NPO | How to collect money on your card and not be afraid of the tax authorities

Legislation on charitable activities consists of the relevant provisions of the Constitution of the Russian Federation, the Civil Code, Federal Law of August 11, 1995 No. 135-FZ “On charitable activities and charitable organizations,” other federal laws and laws of the constituent entities of the Russian Federation.

Charitable activities are understood as voluntary activities of citizens and legal entities for the disinterested (free of charge or on preferential terms) transfer of property to citizens or legal entities, including money, disinterested performance of work, provision of services, provision of other support (Article 1 of the Federal Law on Charitable activities and charitable organizations; hereinafter referred to as Law No. 135 Federal Law).

The concept of charity

The concept of charitable activity is contained in Federal Law No. 135-FZ and is understood as providing “disinterested (free of charge or on preferential terms)” assistance to those who need it.

Assistance can be provided in the form of a voluntary “transfer of property, including funds, to citizens or legal entities, disinterested performance of work, provision of services, and provision of other support.” In addition, voluntary donations are permitted by Article 582 of the Civil Code of the Russian Federation.

Participants

There are always at least two participants in charitable activities:

1. A philanthropist is someone who provides material assistance or performs work or services for free.
2. A beneficiary is someone who accepts help from a benefactor in any form.

Both individuals and legal entities can play both roles. There is also an intermediate link, intermediaries - charitable foundations. These are organizations whose sole activity is to raise funds from those who are willing to donate and distribute the collected funds to a designated group of people in need.

The use of donations in this case is strictly controlled, since the funds have a purpose: protecting the Amur tigers, helping children with cancer, etc.

What are the goals of charitable activities?

Please note that the goals of charitable activities are enshrined in law. Their list is given in Art. 2 of Federal Law No. 135-FZ and looks like this:

• social support and protection of citizens, including improving the financial situation of low-income people, social rehabilitation of the unemployed, disabled people and other persons who, due to physical or intellectual characteristics or other circumstances, are not able to independently realize their rights and legitimate interests;
• preparing the population to overcome the consequences of natural disasters, environmental, industrial or other disasters, and to prevent accidents;
• providing assistance to victims of natural disasters, environmental, industrial or other disasters, social, national, religious conflicts, victims of repression, refugees and internally displaced persons;
• promoting the strengthening of peace, friendship and harmony between peoples, the prevention of social, national, and religious conflicts;
• promoting the strengthening of the prestige and role of the family in society;
• promoting the protection of childhood, motherhood and paternity;
• promoting activities in the field of education, science, culture, art, enlightenment, spiritual development of the individual;
• promoting activities in the field of prevention and protection of citizens' health, as well as promoting a healthy lifestyle, improving the moral and psychological state of citizens;
• promoting activities in the field of physical culture and sports (with the exception of professional sports);
• environmental protection and animal welfare;
• protection and proper maintenance of buildings, objects and territories of historical, religious, cultural or environmental significance, and burial sites;
• training the population in the field of protection from emergency situations, dissemination of knowledge about protecting the population and territories from emergency situations and ensuring fire safety;
• social rehabilitation of orphans, children without parental care, street children, children in difficult life situations;
• providing free legal assistance and legal education to the population;
• promoting volunteerism;
• participation in activities to prevent neglect and juvenile delinquency;
• promoting the development of scientific, technical, artistic creativity of children and youth;
• promoting patriotic, spiritual and moral education of children and youth;
• support for socially significant youth initiatives, projects, children's and youth movements, children's and youth organizations;
• facilitating activities for the production and (or) distribution of social advertising;
• assistance in the prevention of socially dangerous forms of behavior of citizens.”

At the same time, sending money and other material resources, providing assistance in other forms to commercial organizations, as well as supporting political parties, movements, groups and campaigns is not charitable activity. It is also prohibited to conduct pre-election campaigning or explanatory work on referendum issues simultaneously with charitable activities.

Who is involved in charitable activities?

Individual citizens or organizations that provide charitable assistance, as well as recipients of this assistance, take part in charitable activities. The legislation divides participants in charitable activities into three categories: philanthropists, volunteers, and beneficiaries.

1. Philanthropists are persons who carry out charitable activities in the form of “disinterested (free of charge or on preferential terms) transfer of ownership of property, including funds, provision of services to charitable organizations for the purposes of charitable activities.”
2. Volunteers are “individuals who carry out charitable activities in the form of gratuitous work or provision of services (volunteer activities).”
3. Beneficiaries are persons who receive assistance from philanthropists and volunteers.

Both private and legal entities can participate in charitable activities.

To encourage charitable activities, in addition to the Federal Law of August 11, 1995 N 135-FZ “On Charitable Activities and Charitable Organizations,” our state has adopted a number of tax regulations that provide tax benefits to taxpayer organizations and individual taxpayers. Let's look at their pros and cons.

Tax benefits for philanthropists: necessary documents

To receive tax breaks for businesses involved in charity, you need to correctly draw up official papers.

Organizations need to prepare the following documents:

1. Agreement between the participants. It must indicate that the assistance is provided for charitable purposes.
2. Documents where the recipient agrees to receive gifts.
3. The recipient confirms the use of the gift for its intended purpose (after receipt).

For physicists:

1. All the details - from whom the money comes and to whom it goes.
2. Certificate of deductions from income.
3. Statement from the bank.
4. A receipt indicating that the charity has received the funds.

Income tax

Current tax legislation requires organizations engaged in charitable activities to provide assistance to those in need only from net profits. In this regard, organizations are not exempt from paying income tax on amounts that were allocated to charity.

So, by virtue of paragraphs. 16 and 34 art. 270 of the Tax Code of the Russian Federation, when determining the tax base, expenses “in the form of the cost of gratuitously transferred property (work, services, property rights) and expenses associated with such transfer”, as well as “targeted deductions made by the taxpayer for the maintenance and management of non-profit organizations statutory activities."

The Ministry of Finance of the Russian Federation believes that expenses incurred by an organization as part of charitable activities do not meet the requirements of Art. 252 of the Tax Code of the Russian Federation and, therefore, cannot reduce the tax base for income tax (see Letter dated April 16, 2010 No. 03-03-06/4/42, Letter dated April 4, 2007 No. 03-03- 06/4/40). However, regional authorities, if desired, can reduce the tax rates at which the charitable foundation is taxed. This right is given to them by Article 284 of the Tax Code of the Russian Federation, according to which the legislative authorities of the constituent entities of the Russian Federation are given the right to reduce income tax rates in the part subject to credit to the regional budget (up to 13.5%) for certain categories of taxpayers.

On June 8, 2021, Federal Law No. 172-FZ on amendments to the Tax Code of the Russian Federation came into force. The law establishes income tax preferences for legal entities who donate to socially oriented non-profit organizations, as well as those that have suffered from the spread of COVID-19. In addition, the listed non-profit organizations are exempt from the obligation to pay taxes for the 2nd quarter of 2021. The Russian Ministry of Economic Development has formed a register of socially oriented non-profit organizations that will be provided with additional support measures. It included 24 thousand organizations.

Lawyer of the KAF Charitable Foundation Konstantin Vorobyov could not miss this historical event and answered the main questions about what tax benefits will be for businesses for charity, which NPOs can receive this help and what other benefits await the non-profit sector.

Let's go in order. What has changed in the Tax Code?

The gratuitous transfer of property to socially oriented non-profit organizations is now recognized as a non-operating expense (Article 265 of the Tax Code of the Russian Federation), that is, income tax payers will be able to reduce the tax base (income) also by the amount of donations transferred, but in the amount of no more than 1% of the revenue received in as a result of the sale of goods (services, works).

Main measures to support NGOs and entrepreneurs during the pandemic

What prompted the decision to adopt this amendment?

The reason is purely political - urgent assistance to non-profit organizations in attracting financial resources. This is not a natural evolution of the rules for determining income tax expenses, since the provisions of Chapter 25 of the Tax Code of the Russian Federation, dedicated to tax regulation, have, since their adoption in 2001, contained a requirement for economic justification (clause 1 of Article 252 of the Tax Code of the Russian Federation) of any costs to reduce tax base, from which until now it logically followed that expenses in the form of gratuitous transfer of property (targeted revenues) and targeted financing are not taken into account for tax purposes due to the direct indication of paragraphs. 16–17 Art. 270 of the Tax Code of the Russian Federation, since they are not mandatory for entrepreneurial activity and are not related to the receipt of profit in the future. The position of the tax authority was consistently based on the fact that these expenses do not have an economic justification and therefore cannot be deducted.

So we can confidently conclude that the president’s order on the need to support socially oriented NPOs and its implementation in the form of amending Articles 265 and 270 of the Tax Code of the Russian Federation also changes the existing approach to understanding expenses when determining the object of taxation.

Which companies will be able to take advantage of this benefit?

All legal entities that pay taxes under the general taxation system. These include mainly organizations that do not apply special tax regimes (STS, UTII, Unified Agricultural Tax). That is, we are primarily talking about large and very large companies that are denied access to a simplified taxation system - for example, to switch to the simplified tax system, the company’s income for nine months should not exceed 112.5 million rubles (clause 2 of Article 346.12 Tax Code of the Russian Federation).

Does the deduction only apply to the transfer of things?

No, much wider! Category of property in accordance with Art. 128 of the Civil Code of the Russian Federation includes both things and property rights, including non-cash funds and securities. In other words, everything that can be the subject of a donation agreement can be deducted.

Who can receive this help?

The list of recipients is limited; these are not all NPOs, but it is not difficult to receive assistance; for this purpose, two registers of organizations will be formed. The costs of transferring property to socially oriented organizations that meet the following criteria are taken into account:

1. recipients of grants from the Presidential Grants Fund since 2017;
2. recipients of subsidies and grants under programs of federal, regional and local executive authorities since 2017;
3. having the status of a performer of socially useful services, a provider of social services.

A register of socially oriented NPOs will be compiled from organizations that meet the criteria, donations to which will be accepted for deduction as non-operating expenses.

In addition, similar benefits are provided for non-profit organizations that have been most affected by the spread of coronavirus infection. The register of these organizations and the criteria for inclusion in it will subsequently be developed under the control of the government of the Russian Federation.

By July 1, 2021, the body authorized to maintain registers has been instructed to provide information about organizations included in the relevant registers. Therefore, you won’t have to wait long for the implementation of innovations.

Why limit the circle of beneficiaries so much?

The idea of ​​creating a register of socially oriented NPOs is as follows:

• on the one hand, given time constraints and the need to take urgent support measures, encourage large businesses to participate in charitable activities;
• on the other hand, to prevent abuse and the use of the non-profit sector as a way to evade taxes.

Following this logic, already verified organizations will be included in the register (apparently automatically): at the federal level - by the Presidential Grants Fund, the Government of the Russian Federation and ministries, and at the regional and local level - by the authorities of constituent entities and local self-government. Thus, it will be possible to form the widest possible circle of reliable and trusted beneficiaries in a short time.

Will I need to apply to be included in the register?

It is not yet known, but it is logical to assume that in order to save time, data on grantees of the Presidential Grants Fund, federal, regional and local competitions and subsidies will be combined with data from registers of social service providers and performers of socially useful services into one large register of socially oriented organizations.

Therefore, there is a possibility that you will not have to submit an application; the process will be carried out automatically.

Will it be possible to avoid the fraud caused by a similar rule in the 1990s?

Definitely!

The previous Law of the Russian Federation of December 27, 1991 No. 2116-1 “On the income tax of enterprises and organizations” contained a condition on the possibility of reducing taxable profit through contributions to charitable purposes, environmental and health funds, and so on.

Moreover, the list of possible recipients expanded every year and by 2001 even included all-Russian public associations specializing in solving problems of national development and interethnic relations - the lack of both systemic regulation and preliminary checks of the reliability of donation recipients became the reason for massive fraudulent actions in order to evade payment tax in full.

The clear criteria proposed by the legislator for the selection of socially oriented non-profit organizations, as well as the participation of government authorities at various levels in checking their status, will help to avoid mistakes and make the procedure for inclusion in the register transparent.

What should an NPO do if it does not meet the criteria for inclusion in the register, but really wants to be on it?

Much depends on the resources and performance of a non-profit organization. But perhaps the fastest way is the status of a performer of socially useful services. The decision is made by the Ministry of Justice of Russia and its territorial divisions, and the procedure itself is regulated by Decree of the Government of the Russian Federation of January 26, 2017 No. 89 (as amended on March 10, 2020) “On the register of non-profit organizations that perform publicly useful services.”

Mainly, the organization needs to obtain an opinion on the compliance of the quality of the services provided with the established criteria.

Depending on the type of publicly useful service, the body that carries out the assessment is determined. So, for example, psychological support for unemployed citizens - the Russian Ministry of Labor; assistance in providing free legal assistance to children, disabled people and other categories of citizens - the Ministry of Justice of Russia; providing medical and social assistance to children in difficult life situations - the Russian Ministry of Health, and so on.

Among the criteria for assessing quality are the qualifications and work experience of employees, the absence of complaints about the actions of a non-profit organization, the volume, timing and quality of services, openness and accessibility of information about a non-profit organization. The application must be accompanied by all documents justifying compliance with the criteria (certificates, characteristics, expert opinions), as well as confirmation of the absence of debts on taxes and fees.

If a positive conclusion is issued, the Ministry of Justice of Russia or its territorial bodies will additionally check the accuracy of the information provided and the proper execution of documents, after which they will decide to recognize the organization as a provider of socially useful services - which will also be the basis for its inclusion in the register of socially oriented organizations.

In any case, large foundations will have no problems obtaining a subsidy/grant or becoming such an executor - this works on an application basis.

Is access to the register open to foreign agents?

There are no direct restrictions. It is necessary to take into account that foreign agents, for example, cannot be performers of publicly useful services, but have the right to participate in grants from financial industrial groups, as well as competitions and subsidies of executive authorities - thus, foreign agents can count on being included in the register, but they will have to be more active.

When must a donation be made to qualify as an expense?

The norm applies to relationships arising from January 1, 2021. Thus, all donations made in 2021 to a socially oriented NPO included in the new register can be deducted.

Fine! Let's move on to paying taxes - what are the innovations here?

It's simple! The two listed groups of non-profit organizations (socially oriented and those affected by coronavirus) are exempt from the obligation to pay the following taxes during the pandemic:

1. income tax - regarding monthly advance payments in the second quarter of 2021;
2. tax within the framework of the application of the simplified tax system - in terms of the advance payment for the half-year (reduced by the amount for the first quarter) of 2021;
3. corporate property tax - in terms of tax and advance payments for the period of ownership of the property from April 1 to June 30, 2020;
4. personal income tax, calculated and paid in accordance with paragraph 1 of Art. 227 of the Tax Code of the Russian Federation - in terms of the advance payment calculated for the first half of 2021 (reduced by the amount for the first quarter).

As well as land, transport, unified agricultural taxes, trade taxes and others.

In addition to taxes, organizations were also exempt from paying insurance premiums for payments and other remuneration in favor of individuals accrued for April, May and June 2021.

Konstantin Vorobyov wrote about other measures to support NGOs and entrepreneurs during the pandemic in a previous article. These measures will remain relevant as long as the coronavirus pandemic continues.

VAT benefits

But there is a benefit for philanthropists when paying VAT.

By virtue of paragraphs. 12 clause 3 art. 149 of the Tax Code of the Russian Federation, the gratuitous transfer of goods, works, services, property rights within the framework of charitable activities has been exempt from VAT since 2016. The main condition is that such activities must be carried out in accordance with Federal Law No. 135-FZ and not concern excisable goods.

In order to be able to apply the preferential VAT taxation of charitable donations, certain conditions must be met. As mentioned above, the main one is the provision of charitable assistance only for purposes specified by law.

Let’s say a construction organization carried out work on a free of charge basis to repair a school building and purchase the materials necessary for the repair. These works are exempt from VAT (see Letter of the Ministry of Finance of Russia dated May 10, 2012 N 03-07-07/49). Also, the presentation by the company of gifts to employees retiring relates to business transactions that pursue a goal such as “social support and protection of citizens, including improving the financial situation of the poor,” and are exempt from VAT (see Resolution of the Federal Antimonopoly Service dated July 4, 2012 N A14-2540/2011).

The free transfer of children's gifts to employees of an enterprise for their children in order to promote and strengthen family values, show concern for the younger generation, and promote the protection of motherhood, childhood and paternity is charitable assistance; preferential taxation is applied: the organization is exempt from VAT, since these actions cannot be characterized as the transfer of goods for the taxpayer’s own needs or as an operation for the sale of goods. (see Resolution of the Federal Antimonopoly Service of the Moscow Region dated 04/06/2009 N KA-A40/2403-09).

In addition to meeting its objectives, an organization that engages in charitable activities must document such transactions to qualify for the benefit. An approximate list of documents on the basis of which this can be done was provided by the Ministry of Finance of Russia in letter dated October 26, 2011 No. 03-07-07/66. Tax authorities, assessing the legitimacy of an organization’s claim to preferential taxation of sponsorship assistance, will take into account the following documents:

• an agreement with the recipient of charitable assistance for the free transfer of goods, performance of work, provision of services as part of charitable activities;
• copies of documents confirming the registration of the specified goods, works, and services by the recipient of charitable assistance;
• documents indicating the intended use of goods (work, services) received as part of charitable activities.

If an individual receives charitable assistance, it is sufficient to submit a document confirming the actual free receipt by the citizen of goods, works or services (see letter of the Federal Tax Service of Russia for Moscow dated December 2, 2009 No. 16-15/126825, letter of the Ministry of Finance of Russia dated October 26, 2011 No. 03-07-07/66).

If donations (not necessarily charitable) are made only in cash to non-profit organizations for the implementation of statutory activities not related to entrepreneurship, or to individuals, then there is no need to collect a package of documents at all. Moreover, in this case one should not claim a charitable benefit. The gratuitous transfer of funds in the form of a donation is not recognized as the sale of goods, works, services and, accordingly, is not subject to VAT from the transferring party on other grounds (clause 3 of Article 39, subclause 1 of clause 2 of Article 146 of the Tax Code of the Russian Federation). This position is also confirmed by decisions of arbitration courts (see resolution of the FAS Moscow Region dated January 26, 2009 No. KA-A40/13294-08, FAS PO dated January 26, 2009 No. A55-9610/2008).

And finally, if a benefactor carries out transactions both subject to VAT and exempt from taxation, he is obliged to keep separate records of them (Clause 4 of Article 149 of the Tax Code of the Russian Federation). In this case, the taxpayer develops the procedure for separate accounting of transactions independently and discloses it in the accounting policy.

So, a taxpayer-philanthropist has the right to apply an exemption from VAT on transactions carried out within the framework of charitable activities only if he complies with the above conditions.

Waiver of VAT benefits

Organizations can voluntarily refuse VAT benefits. This is stated in paragraph 5 of Art. 149 of the Tax Code of the Russian Federation: “refusal from preferential taxation can be carried out only in relation to those transactions that are provided for in paragraph 3 of this article.” In this case, the taxpayer must submit an application for refusal of the benefit to the tax authority at the place of registration no later than the first day of the tax period (year) in which he wishes to refuse the benefit or suspend its use.

Perhaps you have decided to engage in charity work seriously and for a long time and plan to purchase goods for this regularly. In this case, having refused the VAT benefit, in accordance with clause 1 of Art. 172 and paragraph 1 of Art. 171 of the Tax Code, you will have the opportunity to deduct the amount of “input” VAT. Sometimes this is more profitable than the tax exemption itself.

Charitable fund and other taxes

A charitable foundation's property is also subject to taxation. For property tax, taxpayers are organizations that own property that is the subject of this tax. If the property is not on the balance sheet, then the declaration is not submitted at all. If an NPO has property that is subject to tax, then it is necessary to pay property tax and submit the appropriate calculations and declarations (exceptions in Article 381 of the Tax Code of the Russian Federation). This responsibility lies with the NPO, regardless of whether or not it is engaged in business activities.

At the same time, non-profit organizations do not charge depreciation on fixed assets received under targeted programs and participating in non-commercial activities (subclause 2, clause 2, article 256 of the Tax Code of the Russian Federation). For such assets, property tax is calculated in accordance with paragraph 1 of Art. 375 Tax Code of the Russian Federation.

What other taxes does the charity pay? As for the transport tax, payment for it and submission of the declaration occur if vehicles are registered with the BF (Article 357 of the Tax Code of the Russian Federation). The same applies to land tax: reporting is carried out only by those legal entities and individuals who own land plots on the basis of ownership, permanent use or lifelong possession (clause 1 of Article 388 of the Tax Code of the Russian Federation).

"Input" VAT

According to the norms of Art. 170 of the Tax Code of the Russian Federation, the amounts of VAT presented by the seller of goods donated as part of charity must be taken into account in the cost and are not subject to deduction. At the same time, VAT accounting requires that if the goods were originally purchased for activities subject to VAT, and the tax was accepted for deduction, then upon its transfer, the VAT previously accepted for deduction should be restored (paragraph 1, paragraph 2, paragraph 3, Art. 170 of the Tax Code of the Russian Federation). Tax amounts in relation to fixed assets and intangible assets are also subject to restoration in proportion to their residual value without taking into account revaluations.

Thus, if property on which the “input” VAT was previously accepted for deduction is transferred to charity, the tax must be restored in the tax period in which the transaction took place within the framework of charitable activities. In accordance with the procedure provided for in paragraph. 3 pp. 2 p. 3 art. 170 of the Tax Code of the Russian Federation, the restored tax is not included in the cost of the transferred property, but is taken into account as part of the taxpayer’s other expenses, as provided for in Art. 264 Tax Code of the Russian Federation.

Accounting and reporting

Tax benefits for funds and enterprises are only granted if correct accounting is maintained. If a company conducts charitable activities, then it is necessary to keep accounting records and document everything. Since the amounts are a gift, it is necessary to draw up a charity agreement. The document is drawn up in writing. Expenses for this type of activity are recorded in accounting as other expenses and are used as a debit to account 91. Financial assistance goes under account number 76.

Fine for non-payment of transport tax

Tax incentives are issued to commercial organizations subject to the same rules.

Invoice

From January 1, 2014, when performing transactions that are not subject to VAT in accordance with Art. 149 of the Tax Code of the Russian Federation, there is no need to issue invoices, keep logs of received and issued invoices, purchase books and sales books. Changes have been made to clause 5 of Art. 168 of the Tax Code of the Russian Federation and clause 3 of Art. 169 of the Tax Code of the Russian Federation. The mentioned obligations remain for taxpayers who apply tax benefits under Art. 145 of the Tax Code of the Russian Federation. Such persons draw up invoices without allocating the corresponding tax amounts (clause 5 of Article 168 of the Tax Code of the Russian Federation).

Accounting for charitable donations

Organizations that engage in charitable activities are required to reflect this in their accounting records. The general procedure for recognizing expenses in accounting has been established (hereinafter referred to as PBU 10/99).

Paragraph 17 of PBU 10/99 states that the expenses of a business entity are subject to recognition in accounting, regardless of its intention to receive revenue or other income, as well as the form of such expenses (monetary, in-kind and other). All expenses, according to paragraph 4 of PBU 10/99, are divided into:

• expenses for ordinary activities;
• other expenses.

According to clause 11 of PBU 10/99, other expenses include the transfer of funds (contributions, payments, etc.) related to charitable activities, as well as expenses for sporting events, recreation, entertainment, cultural events educational activities and other similar events. Thus, taking into account the provisions of the Chart of Accounts for accounting the financial and economic activities of organizations and the Instructions for its application, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n, in the accounting records of the organization, the transfer of donations will be reflected using account 91 “Other income and expenses” .

In accordance with clauses 4 and 7, the organization must exclude from the calculation of the tax base for income tax for both the reporting and subsequent periods the costs incurred in connection with the provision of gratuitous charitable assistance. According to this indicator, a permanent tax liability is formed in accounting. The wiring is as follows:

Debit 76 - Credit 51 - funds were transferred in the form of donations; Debit 76 - Credit 41 - goods transferred as part of charitable assistance; Debit 91 - Credit 76 - donation expenses are included in other expenses; Debit 91 - Credit 76 - the cost of goods donated is included in other expenses; Debit 91 - Credit 68 - VAT is charged on the cost of goods transferred free of charge; Debit 99 - Credit 68 - reflects the permanent tax liability on the cost of transferred funds, transferred goods and the amount of VAT.

Let's look at examples of how transactions related to charity are reflected in accounting

Example 1 An organization donates an excisable product for charity - a car with an engine power of 150 hp. With.

According to the approved price list, the selling price of the car is 200,000 rubles. The actual cost, according to the accounting certificate, is 110,000 rubles.

Excise taxes

According to subparagraph 6 of paragraph 1 of Article 181 of the Tax Code, a passenger car is an excisable product. The transfer of ownership rights to excisable goods by one person to another person free of charge is recognized as the sale of excisable goods (paragraph 2, subparagraph 1, clause 1, article 182 of the Tax Code of the Russian Federation).

From January 1 to December 31, 2011 inclusive, the excise tax rate for passenger cars with engine power over 0.75 kW (90 hp) and up to 112.5 kW (150 hp) inclusive is set at 27 rubles. for 0.75 kW (1 hp) (clause 1 of article 193 of the Tax Code of the Russian Federation).

In this case, on the date of gratuitous transfer, the organization charges excise tax in the amount of 4,050 rubles. (27 rubles x 150 hp) (clause 1 of article 194, clause 2 of article 195 of the Tax Code of the Russian Federation).

Excise tax amounts calculated upon the sale of excisable goods free of charge are attributed to the corresponding expenses for these excisable goods (paragraph 2, clause 1, article 199 of the Tax Code of the Russian Federation).

Value added tax (VAT)

As stated above, when transferring excisable goods for charity, the benefactor has an obligation to charge VAT (paragraph 2, subparagraph 1, paragraph 1, Article 146, subparagraph 12, paragraph 3, Article 149 of the Tax Code of the Russian Federation). The tax base in this case is determined as the cost of the transferred car, calculated on the basis of prices determined in a manner similar to that provided for in Article 40 of the Tax Code. According to the approved price list, the selling price of the car is 200,000 rubles. Until the contrary is proven, it is assumed that this price corresponds to the level of market prices (clause 1 of article 40 of the Tax Code of the Russian Federation). So, the amount of VAT in this case is charged on the sales amount, taking into account excise tax without VAT, RUB 36,729. (200,000 rubles + 4050 rubles) x 18% (clause 2 of article 154 of the Tax Code of the Russian Federation).

Corporate income tax

When transferring free of charge, the cost of finished products is not taken into account for profit tax purposes. Profits and expenses associated with such transfer, namely the amounts of accrued excise duty and VAT, are not recognized as expenses for tax purposes. This is indicated by the direct provision of paragraph 16 of Article 270 of the Tax Code.

Accounting. PBU 18/02

In accounting, the organization’s expenses in the amount of the actual cost of the transferred finished product, as well as accrued excise tax and VAT are taken into account as part of other expenses (clause 11 of the Accounting Regulations “Organization expenses” PBU 10/99, approved by order of the Ministry of Finance of Russia dated May 6, 1999 city ​​No. 33n). Recognition of other expenses is reflected in the debit of account 91 “Other income and expenses”, subaccount 91-2 “Other expenses” (Instructions for using the Chart of Accounts).

Expenses of an organization made for charitable purposes are not taken into account in tax accounting, but are recognized in accounting.
As a result, a permanent difference arises and a corresponding permanent tax liability (PNO) (clauses 4, 7 of the Accounting Regulations “Accounting for calculations of corporate income tax” PBU 18/02, approved by order of the Ministry of Finance of Russia dated November 19, 2002 No. 114n). Accounting entries Amount, rub. Debit 91-2 Credit 43 The organization transferred a passenger car for charitable purposes 110,000 Debit 91-2 Credit 68 excise taxes Accrued excise tax 4050 Debit 91-2 Credit 68 VAT Accrued VAT 36729 Debit 99 Credit 68 Income tax (110,000 rub. + 4,050 rub.+ RUB 36,729) x 20% Reflected PNO30,156

Filling out a tax return

According to the Procedure for filling out a VAT return, approved. By Order of the Federal Tax Service of Russia dated October 29, 2014 N ММВ-7-3/ [email protected] , transactions that are not subject to taxation (exempt from taxation) are subject to reflection in section. 7 VAT returns. In column 1 on line 010 section. 7 of the declaration reflects the transaction codes established in Appendix 1 to this Procedure. For the gratuitous transfer of goods and/or property rights (for the gratuitous performance of work or provision of services) within the framework of charitable activities, code 1010288 is provided.

Filling out the declaration

Both legal entities and individuals expecting to receive tax benefits for charitable activities are required to submit a corresponding tax return to the Federal Tax Service.

For organizations, the ability to reflect charitable expenses is implemented in the VAT return. Transactions exempt from taxation must be indicated in section 7. The transfer of goods or the provision of services free of charge, as charity, is reflected by code 1010288. This code must be entered in the first column in line 010.

In order to receive a tax deduction, individuals must contact the tax office with a completed declaration in Form 3-NDFL for the year in which the assistance was provided.

Documents for download (free)

• Form 3-NDFL
• Charitable donation agreement

Required documents

In addition to declarations, the Federal Tax Service will require documents confirming the fact of charity. For organizations this is:

1. An agreement between the recipient and the benefactor, which specifies the work, goods, and services provided free of charge.
2. A document containing the recipient’s consent to register the listed assistance options.
3. Evidence of the intended use of goods and services received as charity.

To apply for a tax deduction, individuals must present an application, a certificate of income in Form 2-NDFL and documents evidencing the transfer of funds. They may be:

1. Payment orders containing the purpose of payment, details of the sender and recipient.
2. Certificate from your place of employment confirming the deductions made from your income.
3. Bank statement.
4. A receipt confirming the deposit of funds into the cash desk of the organization accepting charitable donations.

The portion of the conference regarding philanthropy is presented below.

Charitable activities of individuals and personal income tax

The tax legislation of the Russian Federation also supports philanthropists - individuals. Article 219 of the Tax Code of the Russian Federation provides that citizens who are philanthropists have the right to a social tax deduction. This means that the taxpayer will be returned part of the funds spent on charity: taxes will be reduced by the amount of social tax deduction in an amount equal to this assistance. That is, he will receive from the budget part of the personal income tax (NDFL) he paid for the year, that is, in fact, 13% of the amount of his expenses for charity.

Who to help

Citizens can count on a reduction in personal income tax if they provide gratuitous assistance to organizations whose activities are socially oriented. So, according to paragraphs. 1 clause 1 art. 219 of the Tax Code of the Russian Federation, a taxpayer has the right to receive a social tax deduction in the amount of income transferred by him in the form of donations to the following organizations:

• charity organisations;
• socially oriented non-profit organizations (for their implementation of activities provided for by the legislation of the Russian Federation on non-profit organizations);
• non-profit organizations operating in the field of science, culture, physical culture and sports (except for professional sports), education, enlightenment, healthcare, protection of human and civil rights and freedoms, social and legal support and protection of citizens, assistance in protecting citizens from emergency situations , environmental protection and animal welfare;
• religious organizations (to carry out their statutory activities);
• non-profit organizations (in the matter of forming or replenishing endowment capital in accordance with Federal Law dated December 30, 2006 N 275-FZ “On the procedure for the formation and use of endowment capital of non-profit organizations”).

According to paragraph 2 of Article 11 of the Tax Code of the Russian Federation, organizations in this case mean all legal entities that are formed in the Russian Federation, as well as foreign legal entities, companies and other corporate entities with civil legal capacity, created in accordance with the legislation of foreign states, international organizations , branches and representative offices of these foreign persons and international organizations established on the territory of the Russian Federation. Thus, if financial assistance was provided to branches and representative offices of Russian organizations, it will not be taken into account when receiving a social tax deduction. Also, if a citizen provides financial assistance directly to an individual, he will also not be able to reduce his tax base.

Tax deduction for non-monetary charity

Charity is not only a donation of money, but also a gift of a thing or right for generally beneficial purposes. Reason: part 1 art. 582 of the Civil Code of the Russian Federation.

What things are is stated in Art. 128 of the Civil Code of the Russian Federation - these are objects of civil rights, including:

• cash and certificated securities;
• property, including non-cash funds;
• uncertificated securities;
• property rights;
• results of work and provision of services;
• protected results of intellectual activity and equivalent to them
• means of individualization (intellectual property);
• intangible benefits.

This means that you can donate not only money, but also property to a charity or non-profit organization (see list of organizations above).

In addition, you can claim a tax deduction if you provided a gratuitous service or transferred property rights. Reason: letter of the Federal Tax Service of Russia dated November 16, 2015 No. BS-4-11/ [email protected] , letter of the Ministry of Finance of Russia dated December 30, 2013 No. 03-04-08/58234.

When submitting the 3-NDFL declaration, you must attach payment documents confirming the value of the donated property and the Transfer and Acceptance Certificate.

Example:

In 2021, you donated two pianos to the music school. At the same time, the Transfer and Acceptance Certificate was signed. The total cost of the property was 300 thousand rubles, which was confirmed by a receipt from the store and payment documents.

In 2021, you can claim your right to a tax deduction. To do this, submit a package of documents to the tax office, including the 3-NDFL declaration, the Transfer and Acceptance Certificate, a receipt for the purchase of musical instruments and payment slips confirming payment.

If the donation amount does not exceed 25% of your 2020 income, you are eligible for a tax deduction equal to the donation. 39,000 rubles = 13% x 300,000 rubles will be returned to your account.

Find out what documents need to be submitted in your case!

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In what form to provide assistance?

Tax authorities and financial departments (see Letter of the Ministry of Finance dated March 2, 2010 No. 03-04-05/8-78) believe that in order to receive a social deduction, a charitable donation must be made in cash.

Arbitration courts have a different opinion (see Resolution of the FAS UO dated 08.12.2008 N F09-9086/08-S2, Resolution of the FAS PO dated 28.06.2006 in case No. A12-29703/05-S51). The donation can be made by donating food, in which case the taxpayer retains the right to receive a social tax deduction. To substantiate their position, the courts rely on the norm of paragraph 1 of Art. 582 of the Civil Code of the Russian Federation, by virtue of which “a donation is recognized as the gift of a thing or right for generally beneficial purposes.”

In accordance with Art. 1 of Federal Law N 135-FZ “charity is understood as the charitable activities of citizens and legal entities through the disinterested (free) transfer of property, including money, to citizens or legal entities, the disinterested performance of work, the provision of services, and the provision of other support.”

From the meaning of these norms it follows that the transfer of funds is only one of the possible ways of providing charitable assistance.

In this regard, the tax authorities’ restrictive interpretation of paragraphs. 1 clause 1 art. 219 of the Tax Code of the Russian Federation contradicts paragraph 3 of Art. 39 of the Constitution of the Russian Federation. It says that “in Russia, voluntary social insurance, the creation of additional forms of social security and charity are encouraged.”

Charitable fund and payroll taxes

When paying income to individuals, it is necessary to remember personal income tax and social contributions. If there were no such payments, and employees work on a voluntary basis (clause 2 of Article 7.1 of Law No. 135-FZ), then the 2-NDFL certificate and the 6-NDFL calculation are not submitted, since the BF will not be considered a tax agent (clause 1 Article 226 of the Tax Code of the Russian Federation). When providing charitable assistance to individuals, for the purpose of exempting these payments from personal income tax, one must be guided by Art. 217 of the Tax Code of the Russian Federation: payments from charitable organizations are exempt from personal income tax (clause 8.2 of Article 217 of the Tax Code of the Russian Federation).

For insurance premiums, the payers are the policyholders who make payments to the insured persons. The charitable foundation reports to the tax authorities on these payments and contributions. If there are no payments, but there are insured persons (employees, individual contractors), a zero calculation is presented. This is what officials demand (letters from the Ministry of Finance dated March 24, 2017 No. 03-15-07/17273, Federal Tax Service dated April 12, 2017 No. BS-4-11 / [email protected] ). There is no need to submit a calculation only if there are no insured persons. But such a situation is difficult to imagine.

Read about filling out reports on insurance premiums in this article.

How to calculate the amount of deduction and tax refundable

The amount that the taxpayer spent from personal funds is subject to deduction. But the total benefit cannot exceed 25% of annual income, and this limitation generally applies to all expenses related to charity and donations.

However, only income taxed at a rate of 13% is taken into account. Therefore, taxpayers who are non-residents of the Russian Federation, for whom the personal income tax rate is different, cannot take advantage of the social deduction. At the same time, the balance of the social tax deduction for charity is not carried over to the next year. It remains unused.

Example: Citizen A. in 2021 donated 200,000 rubles for the statutory activities of a religious organization. They also received charitable assistance to a non-profit sports organization in the amount of 275,000 rubles.

The amount of the annual income of citizen A. for 2021 before applying all tax deductions amounted to 4,521,000 rubles, including non-taxable personal income tax - 300,000 rubles.

Thus, the total limit for charity and donations is RUB 1,055,250. ((4,521,000 - 300,000) rub. x 25%). The total amount of charity was 475,000 rubles. (200,000 + 275,000).

Since the amount of donations is less than the amount of the possible limit, all of it is taken into account when calculating personal income tax for the year.

Personal income tax deduction

Each employee of the company can independently engage in charity. In this case, the citizen can demand a tax deduction and return some part of his money. But there are size restrictions:

1. An amount not exceeding 13% of the money spent personally is returned.
2. You can only return the amount that does not exceed 13% of the personal income tax paid per year.

To calculate the deduction, you must use the donation amount, which is equal to approximately 25% of the citizen’s income to the city.

How to transfer money to charity

Citizens can transfer their funds to charity in the following ways:

• through the accounting department at the place of work, submitting a corresponding application to the chief accountant;
• from a bank account or in cash through a bank;
• through the cash desk of the organization to which the citizen provides assistance.

Transfer through an organization

An organization that is a citizen’s source of income can transfer funds to charitable purposes only on the basis of his written application. The application can indicate the frequency of transfers, specific amounts or shares (percentages) of wages and other information. And be sure to provide the account details of the beneficiary organization. The application form is free.

In this case, the documents confirming the expenses incurred will be copies of payment orders for the transfer of money for charitable purposes with the bank’s mark on execution. When filling out a payment order, in the “payment purpose” field, you must indicate: “From full name to help the boarding school”, “From full name to carry out statutory activities”. Some tax authorities require, in addition to copies of payment receipts, to also submit a certificate from the organization about the transfers made.

Transfer via bank

If the taxpayer transferred funds from his bank account, then the expenses are confirmed by a bank statement confirming the transfer of funds for charitable purposes.

It is convenient to transfer money through branches of Sberbank of Russia. I draw your attention to the fact that when filling out a document according to form No. PD-4, in the line “name of payment” you should write “transfer of funds for charitable purposes.” A receipt for this form with a bank mark is submitted to the tax authority.

If a citizen deposits money directly into the cash desk of an organization to which he provides financial assistance, then the supporting document will be a receipt for the receipt order indicating the purpose of using the deposited funds. For example: “Charitable assistance for sporting events.”

Methods for transferring funds

When two legal entities interact, one of which acts as a benefactor, and the second is a beneficiary, financial assistance is transferred in the form of a money transfer from the account of one organization to the account of another.
Individuals can choose a convenient transfer method:

1. Through a bank by transfer from your account to the account of a charitable organization or social institution.
2. Directly at the cash desk of the organization that is the beneficiary.
3. At the place of work, through deductions from wages if there is an application from the employee.
4. Using various Internet and SMS services (if there is no need for supporting documents).

Charity from legal entities to foundations

Among Russian businessmen, it is more common to provide assistance indirectly to those in need, through specially created structures - charitable foundations, one of which is the St. Petersburg charitable foundation AdVita (For Life). In most cases, this approach is driven by the desire to independently determine the circle of recipients of donations, as well as confidence in controlling costs. After all, a fund that collects and distributes funds, for example, for the treatment of cancer patients, is registered in Russia as an NPO, its activities are regulated by law, and the donor can be sure that his funds will be spent in the targeted manner. Such funds have a staff of employees responsible for searching for projects, and also submit reports to the tax authorities.

Although all charitable organizations, including foundations, are exempt from income taxation within the framework of their statutory activities, they are required to annually submit reports to the tax authorities on the expenditure of funds received as part of charitable contributions. If the Federal Tax Service considers such expenses to be inconsistent with the statutory goals, then all funds received will be recognized as income of the fund, subject to taxation. For example, a charitable foundation does not have the right to buy real estate or make other investments with donors’ money.

As for the charitable organizations themselves, as mentioned above, you can transfer money to a charitable foundation or transfer property only at the expense of your profits, if the taxpayer applies the general taxation system. Taxpayers under the simplified taxation system also cannot reduce their income by amounts of charitable assistance. A closed list of expenses by which organizations using the simplified tax system can reduce the income received is given in Article 346.16 of the Tax Code of the Russian Federation, and charity expenses are not included in it.

Philanthropist on special regime. Expenses under the simplified tax system

A philanthropist using the simplified tax system cannot reduce income by the amount of expenses associated with charity, since such expenses are not included in the list of expenses given in Article 346.16 of the Tax Code.

A philanthropist who uses the simplified tax system takes into account the cost of materials including VAT as expenses in the month of their acquisition as payment is made (subclause 1, clause 2, article 346.17 of the Tax Code of the Russian Federation).

Expenses for the purchase of materials used in the production of finished products donated for charitable purposes are not considered economically justified, since they are not related to activities aimed at generating income. According to paragraph 2 of Article 346.16 of the Tax Code, when determining the tax base for the tax paid in connection with the application of the simplified tax system, expenses are accepted subject to their compliance with the criteria specified in paragraph 1 of Article 252 of the Tax Code (clause 2 of Article 346.16 of the Tax Code of the Russian Federation). Therefore, when donating finished products to charity, the cost of materials previously recognized as an expense should be restored. Reinstatement is made in the month in which the gratuitous transfer occurred. This conclusion is confirmed by the consultation dated March 10, 2009 by Yu.V. Podporin, Deputy Head of the Department of Special Tax Regimes of the Department of Tax and Customs Tariff Policy of the Ministry of Finance of Russia.