In the publication consultation as the charitable help is correct for issuing and reflecting in the account is given.
Quite often agricultural enterprises render the charitable help, free of charge transferring money, TMTs or rendering service as to individuals (including to employees of the enterprises), and legal (including the non-profitable organizations, for example hospitals, schools the Village Soviets, etc. In consultation we will tell, how this help is correct for issuing and reflecting in the account.
Documentary registration
As appears from group of companies, the charitable help can be carried out in the form of donation or a donation.
Under the donation contract one party free of charge peredaet or undertakes to transfer to the possession in the future of other party property. Object of such contract can be movable (the goods, production, money) and immovable property (Art. 717 of group of companies).
According to Art. 720 of group of companies enterprise societies can sign the donation contract among themselves if the right to carry out donation is directly provided by statutory documents of the donator. If such right isn’t established, it is necessary to sign the donation contract.
The contract of a donation is a version of the contract of donation (Art. 729 of group of companies). They differ that do a donation for achievement of the opredelenyony, obviously stipulated purpose. For example, in case the legal entity transfers to hospital any medical equipment intended for an isyopolzovaniye in the medical or diagnostic purposes.
According to standards of Civil Code when rendering by the enterprise of the blagoyotvoritelny help to other legal persons or citizens the written contract should be concluded.
Pay attention! Written it is considered also the contract fixed in letters and telegrams, koyotory the parties (Art. 207 of group of companies) exchanged. For example, one enterprise sends the letter to other enterprise with a request to provide it the charitable help in a type of any goods. Other enterprise also in the letter expresses a consent to render such help. In this case the exchange of letters testifies to the conclusion of the contract and the separate contract isn’t obligatory.
Documentary registration of free transfer of deyonezhny means, TMTs and rendering of services is carried out on the basis of the order (order) of the director. Thus:
• by transfer of money the rasyokhodny cash warrant or the payment order on transfer of money is made out;
• by transfer of the goods and production – the consignment note on holiday or the acceptance transfer act;
• at free rendering of service – the act of the executed works (the rendered services).
Taxation
Profits tax
From the point of view of the taxation of operation on bezyovozmezdny transfer of the goods, production and services are equated to sale (to item 1.31 of the Law on profit). However in this case the gross revenue of the transferring party is equal to zero as such operation doesn’t provide receiving any kompensayotsiya of cost of the transferred things by it.
To such conclusion we come on the basis of item 1.43 of the Law on profit. As in this Law there is no term "income" definition, will address to standards of the bukhgalteryosky account. According to item 5 P (C) BU 15 gratuitous transfer isn’t the income as doesn’t lead to growth of the capital of the enterprise. The similar opinion is stated to GNAU in the Letter No. 10022.
By gratuitous transfer of TMTs at the transferring party shouldn’t be and gross expenses on them
acquisition. The matter is that thus not vypolnyaetsya the main condition for receiving the right to VR – communication of operation with economic activity (item 1.32 of the Law on profit).
At the same time in certain cases cost bezvozyomezdno the transferred money and TMTs can be included in VR.
So, according to subitem 5.2.2 of the Law on profit of the sum of funds or cost of the goods, voluntary peredanyony in the State budget of Ukraine or budgets of local self-government, non-profitable organizaciyam* (their list is provided in item 7.11 of the Law on profit), can be included in gross expenses.
* the Recipient of the help should confirm "not profitability", having presented to transferring party a copy of the decision of naloyogovy body about its entering into the Register of the non-profitable organizations or a reference copy in a form No. 4-OPP with the indication of a code of not profitability (from 0001 to 0016).
Let’s notice that the enterprise has the right to VR tolko in case the charitable help makes more than 2, but it is less than 5 % of nalogooblayogayemy profit of the previous fiscal year (calculation of the sum of VR see in an example 1).
VAT
The help assessed by the VAT. If the charitable help appears in the form of money, niyokaky features in taxation of the VAT won’t be, as this operation isn’t delivery of the goods (services).
And here gratuitous transfer of TMTs and rendering of services according to the Law on the VAT (further – the Law) belongs to operations on delivery of the goods and services (item 1.4) which are object of taxation by this tax (subitem 3.1.1). The usual price of transferred material values (Law item 4.2) will be taxation basis in this case.
Therefore, at the moment of transfer of TMTs or a podyopisaniye of the act of the rendered services the enterprise should make the tax consignment note and store at itself its both copies.
We pay attention! If the enterprise, polzuyushheesya a special mode according to Law item 11.29 or 11.21, transfers gratuitously production (renders services) own production, this opeyoratsiya should be reflected in the special declaration on the VAT (takes place delivery of production (services) of own production).
Besides, as as a result of gratuitous transfer of the goods, production, services transferring storona doesn’t receive any economic benefits, this transfer can’t be connected with its economic activity. Therefore on the basis of subitem 7.4.1 of the Law of the sum of the "entrance" VAT on such TMTs (services) not in the tax credit (further – the Tax Code) the philanthropist (if they were carried there earlier, them correct a method "storno").
The help which is not assessed by the VAT. In certain cases Zayokon provides a privilege on payment of this tax. So, gratuitous transfer of the goods (services) to the non-profitable organizayotsiya which list is provided in subitem 7.11.1 (paragraphs "and", and e) the Law on profit (Law subitem 5.1.21) is released from the taxation. The specified organizations treat:
• public authorities of Ukraine, local government bodies and the uchrezhyodeniye created by them or the organizations which contain at the expense of means of the relevant budgets (a napriyomer, village, settlement, regional, city councils, establishments of education, a science, culture, health care);
• charity foundations and the welfare institutions created in an order, defined by the law for carrying out a charitable deyoyatelnost, including the public organizations created with a view of implementation of ecological, improving, sports, cultural, obrazoyovatelny and scientific activity, and also the tvorchesyoky unions and political parties, public organizations of disabled people, research establishments and higher education institutions of the III-IV levels the accreditations brought in the State register of scientific uchyorezhdeniye to which state support, reserves, memorial estates is provided;
• the religious organizations registered in an order, provided by the law.
To use a privilege on VAT payment, neobxodimo to request from the recipient of the help the reference on forme No. 4-OPP in which the code of not profitability-0001 – 0004, 0005 – 0008, 0014, 0013 is specified.
The law lays down one more condition for not taxation of the charitable help of the VAT (subitem 5.1.21) – it should be provided for a direct isyopolzovaniye for charitable purposes. As the enterprise rendering such help, can’t trace, where it will be used, we consider that for privilege application on the VAT to the recipient dostatochyono in the letter request on providing the help or the contract to specify that it uses it in the blagotvoyoritelny purposes.
To data: aren’t subject to release from an obloyozheniye of the VAT of operation on providing the blagotvoriyotelny help in a type of the goods assessed by the excise duty (them treat, for example, gasoline, diesel fuel, cars, tobacco products, alcoholic beverages and so forth), the imported goods and the goods intended for use in economic activity.
Attention! If at acquisition of the goods the uplayochenny (added) VAT was carried in Tax Code structure, in case of their transfer as the blagotvoritelyyony help falling under a privilege according to subitem 5.1.21 of the Law, the Tax Code isn’t corrected. But then on cost of the transferred goods it is necessary to add the tax obligations (further – BUT) proceeding from the usual price of such goods. This requirement contains in subitem 7.4.1 (the last paragraph) Law.
What conclusions can be made?
1. If the enterprise free of charge transfers money – the VAT isn’t charged.
2. By free transfer of TMTs or rendering of services which don’t fall under a privilege according to Law subitem 5.1.21, for transfer date on usual cost of such TMTs or services are charged BUT, thus the right to the Tax Code isn’t present.
3. If TMTs are free of charge transferred or services which fall under a privilege according to Law subitem 5.1.21 are rendered, for transfer date on usual cost of such TMTs or services are charged But also there is a right to the Tax Code.
PERSONAL INCOME TAX
Let’s consider features of taxation by this tax of the charitable help rendered to individuals. Cost of money, TMTs, the services which have been gratuitously received by the individual, is his income (subitem 4.2.9 e and 4.3.10 Laws No. 889). Thus transferring enterprise (the employer or not the employer) is the tax agent and should hold and transfer into the personal income tax budget (except sluchaev, specified in subitem 9.7.3 and 9.7.4 Laws No. 889 *).
In case of granting TMTs (rendering of services) obekt the taxation it should be estimated proceeding from the usual price of TMTs (services) with application of povyshayoyushchy factor as the income is charged and paid in a non-monetary form (Law No. 889 item 3.4). For today this factor makes 1,1765 (100 %: [100 % - 15 %]).
Payment is reflected in Tax calculation of a No. 1DF form for codes:
– 09 (if the transferring party is a rabotodayotel of such individual);
– 30 (if the transferring party isn’t a rabotoyodatel of such individual).
Accounting
The income of gratuitous transfer of the goods, production, rendering of services doesn’t admit accounting, as doesn’t correspond to criteria of the income, ustayonovlenny items 5 P (C) BU 15 "Income" (there is no growth of own capital).
Let’s consider a reflection order in the tax and bukhgalyotersky accounting of gratuitous granting TMTs on conditional numerical examples.
Example 1
The enterprise on the basis of the letter on the blagotvoritelyyony help acquired the medical equipment in cost of 8 000 UAH., including the VAT – 1 333,33 UAH., and gratuitously transferred it to hospital. Taxable surplus for 2006 – 100 000 UAH. BUT on the VAT aren’t charged, as operation falls under a privilege according to subitem 5.1.21 of the Law on the VAT.
(UAH.)
Example 2
The enterprise on the basis of the letter on the blagotvoriyotelny help gratuitously transferred to the individual – not to the employee of this enterprise grain of barley in number of 1 t. Usual cost of barley – 1 200 UAH/t, including the VAT – 200 UAH. Registration cost – 1 000 UAH.
(UAH.)
* financial support to workers For more details see consultation : account and taxation ("Balans-Agro", 2006, No. 21).
List of documents
1. Group of companies – the Civil code of Ukraine from 16.01.03 of No. 435-IV.
2. The law No. 531 – the Law of Ukraine from 16.09.97 of No. 531/97-BP About charity and welfare institutions.
3. The law No. 889 – the Law of Ukraine from 22.05.03 of No. 889-IV About a tax on the income of individuals.
4. The order No. 408 – the order GNAU from 05.07.07 of No. 408 About modification of the GNA some orders.
5. The letter No. 10022 – GNAU letter from 26.05.06 of No. 10022/7/15-0316.
(On Balans-Agro newspaper materials).