Article 271. Procedure for recognizing income using the accrual method

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Most organizations use the accrual method of tax accounting. At first glance, the provisions of the Tax Code of the Russian Federation clearly define the procedure for recognizing income and expenses when applying each method. However, practice shows that many rules cause disagreements between taxpayers and tax authorities. In this article, the author, taking into account the latest clarifications of the Russian Ministry of Finance and tax authorities, as well as judicial practice, considers the procedure for recognizing income under the accrual method.

Article 271 of the Tax Code of the Russian Federation defines the procedure for recognizing income using the accrual method . Income is recognized in the reporting (tax) period in which it occurred, regardless of the time of actual receipt of funds, other property (work, services) and (or) property rights. The Constitutional Court of the Russian Federation, in its Determination dated 06.06.2003 N 278-O, determined that Art. 271 of the Tax Code of the Russian Federation, considered in conjunction with the provisions of other articles of Ch. 25 of the Tax Code of the Russian Federation, incl. Art. Art. 273, 274, 286, 287, 313, 315 and 316 of the Tax Code of the Russian Federation determine the procedure for recognizing income during the tax period, the purpose of which is a complete and timely accounting of incoming income, in particular from goods sold (work, services) and property rights. This procedure is a method of accounting for the results of an organization’s financial activities, in which income is recognized in the reporting (tax) period in which it occurred, regardless of the actual receipt of funds, other property (work, services) and (or) property rights ( accrual method). With this method, expenses associated with the sale of goods (work, services), property rights are also recognized in the reporting (tax) period in which these expenses arise based on the terms of the transactions, and also regardless of the time of actual payment of funds and (or ) another form of payment (Article 272 of the Tax Code of the Russian Federation). The Constitutional Court of the Russian Federation noted that the use of this procedure when calculating advance payments is aimed at ensuring timely and full payment of corporate income tax to the budget and does not inherently violate the property rights of organizations. In addition, according to Art. 286 of the Tax Code of the Russian Federation, taxpayers have the right to switch to calculating monthly advance payments based on the actual profit received, subject to calculation; in this case, the calculation of the amounts of advance payments is made by taxpayers based on the tax rate and the actual profit received, calculated on an accrual basis from the beginning of the tax period until the end of the corresponding month. The Ministry of Finance of Russia in Letter dated 02/07/2011 N 03-03-06/1/78 came to the conclusion that the organization that is the seller of real estate has an obligation to pay corporate income tax from the moment the property is transferred to the buyer under the acceptance certificate and submission of documents for state registration of rights to real estate and transactions with it, regardless of the date of registration of these rights.

Uniform distribution

At the same time, in the cases established by the Tax Code of the Russian Federation, income is distributed by the taxpayer independently, taking into account the principle of uniform recognition of income and expenses. Thus, the distribution of income taking into account the principle of uniform recognition of income and expenses is provided for in Art. 271 of the Tax Code of the Russian Federation in the following cases: - if income relates to several reporting (tax) periods; - if the relationship between income and expenses cannot be clearly defined or is determined indirectly; - if the production has a long (more than one tax period) technological cycle, in the case where the terms of the concluded contracts do not provide for the phased delivery of work (services). Each of these circumstances is an independent basis for the taxpayer’s distribution of income in tax accounting, taking into account the principle of uniform recognition of income and expenses. The issue of the procedure for recognizing income from the sale of products when applying the accrual method is discussed in Letter of the Ministry of Finance of Russia dated September 24, 2010 N 03-03-06/1/615. As the financial department explained, the Tax Code of the Russian Federation provides for an even distribution of income from the sale of work and services. At the same time, when producing products (goods) with a long production cycle, distribution of income from their sales is not carried out. Thus, the main principle of distribution of income from sales between reporting (tax) periods is the principle of formation of expenses. The tax authorities support the opinion of the Russian Ministry of Finance on this issue (see, for example, Letter of the Ministry of Taxes and Taxes of Russia dated September 15, 2004 N 02-5-10/54). The prevailing judicial practice overwhelmingly uses the same position (see, for example, Resolution of the Federal Antimonopoly Service of the Central District dated May 31, 2006 in case No. A36-4182/2005). Therefore, in a situation where, say, an organization has entered into an agreement to perform work in the period from 12/10/2010 to 02/24/2011 and payment is made on 02/24/2011, income under this agreement is distributed in proportion to the expenses incurred. The position of the tax authority, which believes that the taxpayer’s income should be distributed evenly between tax periods, is incorrect.

Long technological cycle

Based on clause 2 of Art. 271 of the Tax Code of the Russian Federation for industries with a long (more than one tax period) technological cycle, if the terms of the concluded contracts do not provide for the stage-by-stage delivery of work (services), the taxpayer distributes income from the sale of the specified work (services) independently in accordance with the principle of generating expenses for the specified works (services). According to the position of the tax authorities, production with a long cycle for the purpose of calculating income tax should be understood as production, the start and end dates of which fall on different tax periods, regardless of the number of days of production. The above applies only to cases of concluding contracts that do not provide for the stage-by-stage delivery of work and services (regardless of the duration of the stages) (see, for example, Letter of the Ministry of Taxes and Taxes of Russia dated September 15, 2004 N 02-5-10/54).

Calculation of income tax using the accrual method

Quite often, accounting differs from tax accounting. However, with regard to income tax under the accrual method, these two types of accounting are as close as possible. This happens for the following reasons:

Firstly, revenue should be taken into account not when it is received, but at the time of shipment of products or provision of services. The corresponding entry in accounting is made based on the dates of the issued documents.
Secondly, non-operating income (fines, for example) is taken into account on the same principle. For example, fines should be included in income and dated when such a sanction was recognized by the debtor voluntarily or in accordance with a court decision.

Expenses can also be taken into account in the period of their occurrence without taking into account the date of payment.

It is easy to see that in accounting, income tax entries are made according to similar rules.

Every company that does not fall under the definition of a “small enterprise”, receives revenue in excess of one million rubles per quarter and pays income tax, must use the accrual method. It is believed that the use of this method makes it possible to most accurately reflect the existing state of finances and the economic situation of the enterprise.

Small businesses are allowed the cash method even if they use the general tax regime. With this type of accounting, obligations to the budget are formed only when funds are received into the account or cash register of the enterprise. Tax is paid after actual receipt of income.

Separate Revenue Recognition

As stated in Letter of the Ministry of Finance of Russia dated November 13, 2010 N 03-03-06/2/197, in relation to fines, penalties and (or) other sanctions for violation of contractual or debt obligations, the date of receipt of income by the credit institution will be recognized as the date of recognition by the debtor or the date entry into force of a court decision. In Letter dated 04.04.2011 N 03-03-06/4/27, the Ministry of Finance of Russia came to the conclusion that for profit tax purposes, the date of receipt of income in the form of subsidies is the date of their crediting to the taxpayer’s current account. Income in the form of accounts payable , for which the statute of limitations has expired, is taken into account as part of non-operating income on the last day of the reporting period in which the statute of limitations expires. This follows from Letter of the Ministry of Finance of Russia dated December 27, 2007 N 03-03-06/1/894. The provisions of the Tax Code of the Russian Federation do not establish the procedure for determining the date of sale of the leased asset . As follows from the explanations given in Letter of the Ministry of Finance of Russia dated June 10, 2004 N 03-02-05/2/35, the amount of the redemption value of the property is reflected in the lessor’s income as these payments are received. There is no uniform position on this issue in judicial practice. Some courts support such conclusions (see, for example, Resolution of the Federal Antimonopoly Service of the Volga District dated March 21, 2007 in case No. A55-10628/06). However, there is another position on this issue, according to which the lessor’s income, which constitutes compensation for the cost of the property that is leased, is included in the tax base for corporate income tax at the time of transfer of ownership of this property (see, for example, the Resolution of the FAS North -Western District dated November 23, 2006 in case No. A05-5133/2006-31). If the organization does not require buyers to pay penalties, and the debtors, in turn, do not take actions indicating recognition of the debt in the form of penalties, and there are no court decisions on the collection of penalties that have entered into legal force, the taxpayer has no grounds for recognition the amount of penalties as part of non-operating income that reduces taxable profit. The validity of such conclusions is confirmed by arbitration practice (see, for example, Resolutions of the FAS of the Ural District dated 09.12.2005 N F09-3932/05-S7, FAS of the Central District dated 04.15.2005 N A64-5748/04-11). In practice, the question may arise as to whether it is legal to include in non-operating income amounts of penalties or compensable losses only in connection with the presence of these conditions in the contract, regardless of the claims made by taxpayers to counterparties, and in the absence of objections from the debtor. Judicial practice proceeds from the fact that the moment of recognition of such income is the date of signing the document agreeing to penalties (see, for example, Decision of the Supreme Arbitration Court of the Russian Federation dated August 14, 2003 N 8551/03, Resolution of the Federal Antimonopoly Service of the North-Western District dated October 19, 2007 in the case N A56-56889/2005). As follows from the Letter of the Ministry of Finance of Russia dated October 7, 2009 N 03-03-06/1/651, deposited wages are taken into account in income after the expiration of the limitation period, which is equal to three months. At the same time, the Federal Tax Service of Russia, in Letter dated October 6, 2009 No. 3-2-06/109, explained that the period for an employee to submit a request for payment of deposited wages to the employer is not limited by law. If the employer refuses to satisfy this requirement and the employee goes to court in compliance with certain Art. 392 of the Labor Code of the Russian Federation, within a three-month period, the court can make a decision to satisfy the claim if the general one has not expired, i.e. three-year statute of limitations. Consequently, disputed accounts payable are included in income if the deposited wages have not been claimed by the employee within three years.

Article 271. Procedure for recognizing income using the accrual method (Tax Code of the Russian Federation)

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Tax Code of the Russian Federation. Part two

1. For the purposes of this chapter, income is recognized in the reporting (tax) period in which it occurred, regardless of the actual receipt of funds, other property (work, services) and (or) property rights (accrual method).

2. For income relating to several reporting (tax) periods, and if the relationship between income and expenses cannot be clearly defined or is determined indirectly, income is distributed by the taxpayer independently, taking into account the principle of uniform recognition of income and expenses.

For industries with a long (more than one tax period) technological cycle, if the terms of the concluded contracts do not provide for stage-by-stage delivery of work (services), income from the sale of the specified work (services) is distributed by the taxpayer independently in accordance with the principle of formation of expenses for the specified work (services) ) (paragraph introduced by Federal Law of December 31, 2002 N 191-FZ - Collection of Legislation of the Russian Federation, 2003, N 1, Art. 6).

3. For income from sales, unless otherwise provided by this chapter, the date of receipt of income is the date of sale of goods (work, services, property rights), determined in accordance with paragraph 1 of Article 39 of this Code, regardless of the actual receipt of funds (other property (works, services) and (or) property rights) in payment for them. When selling goods (work, services) under a commission agreement (agency agreement) by the taxpayer-committent (principal), the date of receipt of income from the sale is recognized as the date of sale of the property (property rights) belonging to the committent (principal), indicated in the notice of the commission agent (agent) about the sale and (or) in the report of the commission agent (agent) (as amended by Federal Law No. 57-FZ of May 29, 2002 - Collection of Legislation of the Russian Federation, 2002, No. 22, Art. 2026).

The date of sale of real estate is the date of transfer of real estate to the acquirer of this property under a transfer deed or other document on the transfer of real estate (paragraph introduced by Federal Law of November 29, 2012 N 206-FZ - Collection of Legislation of the Russian Federation, 2012, N 49, Art. 6751).

The date of sale of securities owned by the taxpayer is also recognized (paragraph introduced by Federal Law of November 25, 2009 N 281-FZ - Collection of Legislation of the Russian Federation, 2009, N 48, Art. 5731; as amended by Federal Law of December 28, 2013 N 420-FZ - Collection of Legislation of the Russian Federation, 2013, N 52, Article 6985):

date of termination of obligations to transfer securities by offsetting counter homogeneous claims (paragraph introduced by Federal Law of December 28, 2013 N 420-FZ - Collection of Legislation of the Russian Federation, 2013, N 52, Art. 6985);

the date of actual receipt by the taxpayer of the amounts of partial repayment of the nominal value of the security during the period of its circulation, provided for by the terms of issue (paragraph introduced by Federal Law of December 28, 2013 N 420-FZ - Collection of Legislation of the Russian Federation, 2013, N 52, Art. 6985).

For the purposes of this chapter, requirements for the transfer of securities of the same issuer, one type, one category (type) or one mutual investment fund (for investment units of mutual investment funds) with the same volume of rights are recognized as homogeneous (paragraph introduced by Federal Law of November 25, 2009 No. N 281-FZ - Collection of Legislation of the Russian Federation, 2009, N 48, Article 5731).

In this case, the offset of counter homogeneous claims must be confirmed by documents in accordance with the legislation of the Russian Federation on the termination of obligations to transfer (accept) securities, including reports of the clearing organization, persons engaged in brokerage activities, or managers who, in accordance with the legislation of the Russian Federation, provide the taxpayer provides clearing, brokerage services or carries out trust management in the interests of the taxpayer (paragraph introduced by Federal Law of November 25, 2009 N 281-FZ - Collection of Legislation of the Russian Federation, 2009, N 48, Art. 5731).

4. For non-operating income, the date of receipt of income is recognized as:

1) the date of signing by the parties of the act of acceptance and transfer of property (acceptance and delivery of work, services) - for income (as amended by the Federal Law of May 29, 2002 N 57-FZ - Collection of Legislation of the Russian Federation, 2002, N 22, Art. 2026):

(Paragraph excluded by Federal Law No. 57-FZ of May 29, 2002 - Collection of Legislation of the Russian Federation, 2002, No. 22, Art. 2026)

in the form of property (work, services) received free of charge;

for other similar income;

2) the date of receipt of funds to the taxpayer’s current account (cash) - for income:

in the form of dividends from equity participation in the activities of other organizations;

in the form of gratuitously received funds;

in the form of refunds of contributions previously paid to non-profit organizations that were included in expenses;

in the form of interest accrued on the amount of claims of the bankruptcy creditor in accordance with the legislation on insolvency (bankruptcy) (paragraph introduced by Federal Law of December 28, 2013 N 420-FZ - Collection of Legislation of the Russian Federation, 2013, N 52, Art. 6985);

in the form of other similar income;

(New subparagraph 2 was introduced by Federal Law No. 57-FZ of May 29, 2002 - Collection of Legislation of the Russian Federation, 2002, No. 22, Art. 2026)

2-1) the date of receipt of real estate under a transfer deed or other document on the transfer (confirming the transfer) of real estate, the date of transfer of ownership of other property (including securities) - for income in the form of dividends received in non-monetary form (subparagraph 2-1 introduced by Federal Law of November 24, 2014 N 366-FZ - Collection of Legislation of the Russian Federation, 2014, N 48, Art. 6647);

3) the date of making payments in accordance with the terms of concluded agreements or presenting to the taxpayer documents serving as the basis for making calculations, or the last day of the reporting (tax) period - for income:

from leasing property;

in the form of license payments (including royalties) for the use of intellectual property;

in the form of other similar income;

(Subparagraph 3 as amended by Federal Law No. 57-FZ of May 29, 2002 - Collection of Legislation of the Russian Federation, 2002, No. 22, Art. 2026)

4) the date of recognition by the debtor or the date of entry into legal force of the court decision - for income in the form of fines, penalties and (or) other sanctions for violation of contractual or debt obligations, as well as in the form of amounts of compensation for losses (damage) (as amended by the Federal Law dated May 29, 2002 N 57-FZ - Collection of Legislation of the Russian Federation, 2002, N 22, Art. 2026);

5) the last day of the reporting (tax) period - for income:

in the form of amounts of restored reserves and other similar income;

in the form of income distributed in favor of the taxpayer with his participation in a simple partnership;

on income from trust management of property;

for other similar income;

6) date of identification of income (reception and (or) discovery of documents confirming the existence of income) - for income of previous years;

7) the date of transfer of ownership of foreign currency and precious metals when carrying out transactions with foreign currency and precious metals (including on unallocated metal accounts), as well as the last day of the current month - for income in the form of a positive exchange rate difference on property and claims ( liabilities), the value of which is expressed in foreign currency (except for advances), and a positive revaluation of the value of precious metals and claims (liabilities) expressed in precious metals, carried out in the manner established by regulations of the Central Bank of the Russian Federation (as amended by the Federal Law dated November 28, 2015 N 328-FZ - Collection of Legislation of the Russian Federation, 2015, N 48, Article 6694);

the date of drawing up the act of liquidation of depreciable property, drawn up in accordance with the accounting requirements - for income in the form of materials received or other property during the liquidation of depreciable property taken out of service (as amended by Federal Law of July 23, 2013 N 248-FZ - Collection of Legislation of the Russian Federation, 2013, No. 30, Article 4081);

9) the date when the recipient of the property (including funds) actually used the specified property (including funds) for other purposes or violated the conditions under which they were provided - for income in the form of property (including funds ) specified in paragraphs 14, 15 of Article 250 of this Code (as amended by Federal Law No. 57-FZ of May 29, 2002 - Collection of Legislation of the Russian Federation, 2002, No. 22, Art. 2026);

10) the date of transfer of ownership of foreign currency for income from the sale (purchase) of foreign currency (subparagraph 10 introduced by Federal Law of May 29, 2002 N 57-FZ - Collection of Legislation of the Russian Federation, 2002, N 22, Art. 2026);

11) the date of receipt of income in the form of the cash equivalent of property transferred to replenish the endowment capital of a non-profit organization in the manner established by Federal Law of December 30, 2006 N 275-FZ “On the procedure for the formation and use of endowment capital of non-profit organizations” and returned to the donor or his legal successors, the date of crediting funds to the taxpayer’s current account is recognized (subparagraph 11 was introduced by Federal Law No. 328-FZ of November 21, 2011 - Collection of Legislation of the Russian Federation, 2011, No. 48, Art. 6729);

12) the date of receipt of income in the form of profit of a controlled foreign company is recognized as December 31 of the calendar year following the tax period in which the end date of the period falls for which, in accordance with the personal law of such a company, financial statements for the financial year are prepared, and in the absence of in accordance with the personal law of such a company, the obligation to prepare and present financial statements is December 31 of the calendar year following the tax period in which the end date of the calendar year for which its profit is determined falls (subparagraph 12 introduced by Federal Law of November 24, 2014 N 376-FZ - Collection of Legislation of the Russian Federation, 2014, No. 48, Article 6657; as amended by Federal Law of February 15, 2021 No. 32-FZ - Collection of Legislation of the Russian Federation, 2021, No. 7, Article 920).

(Subparagraphs 2 - 6 are considered respectively subparagraphs 3 - 7, subparagraph 7 is excluded on the basis of Federal Law of May 29, 2002 N 57-FZ - Collection of Legislation of the Russian Federation, 2002, N 22, Art. 2026)

4-1. Funds in the form of subsidies received by organizations, with the exception of cases of receiving subsidies within the framework of a reimbursable agreement, are recognized as part of non-operating income in the following order:

subsidies received to finance expenses not related to the acquisition, creation, reconstruction, modernization, technical re-equipment of depreciable property, acquisition of property rights, are taken into account for no more than three tax periods, counting the tax period in which these subsidies were received, as they are recognized expenses actually incurred from these funds. At the end of the third tax period, subsidies received that are not included in income are recognized as non-operating income as of the last reporting date of this tax period;

subsidies received to finance expenses associated with the acquisition, creation, reconstruction, modernization, technical re-equipment of depreciable property, acquisition of property rights are taken into account as expenses actually incurred using these funds are recognized. When selling, liquidating or otherwise disposing of the specified property, property rights, subsidies received that are not included in income are recognized as non-operating income on the last date of the reporting (tax) period in which the sale, liquidation or other disposal of the specified property, property rights took place;

subsidies received to compensate for previously incurred expenses not related to the acquisition, creation, reconstruction, modernization, technical re-equipment of depreciable property, acquisition of property rights, or lost income are taken into account at a time on the date of their enrollment;

subsidies received to compensate for previously incurred expenses related to the acquisition, creation, reconstruction, modernization, technical re-equipment of depreciable property, acquisition of property rights, are taken into account at a time on the date of their enrollment in the amount corresponding to the amount of accrued depreciation for previously incurred expenses related to the acquisition, creation, reconstruction, modernization, technical re-equipment of depreciable property, acquisition of property rights. The difference between the amount of subsidies received and the amount included in income on the date of their crediting is reflected in income in a manner similar to the procedure provided for in paragraph three of this paragraph.

In case of violation of the conditions for receiving subsidies provided for in this paragraph, the amounts of subsidies received are reflected in full as part of the income of the tax period in which the violation was committed.

The grantor's payment under the concession agreement, received in the form of cash, is recognized in the manner prescribed by this paragraph for accounting for subsidies (paragraph introduced by Federal Law of September 30, 2021 N 286-FZ - Collection of Legislation of the Russian Federation, 2021, N 40, Art. 5753, effective January 1, 2018).

(Clause 4-1 was introduced by Federal Law of April 5, 2010 N 41-FZ - Collection of Legislation of the Russian Federation, 2010, N 15, Art. 1737; as amended by Federal Law of December 29, 2014 N 465-FZ - Collection Legislation of the Russian Federation, 2015, No. 1, Article 18)

4-2. (Clause 4-2 was introduced by Federal Law of July 27, 2010 N 229-FZ - Collection of Legislation of the Russian Federation, 2010, N 31, Art. 4198; lost force on the basis of Federal Law of December 29, 2014 N 465-FZ - Collection of Legislation of the Russian Federation, 2015, No. 1, Article 18)

4-3. (Clause 4-3 was introduced by Federal Law of March 7, 2011 N 23-FZ - Collection of Legislation of the Russian Federation, 2011, N 11, Art. 1492; lost force on the basis of Federal Law of December 29, 2014 N 465-FZ - Collection of Legislation of the Russian Federation, 2015, No. 1, Article 18)

4-4. (Clause 4-4 was introduced by Federal Law of July 19, 2011 N 245-FZ - Collection of Legislation of the Russian Federation, 2011, N 30, Art. 4593; lost force on the basis of Federal Law of December 29, 2014 N 465-FZ - Collection of Legislation of the Russian Federation, 2015, No. 1, Article 18)

5. When a financial agent sells financing services against the assignment of a monetary claim, as well as the sale of financial services by a new creditor who has received the specified claim, the date of receipt of income is determined as the day of the subsequent assignment of this claim or the debtor’s fulfillment of this claim. When a taxpayer - seller of goods (works, services) assigns the right to claim a debt to a third party, the date of receipt of the assignment of the right to claim is determined as the day the parties sign the act of assignment of the right to claim (as amended by Federal Law of May 29, 2002 N 57-FZ - Collection of Legislation of the Russian Federation Federation, 2002, No. 22, Art. 2026).

6. Under loan agreements or other similar agreements (including debt obligations issued by securities), the validity of which falls on more than one reporting (tax) period, for the purposes of this chapter, income is recognized as received and is included in the corresponding income at the end of each month of the corresponding reporting (tax) period, regardless of the date (terms) of its payment stipulated by the agreement.

If a loan agreement or other similar agreement (including debt obligations issued by securities) stipulates that the fulfillment of an obligation under such an agreement depends on the value (or other value) of the underlying asset with the accrual of a fixed interest rate during the validity period of the agreement, income accrued based on this fixed rate, are recognized on the last day of each month of the corresponding reporting (tax) period, and income actually received based on the current value (or other value) of the underlying asset is recognized on the date of fulfillment of the obligation under this agreement.

In the event of termination of the agreement (repayment of a debt obligation) during a calendar month, income is recognized as received and is included in the corresponding income on the date of termination of the agreement (repayment of a debt obligation).

The provisions of this paragraph do not apply to income in the form of interest accrued on the amount of claims of the bankruptcy creditor in accordance with the legislation on insolvency (bankruptcy).

(Clause 6 as amended by Federal Law No. 420-FZ of December 28, 2013 - Collection of Legislation of the Russian Federation, 2013, No. 52, Art. 6985)

7. (New paragraph 7 was introduced by Federal Law of May 29, 2002 N 57-FZ - Collection of Legislation of the Russian Federation, 2002, N 22, Art. 2026; lost force on the basis of Federal Law of April 20, 2014 N 81-FZ — Collection of Legislation of the Russian Federation, 2014, No. 16, Article 1838)

8. Income expressed in foreign currency is recalculated for tax purposes into rubles at the official rate established by the Central Bank of the Russian Federation on the date of recognition of the relevant income, unless otherwise established by this paragraph.

Claims (obligations), the value of which is expressed in foreign currency, property in the form of currency values are converted into rubles at the official rate established by the Central Bank of the Russian Federation on the date of transfer of ownership of the specified property, termination (fulfillment) of claims (obligations) and (or) on the last day of the current month, depending on what happened earlier.

If, when recalculating the value of claims (obligations) expressed in foreign currency (conventional monetary units) payable in rubles, a different foreign exchange rate is applied, established by law or by agreement of the parties, the recalculation of income, claims (obligations) in accordance with this paragraph is carried out according to this course.

In the case of receiving an advance or deposit, income expressed in foreign currency is recalculated into rubles at the official rate established by the Central Bank of the Russian Federation on the date of receipt of the advance or deposit (in the part attributable to the advance or deposit).

(Clause 7 is considered clause 8 on the basis of the Federal Law of May 29, 2002 N 57-FZ - Collection of Legislation of the Russian Federation, 2002, N 22, Art. 2026; as amended by the Federal Law of April 20, 2014 N 81-FZ — Collection of Legislation of the Russian Federation, 2014, No. 16, Article 1838)

(Article 271 was introduced by Federal Law of August 6, 2001 N 110-FZ - Collection of Legislation of the Russian Federation, 2001, N 33, Art. 3413)

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Article 270. Expenses not taken into account for tax purposes

Article 271. Procedure for recognizing income using the accrual method

Article 272. Procedure for recognizing expenses using the accrual method

Questions and answers on Article 271

#44755 28.07.2019 (19:38)

Sale of indoor plants

Hello. I love indoor plants and how can I sell a couple of them without having problems with the tax authorities? I want to sell resources via the Internet, for example Avito.

Author: Zoya Replies: 4 Reply Read more

#2684 01.09.2015 (12:12)

Court expenses. Accounting. VAT

The organization won a court case to recover the amount of debt for previously performed work. Court costs were also collected from the defendant. How to formalize the collected amounts of legal costs in accounting and tax accounting? Will legal costs received in accordance with a court decision be subject to VAT? The organization applies a general taxation system.

Author: Volkov Sergey Replies: 4 Reply Read more

Continuing contracts

According to the Russian Ministry of Finance (see, for example, Letter No. 03-03-05/3/59 dated July 14, 2004), expenses are subject to distribution only under contracts that provide for the receipt of income over several periods. At the same time, as follows from the Letter of the Federal Tax Service of Russia for Moscow dated March 14, 2006 N 20-12/19599, the tax authorities believe that the taxpayer is obliged to take into account expenses evenly for any ongoing contracts, and not only for those that provide receipt of income over several periods.

Determining the date of receipt of income

In paragraph 7 of the Information Letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated December 22, 2005 N 98 “Review of the practice of resolving cases by arbitration courts related to the application of certain provisions of Chapter 25 of the Tax Code of the Russian Federation” the following is explained. Based on clause 3 of Art. 271 of the Tax Code of the Russian Federation, when applying the accrual method, the date of receipt of income from the sale of goods is recognized as the date of sale, determined in accordance with clause 1 of Art. 39 of the Tax Code of the Russian Federation as the date of transfer of ownership of the goods . In the situation considered by the court, the parties did not ensure compliance with the terms of the agreement to retain ownership of the goods by the seller. The specified agreement of the parties, not reflecting their actual relations and real financial and economic results of activity, cannot be taken into account for tax purposes. In the case under consideration, this means that when taking into account income from the sale of goods for tax purposes in accordance with Art. 39, paragraph 3, art. 271 of the Tax Code of the Russian Federation should not take into account the provisions of the agreement on the retention of ownership rights by the company until full payment for the goods. Therefore, the court agreed with the decision of the tax authority, which was based on the conclusion that it was necessary to take into account income in the period in which the company handed over the goods to the carrier for delivery to the buyer .

Non-operating income and expenses in tax accounting

A detailed list of income and expenses that are not directly related to the main activities of the company, but recognized for tax accounting purposes, is contained in Art. 250 and in paragraph 1. Art. 265 Tax Code of the Russian Federation.

Not all non-operating expenses reduce the company's tax base. For tax purposes, incl. The following types of expenses can be taken into account:

for the maintenance of rented objects (including those leased), including their wear and tear;
interest on debt obligations;
issue of own securities and their redemption;
servicing purchased shares and bonds;
expenses caused by negative/positive exchange rate differences;
subsoil use costs for areas of offshore hydrocarbon deposits;
expenses for liquidation of written-off fixed assets, write-off of intangible assets;
expenses for preservation and re-preservation of OS, incl. for their maintenance during the conservation period;
legal costs (including arbitration fees);
fines and penalties for obligations accrued to debtors in court;
taxes associated with the supply of goods and materials, works, services, if their supply resulted in accounts payable, written off in the prescribed manner;
services of credit institutions;
losses listed in clause 2 of Art. 265 Tax Code of the Russian Federation.

The list of expenses specified in Art. 265 of the Tax Code of the Russian Federation, is not exhaustive: paragraph 20, paragraph 1 of Art. 265 of the Tax Code of the Russian Federation allows you to add to their composition any other expenses, at the discretion of the taxpayer, which are justified and satisfy two main criteria:

expenses are not related to the manufacture or sale of products;
reduce the amount of taxable profit.

It should be noted that this list differs from the one used for accounting purposes and given in paragraph PBU 10/99.

Non-operating income accepted for tax accounting purposes is listed in Art. 250 Tax Code of the Russian Federation. These include, in particular, the following income:

from exchange rate differences;
from equity participation in other companies;
from leasing various objects, including plots of land (subleasing);
from granting for use rights to the results of intellectual activity;
interest received on bank deposits and securities;
in the form of property received free of charge;
amounts of damages, penalties and fines in favor of the company;
accounts payable (written off after the expiration of the limitation period);
surpluses identified during inventory;
income from previous years.

For accounting purposes, a list of such income is given in paragraph 7 of PBU 9/99.

An important condition for accepting non-operating revenues and expenses for tax accounting is their documentary confirmation and the validity of their classification in this category, and not in the main activity.

Change in revenue recognition method

The provisions of the Tax Code of the Russian Federation do not provide for a special procedure for accounting for the income and expenses of an organization when switching from one method of recognizing income to another. As follows from the position of the Ministry of Finance of Russia, set out in Letter No. 03-03-04/1/854 dated December 21, 2006, income is recognized on the date of transition. At the same time, the Moscow Office of the Federal Tax Service of Russia, in Letter No. 20-12/89146 dated October 10, 2006, explained that the rules of Art. Art. 271 and 272 of the Tax Code of the Russian Federation. Moreover, for transactions that the taxpayer carried out before switching to the accrual method, income for profit tax purposes during the period of application of the accrual method will be recognized as payment is received in any prescribed manner.

Comparison

The main difference between the accrual method and the cash method is that with the first, income and expenses are recognized at the moment the grounds for settlements between counterparties actually arise (for example, after delivery or, conversely, receipt of goods). While in the second case, revenue and costs are recognized upon receipt of funds in the cash register or bank account of the company or their debit, even if the company (or its counterparty) has not yet actually received or delivered the goods.

Of course, financial settlements and the corresponding legal actions of the company - the supply or purchase of goods, works, services - can be carried out in one reporting period, or even simultaneously. In this case, experts recommend that companies recognize income and expenses and reflect them in accounting using the accrual method - since there are no restrictions for its use in the Tax Code of the Russian Federation.

Having considered the difference between the accrual method and the cash method, we will reflect the main conclusions in the table.