Useful information
Doing business in Russia
Useful information
- List of cost for purpose of
taxation.
- List of limited expenses for
corporate tax purpose according to Tax code of Russian Federation
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List of limited expenses for corporate tax purpose according to Tax code of Russian Federation
According to Tax code of Russian federation some expenses for Corporate tax
purpose are limited.
1. Representation outlays
To the representation outlays shall be referred the taxpayers' outlays on
official receptions and (or) on servicing the representatives of other
organisations, taking part in negotiations aimed at establishing and (or) at
maintaining mutual cooperation, as well as the participants who have arrived to
attend the meetings of the taxpayer's board of directors (of the board) or of
the other management body, regardless of the place of holding such events. To
the representation outlays shall be referred those made on holding official
receptions (lunches, dinners or other similar events) arranged for the said
persons, as well as for the officials of a taxpaying organization participating
in the talks, on providing transport facilities to take these persons to the
place of holding representation events and (or) meetings of the management body
and back, on snack bar servicing during negotiations, and on the remuneration of
the services of interpreters who are not on the tax payer's staff, to provide
for translation during the representation events.
To the representation outlays shall not be referred those made on organising
entertainment and recreation, prophylactic activity or the treatment of diseases.
The representation outlays shall be included in the course of the reporting (tax)
period in the composition of the other outlays in an amount not exceeding 4 per
cent of the taxpayer's outlays on the remuneration of labour over this reporting
(tax) period.
2. Outlays on personnel training and retraining
To the taxpayer's outlays on personnel training and retraining carried out on
the grounds of contracts with educational establishments shall be referred
outlays involved in the training and retraining (including in raising the
qualifications of personnel) in conformity with the contracts signed with these
establishments.
The said outlays shall be included in the composition of the other outlays, if:
1) the corresponding services are rendered by Russian educational establishments
which have received state accreditation (possess the corresponding licence), or
by foreign educational establishments with the corresponding status;
2) training (retraining) is provided to the workers on the tax payer's staff and
in the operating organisations responsible for maintaining the qualifications of
workers employed at nuclear power plants - to the workers of these plants, in
conformity with the legislation of the Russian Federation;
3) the programme for training (retraining) helps in raising qualifications and
encourages a more efficient use of the trained or the retrained specialist in
this organisation in the framework of the tax payer's activity.
Not recognised as outlays on personnel training and retraining shall be the
outlays involved in organising entertainment, recreation or medical treatment,
or outlays connected with the maintenance of educational establishments or with
rendering them gratuitous services, with the payment for the workers' studies at
higher and secondary special educational establishments for them to receive a
higher or secondary special education. The said outlays shall not be accepted
for the purposes of taxation.
3. Advertising expenses.
- the outlays on advertising effected through the mass media (including
announcements in the press and in radio and television programmes) and the
telecommunication networks;
- outlays on lit and other outdoor advertising, including the manufacture of
advertisement stands and panels;
- outlays on taking part in exhibitions, fairs and displays, on the decoration
of showcases, of sales exhibitions, rooms for the exposition of samples and
demonstration halls, on the production of advertising booklets and catalogues
containing information on the works and services carried out and rendered by an
organization, or on an organization proper, and on the price discounts
concerning the commodities which have fully or partially lost their original
properties because of being put on display.
The taxpayer's outlays on the acquisition (the manufacture) of the prizes given
out to the winners during the large scale advertising campaigns, as well as the
taxpayer's outlays on other types of advertising not indicated above, which are
carried out by him with a report (tax) period for the purposes of taxation shall
be recognized in the amount not exceeding 1 per cent of the proceeds from sale.
4. The outlays on compensation for the use of personal passenger cars and
motorbikes
The outlays on compensation for the use of personal passenger cars and
motorbikes for making official trips within the limit of the norms established
by the Government of the Russian Federation; (from 600 to 1500 Rubles per month,
depend on type of car)
5. Business trip expenses.
The daily or field allowances within the limit of the norms approved by the
Government of the Russian Federation; (E.g. inside Russian Federation – 100
Rubles per day, France – 62 USD per day, etc.) |
