The share of the cost of the car included in expenses for each quarter will be 33.3% (100%: 3), and the amount will be 100,000 rubles. (RUB 300,000 × 33.3%). On the last day of each of the 3 quarters of the current year, the cost of the car will be included in expenses. Thus, a company can include only 1/3 of the costs in its expenses for the second quarter, that is, 100,000 rubles. An organization can also include 100,000 rubles in expenses for the third and fourth quarters.
note
If an object is purchased and put into operation in the last quarter of the tax period, then its full cost will be written off as expenses in the last month of this quarter.
Depreciation bonus under simplified tax system
An organization under the general tax regime can write off part of the initial cost of fixed assets as expenses immediately in the period in which it begins to depreciate them in tax accounting (clause 9 of Article 258 of the Tax Code of the Russian Federation). This depreciation procedure is called “bonus depreciation.” Its size for fixed assets from the third to seventh depreciation groups is 30% of the original cost, and for the rest - 10%.
A company can apply a depreciation bonus if it purchased a fixed asset, created it, modernized it, completed construction, retrofitted it, or technically re-equipped an existing facility.
But if the fixed asset was put into operation during the period of work on the simplified taxation system, then when switching to the general taxation system, the depreciation bonus can no longer be applied (letter of the Ministry of Finance of Russia dated April 27, 2021 No. 03-11-06/2/25443).
Accounting for fixed assets costs when changing the object of taxation
Organizations and entrepreneurs who apply the simplified tax system with the object of taxation “income” and switch to the object of taxation “income minus expenses” do not take into account expenses related to tax periods when the object of taxation “income” was applied (clause 4 of article 346.17 of the Tax Code of the Russian Federation).
But this rule does not apply to the situation when a “simplifier”, who has replaced the object of taxation “income” with the object “income minus expenses”, acquires fixed assets. In this case, he can take into account the costs of acquiring fixed assets after putting them into operation, regardless of the previously applied object of taxation. This opinion was expressed by the Russian Ministry of Finance in letter dated June 21, 2021 No. 03-11-11/36120.
Expenses for modernization and reconstruction of OS under the simplified tax system
Modernization and reconstruction are usually understood as improving the quality characteristics of a fixed asset (for example, increasing its capacity, service life, etc.). Completion and retrofitting is a change in the technological or service purpose of equipment (buildings, structures) associated with increased loads or other new qualities (for example, an increase in the usable area of the building).
“Simplers” can take into account the costs of completion, additional equipment, reconstruction, modernization and technical re-equipment of fixed assets in expenses.
These expenses are recognized from the moment the fixed asset is put into operation, regardless of whether it was acquired after the transition to a special regime or before such a transition (clause 1, clause 3, article 346.16 of the Tax Code of the Russian Federation). This refers to the commissioning of a fixed asset after completion and payment of the relevant work on completion, reconstruction, modernization, etc. (letter of the Ministry of Finance of the Russian Federation dated January 28, 2008 No. 03-11-04/2/14).
These expenses must be written off evenly until the end of the year in which the reconstruction, completion, technical re-equipment, etc. work is completed. Only paid expenses can be accepted and reflected on the last date of each quarter.
EXAMPLE.
HOW TO WRITE OFF THE COST OF A RECONSTRUCTED Fixed Asset UNDER THE STS A company using the simplified tax system (“income minus expenses”) reconstructed a fixed asset in June of this year. In the same month, the main facility was put into operation. The reconstruction costs amounted to 90,000 rubles, they were fully paid. In this case, the company’s accountant must take into account reconstruction costs of 30,000 rubles on June 30, September 30 and December 31. (RUR 90,000: 3).
According to financiers, the costs of preparing project documentation for the reconstruction and modernization of fixed assets are expenses that increase the initial cost of such objects. They are also taken into account in equal shares throughout the year, starting from the moment the reconstructed fixed assets are put into operation, and are reflected in accounting on the last day of each quarter.
Expenses are taken into account in a similar manner if the reconstruction of the facility was started in the period when the company used the “income” object, and was completed in the period when the “income minus expenses” object was used.
But costs in the form of fees for connecting reconstructed power receiving devices to existing electrical networks cannot be taken into account in “simplified” costs (letter of the Ministry of Finance of the Russian Federation dated August 21, 2013 No. 03-11-06/2/34289).
Costs for purchasing real estate under the simplified tax system
Ownership of some fixed assets is subject to state registration with the Federal Service for State Registration, Cadastre and Cartography (Rosreestr). If a company applying the simplified tax system has purchased real estate, then the costs of its purchase can be recognized only after the documented fact of filing documents for state registration. Of course, by this time all other conditions must be met (payment and commissioning). Transactions with land and with certain types of movable property (cars, equipment for the production of alcoholic beverages, etc.) must also be registered.
For comparison: in relation to general-regime companies, the provisions on the need to submit documents for state registration to begin calculating depreciation (for the purpose of calculating income tax) have been cancelled. The exception is fixed assets put into operation before December 1, 2012, the rights to which are subject to registration. Depreciation without filing documents for state registration for such objects is prohibited.
“Simplers” also have the right to take into account expenses for the reconstruction and modernization of fixed assets from the moment of the documented fact of filing documents for state registration (letter of the Ministry of Finance of the Russian Federation dated December 9, 2013 No. 03-11-06/2/53652). Expenses are recognized in the period in which a set of conditions are met:
- the object has been paid for;
- the facility was put into operation;
- there is documentary evidence of the fact of filing documents for registration of rights to this object.
We build economically
The initial cost of a fixed asset created by an organization is determined as the sum of expenses for its construction, production and bringing it to a state in which it is suitable for use, excluding VAT and excise taxes, except for cases provided for by the Tax Code of the Russian Federation. This follows from paragraph. 2 p. 1 art. 257 Tax Code of the Russian Federation.
Please note that in para. 2, and in para. 9 clause 1 art. 257 of the Tax Code of the Russian Federation refers to an object manufactured by the taxpayer. The difference is that in para. 2 talks about the manufacture of a fixed asset, in paragraph. 9 - about the use (and not about the production) of fixed assets of own production.
When manufacturing an object as a fixed asset, all expenses are included in its cost; when manufacturing an object not as a fixed asset, but used in the future as a fixed asset, the cost of the finished product is taken as the basis for the cost (from the Resolution of the Federal Antimonopoly Service ZSO dated August 17, 2005 N F04-5236/ 2005(13883-A75-33)).
So, the Tax Code of the Russian Federation implies two different options for creating an object of fixed assets for organizations themselves. With an economic method (unlike the method discussed in the previous section), the fixed asset does not go through the stage of production of marketable products, but is initially created by the organization for its own consumption. In this case, the formation of its initial cost is carried out in the generally established manner, by summing up all the costs associated with the construction of the object and bringing it to a state suitable for use.
Let's consider some other types of expenses that, in the opinion of the Ministry of Finance, should be included in the initial cost of a fixed asset created by an organization on an economic basis:
- expenses in the form of wages of workers involved in the construction of fixed assets, as well as in the form of insurance contributions for compulsory pension insurance, compulsory social insurance and compulsory medical insurance (Letter dated March 15, 2010 N 03-03-06/1/135);
- expenses incurred by the organization at the stage of preparatory work for construction (Letter dated December 3, 2008 N 03-03-06/1/663);
- costs associated with the relocation of water supply, gas pipelines, and public sewerage networks in connection with the preparation of the territory for construction (Letters dated January 25, 2010 N 03-03-06/1/18, dated May 28, 2008 N 03-03-06/1/ 338).
Disputes with tax authorities may arise over the same expenses that we discussed in the section devoted to the acquisition of fixed assets from third parties for a fee - the cost of paying state duties, costs associated with commissioning. Let's consider another type of expense, which, judging by requests to the Ministry of Finance, still worries taxpayers.
Payment for technological connection to power grids
According to the All-Russian Classification of Fixed Assets OK 013-94, buildings include internal communications necessary for the operation of buildings, including an internal network of power and lighting electrical wiring with all lighting fixtures.
Technological connection of energy receiving devices of organizations to electrical networks is carried out by so-called network organizations that own electrical grid facilities and provide services for the transmission of electrical energy. As follows from clause 3 of the Rules for Technological Connection, the grid organization is obliged to carry out, in relation to any person who applies to it, measures for the technological connection of newly commissioned, newly built, expanding their previously connected capacity and reconstructed power receiving devices to their electrical networks, subject to compliance with them rules and if technically possible.
Technological connection of energy receiving devices (power installations) of legal entities to electrical networks is carried out on the basis of an agreement concluded with the network organization (Clause 1, Article 26 of Federal Law No. 35-FZ). In accordance with paragraphs. “d” clause 16 of the Rules for Technological Connection, as an essential condition, the contract must contain the amount of payment for technological connection (charged once), determined in accordance with the legislation of the Russian Federation in the field of electric power industry.
So, if an organization builds an industrial building, as a result of which there is a need to make a technological connection to electrical networks, then it bears the costs in the form of payments to the relevant organizations. In what order should such expenses be taken into account for the purpose of calculating income tax?
Let's turn to the history of the issue. By technologically connecting newly built power-receiving devices to electrical networks, the organization, in fact, bears the costs of putting these devices into operation. Based on this, it is most logical to consider the fee for connecting to electrical networks as expenses for bringing the fixed asset to the state in which it is suitable for use, by virtue of Art. 257 of the Tax Code of the Russian Federation should be included in the initial cost of the fixed asset and taken into account through the depreciation mechanism in accordance with Art. Art. 257 - 259 Tax Code of the Russian Federation. This opinion was expressed by the Ministry of Finance for a long time in numerous Letters - dated 04/03/2006 N 03-03-04/1/314, dated 05/20/2008 N 03-03-06/1/326, dated 07/10/2008 N 03-03-06 /1/401, dated November 12, 2008 N 03-03-06/1/623. At the same time, officials carefully argued their position, referring to Federal Law N 35-FZ, the Rules for Technological Connection, and the Guidelines for determining the amount of payment for technological connection to electrical networks.
In Letter N 03-03-06/1/326, in addition to connecting newly built electrical installations, two more situations were considered. The first is the technological connection of previously connected reconstructed or modernized power receiving devices. Payment for it is taken into account as part of the costs of reconstruction or modernization, which increase the initial cost of the corresponding fixed asset item (clause 2 of Article 257 of the Tax Code of the Russian Federation). The second is technological connection when expanding existing connections, not associated with additional equipment, reconstruction, modernization, or technical re-equipment of power receiving devices. In this case, the connection fee is taken into account for profit tax purposes as part of other expenses associated with production and sales.
But in 2009, the position of the Ministry of Finance changed radically, and therefore a number of Letters were issued expressing the opposite point of view (dated 01/23/2009 N 03-03-05/6, dated 02/12/2009 N 03-03-06/1 /59, dated 05/08/2009 N 03-03-06/1/316, dated 05/25/2009 N 03-03-06/1/342, dated 07/30/2009 N 03-03-06/1/502, dated 14.10 .2009 N 03-03-06/2/192): expenses in the form of fees for the technological connection of energy receiving devices (power plants) to electrical networks are not directly related to the acquisition or construction, as well as bringing these fixed assets to the state in which they suitable for use. That is, for profit tax purposes, connection fees must be taken into account as part of other expenses associated with production and sales. With regard to fees charged for connection to public infrastructure systems, according to the Ministry of Finance, expenses should be recognized in a similar way.
On the one hand, the taxpayer in this situation cannot but rejoice at the changeability of the Ministry of Finance: as a rule, the fee for connecting to electrical systems or utility infrastructure systems is a considerable amount, and immediately attributing it to expenses for tax purposes is much more profitable than stretching out this “pleasure” for a long time. time, writing off through depreciation charges.
But, in our opinion, the current position of financiers is far from indisputable. If an organization does not pay a fee (read: does not connect to the power grid), will it be able to operate its electrical installations? And if so, why not consider this payment as expenses associated with bringing fixed assets to a state suitable for use?
So, whether the income tax payer follows the recommendations of the Ministry of Finance regarding the inclusion of fees for connecting to electrical networks in expenses, he decides on his own responsibility.
The author adheres to the following position. Other expenses include a fee for technological connection not related to additional equipment, reconstruction, modernization, technical re-equipment of power receiving devices, charged to the organization when expanding existing connections. If newly constructed electrical installations or previously connected reconstructed or modernized power receiving devices are connected, then the connection fee is applied to the increase in the initial cost of fixed assets.
The total volume of capital investments includes investments related to construction and installation work, the purchase of equipment and other costs.
[p.307] Capital investments are the costs of new construction, reconstruction, expansion and technical re-equipment of existing industrial, agricultural, transport, trade and other enterprises, costs of housing, communal and cultural construction, regardless of the source of financing and form of ownership customer (investor). Capital investments include the costs of construction work of all types of work. installation of equipment acquisition of equipment that requires and does not require installation provided for in construction estimates acquisition of production tools and household equipment included in construction estimates acquisition of machinery and equipment not included in construction estimates other work and costs. Capital investments of the population include the costs of constructing their own residential buildings with the necessary buildings and utility rooms. [p.29] Structure of estimated costs. The estimated cost of construction consists of the costs of construction and installation work, the cost of purchasing equipment, fixtures, tools and production equipment, and other costs. These costs, expressed as a percentage, are called the technological structure of estimated costs. [p.98]
In addition to construction and installation work and the purchase of equipment, the volume of capital investments includes and is paid by the customer for other work and costs of construction and reconstruction. These include general site expenses (for example, expenses for the acquisition and development of land plots and resettlement, except for construction work), expenses for maintaining the directorates of enterprises under construction, other work and expenses provided for in the estimates and capital investment plan, not related to construction and installation work . It is customary to prepare separate estimates for their implementation from construction. It is not possible to directly attribute these costs to one or another object without preliminary generalization and distribution in the prescribed manner. [p.416]
Capital investments include costs for construction work and installation of equipment, costs for the purchase of equipment, both requiring and not requiring installation, for the purchase of tools and equipment, as well as other costs under the capital investment plan (allotments, survey work, etc.). P.). [p.330]
The capital investments allocated for the creation of production assets include the cost of construction and installation work, the cost of purchasing equipment, tools and production equipment, other costs (design and publishing work, maintenance of the directorate of the enterprise under construction, personnel training, etc.). [p.9]
Capital investments are allocated for construction and installation work, purchase of equipment, inventory and tools, other capital investments, which include the maintenance of the directorate of enterprises under construction and training of personnel for these enterprises, design and survey work and other costs. [p.72]
The industry specifics of capital investments are determined by the peculiarities of construction production during the development of oil and gas fields. Capital investments include costs for the construction (drilling) of exploration and production wells, for construction and installation work on the construction of buildings and structures for various purposes during development, as well as regional and inter-district facilities, for the purchase of production equipment included and not included in the estimates construction projects, and other capital costs - for design and survey work, construction of temporary buildings, maintenance of the directorate of enterprises under construction, personnel training, etc. [p.9]
Capital investments in development of oil and gas fields and exploration areas include costs for the purchase of equipment, tools and inventory not included in construction estimates (equipment for drilling organizations, equipment for oil producing enterprises and other organizations) and for development, including construction and installation work . [p.75]
The inventory cost of equipment requiring installation consists of the actual costs of its acquisition, costs of construction and installation work, and other capital costs attributable to the cost of equipment put into operation for its intended purpose. [p.192]
The structure of capital investments in the gas production industry, which is determined by the purpose of capital investments, also has significant differences. The latter are divided into three groups: a) costs of construction and installation work; b) costs of purchasing equipment, tools and inventory; c) costs of other capital works and other types of costs. [p.75]
The technological structure of direct investment consists of three main elements of the acquisition of equipment, tools and inventory, the cost of performing construction and installation work, and other direct investments, which include design and survey work, early implementation of measures to put constructed facilities into operation (training of personnel for enterprises under construction main professions of workers, etc.). In different sectors of the economy, the share of these costs in the total amount of direct investment is not the same. For example, during the construction of thermal power plants, metallurgical, chemical, machine-building enterprises [p.192]
Capital investments consist of the costs of purchasing equipment, tools and inventory for performing construction and installation work for other capital works (for example, costs of design and survey work, training of operating personnel, maintenance of the directorate of an enterprise under construction, etc.). [p.7]
The subsection Unfinished Construction (p. 130) shows the cost of unfinished construction, carried out both by economic and contract methods, the costs of forming the main herd, equipment requiring installation, the cost of purchasing durable objects, other capital works and expenses. [p.50]
The customer, based on the technological structure, divides capital investments both for construction as a whole and for individual objects into construction work; installation of equipment; acquisition of equipment commissioned for installation; acquisition of equipment that does not require installation; tools and equipment; equipment requiring installation, but intended for permanent inventory other costs costs that do not increase the cost of fixed assets. [p.83]
Costs are accounted for by their types: costs for construction work costs for installation of equipment costs for the purchase of equipment that requires installation costs for the purchase of equipment that does not require installation costs for tools and equipment other capital costs costs that do not increase the cost of fixed assets. [p.87]
Unfinished capital investments are valued in the balance sheet at actual costs. Such objects may be fixed assets not formalized by acceptance certificates, costs for construction and installation work, acquisition of buildings, equipment, vehicles, inventory, other durable material objects, other capital works and costs. [p.507]
It consists of the actual costs of purchasing equipment, as well as the costs of construction and installation work, other capital costs attributable to the cost of equipment put into operation for its intended purpose. If the costs of construction and installation work, as well as other costs, relate to several types of equipment, then their cost is distributed between individual types of equipment in proportion to their cost at supplier prices. Commissioning of the specified equipment, tools and inventory and writing off their inventory value from the account. Capital investments are made simultaneously with the commissioning of facilities under construction or the completion of work on the expansion, reconstruction or technical re-equipment of existing facilities, the acceptance of which for operation is formalized in the prescribed manner [p. 86]
The item Construction in progress shows the costs of construction and installation work (carried out both on-site and by contract), the acquisition of buildings, equipment, vehicles, tools, inventory, other durable material objects, other capital work and costs (design, survey, geological—exploration and drilling work, costs of land acquisition and resettlement in connection with construction, training of personnel for newly constructed organizations, and others). [p.343]
Unfinished capital investments include costs of construction and installation work, acquisition of buildings, equipment, vehicles, tools, inventory, and other documents not formalized by acceptance certificates - transfer of fixed assets and other documents (including documents confirming state registration of real estate in cases established by law). material objects of durable use, other capital work and costs (design and survey, geological exploration and bu- [p.23]
Unfinished capital investments include the costs of construction and installation work, the acquisition of buildings, equipment, vehicles, tools, inventory, and other documents not formalized by acceptance certificates of fixed assets and other documents (including documents confirming the state registration of real estate in cases established by law). durable material objects, other capital work and costs (design and survey, geological exploration and drilling work, costs of land acquisition and resettlement in connection with construction, training of personnel for newly built organizations, and others). [p.197]
According to the document, the costs of the developer - the person implementing investment projects for capital construction - for the construction of the facility consist of the costs associated with its construction (construction work, purchase of equipment, installation of equipment, other capital costs, costs that do not increase the cost of fixed assets) , commissioning or delivery to an investor. [p.291]
Capital investments include costs for construction and installation work, the purchase of equipment, tools, inventory, other capital work and needs (design and survey, geological exploration and drilling work, land acquisition and resettlement in connection with construction, personnel training for newly built enterprises and etc.). [p.208]
The inventory cost of equipment requiring installation includes the actual costs of purchasing equipment for the facility being built, as well as the costs of installation work and other capital costs written off for their intended purpose. With the contract method of performing work, equipment brought by the investor (developer) to the construction site and requiring installation is accepted by the contractor into the off-balance sheet account 005 Equipment accepted for installation, and after it is handed over for installation, it is written off from this account. Equipment, the installation and installation of which at a permanent place of operation has not yet begun, remains registered with the developer. [p.198]
Capital investments represent long-term costs for construction and installation work, the purchase of machinery, equipment, inventory and other capital works. Capital and financial investments are mutually complementary and form a common investment portfolio. [p.149]
A special role in the assessment of fixed assets is played by determining the inventory value of completed construction projects. The inventory value of buildings and structures includes the costs of construction work and other capital costs attributable to them. The inventory cost of equipment requiring installation consists of the actual costs of purchasing equipment, costs of construction and installation work, and other capital costs attributable to the cost of equipment put into operation for its intended purpose. The inventory cost of equipment that does not require installation, low-value and wear-out tools and equipment, as well as equipment that requires installation but is intended for permanent stock, consists of the purchase price indicated in supplier invoices, delivery costs and other costs associated with their acquisition. The inventory cost of buildings, structures, equipment, vehicles and other fixed assets acquired separately from the construction of facilities includes the actual costs of their acquisition and the costs of bringing them to a condition in which they are suitable for use for the planned purposes. The inventory value of land plots and environmental management objects consists of the costs of their acquisition, including costs of improving the quality of the condition, commissions and other payments. The inventory value of intangible assets includes the costs of their creation or acquisition and the costs of bringing them to a state in which they are suitable for use for the intended purposes. [p.183]
Capital investments include costs for construction and installation work, purchase of equipment, design and survey work and other costs. [p.115]
Capital investments include costs for construction work of all types, costs for installation of equipment for the purchase of equipment that requires and does not require installation, provided for in construction estimates for the purchase of production tools and household equipment, included in construction estimates for the purchase of machinery and equipment not included in construction estimates for other capital works and costs. [p.703]
As part of the unified national economic plan, starting from 1971 - 1975, five-year sectoral plans for capital construction set for each construction project tasks for the commissioning of production capacities and fixed assets, as well as the volume of capital investments and construction and installation work by sub-sectors for the entire period construction with their distribution by year (in accordance with construction duration standards), including for objects whose completion is envisaged beyond the five-year period. In terms of capital investments, the total includes (among other things) costs for the purchase of equipment, tools, inventory, and especially for other capital works not included in construction estimates. [p.188]
Capital investments consist of costs for all types of construction and installation work, the purchase of equipment, tools and inventory, other work and expenses. [p.9]
The item Construction in progress shows the costs of construction and installation work (carried out by contract and in-house), the acquisition of buildings, equipment, vehicles, tools, inventory for other durable facilities, other capital work and costs (design and survey, geological exploration, drilling operations, as well as costs for land acquisition and resettlement in connection with construction, for training personnel for newly constructed enterprises)2. This article reflects the cost of capital construction projects located - [p.35]
Investments in fixed assets—capital-forming investments are a set of costs directed toward the creation and reproduction of fixed assets. Such investments are defined as the total costs of construction, installation, design and survey work, the purchase of equipment included and not included in construction estimates, requiring and not requiring installation, production tools and household equipment, working and productive livestock, plantings and cultivation of forest belts, perennial fruit and berry crops, as well as other similar costs. [p.273]
CAPITAL INVESTMENTS - expenses that result in an increase in the enterprise's fixed assets are directed towards the construction of buildings, structures, the purchase of machinery, equipment and inventory, the cultivation of perennial plantings, etc. The main types of capital investments are construction work (work on the construction, reconstruction and expansion of buildings, structures, sanitary installations, installation of foundations, foundations and support structures for equipment, development of construction sites and other work) installation work (assembly and installation of production and other equipment in buildings, structures, installation of service platforms and stairs structurally connected to the equipment, and other work) purchase of equipment that does not require installation (equipment that does not require attachment to the foundation or structures of buildings and structures for commissioning , i.e. cars, industrial and household equipment, etc.) planting and growing perennial plantings and other investments. [p.132]
The analysis can also be carried out for a wider range of cost items: construction work, purchase of equipment, installation work, purchase of tools, fixtures and production equipment, and other costs. [p.94]
Capital investments consist of costs for construction and installation work, costs for the purchase of equipment, tools and production tools and other costs (costs for maintaining the management of the enterprise under construction, costs for design and survey work, costs associated with the provision of benefits and additional payments established by special decisions decision-making bodies, etc.). [p.12]
Construction work is associated with the construction, expansion and reconstruction of buildings, structures, various foundations and sites; installation work includes work on the assembly and installation of equipment. Investments for the purchase of mounted and non-mounted equipment constitute capital investments for the purchase of equipment. All investments not included in the first two groups (design and survey work, costs of housing construction and temporary structures for the needs of construction organizations, training of personnel for future enterprises, etc.) are classified as others. [p.354]
In the financial statements, costs for unfinished capital construction are reflected under the item Construction in progress. It includes the costs of construction and installation work, the purchase of equipment, tools, inventory, other capital works and costs (design and survey, geological exploration and drilling work, costs of land acquisition and resettlement in connection with construction, costs for training personnel for newly built enterprises and others). Capital construction in progress is reflected in the balance sheet at actual costs for the developer (customer). Before they are put into permanent operation, such objects are not included in fixed assets and depreciation is not charged on them. [p.46]
Construction products are largely the result of investments in fixed capital. At the same time, the volume of investment in fixed capital for a given period of time is not equivalent to the output of construction. The latter indicator includes, for example, the cost of repairs of buildings and structures, which are not considered in statistical practice as an element of investment in fixed capital. At the same time, the volume of investments in fixed capital includes a number of works and costs that are not elements of construction output, for example, costs for the purchase of equipment, tools, inventory (except for sanitary and other equipment attributable to the cost of buildings), work on planting orchards, vineyards and other perennial plantings, deep exploratory drilling work, personnel training costs, costs of purchasing from organizations and the population buildings located at the site of future construction, other costs that do not increase the value of fixed assets. [p.242]
