List of expenses under the simplified tax system “Income minus expenses” in 2021: table with explanation

What expenses reduce the simplified tax system “income minus expenses” in 2021? What is the new list of expenses with explanation? Details and a convenient table are in this material.

Also see:

• All changes to the simplified tax system from 2021;

A list of expenses for the simplified tax system with detailed comments is available in the Consultant+ system
. Get full and free access to the system for 2 days.

The principle of “income minus expenses”

Individual entrepreneur organizations that in 2021 apply the “simplified tax system” (STS) and pay a single tax on the difference between income and expenses have the right to reduce the tax base by the amount of expenses incurred (clause 2 of Article 346.18 of the Tax Code of the Russian Federation).

Having chosen the object of taxation “income reduced by the amount of expenses”, the payer of the simplified tax system in 2021 must keep records of income received and expenses incurred in the book of income and expenses. And based on this book, determine the final amount of tax to be paid.

What “gets” into income

As part of the “simplified” income, it is necessary to take into account income from sales and non-operating income (Article 346.15 of the Tax Code of the Russian Federation). In this case, income under the simplified tax system is recognized using the “cash” method. That is, the date of receipt of income is the day of receipt of funds, receipt of other property or repayment of debt by other means (clause 1 of Article 346.17 of the Tax Code of the Russian Federation).

What is included in expenses

The list of expenses that can be taken into account on a simplified basis is given in Article 346.16 of the Tax Code of the Russian Federation and is closed. This means that not any costs can be taken into account, but only justified and documented costs listed in the specified list. This list includes, but is not limited to:

• expenses for the acquisition (construction, production), as well as completion (retrofitting, reconstruction, modernization and technical re-equipment) of fixed assets;
• costs of acquiring or independently creating intangible assets;
• material costs, including costs for the purchase of raw materials and materials;
• labor costs;
• the cost of purchased goods purchased for resale;
• amounts of input VAT paid to suppliers;
• other taxes, fees and insurance premiums paid in accordance with the law. An exception is the single tax, as well as VAT allocated in invoices and paid to the budget in accordance with paragraph 5 of Article 173 of the Tax Code of the Russian Federation. These taxes cannot be included in expenses (subclause 22, clause 1, article 346.16 of the Tax Code of the Russian Federation).
• costs for maintenance of CCP and removal of solid waste;
• expenses for compulsory insurance of employees, property and liability, etc.

Features of tax reduction on insurance premiums

Unlike the simplified tax system, income is 6%, in the 15% regime it is not the amount of tax itself that is reduced, but the base formed for its calculation. Fixed contributions of individual entrepreneurs to themselves are simply made in full as part of the expenses taken into account, thereby reducing the base.

The situation is similar with contributions that are paid for hired employees. They are also fully included in expenses and participate in reducing the base. However, there is one peculiarity here. If an entrepreneur combines another regime with the simplified tax system, then it can only be included in expenses by making contributions for those employees who participate in activities that fall under the simplified tax system.

Breakdown of expenses: table

Some novice accountants are surprised: “How can one accurately understand from Article 346.16 of the Tax Code of the Russian Federation whether it is possible to reduce the simplified tax system for a particular expense or not?” Yes, indeed, some of the expenses described in this article raise questions. What exactly, for example, is included in labor costs? Or what costs should be attributed to solid waste removal in 2021? As a rule, the Ministry of Finance or the Federal Tax Service comes to the rescue on such issues and gives their explanations. Based on the Tax Code of the Russian Federation and official explanations, we have prepared a breakdown of expenses that in 2021 can be attributed to expenses under the simplified tax system with the object of taxation “income minus expenses.” Here is a table with expenses, which are expenses that are not directly named in article 346.16, but which can be taken into account in expenses:

Questions that arise ↑

In the process of transition to the simplified tax system and working under this taxation regime, a large number of different questions arise.

This applies to material expenses, advances, as well as a large number of other, no less important points.

Reflection of financial assistance

Financial assistance should also be displayed when maintaining accounting records. This is done as follows:

Upon transfer to production

It is very important to remember that the entire amount of material expenses for the current month must necessarily be reduced by all production inventories that are transferred directly to production.

Find out how accounting for individual entrepreneurs is carried out under the simplified tax system from the article: accounting for individual entrepreneurs using the simplified tax system. How to keep accounting records for an LLC under the simplified tax system, read here.

Basics of the simplified taxation system, see here.

You should not forget to carry out this operation, as otherwise it may entail considerable fines and a desk audit.

If a scientific conference is organized

Many companies organize scientific conferences and all kinds of seminars. In this case, all funds spent on such events are taken into account as “material expenses”.

Very often, tax services make claims in this regard on the basis of clause 4 of Article No. 264 and Article No. 252 of the Tax Code of the Russian Federation. But judges in most cases remain on the side of taxpayers.

What expenses cannot be taken into account?

It may also be useful for an accountant to become familiar with the breakdown of expenses that cannot be taken into account when calculating the simplified tax system “income minus expenses.” Let us summarize in the table the list of expenses that, as of 2021, are of a controversial nature. Or if the position of the Russian Ministry of Finance, the Federal Tax Service was expressed on this issue, or a court decision was made.

Read also

30.09.2016

Keeping records of materials (postings) ↑

Materials are displayed in accounting in different ways. It all depends on the payment method, as well as other important points. Postings for accounting for supplies of materials with payment upon receipt:

Postings for accounting for prepaid materials:

Reflection of receipt of materials from persons, carried out according to the usual scheme:

There are various nuances depending on the type of materials and other aspects of costs.