Income tax losses: how to report them in your return

Legislation: Procedure for carrying forward losses from previous years

The Tax Code provides for the possibility of reducing the tax base for income tax by the amount of losses incurred in previous tax periods.

Carrying forward losses to the future is possible both based on the results of the reporting period (1st quarter, 1st half of the year, 9 months) and based on the results of the tax period (Letter of the Ministry of Finance of the Russian Federation dated 03.08.2012 N 03-03-06/1/382, Letter of the Ministry of Finance of the Russian Federation dated 16.01 .2013 N 03-03-06/2/3).

From January 1, 2017 to December 31, 2020, the tax base for the tax for the current reporting (tax) period cannot be reduced by the amount of losses from previous years by more than 50% (clause 2.1 of Article 283 of the Tax Code of the Russian Federation).

For taxpayers who have a special status and apply special tax rates in accordance with the Tax Code of the Russian Federation, the loss can be written off without taking into account the specified limitation, i.e. in full:

• residents of a technology-innovative special economic zone, as well as resident organizations of tourist and recreational special economic zones, united by a decision of the Government of the Russian Federation into a cluster (clause 1.2 of Article 284 of the Tax Code of the Russian Federation);
• participants in regional investment projects (clause 1.5, clause 1.5-1 of Article 284 of the Tax Code of the Russian Federation);
• participants of the free economic zone (clause 1.7 of Article 284 of the Tax Code of the Russian Federation);
• residents of territories of rapid socio-economic development (clause 1.8 of Article 284 of the Tax Code of the Russian Federation);
• residents of the free port of Vladivostok (clause 1.8 of Article 284 of the Tax Code of the Russian Federation);
• participants of the Special Economic Zone in the Magadan Region (clause 1.10 of Article 284 of the Tax Code of the Russian Federation);
• residents of the Special Economic Zone in the Kaliningrad Region (clause 6 and clause 7 of Article 288.1 of the Tax Code of the Russian Federation).

There is no time limit on the transfer of losses; the transfer is made until the resulting loss for all previous years is completely written off.

If losses are received in more than one tax period, then the transfer is carried out in the order in which they were incurred (clause 3 of Article 283 of the Tax Code of the Russian Federation).

The entire time the taxpayer is transferring a loss, he is obliged to keep primary documents confirming its occurrence (clause 4 of Article 283 of the Tax Code of the Russian Federation). After the end of the transfer, such documents must be stored for another 4 years (clause 8 of clause 1 of Article 23 of the Tax Code of the Russian Federation ).

How to take into account a loss when calculating income tax

• from the sale of rights to land plots (clause 3, clause 5, article 264.1 of the Tax Code of the Russian Federation);
• from the activities of service production facilities and farms (Article 275. 1 of the Tax Code of the Russian Federation);
• from activities related to the production of hydrocarbons in a new offshore field by taxpayers specified in clause 1 of Art. 275.2 of the Tax Code of the Russian Federation (clause 4 of Article 275.2 of the Tax Code of the Russian Federation);
• received by participants of a consolidated group of taxpayers (clauses 1, 6, Article 278.1 of the Tax Code of the Russian Federation);
• received by the participants in the investment partnership agreement (clauses 4, 10, 11, 12, 13, Article 278. 2, clause 1. 1, Article 283 of the Tax Code of the Russian Federation);
• from transactions with securities and derivative financial instruments (clauses 21, 22, 24 of Article 280, clause 3 of Article 304 of the Tax Code of the Russian Federation).

Documents that confirm the amount of the loss incurred are all primary accounting documentation that confirms the financial result obtained (Article 313 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance of Russia dated April 3, 2007 N 03-03-06/1/206, Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated July 24, 2012 N 3546/12). Losses from previous years can be carried forward and taken into account when calculating income tax in subsequent periods. It is not difficult to reduce the tax base for losses from previous years.

To do this, you need to subtract from it the amount of loss (part of the loss) of previous periods, reflecting this in your income tax return. It is important to remember the reduction restrictions. The main one is that for the periods from January 1, 2021 to December 31, 2021, the tax base can only be reduced by no more than 50%.

Carrying forward losses to the future must be carried out in the order in which these losses arose.

• within the framework of other tax regimes, since only those losses that are calculated according to the rules of Chapter. 25 of the Tax Code of the Russian Federation (clause 1 of Article 283 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance of Russia dated September 25, 2009 N 03-03-06/1/617);
• from participation in an investment partnership for the year when you joined the investment partnership agreement previously concluded by other participants (clause 1 of Article 283 of the Tax Code of the Russian Federation);
• from the sale (disposal) of shares, shares in the authorized capital, bonds of Russian organizations, investment shares of the high-tech (innovative) sector of the economy (Clause 1, Article 283, Article 284.2, 2.1 of the Tax Code of the Russian Federation).

Transfer of losses to 1C 8.3 step by step, postings

Based on the results of 2021, the Organization received a loss in the amount of RUB 520,000. The organization decided that the loss received at the end of the year will reduce the profit of subsequent years.

In the 1st quarter of 2021, the Organization made a profit of RUB 800,000. The tax base for income tax is reduced by the amount of loss received in 2021 in the amount of 50%, i.e. taking into account the restrictions in clause 2.1 of Art. 283 Tax Code of the Russian Federation.

Let's consider the transfer of losses in 1C 8.3 step by step postings. PDF

If there is a loss when calculating income tax

05 rub. * 20% 10.861 rub. 1st half of 2021 118.220 rub. 118. 220 rub. * 20% - 10.861 rub. 12.783 rub. 9 months 2021 124.700 rub.

124. 700 rub. * 20% - 10.861 rub. — 12.783 rub. 1. 296 rub. 12 months 2021 138.920 rub. 138.920 rub. * 20% - 10.861 rub. — 12.783 rub. — 1.296 rub. 2. 844 rub.

TOTAL for the year : 138.920 rub. 138.920 rub. * 20% 27.784 rub. In the annual tax return, Marathon’s accountant indicated the amount of 27,784 rubles. (RUB 138,920 * 20%). The final tax calculation was made by Marathon, taking into account the previously transferred prepayments (RUB 2,844). Therefore, losses that run counter to the interests of the state in terms of replenishing the budget receive special attention from tax authorities.

In addition to invitations to meetings of the “loss commission,” taxpayers are visited by on-site tax audits. The amendment to Article 88 of the Tax Code introduced on January 1, 2014 gives the tax authorities the right to demand, within 5 days, an explanation from the taxpayer regarding a loss-making declaration, as well as an updated declaration with a reduced tax amount. As a rule, the taxpayer, in order to avoid such problems, tries to minimize expenses. The most popular measure is to refuse to create reserves next year - provided that they exist in this period. Then the unused balances will be used to pay one-time bonuses, pay for vacations, repair equipment, etc. can be taken into account at the end of the reporting period as non-operating income.

Advance not transferred 12 months 2021 88. 700 rub. 88. 700 rub. * 20% - 6.636 rub. — 2.185 rub. = 8.918 rub. 01/21/19 TOTAL for 2018 88.700 rub. 88. 700 rub. * 20% = 17.740 rub.

Advances for the 1st quarter of 2021 and at the end of the half year are listed “Cardinal within the established deadlines. Based on the results of 9 months, “Cardinal received a loss, and, consequently, a negative income tax was generated (-1,801 rubles). Advance payment for 9 months “was not transferred by the Cardinal. Based on the results of the full reporting period (12 months of 2021), “Cardinal made a profit. Based on the annual declaration, Cardinal's accountant transferred the final tax payment (RUB 8,918).

Algorithm for transferring losses received during the year

The registration of the loss transfer operation in 1C 8.3 is carried out on December 31 after the procedure for closing the tax period in which the loss was incurred.

It is important to follow the sequence of actions:

• re-processing of documents for December;
• partial closure of the month, skipping the link Reformation of the balance sheet ;
• loss carry forward operation;
• carrying out the document Reformation of the balance sheet .

Let's take a closer look at the procedure for preparing and conducting documents related to the transfer of losses in 1C 8.3.

Closing the tax period

To determine the tax accounting loss, you need to run the Month Closing , section Operations – Period Closing – Month Closing using the following algorithm:

• perform the operation Repost documents for the month ;
• partially run the Month Closing without posting the Balance Reformation . To do this, in the Month Closing click on the Balance Reformation and select the Skip operation . After that, click on the button Perform month closing .

The financial result must be determined and verified. The income tax return for the year must be completed and ready to submit.

All actions to carry forward losses are carried out after the regulatory operation Calculation of income tax , but before the regulatory operation Reformation of the balance sheet . When closing the month and determining the financial result, the Balance Sheet Reformation should be skipped.

Determining the amount of loss to be carried forward

Loss in tax accounting

Checking the balance in account 99.01.1 “Profits and losses from activities with the main taxation system” according to tax accounting data will help determine the amount of loss to be carried forward to future tax periods.

The most obvious one for the purposes of checking balances is the report Account Analysis 99.01.1 “Profits and losses from activities with the main taxation system”, section Reports - Standard reports - Account Analysis. To configure the output of tax accounting data, you need: PDF

• in the report form, click the Show settings ;
• in the report settings form, on the Indicators , select the NU (tax accounting data) ;

After this, you can generate a report – Generate .

In the Account Analysis , the loss received in the tax period is reflected in the form of a balance in the debit of account 99.01.1 “Profits and losses from activities with the main taxation system.”

Loss in the income tax return

In the income tax return for the year:

The loss received at the end of the tax period must be reflected:

• Sheet 02 page 060 “Total profit (loss)”

The amount of loss indicated in the declaration must correspond to the amount of loss according to tax accounting, i.e. debit balance of account 99.01.1.

Income tax: pay on time

When, according to accounting and tax accounting data (hereinafter - NU), a profit is obtained and both values ​​are equal, then there are no difficulties in calculating and reflecting income tax (hereinafter - IR) in accounting. If in one of the accounting systems - BU or NU - one financial result was obtained, and in the other - another, then when closing the period, attention should be paid to PBU 18/02, approved by order of the Ministry of Finance of Russia dated November 19, 2002 No. 114n. In our article we will look at cases where discrepancies in losses arise in accounting and accounting records.

Read about the obligation to apply PBU 18/02 in the article “PBU 18/02 - who should apply and who should not?”

According to Art. 283 of the Tax Code of the Russian Federation, an organization has the right to transfer losses received in the current tax period to the future, that is, to reduce the tax base by the amount of these losses in subsequent periods in full or in parts.

Read more about tax loss here.

Therefore, even if in the current period the financial results according to accounting and accounting standards are equal, then in subsequent periods, other things being equal, accounting and tax profits will differ, thus, a deductible temporary difference will arise (clause 11 of PBU 18/02). Please note that the loss carry forward rule only works for the tax period (year); it does not apply to losses for the reporting period.

Let's consider 3 cases of losses and related transactions.

The same loss in accounting and financial accounting

According to clause 20 of PBU 18/02, after the accountant determines the financial result according to the accounting data, he must calculate and reflect in accounting the conditional income or expense for the NP. This must be done because the tax loss for the reporting period is reset to zero (clause 8 of Article 274 of the Tax Code of the Russian Federation), and the financial result according to the accounting system remains unchanged. The amount is calculated by multiplying the accounting loss by the IR rate and is reflected by posting:

• Dt 68 Kt 99 - for the amount of conditional income for income tax.

Thus, if a loss is recorded in NU and ACC, then account 68, subaccount “NP” will have a zero balance, and the declaration for payment will also reflect 0. In this case, the resulting difference between 0 in NU and the amount of loss in ACC should be reflected in accounting (form SHE).

Read about the accounting rules for IT in the article “Accounting for income tax calculations.”

Loss in NU, profit in accounting

If a loss was formed in the NU, and a profit in the NU, then in the NU the expenses were greater or the income was less, which means that deferred tax liabilities (DTL) for taxable temporary differences or permanent tax assets (PTA) for permanent differences should be reflected in the current period . When closing the period, the accountant reflects the conditional expense for the IR, which is compensated by previously made entries for IT or PNA, thereby bringing the current IR to 0.

Let's look at this situation with an example.

Example

On account 68 at the end of the period a zero balance is formed, which corresponds to the value of the NP according to the NU data, because there was a loss there. Accordingly, the tax is 0.

To find out whether an accountant should worry while awaiting tax inspections if a loss is shown in the tax return, read the article “What are the consequences of reflecting a loss in the income tax return?”

The following situation assumes that in BU the expenses were higher or income was lower than in NU, so this time the loss was formed in BU, and profit in NU.

Loss in accounting, profit in NU

In this situation, in the current period there were deductible temporary differences, which led to the reflection of STA, and/or permanent differences, as a result of which a permanent tax liability (PNO) was shown. Let's look at an example.

Example

Thus, the turnover on the debit of account 68 is equal to 90 thousand rubles. and on the loan - 90 thousand rubles, that is, the current NP is 0 rubles. According to the tax return for the year, the tax amount for the year is also 0, since the tax profit was reset to zero by paying off the loss of previous years.

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However, organizations that keep records of income tax calculations in accordance with PBU 18/02 must make entries. Let us assume that the organization has no differences between accounting and tax accounting and the amount of accounting and tax losses is the same.

Then, for an amount equal to 20% (income tax rate) of the loss, you need to show conditional income for income tax (Order of the Ministry of Finance dated October 31.

2000 No. 94n): Debit of account 68 “Calculations for taxes and duties” - Credit of account 99 “Profits and losses” And then the occurrence of a deferred tax asset must be reflected for the same amount: Debit of account 09 “Deferred tax assets” - Credit of account 68 By As the loss is repaid in subsequent years, the value of the deferred tax asset for it will decrease, which corresponds to the reverse accounting entry: Debit of account 68 – Credit of account 09.

When transferring the prepayment or making the final payment, the accountant records the entry: Dt 68-Income tax Kt 51.

If at the end of the period the company operated at a loss, then the conditional income tax income should be reflected in the accounting: Dt 68-Income tax Kt 99. As we can see, this posting is a reversal of the posting of accrual of tax expenses.

The posting amount is equal to the negative income tax indicator (the product of the amount of loss and the tax rate). Thus, the entry adjusts the tax accrued for the period.

An example of reflecting a negative tax in accounting At the end of 2018, Fakel JSC made a profit, while at the end of the six months it incurred a loss. Fakel's accountant calculated quarterly tax advances and received the following results:

• 330 rub. – for 3 months of 2018;
• — 4,520 rub.

Carry forward of loss to future periods

Carrying forward a loss to future periods is a standard operation that we recommend to carry out at the end of each year (December 31), when a tax loss is received as a result of the year.

At the moment, the 1C program does not automatically carry forward losses from previous years, so this operation at the end of the year must be completed manually.

The transfer of losses received in the expired tax period is carried out using the document Transaction entered manually; type of transaction Transaction:

• Dt 97.21 “Other deferred expenses” subconto LOSS 2017 ;
• Kt 99.01.1 “Profits and losses from activities with the main taxation system” subconto Profit (loss) from sales ;

Subconto LOSS 2017 for account 97.21 is an element of the directory Deferred Expenses , it is configured as follows:

• Type for NU – Losses of previous years ;
• Amount – the amount of loss carried forward to future tax periods;
• Recognition of expenses - In a special manner ;
• Write-off period from – 01/01/2018 ; by – not limited.

All entries for writing off losses of previous years are made only according to tax accounts!

Analysis of profit from other activities

Similarly to the study of profit from sales, we will characterize profit from other activities [6]. Let's display the obtained data in the table. 3.

Table 3

Income from other activities (IOP) is calculated by summing up the following indicators: interest receivable, income from participation in other organizations, other income.

Dpr (reporting year) = 2397 + 0 + 2677 = 5074

Dpr(last year) = 1881 + 0 + 10876 = 12757

Expenses related to other activities (ODR) are calculated by summing interest payable and other income.

Rdr(reporting year) = 7662 + 0 = 7662

Rdr(last year) = 14424 + 33 = 14457

Profit (loss) from other activities (Ppr) is the difference between income from other activities and expenses associated with other activities.

Ppr (reporting year) = 5074 – 7662 = -2588

Ppr(last year) = 12757 – 14457 = -1700

During the reporting period, the amount of loss from other activities increased by 888 thousand rubles. (+52.2%). This situation is associated with a decrease in income from other activities by RUB 7,683 thousand. (-60.2%), but at the same time, expenses associated with other activities decreased by 6,795 thousand rubles. (-47%). The drop in income from other activities was caused by a decrease in other income by RUB 8,199 thousand. (-75.4%), with an increase in the “interest receivable” indicator by 516 thousand rubles. (+27.4%). The decrease in expenses related to other activities was caused by a decrease in interest payable by RUB 33 thousand. and a decrease in other expenses by 6,762 thousand rubles. (-46.9%).

Net profit analysis

Analysis of an enterprise's net profit is based on a study of its components: profit before tax, deferred tax assets, deferred tax liabilities and current income tax.

Let's calculate the main indicators and fill out Table 4 [6].

Earnings before taxes, deferred tax assets, deferred tax liabilities and current income taxes are reported in the income statement.

Net profit (Pr) is calculated using the formula:

Pl = Profit before tax + Deferred tax assets – Deferred tax liabilities – Current income tax – Other tax liabilities.

Pch(reporting year) = 47605 + 380 – 78 – 10459 – 110 = 37338

Pch(last year) = 19320 + 2 – 376 – 4109 – 0 = 14837

Table 4.

During the reporting period, net profit increased by 22,501 thousand rubles. (+151.7%), due to an increase in profit before tax by 28,285 thousand rubles. (+146.4%) and deferred tax assets by 378 thousand rubles, deferred tax liabilities also decreased by 298 thousand rubles. At the same time, there was an increase in the current income tax by 6,350 thousand rubles. (+154.5%) and other tax liabilities appeared in the amount of 110 thousand rubles, expressed in the indicator: “fines and penalties for violation of tax and other legislation.”

BALANCE SHEET ANALYSIS

The balance sheet is a method of grouping and economic generalization of information about the property of an enterprise by composition, location and sources of formation, expressed in monetary form and compiled as of a certain date.

A balance sheet is necessary when analyzing the financial condition of an enterprise, which is carried out in order to identify shortcomings in the operation of the enterprise, the reasons for their occurrence and the development of specific recommendations for improving activities.

The analysis will be carried out on the basis of balance sheet data dated December 31, 2021 of Spektr-Avia JSC (APPENDIX 6, pp. 39-40).

Balance Reformation

The final stage after registration of the transfer of losses received during the tax period is Balance Sheet Reformation.

Produced through the Month Closing for December.

Before posting the Balance Reformation , the Repost Documents for a Month operation should not be run; you must skip it. PDF

If this is not done, then the document Loss Transfer Operation of the Month Closing , and the financial result must be calculated without taking into account the specified document.

Final operation Balance Reformation :

• right-click to open the menu and select Perform operation .

Postings according to the document

As a result of the document Reformation of the balance sheet , an accounting entry is generated:

• Dt 84.02 Kt 99.01.1 - losses incurred in the current year are transferred to an account where losses to be covered are accumulated for the entire period of operation of the organization.

The posting for closing account 99.01.1 is not generated in tax accounting, since the loss from this account was transferred earlier using the Transaction document entered manually to account 97.21.

Write-off of losses from previous years in 1C 8.3

If in the next tax period the organization makes a profit in tax accounting, then it will automatically be reduced by part of the loss of the previous period or its entire amount, depending on the amount of profit.

Every month, until the loss is written off in full, Write-off of losses from previous years will appear Month Closing .

Postings for writing off losses of previous years in 1C 8.3

Control

The calculation of the write-off of losses of previous years can be viewed in the report Help-calculation of the write-off of losses of previous years . Generated by clicking the Calculation Certificates in the Month Closing or by clicking the link Write-off of losses from previous years – Write -off of losses from previous years . PDF

The report shows:

• the maximum amount of profit by which losses from previous years can be reduced is 800,000 * 50% = 400,000 rubles.
• balance of unwritten loss = 520,000 - 400,000 = 120,000 rubles.

In the footnote of the report “Calculation of write-off of losses from previous years” there is a reminder: “In reporting periods from January 1, 2017 to December 31, 2021, the tax base for the current reporting (tax) period cannot be reduced by the amount of losses received in previous tax periods, more than 50 percent” (clause 2.1 of Article 283 of the Tax Code of the Russian Federation).

Reflection of losses of previous years in the declaration

The written-off loss of previous years is reflected in the income tax return:

• Sheet 02, page 110 “The amount of loss or part of a loss that reduces the tax base for the reporting (tax) period (page 150 of Appendix No. 4 to Sheet 02)”; PDF
• Sheet 02 Appendix No. 4 page 150 “The amount of loss or part of the loss that reduces the tax base for the reporting (tax) period - total.” PDF

The balance of the unwritten loss is reflected:

• Sheet 02 Appendix No. 4 page 160 “Balance of uncarried loss at the end of the tax period - total.” PDF

Loss in income tax return

Current as of: April 17, 2021

When an organization's expenses for a certain period exceed its income for the same period, a loss occurs. Such a loss can occur both in accounting and tax accounting. We will tell you in our material how the loss is reflected in the income tax return.

Regardless of what period during the year the organization experiences a loss, its amount will be reflected in Sheet 02 “Tax Calculation” of the tax return for corporate income tax (Federal Tax Order No. ММВ-7-3 dated October 19, 2016 / [email protected ] ).

line 060 = line 010 line 020 - line 030 - line 040 line 050

The indicators of all these lines are also reflected in Sheet 02 of the tax return.

line 100 = line 060 – line 070 – line 080 – line 400 of Appendix No. 2 to Sheet 02 100 Sheet 05 line 530 Sheet 06

The amount of loss on line 100 is also reflected with a minus sign.

When calculating profit tax, a loss incurred by an organization leads to the fact that the tax base is recognized as equal to zero (clause 8 of Article 274 of the Tax Code of the Russian Federation). Therefore, line 120 “Tax base for tax calculation” of Sheet 02 reflects zero. Accordingly, the amounts of calculated tax reflected on lines 180 – 200 of Sheet 02 will be zero.

Losses that an organization generates during the year are counted when determining the tax base in subsequent reporting periods of the year, because the tax base is determined on an accrual basis (clause 7 of Article 274 of the Tax Code of the Russian Federation). Losses at the end of the year will also not disappear. After all, it is possible to carry forward losses to the future under income tax.

The organization reflects the accumulated losses of previous years in Appendix No. 4 to Sheet 02 in the profit declaration for the 1st quarter and for the year (clause 1.1 of the Procedure, approved by Order of the Federal Tax Service dated October 19, 2016 No. ММВ-7-3 / [email protected] ) .

This appendix shows the balance of the accumulated loss at the beginning of the year, broken down by year of its occurrence, the use of the loss during the year, the resulting loss at the end of the current year, as well as the total amount of unused loss at the end of the year.

If during the year or at the end of the year the organization makes a profit, in the general case it can be reduced by the loss of previous years, but not more than half (Article 283 of the Tax Code of the Russian Federation).

In Sheet 02 of the tax return, the amount of a loss or part of a loss from previous years that reduces the tax base for the reporting (tax) period is shown on line 110. This amount is taken from line 150 of Appendix No. 4 to Sheet 02.

Is income tax charged on a loss? Since the tax base for income tax in the event of a loss is considered equal to zero, no tax is payable. However, organizations that keep records of income tax calculations in accordance with PBU 18/02 must make entries.

Let us assume that the organization has no differences between accounting and tax accounting and the amount of accounting and tax losses is the same. Then, for an amount equal to 20% (income tax rate) of the loss, you need to show conditional income for income tax (Order of the Ministry of Finance dated October 31.

Debit account 68 “Calculations for taxes and fees” - Credit account 99 “Profits and losses”

As the loss is repaid in subsequent years, the value of the deferred tax asset for it will decrease, which corresponds to the reverse accounting entry: Debit account 68 – Credit account 09.

Reflection of an income tax loss in a tax return is one of the cases when the tax inspectorate, as part of a desk tax audit, may request an explanation from the taxpayer justifying the amount of the loss incurred. They will need to be submitted within 5 working days from the date of receipt of the request (clause 3 of Article 88 of the Tax Code of the Russian Federation). We talked about how to draw up such explanations in a separate consultation.

You have received a request from the tax office to provide explanations regarding the loss in your income tax return. What to do with such a request? How to answer it? What might such requests lead to? And was it worth showing this loss at all?

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The income tax return is under the control of tax inspectors. If a declaration is unprofitable for an organization, it will not go unnoticed by the tax authorities, who have the right to:

• demand clarification on such (unprofitable) declarations,
• call for a loss-making commission,
• include the organization in the on-site inspection plan.

There is definitely little pleasant in every event. Therefore, we will try to tell the manager what to do if at the end of the year after calculation there is a loss, whether to reflect it in the declaration or not, what explanations to give to the tax office, how to explain the loss and what risks there may be.

This means that at the end of the year, instead of profit, a tax loss was formed, as a result of which there will be no income tax indicator for payment. Tax loss is the negative difference between income and expenses that are taken into account for tax purposes.

The task of the Federal Tax Service is to ensure the modern calculation of taxes and the flow of funds into the budget. The Federal Tax Service is often overly attentive to companies operating in the red. For tax authorities, losses are a sign of a number of illegal actions of the director - tax evasion, withdrawal of assets, deliberate bankruptcy, fraud, etc.

Refusal to provide data may lead to the adoption of more stringent measures, including a full-scale audit (in a separate article we described how tax authorities prepare a tax audit).

Let's consider what awaits the manager if he was not afraid of additional questions from the tax authorities, decided not to hide the real state of affairs and filed a declaration with a loss.

This will be followed by a request for clarification from inspection staff, to which the manager will have to respond within five days in any form. We advise you to describe expenses in as much detail as possible (provide balance sheets broken down by expense items, accounts 26, 44, 91.

2), explain the reason for the financial result and talk about what activities you plan to carry out and take measures to make a profit in the future.

Reasons for the formation of a loss in the income tax return:

• Lack of sales revenue or its insignificant volume. Typical for newly created organizations and organizations with a long production cycle.
• Development of new sales markets, which requires significant expenses for marketing activities, drawing up business plans, etc.
• Reduced prices due to a drop in demand, seasonality of products, etc.
• Decrease in sales volumes, for example, due to the loss of large customers.
• Large one-time expenses in the reporting period, for example, the acquisition and commissioning of fixed assets, major repairs of premises.
• Force majeure, for example, a vehicle burned down during the transportation of products, and a warehouse was flooded.
• Accounting policies for tax purposes, for example, the use of bonus depreciation, non-linear depreciation method, creation of reserves.

If an organization submits a “loss-making” declaration for more than two reporting periods in a row, then the tax authorities will offer to reduce the loss and submit adjustments or invite you to a “loss-making” commission. The manager is called, but an accountant or other authorized person can represent his interests instead (take your passport and power of attorney with you).

It is better for two representatives of the company to come to a special commission at the Federal Tax Service - the director and the chief accountant, because at such a meeting inspectors ask serious financial questions. There is no need to worry or worry. Try to have a constructive dialogue with the inspector.

If the organization is new to the market, then to justify the reasons for the loss, use the arguments “most of the costs are related to advertising and marketing activities that help develop the market” or “large costs for the purchase of equipment.”

If the organization has been operating for a long time, then explain the reduction in revenue by the repair or modernization of equipment, as a result of which you expect a positive economic effect in the future.

Employees of the Federal Tax Service analyze such indicators as:

• the structure of income and expenses in the context of ordinary and other (unfavorable, according to tax authorities, are higher growth rates of expenses for ordinary activities compared to the growth rate of corresponding income, as well as losses due to non-operating losses);
• solvency of the company (the main indicators of insolvency are the lack of funds in the current account and the presence of overdue accounts payable);
• balance sheet indicators (according to inspectors, equity capital should exceed borrowed capital, the growth rate of current assets should be higher than the growth rate of non-current assets, the growth rate of receivables and payables should be approximately the same).

Tax authorities are always interested in how a loss-making organization lives. Therefore, be prepared to talk about sources of financing (loans, credits, financial assistance from the owner). If the tax authorities are interested in any documents, then ask them to formalize the request in writing.

If a manager decides to protect himself from unnecessary interrogations and trips to the tax office, thereby not attracting the attention of tax authorities to his organization, then he may decide to pay income tax. To do this, you need to adjust the declaration

A. either By increasing income

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B. either by reducing (increasing) expenses

Unprofitability is evidenced by the fact that the total value of costs exceeds the value of revenue receipts. The loss in the income tax return is recorded based on tax accounting data.

Features of carrying forward losses from previous years

The procedure for transferring a loss if its write-off needs to be postponed

What actions in the program must be taken if the organization does not want to reduce the tax base for losses from previous years in the current tax period?

Carrying forward losses is a taxpayer's right. It can be applied in the current tax period in relation to all losses starting from 2007 (Clause 16, Article 13 of the Federal Law of November 30, 2016 N 401-FZ). This can be done intermittently, observing only the order of losses (clause 3 of Article 283 of the Tax Code of the Russian Federation). There is also no time limit for transferring losses.

If the Organization is 100% sure that it will never exercise the right to carry forward a loss to the future, then the Transfer of Loss to Future Periods operation does not need to be done in the program.

But situations are different, and perhaps in the future the management of the organization will change its mind and want to reduce the tax base for the loss of previous years.

Therefore, in our opinion, it would still be more correct to formalize this operation, but without indicating the start date for writing off this loss. Then the program will not automatically begin to reduce the tax base for the loss of previous years without the command of an accountant.

If an organization applies PBU 18/02, then the operation Transfer of losses from previous years (PBU 18/02) will have to be created at the end of the year in any case. Otherwise, 1C will not allow you to close the first month of the next tax period.

Let's look at the features of setting up analytics for deferred loss write-off.

The directory element Deferred expenses must be filled out as indicated above, but without the start date of the period for writing off the loss.

Later, when the organization decides to reduce the tax base by the amount of this loss, it will be necessary to indicate in the Write-off period from the first date of the tax period from which to start writing off the loss.

It is important to remember the order in which losses are written off (clause 3 of Article 283 of the Tax Code of the Russian Federation). A loss from a later tax period should not be allowed to be written off before one that occurred earlier.

The procedure for transferring a loss if its write-off needs to be interrupted

How can you stop writing off a loss for a while? The organization does not want to reduce tax profit this year by the loss of previous years?

When you need to skip a tax period in the process of writing off a loss, you can create a document Transaction entered manually, transaction type Transaction with the following transactions:

• Dt 97.21 “Other deferred expenses” subconto Remaining Loss 2017 ;
• Kt 97.21 “Other deferred expenses” subconto Loss 2017 .

Subconto account 97.21 “Other deferred expenses” The balance of the Loss 2017 is configured as with a deferred transfer of losses - with empty dates for the write-off period.

In the future, when the write-off needs to be resumed, it will be necessary to carry out an operation with reverse entries.

When carrying out these operations, it is important to follow the same sequence as during the first loss transfer procedure:

• re-processing of documents for December;
• partial closure of the month, skipping the link Reformation of the balance sheet ;
• loss carry forward operation;
• carrying out the document Reformation of the balance sheet .