Businessman on a common system of taxation provided from your business account returnable financial assistance to legal entities. What are the tax consequences of it can be expected? Do I need an entrepreneur to transfer funds and their returns reflect the Book of income and expense ? Should the legal entity reflect the amount returned by a fax. 1DF number ? (Question entered the forum on site «Accounting and Taxes «).
On the basis of Art. 177.2 of the Tax Code of Ukraine object of taxation on personal income is the difference between the income of the entrepreneur and documented expenses . As seen from the art. 177.1 Tax Code of Ukraine tax on » entrepreneurial » rules shall be subject to income derived from the entrepreneur is the economic activities and you use the «general» tax rate set by Art. 167.1 Tax Code of Ukraine . In determining the cost entrepreneur Tax Code of Ukraine refers to the list of costs of operations outlined in section III of the Tax Code (in this section is determined by the order of calculation and payment of corporate income tax ) .
The term » recurrent financial assistance » is used , as a rule , only in the area of ??tax law, as in the Civil Code of Ukraine (hereinafter — CCU ), a similar concept is not found . In such a situation, the economic operation of the closest in fact civil legal relations between the parties to the loan agreement (§ 1 Ch. 71 of the Civil Code ) . With this transaction , one party ( the lender ) transfers property to another party ( the borrower ) money or other things , and the borrower undertakes to return such property. At the request of Art. 1047 of the Civil Code of the loan agreement is in writing if its amount is more than 170 UAH , And in cases where the creditor is a legal person — regardless of the amount. This agreement may provide for the accrual of interest or be interest-free .
Somewhat differently interprets these legal tax laws . Art. 14.1.257 Tax Code of Ukraine under repayable financial assistance means the amount of funds received by the taxpayer for use by the contract does not provide for any interest or provide other forms of compensation in the form of fees for the use of these funds , which are required for a return . Along with this, the Tax Code of Ukraine states that financial assistance may be provided on an irrevocable basis . Thus, in the context of the Tax Code of Ukraine terminology , settlement , for example, the contract will be treated as an interest-free loan repayable financial assistance provision .
Transfer of counterparty financial aid and returning back to the tax account owner has no effect . First, a component of operating expenses in section III Tax Code of Ukraine this operation is not mentioned , and therefore include it in the cost of economic activities will not succeed. And if the contractor did not return in time returnable financial aid , then take it to the sum of the costs of a questionable or hopeless , too, will not work , since such operations Art. 159 Tax Code of Ukraine its effect does not spread . Second, in Art. 165.1.31 Tax Code of Ukraine indicated that part of the taxable income does not include getting the principal amount repayable financial assistance previously provided by the taxpayer to others , which is returned to him . Furthermore, in the Art. 135.5.5 Tax Code of Ukraine set a rule that the tax obligation of the person who provided financial assistance , do not change — both in its issue , and getting back at her .
According to the provisions of Art. 177.10 Tax Code of Ukraine entrepreneurs are required to keep books of account of income and expenditure. The form of such books and the order of reference for the » system-wide » business approved by order of the STA of Ukraine of 24.12.2010 № 1025 (hereinafter — the order number 1025 ) . In Section 3 of the attached to the Order number 1025 Order of conducting the said books , found that in the tax ledger shows income and expenses from business activities. Because providing operations and return repayable financial assistance are neither income nor expenditure entrepreneur , then reflect these transactions in the Book of income and expense entrepreneur is not necessary.
In situations where the aid recipient is a legal entity , it may be the need to reflect the owner of returned assets in the calculation of form number 1DF that tax agents are required to file quarterly. But, first , this company will not be considered in the interpretation of tax agent st.14.1.180 Tax Code of Ukraine ( as the amount returned by the entrepreneur are not income ) . Secondly , paragraph b) of Art. 176.2 expressly provides that such a calculation is applied only in the case of calculating the amounts of income tax agent of the taxpayer during the reporting period. Because the refund of income is his employer will not, and the company will not be considered a tax agent, reflect similar amounts outstanding under the form number 1DF not necessary.
Published in 2012
* Tax calculation of the amounts of income accrued ( paid ) for the benefit of taxpayers and the amount of taxes withheld , approved by order of the State Tax Administration of 24.12.2010 . № 1020