Classification of income for tax purposes
The correct calculation of income tax depends on the correct classification of expenses and income. In the Tax Code of the Russian Federation, Art. is devoted to the grouping of income. 248:
This article does not mention income not taken into account in tax calculations. They are given attention in a separate article. 251 Tax Code of the Russian Federation. The list given in it is closed, and the taxpayer does not have the right to an expanded or free interpretation of this group of income. Income that is not included in this list automatically replenishes the group of taxable income and participates in tax calculations.
This classification is fully applied by organizations - payers of income tax and payers of the simplified tax system - income minus expenses and simplified taxation system - income (Article 346.15 of the Tax Code of the Russian Federation).
The nuances of income recognition by simplifiers are described in the articles:
- “STS 6 percent - what is income?”;
- “Is loan repayment considered income under the simplified tax system?”
Groups of non-taxable income
Based on the structure of Art. 251 of the Tax Code of the Russian Federation, non-taxable income can be grouped as follows:
Among the most common income tax-free income are advances and loans received by the organization, contributions to the authorized capital, pledge, deposit, etc.
During the course of business activities, the taxpayer may not encounter many receipts classified as non-acceptable at all or may encounter them in isolated cases.
Recently, the list of income under Art. 251 of the Tax Code of the Russian Federation has been replenished several times. We will tell you what other income is not subject to income tax from 01/01/2019.
The company uses the cash method of accounting
Revenues should be recognized in the period in which they are earned. The day the income is received is the day when the money is received at the cash desk or credited to the current account (Clause 2 of Article 273 of the Tax Code of the Russian Federation). Advances from buyers and customers should also be included in the calculation of the tax base on the day the funds are received (clause 2 of Article 249, subclause 1 of clause 1 of Article 251 of the Tax Code of the Russian Federation).
It should be added that the current legislation establishes a list of income exempt from taxation. These include, in particular:
- prepayment received from the counterparty, provided that the company uses the accrual method;
- deposit or pledge received as security for obligations;
- cash and property received as a contribution to the authorized capital;
- property received from participants (shareholders) to increase the net assets of the company;
- funds or property received under credit agreements and loan agreements.
A complete list of income that is not subject to taxation is given in Article 251 of the Tax Code of the Russian Federation.
Adjustment of the list of non-taxable income
Legislators adjust the list of non-taxable income from time to time. Let's talk about two such innovations and the clarifications that appeared in connection with this from the Federal Tax Service and the Ministry of Finance.
Subclause 11.1 clause 1 art. 251 Tax Code of the Russian Federation
With the advent of this subclause, money returned to the shareholder that he previously contributed to the organization’s property is not subject to income tax. This refers to funds received by an organization free of charge (within the limits of its initial contribution) from a business company or partnership of which such an organization is a shareholder (participant).
In this case, two conditions must be met simultaneously:
- the refund is made within the amount of the previously made cash contribution to the property;
- the taxpayer has documentary evidence of the size of the contribution made by the shareholder and the amount of funds returned to him free of charge.
In these circumstances, a transaction occurs that is the opposite of receiving money as a contribution to the organization’s property, the income from which under sub. 3.7 clause 1 art. 251 of the Tax Code of the Russian Federation is not taken into account when calculating income tax (letter of the Ministry of Finance of Russia dated February 14, 2019 No. 030-03-06/1/9345).
Subclause 11.2 clause 1 art. 251 Tax Code of the Russian Federation
Based on this subparagraph, it is legal not to impose income tax on income in the form of the results of work on the reconstruction and (or) transfer of fixed assets carried out by third-party organizations if:
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- these works were carried out in connection with the creation of another capital construction facility that is in state or municipal ownership;
- These works are financed from the budget.
According to the explanations of the tax authorities, the specified income is included in the group of non-taxable income, regardless of the date of state registration of ownership of capital construction projects being created (letter of the Federal Tax Service of Russia dated March 27, 2019 No. SD-4-3 / [email protected] ).
Officials from the financial department added one clarification: if work is financed by private individuals on another capital construction project, the income is subject to income tax in the generally established manner (letter of the Ministry of Finance of Russia dated March 27, 2019 No. 03-03-06/1/20674). It is recognized on the date of signing by the parties of the property acceptance and transfer act as non-operating income for income tax.
Article 251 of the Tax Code of the Russian Federation. Income not taken into account when determining the tax base
15) in the form of the value of shares additionally received by the organization-shareholder, distributed among shareholders by decision of the general meeting in proportion to the number of shares owned by them, or the difference between the par value of new shares (shares) received in exchange for the original ones and the par value of the initial shares (shares) of the shareholder ( participant) when distributing shares (stakes) between shareholders when increasing the authorized capital of a joint-stock company (limited liability company) (without changing the share of participation of the shareholder (participant) in this joint-stock company (limited liability company);
16) in the form of a positive difference resulting from the revaluation of precious stones when changing the price lists of estimated prices for precious stones in accordance with the established procedure;
17) in the form of amounts by which in the reporting (tax) period there was a decrease in the authorized (share) capital of the organization in accordance with the requirements of the legislation of the Russian Federation;
18) in the form of the cost of materials and other property that are obtained during dismantling, disassembly during the liquidation of decommissioned facilities destroyed in accordance with Article 5 of the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on Their Destruction and with Part 5 of the Appendix on verification of the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on Their Destruction;
19) in the form of the cost of reclamation and other agricultural facilities received by agricultural producers (including on-farm water pipelines, gas and electric networks), built at the expense of budgets of all levels;
20) in the form of property and (or) property rights that are received by organizations of the state reserve of special (radioactive) raw materials and fissile materials of the Russian Federation from operations with material assets of the state reserves of special (radioactive) raw materials and fissile materials and are aimed at the restoration and maintenance of these reserves ;
21) in the form of amounts of accounts payable of the taxpayer for the payment of taxes and fees, penalties and fines to budgets of different levels, for the payment of contributions, penalties and fines to the budgets of state extra-budgetary funds, written off and (or) reduced otherwise in accordance with the legislation of the Russian Federation or by decision of the Government of the Russian Federation;
21.1) in the form of amounts of terminated bank obligations under subordinated loan agreements (deposit, loan, bond issue) on the grounds provided for in Article 25.1 of the Federal Law “On Banks and Banking Activities”, when measures are taken in relation to such a bank to prevent bankruptcy with the participation of the Central Bank Russian Federation or the state corporation “Deposit Insurance Agency, State Corporation for Space Activities “Roscosmos”;
21.2) in the form of property (including cash) received by the bank from the sale to the Central Bank of the Russian Federation of federal loan bonds specified in Part 6 of Article 3 of the Federal Law of December 29, 2014 N 451-FZ “On Amendments to Article 11 of the Federal Law” On insurance of deposits of individuals in banks of the Russian Federation" and Article 46 of the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)";
21.3) in the form of amounts of terminated obligations of the taxpayer, which are determined by an act of the Government of the Russian Federation, adopted on the basis of Part 3 of Article 5 of Federal Law No. 263-FZ of July 29, 2021 “On Amendments to Certain Legislative Acts of the Russian Federation”;
22) in the form of property received free of charge by state and municipal educational institutions for the conduct of their main types of activities, as well as in the form of property received free of charge by organizations carrying out educational activities, which are non-profit organizations, for the implementation of educational activities;
23) in the form of fixed assets received by organizations that are part of the structure of the All-Russian public-state organization “Voluntary Society for Assistance to the Army, Aviation and Navy of Russia” (DOSAAF of Russia) (when transferring them between two or more organizations that are part of the structure of DOSAAF of Russia), used for training citizens in military specialties, military-patriotic education of youth, development of aviation, technical and military-applied sports in accordance with the legislation of the Russian Federation;
24) in the form of a positive difference obtained during the revaluation of securities at market value;
25) in the form of amounts of restored reserves for the depreciation of securities (with the exception of reserves, the costs of creating which, in accordance with Article 300 of this Code, previously reduced the tax base);
26) in the form of property (except for funds) that was received free of charge by unitary enterprises from the owner of the property of this enterprise or an authorized body. The procedure for recognizing received funds as income is similar to the procedure for recognizing subsidies in income, provided for in paragraph 4.1 of Article 271 of this Code;
27) in the form of property (including funds) and (or) property rights that are received by a religious organization in connection with the performance of religious rites and ceremonies and from the sale of religious literature and religious objects;
28) in the form of amounts received by universal service operators from the universal service reserve in accordance with the legislation of the Russian Federation in the field of communications;
29) in the form of property, including money, and (or) property rights that were received by a mortgage agent or a specialized company in connection with their statutory activities;
30) lost force in accordance with Federal Law dated November 29, 2010 No. 313-FZ;
31) in the form of amounts of income from investing pension savings, formed in accordance with the legislation of the Russian Federation, received by organizations acting as insurers for compulsory pension insurance;
32) in the form of capital investments in the form of inseparable improvements to the leased property made by the lessee, as well as capital investments in fixed assets provided under a free use agreement in the form of inseparable improvements made by the borrower organization;
33) income of shipowners received from the operation and (or) sale of ships registered in the Russian Open Register of Ships by persons who have received the status of a participant in a special administrative region in accordance with Federal Law of August 3, 2021 N 291-FZ “On Special Administrative Districts in the Territories” Kaliningrad Region and Primorsky Territory”, or in the Russian International Register of Ships.
For the purposes of this chapter, under the operation of ships registered in the Russian Open Register of Ships by persons who have received the status of a participant in a special administrative region in accordance with Federal Law of August 3, 2021 N 291-FZ “On Special Administrative Regions in the Territories of the Kaliningrad Region and Primorsky Territory”, or in the Russian International Register of Ships, means the use of such ships for the transportation of goods, passengers and their luggage and the provision of other services related to the said transportation, provided that the point of departure and (or) destination are located outside the territory of the Russian Federation, as well as delivery such vessels for rent for the provision of such services;
33.1) in the form of funds received by state institutions from income-generating activities and, in accordance with the budget legislation of the Russian Federation, subject to transfer to the budget system of the Russian Federation;
33.2) income of shipowners received from the operation and (or) sale of ships built by Russian shipbuilding organizations after January 1, 2010 and registered in the Russian Open Register of Ships by persons who received the status of a participant in a special administrative region in accordance with Federal Law No. of August 3, 2021 291-FZ “On special administrative regions in the territories of the Kaliningrad region and Primorsky Krai”, or in the Russian International Register of Ships. At the same time, the operation of such vessels for the purposes of this subclause means their use for the transportation of goods, passengers and their luggage, towing and provision of specified services and activities, regardless of the location of the point of departure and (or) destination, as well as the rental of such vessels for given use;
34) income of a development bank - a state corporation, as well as income in the form of profit of foreign companies controlled by such a bank;
34.1) income of an autonomous non-profit organization created in accordance with the Federal Law “On the protection of the interests of individuals who have deposits in banks and separate structural divisions of banks registered and (or) operating in the territory of the Republic of Crimea and in the territory of the federal city of Sevastopol”;
34.2) in the form of funds remaining after the liquidation of an autonomous non-profit organization created in accordance with the Federal Law “On the protection of the interests of individuals having deposits in banks and separate structural divisions of banks registered and (or) operating in the territory of the Republic of Crimea and in the territory federal city of Sevastopol” and included in the compulsory deposit insurance fund;
35) in the form of amounts of income from investing savings for housing provision for military personnel, intended for distribution among the registered savings accounts of participants in the savings and mortgage system for housing provision for military personnel;
36) lost force in accordance with Federal Law dated December 1, 2007 No. 310-FZ;
37) in the form of property and (or) property rights received under a concession agreement, public-private partnership agreement, municipal-private partnership agreement in accordance with the legislation of the Russian Federation, with the exception of funds received from the grantor or public partner for the specified agreements;
38) income from the function of providing financial support for major repairs of apartment buildings, resettlement of citizens from emergency housing stock and modernization of communal infrastructure systems in accordance with Federal Law of July 21, 2007 N 185-FZ “On the Fund for Assistance to Reform of Housing and Communal Services "(hereinafter referred to as the Federal Law "On the Fund for Assistance to the Reform of Housing and Communal Services") of a non-profit organization, which were received from the placement (investment) of temporarily available funds;
39) funds within the limits of payment to the victim, received by the insurer that provided direct compensation for losses to the victim in accordance with the legislation of the Russian Federation on compulsory insurance of civil liability of vehicle owners, from the insurer that insured the civil liability of the person who caused damage to the property of the victim;
40) in the form of the cost of airtime and (or) print space received free of charge by taxpayers in accordance with the legislation of the Russian Federation on elections and referendums;
40.1) in the form of the cost of airtime and (or) print space received free of charge by taxpayers in accordance with the Law of the Russian Federation on the amendment to the Constitution of the Russian Federation of March 14, 2021 N 1-FKZ “On improving the regulation of certain issues of the organization and functioning of public power” ;
41) income in cash and (or) in kind received by an all-Russian public association operating in accordance with the legislation of the Russian Federation on public associations, the Olympic Charter of the International Olympic Committee and on the basis of recognition by the International Olympic Committee, or an all-Russian public association carrying out its activities in accordance with the legislation of the Russian Federation on public associations, the Constitution of the International Paralympic Committee and on the basis of recognition by the International Paralympic Committee, namely:
Non-taxable income of foreign companies
It is important for an organization to correctly classify non-taxable income when performing the functions of a tax agent, when it is necessary to calculate, withhold and transfer to the budget income tax on the income of foreign organizations (Clause 2 of Article 287 of the Tax Code of the Russian Federation).
Income received by a foreign company from the provision of services in the territory of the Russian Federation is not subject to income tax at the source of payment if it does not lead to the formation of a permanent representative office in Russia (Clause 2 of Article 309 of the Tax Code of the Russian Federation). Such income includes income from business activities that are not carried out on a regular basis in our country.
Example
Industrial Technologies LLC paid the foreign company Production Ltd for one-time work on setting up equipment. To carry out the work, the foreign contractor sent three of its specialists to Russia on a business trip for 10 days.
The work is not of a permanent nature on the territory of the Russian Federation and is not subject to taxation at the source of payment (Russian LLC Industrial Technologies) (clause 2 of Article 308 of the Tax Code of the Russian Federation).
