Transcript Document

Accounting and Taxation of
Transactions Involving
Fixed Assets
Galina Klimenko
Pyotr Semenov
June 6, 2007
Contents
1.
2.
3.
4.
5.
6.
Procedure for entering objects into list of fixed
assets
Calculating amortization of fixed assets
Retiring fixed assets
Account of expenses for acquisition of land in tax
account
Reflecting methods for accounting for fixed assets
in accounting policy
Procedure for deducting taxes in accounting for
fixed assets (VAT, property tax, transportation tax)
Procedure for entering objects into list of
fixed assets
Bookkeeping account:
Tax account:
- Intended for use in
production
- Ownership rights in it
- Use for more than 12
months
- Use for more than 12
months
- Not intended for resale
- Cost more than
10000 rubles
- Capable of bringing
income in the future
- Used to attract income
Calculating amortization of fixed assets
средствам
Bookkeeping account
Tax account
Linear
Declining balance
Linear
Sum of years
Proportional to volume of production
Nonlinear
Retirement of fixed assets
• Sale
• Liquidation
• Other reasons for retirement
Account of expenses for acquisition
of land in tax account
Conditions for entering as expenses:
1. Land acquired from state or municipality;
2. If a building (structure) is located on the land or
it is intended for capital construction
Variant of acceptance to charges
Straight-line
Depending on amount of profit
Reflecting method of accounting for fixed
assets in accounting policy
Bookkeeping account:
Tax account:
- limit of value
- amortization method
- amortization method
- inventory
- size of amortization
premium
- useful life
- application of coefficients
- materiality level
- creation of reserves
- criteria of investment asset
- procedure for accounting
for expenses in acquisition
of land
- special clothing account
VAT
Before January 1,
2006
Type of capital
investment
After January 1,
2006
Tax deductions for construction
Claimed,
paid, but
not
accepted as
tax
deduction
Claimed,
paid, but not
accepted as
tax deduction
VAT of
contractors
According to amount
claimed by organization
contractors
VAT
According to
amount registered
in fixed assets
account, or
realized unfinished
capital
construction
In equal shares
VAT of contractors
throughout 2006. If
fixed asset entered
into account, or
unfinished capital
construction
realized, then in
2006.
Claimed, paid, but
not accepted as
deduction prior to
January 1, 2005
For shipping
For wages:
а) claimed, paid
b) claimed, unpaid
Building and
construction works
for own use
According to
amount
claimed by
suppliers
VAT
According to amount
registered in fixed
assets account, or
realized unfinished
capital construction
In equal shares
throughout first half of
2006 (per freight out)
а) December 2005
b) As fixed asset is
placed into use (in
opinion of Ministry of
Finance)
Основное средство не требующее монтажа
VAT
According to amount put
into use and payment
According to amount placed
into use, fixed assets
requiring mounting, per
entry
Tax Basis for Building and Construction Works
After entry of
fixed asset into
account for
building and
construction
works
completed
prior to
January 1,
December
31, 2005 for
building and
construction
works
completed in
2005
Each tax period in which
expenses were incurred for
building and construction
works
VAT
VAT deduction calculated for building and construction works
After placement into After payment to the
use and calculation
budget: January
of amortization
2006 or first quarter
2006
Per amount paid to budget
Property tax
Introduced by chapter 30 TC RF, goes into effect by laws of subjects of the RF
Payer
Organizations of the RF, foreign organizations.
Object
Property considered to be fixed assets under Russian
legislation according to remaining value, or inventory value of
objects according to technical inventory agencies on January 1
of each tax period.
Rate,
allowance
Set by subjects of the RF as no more than 2.2%, and may be
smaller. Rate may be scaled, depending on category of
taxpayer and property. Subjects also have the right to
establish allowances.
Property tax
Tax and
reporting
periods
Tax period – one year
Reporting period – 1 quarter, six months, 9 months.
Date for filing
report
Tax – by March 30
By the end of the accounting period – no later than 30
calendar days from the end of the reporting period.
Tax payment
Tax and advance tax payments must be paid by the
taxpayer in the manner and within the periods set by laws
of subjects of the Russian Federation. Tax payments are
made according to the location of the organization, real
estate tax payments are made according to the location of
the real estate. For separate subdivisions, according to
location of the subdivision.
Transportation tax
Introduced by chapter 28 TC RF, goes into effect by laws of subjects of the RF
Taxpayer
Entities to whom means of transport are registered in
accordance with legislation in effect.
Object
Objects subject to taxation are considered to be automobiles,
motorcycles, motor scooters, buses, and other self-propelled
machines and mechanisms on pneumatic wheels or caterpillar
tracks, airplanes, helicopters, motor vessels, yachts, sailboats,
cutters, snowmobiles, motor sleds, jet skis, non-self-propelled
(towed ships) and other water and air means of transport
(hereinafter means of transport, per chapter 28 TC RF),
registered as required by corresponding legislation of the
Russian Federation.
rate,
allowance
Set by subjects of the RF, and can be increased or lowered by
500%.
Transportation tax
Tax and
accounting
periods
Tax period - One year
Reporting period. One quarter, six months, nine months.
Subjects of the RF have the right not to establish reporting
periods.
A for filing
report
Tax – by February 1 of the following tax period.
At the end of reporting period – no later than the last day
of the month following the reporting period.
Tax payment
Tax and advance tax payments are subject to payment
according to legislation of subjects of the RF. The date for
payment of tax cannot be earlier than the date for filing tax
declarations or computations.
Thank you for your attention!
Respectfully and with best wishes,
Tel: (495) 223 6595, 710 7027
(495) 506 5086
www.acg.ru