A bill received from a counterparty can generate additional income. For accounting and tax purposes, income must be calculated and taken into account.
This follows from articles 5 and 77 of the Regulations approved by the resolution of the Central Executive Committee of the USSR and the Council of People's Commissars of the USSR dated August 7, 1937 No. 104/1341, paragraph 22 PBU 19/02, paragraph 7 PBU 9/99, paragraph 11 PBU 10/99, paragraph 3 Article 43 and paragraph 4 of Article 328 of the Tax Code of the Russian Federation.
How to calculate additional income on a bill depends on the form in which this income was received: interest or discount.
What is it and why is it needed
A discount bill is a bill that is sold at a price lower than its face value (discount is the price difference). Its use allows the drawer to raise borrowed funds and the holder to make a profit.
Thus, a discount bill differs from a bank bill only in the purchase price: the first is sold at a discount, and the second at par. In general, this is still the same debt security that allows its owner to demand money from the person (or company) who issued it.
Areas of application
Why do you need a bill:
- when lending to individuals and legal entities, it is considered reliable collateral for the loan, the borrower issues it to his lender;
- to attract capital, for example, banks and enterprises do not need to go through a complex procedure for issuing shares or bonds if funds are needed for development;
- for mutual settlements between enterprises with the possibility of offsetting mutual claims;
- to pay for transactions by non-cash means;
- acts as an independent object of purchase and sale;
- To defer payment, the buyer issues a document to the seller of goods and services.
Features when working with discount bills
- It is not an issue-grade security and does not require state registration.
- Repayment always occurs at par, regardless of the term and other circumstances. The holder can sell it to the bank before the deadline, but in this case the credit institution will take its commission. The purchase of a document by a bank is called bill discounting.
- Unlike bank deposits, investments in bills (including discount bills) are not protected. In the event of bankruptcy of the drawer (and they are not always distinguished by their reliability), the state will not compensate for your losses. However, if the document contains an aval, then the person who supplied it (or the company) is jointly and severally liable for this debt. Such papers are more reliable, but are rarely used in practice.
- A discount bill is used not only as an investment (or fundraising) instrument. It is also used for settlements with counterparties, repayment of debts to creditors, or as collateral.
Payment terms
There are different types of bills:
- Upon presentation - paid upon presentation, which must occur within 1 year after drawing up. A specific period may be agreed upon before which the document for payment will not be presented.
- At some time from presentation. For example, after 15 days, 2 months, etc.
- At some time from compilation.
- On a certain day.
The holder of the bill must present the document for payment either on the same day as stated, or within two business days after the specified date. When transferring money, the drawer may require a receipt.
How is bill discount calculated?
As I wrote above, a discount is a discount that allows the buyer to make a profit. Simplified, this can be represented as a formula:
face value = purchase price + discount
However, for the drawer such a formula will not be enough. After all, of these three indicators, he has only one - the amount he should receive.
Therefore, the discount size is calculated as follows. First, the second missing indicator is calculated - the denomination:
N = PC x (1 + CB x C / 365)
- where PC is the purchase price;
- SV - the period for which the paper is issued;
- C is the interest rate.
After this, we subtract the purchase price from the amount received.
For example, if you need to raise 100 thousand rubles. at 8% per annum for 300 days, the calculation will look like this.
H = 100,000 x (1 + 300 x 0.08 / 365).
As a result, we obtain a nominal value equal to 106,575 rubles. This means that the discount (difference) will be: 106,575 - 100,000 = 6,575 rubles.
The importance of proper formatting
The Geneva Bill of Exchange Convention of 1930 established very strict rules for the execution of bills and repayment periods. If at least one of the requirements is violated, this will prevent the document from being considered a promissory note, so you need to carefully buy a promissory note on the secondary market; there are many counterfeits. Banks or bill-issuing companies have the right to refuse to cancel a bill executed with violations.
The most counterfeited bills on the secondary market are the papers of Sberbank and Gazprombank, since they are the only ones that are mainly traded on the market.
Even if an investor works in the market through an intermediary, you should not completely rely on his integrity and professionalism. In any case, you will need to request additional examination from the drawer to determine the authenticity of the paper.
Many financial experts believe that a bill is not an investment for individuals. For those who do not agree with them, have calculated, analyzed everything and are ready to take risks, it is better to buy bills closer to the end of the quarter, half-year or year. Then the ruble supply on the market decreases, and financial agents give more favorable interest rates on repayment.
Accounting
Calculate the amount of interest or discount on a bill of exchange using an accounting certificate (Part 1, Article 9 of Law No. 402-FZ of December 6, 2011, Clause 4, Article 328 of the Tax Code of the Russian Federation).
Situation: is it possible to reflect interest on a fixed-term bill of exchange (the maturity date of the bill of exchange is clearly defined) in accounting and taxation?
No you can not.
The drawer can provide for the accrual and payment of interest only on a perpetual bill (i.e., a bill that is payable upon sight or after a certain time after presentation).
If an interest clause is written into a term bill (i.e., a promissory note or bill of exchange that is payable within a specified period), it is considered unwritten.
This follows from Articles 5 and 77 of the Regulations, approved by Resolution of the Central Executive Committee and Council of People's Commissars of the USSR of August 7, 1937 No. 104/1341.
Since in this case, due to the violation by the drawer of the procedure for drawing up the bill, the holder of the bill does not have any economic benefits, it is not necessary to reflect the accrual of interest in accounting and taxation (Article 5 of the Law of December 6, 2011 No. 402-FZ, Art. 38, 41 of the Tax Code of the Russian Federation).
Accounting for income on a bill depends on what is reflected: interest or discount.
Kinds
Depending on the functions performed and the conditions under which debt arises, they are classified according to different characteristics and types.
Table 1. “Classification by characteristics and types”
Data: “Accounting for securities and financial investments”, Nateprova T.Ya.
| Classification sign | Kinds | a brief description of |
| 1. Issuer | Treasury | Issued on behalf of the state by the Central Bank of the Russian Federation or the Ministry of Finance |
| Municipal | Issued by local authorities | |
| Private | Produced by private companies | |
| Banking | Issued by banks to attract temporarily free funds of companies or individuals for a certain fee | |
| 2. Economic essence | Commercial | It is based on a specific commodity transaction, the purpose is deferment of payment, provision of a commercial loan |
| Financial | The basis is the loan issued, the essence is the guarantee of its repayment | |
| Fictitious | Not related to the actual movement of goods or money | |
| 3. Payer | Simple (solo) | The payer and the drawer are one person. Two parties involved |
| Transferable (draft) | The payer and the drawer are different persons. There are three parties involved: the holder, the drawer (the debtor of the first holder), the payer (the debtor of the drawer) | |
| 4. Payment term | Definitely urgent | Specific payment date |
| Uncertainly urgent | Payment date depends on the holder | |
| 5. Availability of collateral | Secured | guaranteed by collateral, which remains at the disposal of the creditor until the debt is paid in full |
| Unsecured | not guaranteed by collateral | |
| 6. Transferability to another person | Endorsed | By endorsement they can be transferred to another person and are freely negotiable |
| Non-endorsed | Personalized, transfer to another person is impossible, the clause “not to order” is made | |
| 7. Place of payment | Domiciled | The place of payment does not coincide with the location of the payer, the first holder or the place of issue. Specified additionally |
| Undomiciled | The place of payment is the location of the drawee (transferable), the drawer (promissory note), the remitee (the first recipient) or the place of issue |
UTII
Only certain types of activities are transferred to the payment of UTII (clause 2 of Article 346.26 of the Tax Code of the Russian Federation).
Situation: is it necessary to pay income tax when receiving income in the form of interest (discount) on a bill of exchange received? All activities of the organization have been transferred to UTII.
Yes need.
Only certain types of activities are transferred to the payment of UTII (clause 2 of Article 346.26 of the Tax Code of the Russian Federation). The operation to generate income in the form of interest and discount on a bill of exchange is not named in this list. Accordingly, the financial result from such an operation does not relate to activities on UTII.
Taxes must be calculated on the amount of income received on the bill in accordance with the general taxation system (clauses 9, 10 of Article 274 of the Tax Code of the Russian Federation).
Advice: there are arguments that allow organizations using UTII not to pay income tax on interest (discount) on bills received as payment (security for payment) for goods (work, services). They are as follows.
Income on a bill of exchange received in payment (security of payment) of the counterparty's debt is directly related to the organization's activities on UTII (sale of goods (work, services)). In addition, as a rule, transactions involving settlements with bills of exchange:
- are of a one-time nature;
- are not initially aimed at extracting additional economic benefits (since the bill in this case is a means of payment or a guarantee of payment).
That is, in this case they cannot be interpreted as an independent entrepreneurial activity aimed at generating income (Clause 1, Article 2 of the Civil Code of the Russian Federation).
This point of view is indirectly confirmed by letters from the Ministry of Finance of Russia dated March 7, 2008 No. 03-11-04/3/109, dated December 18, 2007 No. 03-11-05/300, dated December 1, 2006 No. 03-11 -04/3/520 and letters from the Federal Tax Service of Russia in Moscow dated November 6, 2007 No. 20-12/105713 and dated September 8, 2005 No. 20-12/64161. They expressed a similar opinion regarding the accounting of other non-operating income of the organization on UTII (amount of insurance compensation, supplier bonuses for purchases, bank interest on the current account, exchange rate differences).
However, it is possible that such a point of view will lead to a dispute with tax inspectors. Particularly if the third party's note is subsequently realized rather than repaid. In this case, it will have to be defended in court (Article 138 of the Tax Code of the Russian Federation). Arbitration practice on this issue has not yet developed.
BASIS: VAT
If a bill of exchange (of a third party, your own) is received as payment for goods (work, services) that are subject to VAT, the interest (discount) on the bill increases the tax base for VAT. However, the tax must be charged not on the entire amount of interest (discount), but only on that part of it that exceeds the amount of interest calculated at the refinancing rates in force in the periods for which the calculation is made. Moreover, tax must be calculated only at the time of receiving interest (discount). This procedure follows from subparagraph 3 of paragraph 1 of Article 162 of the Tax Code of the Russian Federation.
For more information on calculating VAT on interest and discount on a bill of exchange, see How to pay VAT when paying by bill of exchange.
Situation: when repaying a bill of exchange, can the holder of a bill of exchange take into account, when calculating income tax, the amount of VAT accrued on the difference between the amount of interest (discount) on the bill of exchange and interest calculated based on the refinancing rate?
Yes maybe.
The organization has the right to take into account as other expenses the amounts of taxes accrued as required by law (subclause 1, clause 1, article 264 of the Tax Code of the Russian Federation). An exception is the mandatory payments listed in Article 270 of the Tax Code of the Russian Federation.
Clause 19 of Article 270 of the Tax Code of the Russian Federation establishes that when calculating income tax, taxes imposed on the buyer (acquirer) of goods (work, services, property rights) are not taken into account. However, the holder of the bill presenting the bill for redemption is not the buyer of goods (work, services, property rights) under the transaction concluded by the parties (Article 815 and paragraph 1 of Article 807 of the Civil Code of the Russian Federation). Consequently, the provisions of paragraph 19 of Article 270 of the Tax Code of the Russian Federation do not apply to relations regarding the repayment of a bill of exchange.
Since the Tax Code of the Russian Federation does not contain any other restrictions, the amount of VAT accrued upon repayment of a bill can be taken into account in reducing taxable profit (subclause 1, clause 1, article 264, clause 1, article 252 of the Tax Code of the Russian Federation). When applying the accrual method, this can be done immediately after VAT is accrued to the budget (subclause 1, clause 7, article 272 of the Tax Code of the Russian Federation). When using the cash method - after payment (subclause 3, clause 3, article 273 of the Tax Code of the Russian Federation).
