Ilya Plekhanov, General Director of the consulting company Sovetnik

It would seem, what can there be in common between charity and tax planning? After all, it is assumed that a company or citizen voluntarily decides to give some part of their money to those who urgently need it. The goal of tax planning is to save money using legal tax schemes. Is it possible to donate money and even save money? Read about this in the article.

In pre-revolutionary Russia, charity was actively developing. However, in the Soviet Union it virtually ceased to exist. Its revival began in the 90s of the last century. Federal Law No. 135-FZ of August 11, 1995 “On Charitable Activities and Charitable Organizations” (hereinafter referred to as the Law on Charity) established that financial support for those in need can be provided by public organizations, business structures, Russian and foreign citizens. But at that time, philanthropists mostly illegally reduced their taxes through donations. As a result, the government canceled many benefits for them. Therefore, at present, companies and citizens who donate money are forced to pay taxes on these amounts. There are no benefits for companies Until 2002, firms could donate up to 5 percent of their profits to charity. These expenses reduced the tax base. Companies can now donate funds only from net profits. If a company provides free services or donates its products free of charge, then the expenses that arise do not reduce its payments to the budget (letter of the Ministry of Finance of Russia dated March 12, 2006 No. 03-03-04/2/53). Only those companies that donate money to one of three areas can be exempt from income tax: culture, science or healthcare. Moreover, they will be able to receive the benefit only after the relevant ministry adds them to the list of companies that are exempt from tax. And companies can avoid paying VAT only if they donate goods, works or services rather than money. However, in this case, controllers refuse to deduct the value added tax that the company paid to suppliers of goods. Therefore, the benefit is relevant mainly for companies that provide services free of charge. Indeed, in this case they do not have “input” VAT (subclause 12, clause 3, article 149 of the Tax Code of the Russian Federation). Personal income tax deduction for a philanthropist A citizen's expenses for charitable purposes reduce his income tax (subclause 1, clause 1, article 219 of the Tax Code of the Russian Federation). The amount that he donated from personal funds is subject to deduction. However, it cannot exceed 25 percent of his annual income, which is taxed at a rate of 13 percent. In turn, non-residents of the Russian Federation cannot take advantage of this benefit. After all, they pay tax on their income at a rate of 30 percent.

Example Let's look at the calculation of the “charitable” personal income tax benefit using an example. Let’s say that in 2005, the salary of citizen A. at her main place of work was 240,000 rubles. During the year, she was provided with standard tax deductions in the amount of 1,000 rubles. Thus, the personal income tax base for income, which is taxed at a rate of 13 percent, amounted to 239,000 rubles. The tax on this amount is 31,070 rubles. (RUB 239,000 x 13%). During 2004, A. transferred 100,000 rubles to the account of a non-profit organization. The maximum deduction amount will be 60,000 rubles. (RUB 240,000 x 25%). This means that income taxed with personal income tax at a rate of 13 percent, taking into account “charitable” payments, will amount to 179,000 rubles. (240,000 – 1000 – 60,000). Thus, citizen A. had to pay personal income tax for 2004 in the amount of 23,270 rubles. (RUB 179,000 x 13%), but in fact she paid RUB 31,070. Therefore, the budget should return her 7,800 rubles.

It should be noted that a citizen will be able to receive a deduction if he provides assistance to an organization that works in the social sphere. In principle, its branch can also accept financial support from a patron. However, in this case, the citizen will not receive a personal income tax deduction. If he donates money to a charitable foundation, then these payments are also not covered by the benefit (subclause 1, clause 1, article 219 of the Tax Code of the Russian Federation). Thus, there is a tax benefit for philanthropic citizens. But, as practice shows, only a few use it. Some patrons simply do not know that they have the right to reduce their income taxes. Others believe that applying for benefits is very difficult. In reality this is not the case at all. How to prepare documents To receive a “charitable” deduction, a citizen must write a corresponding application and take it to the tax office at his place of residence. Along with it, it is necessary to submit a tax return for the reporting period in which the donations were transferred (clause 2 of Article 219 of the Tax Code of the Russian Federation). The application must also be accompanied by:

1. income certificate in form No. 2-NDFL;
2. payment documents confirming that the money was transferred to charitable purposes;
3. donation agreement.

An agreement is usually drawn up if the recipient of the money must use it strictly for certain purposes (Article 5 of the Charity Law). A philanthropist can file a tax return claiming the deduction within three years after the reporting period in which he donated the money. Double taxation In turn, recipients of charitable assistance are also forced to pay income tax on it (clause 8 of Article 250 of the Tax Code of the Russian Federation). But if they use donations only for the purposes for which they received them, they will be able to avoid taxation (subclause 14, clause 1, article 251 of the Tax Code of the Russian Federation). Moreover, if the fund transfers a donation to a citizen, the latter will have to pay 13 percent income tax on its amount. As a rule, the tax is transferred to the budget by a charitable company (clause 1 of Article 226 of the Tax Code of the Russian Federation). However, the recipient of income from a non-resident pays it independently (subclause 3, clause 1, article 228 of the Tax Code of the Russian Federation). However, some types of such income are still exempt from tax. In particular, grants to support science and education, culture and art (clause 6 of article 217 of the Tax Code of the Russian Federation). Citizens have the right not to pay tax if they have received a grant from one of 72 organizations, the list of which is established by the Government. The purpose of such a restriction is obvious - to prevent tax abuse through fictitious charitable foundations. But grants from citizens, both Russian and foreign, are not subject to taxation. It is worth noting that when making charitable payments to a citizen, there is no tax base under the Unified Social Tax. The single social tax is charged only on the wages of fund employees (clause 1 of article 236 of the Tax Code of the Russian Federation). Western experience Ideal tax conditions for companies and citizens who engage in charity do not exist in any country in the world. Thus, in many European countries, a citizen who donates personal money is forced to pay taxes on it. Despite the lack of tangible benefits, up to 95 percent of European entrepreneurs donate funds to charity. Good conditions for the development of charity exist in the United States. There, corporations have the right to donate up to 10 percent of their profits. They do not pay taxes on this amount. But, as statistics show, the bulk of donations still comes from citizens. One of the most common forms of private charity in the United States is the so-called Donor Advised Fund. These are funds that inform a citizen about where money is transferred from his charitable account. He receives an income tax rebate on the amount he deposited into this account. If a citizen makes a contribution not in cash, but in securities, then a tax discount is given for capital gains. In turn, the funds that are in the account are invested in securities and banks. Thus, their amount may increase over time. But the benefactor cannot control the investment. Typically, he only recommends which assets his money can be invested in and sets an acceptable level of investment risk. It is impossible to withdraw funds from charitable foundations. In turn, the latter charge the citizen a commission for managing his money. Companies often open charitable accounts in the Donor Advised Fund. After all, they receive a tax break on the amount of the donation. Currently, bequests of real estate for charitable purposes are becoming increasingly popular in the United States. This practice reduces the tax that heirs must pay. The discount is calculated based on the market value of the property, regardless of the price at which it was purchased. Let's say a citizen bequeathed a house to a charity that cost $25,000 and has risen in value to $100,000. The person will receive a tax break of $100,000. Typically, it covers inheritance taxes, capital gains taxes, real estate taxes, property maintenance costs, and commissions charged by brokers. In addition, if an individual bequeaths the death benefit of his life insurance policy to a trust, he will be entitled to a tax deduction during his lifetime. Such schemes make charity an attractive financial instrument for citizens. At the same time, the state strictly controls the work of private charitable foundations. To sum it up... Obviously, the system of tax incentives for charity in Russia has not been developed. Some of the donations go to the state, and not to those for whom they were originally intended. However, the government is currently discussing charity reform. Perhaps a mechanism will be created in Russia, which in the West is called an endowment. It assumes that a company or citizen who wishes to donate money will contribute it to the capital of charitable foundations. The latter will invest in securities and banks. Accordingly, charitable projects will be carried out using interest from this capital. The Ministry of Finance is ready to exempt donations from taxes if the foundation proves that it is engaged only in charity, or spins off its commercial business into a separate company. The latter, in turn, will pay all taxes as a regular organization. If she directs her profit to the “mother” fund, she will not have to make payments to the budget from her amount. According to the Ministry of Finance, such a system will make it possible not to mix charity and entrepreneurship. However, charitable companies will not be able to receive any tax breaks. Thus, the financial department wants to eliminate any loopholes that businesses can use to evade taxes.

"Paper" features To receive a tax deduction, a citizen must document his expenses. Which paper to draw up depends on the method in which the money was transferred. There are several of them:

• the funds were transferred by the accounting department of the company in which the citizen works, based on his application;
• the citizen himself sent money from his bank account or made a cash transfer;
• the philanthropist contributed money to the coffers of the organization to which he provides assistance;
• the money was sent by postal order.

Please note: inspectors do not consider a postal receipt as a payment document. To prove that the money was credited to the current account of a charitable organization, the citizen will have to provide additional paperwork to the controllers.

Donations help you save money A Russian citizen has the right to receive a tax deduction if he donates money to “social” institutions:

1. organizations of science, culture, education, health care and social welfare, which are partially or fully financed from the budget of any level;
2. physical education and sports, educational and preschool institutions;
3. religious organizations.

Possible charitable purposes There are 11 of them in total:

• social support for citizens;
• preparing the population to overcome the consequences of natural disasters and catastrophes, to prevent accidents;
• assistance to victims of natural disasters, environmental and industrial disasters, social, national, religious conflicts, victims of repression, refugees and internally displaced persons;
• strengthening peace, friendship and harmony between peoples, preventing social, national, religious conflicts;
• increasing the prestige and role of the family in society;
• protection of motherhood and childhood;
• promoting education, science, culture, art, enlightenment, and spiritual development of the individual;
• prevention and health protection of citizens, as well as promotion of a healthy lifestyle;
• assistance to institutions of physical culture and mass sports;
• nature conservation, animal protection;
• maintenance of buildings that have historical and cultural value, as well as burial sites.

Charity is the making of donations, i.e. donation of a thing or right for generally beneficial purposes. Accordingly, philanthropists are persons who provide charitable donations (Article 5 of the Federal Law of August 11, 1995 No. 135-FZ, paragraph 1 of Article 582 of the Civil Code of the Russian Federation). What kind of accounting entries should be made for charitable donations? We'll tell you in our material.

Charitable aid accounting

The accounting procedure for charitable expenses depends on the type of expenses:

Operation	Account debit	Account credit
Transferred (deposited) funds as charitable assistance	91, subaccount “Other expenses”	50 “Cash desk”, 51 “Cash accounts”, etc.
Fixed assets, materials, goods, etc. were donated as charity.	91, subaccount “Other expenses”	01 “Fixed assets”, 10 “Materials”, 41 “Goods”, etc.
Work performed (services provided) as charity	91, subaccount “Other expenses”	20 “Main production”, 29 “Service production and facilities”, etc.
Reflects charitable expenses for the purchase of goods, works, services directly in the interests of a third party	91, subaccount “Other expenses”	60 “Settlements with suppliers and contractors”

We remind you that when calculating income tax, charitable assistance is not taken into account in the donor’s expenses (

Date of birth: 05/07/1985

Education: Moscow State Law Academy.

Career: 2005 - “Liftremont”, lawyer;
2008 - Taxpayer Protection Department of Arso-Audit, Head.

Someday in Russia, doing good will not only be useful, prestigious, but also profitable, - Dmitry Chervotkin, head of the taxpayer protection department at Arso-Audit.

GIVE A BENEFITS - THEY WILL START ABUSING

Not many people think that from charity to tax optimization is just one step. You can donate money, but at the same time save some of the tax costs. Yes, there are not many benefits, but giving more is fraught: our country has its own mentality. Cases of tax evasion will increase, fictitious charities will spread, and a huge number of non-profit organizations will appear. Therefore, tax benefits in charity are the “sugar” that should not be too much.

TAXATION OF CHARITERS

IF THE CHARITY IS AN INDIVIDUAL

Personal income tax. The only tax incentive is a social deduction for personal income tax. But it has a limitation: no more than 25% of the total amount of income taxed at a rate of 13% is accepted for deduction.

For example, if during the year you received an income of 2 million rubles, of which you spent 200 thousand on charity, you can submit a declaration for a return from the budget of 26,000 rubles (13% of 200,000).

A tax benefit is provided if assistance is provided to a charitable organization, NPO in the field of science, culture, sports (except professional), education, healthcare, human rights protection, environmental protection or religious organizations. All of them must be registered as legal entities. For example, if assistance is allocated to a sports club that does not have the status of a legal entity, there will be no tax benefits.

You also need to be careful in relation to religious organizations: the purpose of the payment must indicate “conducting statutory activities.” If the wording is “donation for the restoration of the temple,” the deduction will be denied.

If you decide to transfer the help not to the organization, but directly to the person in need, there will be no tax benefits either.

What documents are needed: a 2-NDFL certificate must be attached to the tax return, as well as documents confirming expenses for charity: receipts to the recipient, payment orders, bank statements, acts of acceptance and transfer of property, donation agreements. A complete list of documents has not yet been established by the Tax Code, so the issue will have to be resolved in each case individually.

IF THE CHARITY IS A LEGAL ENTITY

Income tax. Currently there are no benefits, but from 2014 it is planned to introduce a rule according to which private organizations will be able to dedicate up to 10% of profits to charity without paying tax. This practice applies in the USA and Europe.

VAT. Payment of value added tax depends on the type of assistance provided.

Option 1. The most convenient way to help is to transfer funds, since transfers are not subject to VAT.

Option 2. When you help, for example, a hospital, kindergarten or museum not with money, but with things. The purpose of charity must be clearly defined and not related to business activities. Then this operation will not be subject to VAT. But! Only if we are not talking about excisable goods.

What documents are needed: the benefit will need to be confirmed by a copy of the charter of the person receiving assistance and a charity agreement. You can also provide letters requesting assistance as evidence.

Option 3. When providing charitable assistance to a specific person, you will receive exactly the same VAT exemption.

What documents are needed: to exclude claims from the tax authorities, draw up an agreement for the provision of charitable assistance - indicate in it the nature and purpose of the transfer of property, the obligation to use it for its intended purpose. And be sure to sign the act of transfer and receipt.

Option 4. If you do not transfer money or property, but directly pay for goods, work or services for someone, VAT will be included in their price. It will be impossible to accept it for deduction.

TAXATION OF BENEFICIARY RECIPIENTS

IF THE BENEFICIARY IS AN INDIVIDUAL

Personal income tax. Receiving assistance up to 4,000 rubles per year, a person is exempt from paying personal income tax on it. But the excess amount will have to pay 13% to the budget. The legislator did not make any distinctions in gifts, even if life-saving medicines are transferred.

IF THE BENEFICIARY IS A LEGAL ENTITY

Income tax. When receiving charitable assistance, an organization does not pay income tax on it.

VAT. Neither money nor property transferred free of charge are subject to VAT. The only condition is that they must be used for non-commercial purposes.

There will also be no VAT if the organization that received the assistance transfers it to a specific person in need.

The company carries out retail trade in rented stores. Receptacles for collecting charitable donations are installed at the checkout counters.(money) provided by store customers. Charitable assistance is provided (money is transferred) to specific third-party individuals, the specified amounts are not reflected in the accounting (tax) records of the enterprise.

Consequences for the enterprise

The concept of tax agents is disclosed in paragraph 1 of Art. 24 of the Tax Code of the Russian Federation: tax agents are persons who, in accordance with the Tax Code of the Russian Federation, are entrusted with the responsibility for calculating, withholding from the taxpayer and transferring taxes to the budget system of the Russian Federation.

According to paragraph 1 of Art. 226 of the Tax Code of the Russian Federation, Russian organizations from which or as a result of relations with which the taxpayer received the income specified in paragraph 2 of this article are obliged to calculate, withhold from the taxpayer and pay the amount of tax calculated in accordance with Article 224 of the Tax Code of the Russian Federation, taking into account the specifics provided for Art. 226 Tax Code of the Russian Federation.

In accordance with paragraph 2 of Art. 226 of the Tax Code of the Russian Federation, calculation of amounts and payment of tax are carried out in relation to all income of the taxpayer, the source of which is a tax agent (except for income in respect of which calculation of amounts and payment of tax are carried out in accordance with Articles 214.3, 214.4, 214.5, 214.6, 226.1, 227 and 228 of the Tax Code of the Russian Federation).

Hence, in order to recognize an enterprise as a tax agent for the purposes of calculating personal income tax, it is necessary that it pays (issues in kind) income to the taxpayer - an individual.

In accordance with Art. 1 of the Federal Law of August 11, 1995 No. 135-FZ “On Charitable Activities and Charitable Organizations”, 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, including funds, to citizens or legal entities , selfless performance of work, provision of services, provision of other support.

In the situation under consideration, charitable assistance is provided by other individuals, the company acts as an “intermediary” that has provided space in the checkout area for placing containers for collecting charitable assistance (boxes). At the same time, as the company previously noted (request dated May 19, 2015), that upon completion of the donation collection campaign, the funds are recalculated in the presence of several persons and transferred according to the act to the beneficiary. There is no agreement for the placement of boxes with the beneficiary.

Hence, the beneficiary accepts charitable assistance from individuals, the enterprise is not the source of payment of this income for the beneficiary.

Since the funds were received by the beneficiary not from the enterprise and not as a result of relations with it, the enterprise is not a tax agent for personal income tax for the beneficiary. We believe that the act of acceptance and transfer of funds to the beneficiary, drawn up in the presence of several persons, and indicating that the funds were received by the beneficiary, is a confirming document that the funds were not received from the enterprise.

The obligation to maintain tax registers for personal income tax, submit 2-NDFL certificates to the tax authority and make calculations in form 6-NDFL is established by clause 2 of Art. 230 of the Tax Code of the Russian Federation only for tax agents.

Thus, in the situation under consideration, the enterprise is not a tax agent for personal income tax in relation to the beneficiary’s income and is not required to submit a 2-personal income tax certificate and a 6-personal income tax calculation for the beneficiary’s income.

For an individual beneficiary

According to Art. 217 of the Tax Code of the Russian Federation the following types of income of individuals received in the form of charitable assistance (or free of charge) are not subject to taxation (exempt from taxation):

• amounts of payments in the form of charitable assistance in cash and in kind, provided in accordance with the legislation of the Russian Federation on charitable activities by Russian and foreign charitable organizations registered in the established manner (clause 8.2 of Article 217 of the Tax Code of the Russian Federation);
• income in cash and in kind received from individuals as a gift, with the exception of cases of donation of real estate, vehicles, shares, shares, shares, unless otherwise provided by this paragraph (clause 18.1 of Article 217 of the Tax Code of the Russian Federation);
• income in the form of charitable assistance received by orphans, children without parental care, and children who are members of families whose income per member does not exceed the subsistence level, the amount of which is determined in the manner established by the laws of the constituent entities of the Russian Federation, regardless of the source of payment (Clause 26, Article 217 of the Tax Code of the Russian Federation).

Hence, amounts of charitable assistance are not subject to personal income tax if they are either received directly from a charitable organization, or donated by individuals, or such income was received by a certain category of beneficiaries.

Other types of charitable assistance provided to beneficiaries in the form of transferring funds to them are subject to personal income tax.

At the same time, I would like to especially note the norm of clause 18.1 of Art. 217 of the Tax Code of the Russian Federation, which, as an exception, indicates cases of donation of real estate, vehicles, shares, shares, shares and contains the note “unless otherwise provided by this paragraph.” Other provisions are provided in paragraph. 2 clause 18.1 art. 217 Tax Code of the Russian Federation. It states that “income received as a gift is exempt from taxation if the donor and recipient are family members and (or) close relatives in accordance with the Family Code of the Russian Federation.”

This wording complicates the meaning of the norm in paragraph 18.1 of Art. 217 of the Tax Code of the Russian Federation, since when read verbatim, the norm is understood to mean that only income received by taxpayers as a gift from close relatives and family members is not subject to personal income tax.

However, according to regulatory authorities(Letter of the Federal Tax Service of Russia dated July 10, 2012 No. ED-4-3/11325@) such income is not taxed:

“It must be taken into account that paragraph 2 of the Code under consideration applies only to those cases when the subject of the gift agreement is real estate, vehicles, shares, interests, shares.
Income in the form of other property and property rights not related to the specified list received under a gift agreement, not subject to taxation for the purposes of Chapter 3 of the Code regardless of whether the donor and recipient are family members and (or) close relatives".

It should be noted that the Federal Tax Service issued this Letter in order to eliminate ambiguous interpretations of the provisions of clause 18.1 of Art. 217 Tax Code of the Russian Federation. A similar opinion was expressed by the Ministry of Finance of the Russian Federation in Letters dated 02.21.2012 No. 03-04-05/6-200, dated 05.05.2012 No. 03-04-05/4-608.

Hence, funds received by individuals from other individuals as a gift are not subject to personal income tax.

In our opinion, an act of acceptance and transfer of funds to the beneficiary can serve as documentary evidence that funds have been received from other individuals. In this case, it is advisable to make a note in the act that the funds were collected during the campaign to collect donations from other individuals.

Thus, an individual beneficiary’s income in the form of funds received as charitable assistance from other individuals is not subject to personal income tax.

Accounting for the provision of charitable assistance is maintained in accordance with the legislation of the Russian Federation. In our article we will talk about the nuances of registering such transactions in charitable foundations and in ordinary charitable organizations.

Legislative basis for charitable assistance

Charitable activities in our country are regulated by the Law “On Charitable Activities and Charitable Organizations” dated August 11, 1995 No. 135-FZ. It must be voluntary and can be carried out by all persons, both legal entities and individuals, to any person in the form of:

• transfer of property and funds;
• performing work or services free of charge;
• other support.

Charitable activities must comply with the goals listed in Art. 2 of Law 135-FZ. The law ensures the unimpeded conduct of charitable operations based on the free choice of the benefactor. An individual or legal entity can also create charitable organizations, one type of which is a charitable foundation. The charitable foundation is a non-profit organization (NPO) and operates in accordance with the Law “On Non-Profit Organizations” dated January 12, 1996 No. 7-FZ.

All NPOs must maintain accounting and prepare reports in accordance with Art. 32 of Law 7-FZ. Accounting statements are provided to the founders, tax authorities, state statistics authorities, and are also published annually (for those performing the functions of a foreign agent - once every six months) on the Internet or in the media.

Charitable foundation reporting

Accounting for charitable assistance in accounting entries and reporting in charitable foundations is organized on the basis of the Law “On Accounting” dated December 6, 2011 No. 402-FZ. Composition of accounting records for a charitable foundation (clause 2 of article 14 of law 402-FZ):

• balance sheet,
• report on the intended use of funds,
• applications to them.

Law 402-FZ gives NPOs a relaxation in the form of the right to use simplified methods of accounting and reporting (subclause 2, clause 4, article 6), while we must not forget about the exceptions given in clause 5 of art. 6, which an organization may fall under. Full and simplified reporting forms can be found in the order of the Ministry of Finance of the Russian Federation dated July 2, 2010 No. 66n.

In addition, according to paragraph 3 of Art. 32 of Law 7-FZ, a charitable foundation is subject to the obligation to report to the Ministry of Justice. The report forms were approved by Order of the Ministry of Justice of the Russian Federation dated March 29, 2010 No. 72, and there is also a guide for filling out these forms (Order of the Ministry of Justice of the Russian Federation dated March 17, 2011 No. 81).

You can learn about simplified reporting relevant for charitable foundations from the article.

How to register charitable assistance received from a legal entity or citizen?

A peculiarity of accounting in charitable foundations is that financial results accounts are not used to reflect non-profit charitable activities, but account 86 “Targeted financing” is used.

How to register charitable assistance from a legal entity? Income from non-commercial activities can be in the form of donations, membership fees or other payments for statutory activities; they are reflected in the following entries:

By account 86, subaccounts are opened depending on the type of income. If the receipt is not money, but fixed assets that will be used in statutory activities:

When receiving materials for conducting statutory activities, the following entries are made:

The use of received funds is shown in the debit of account 20, and if the funds are directed to the maintenance of a charitable foundation, then in the debit of account 26:

If a charitable foundation conducts business activities, then the profit from it is attributed to the conduct of charitable activities by posting Dt 84 Kt 86.

How to reflect the provision of charitable assistance in transactions?

How to reflect charitable donations in accounting? Charitable expenses in a regular business organization are other. In addition, they are not taken into account when taxing profits (clause 16 of Article 270 of the Tax Code of the Russian Federation), therefore PNO appears in accounting. The accountant must make the following entries:

• Dt 91.1 Kt 76 - expenses for charity are shown;
• Dt 76 Kt 51 - money was transferred to charity;
• Dt 99 Kt 68 subaccount “Income Tax” - PNO is shown.

In the following example, we will consider the situation of transferring a fixed asset within the framework of charity.

Example

Pervotsvet LLC in March 2017 purchased a copying machine worth RUB 75,000, including VAT RUB 11,441. In June, the device was transferred to a charitable foundation for the implementation of a specific program. Depreciation charges for the period of operation are equal to 10,593 rubles. In March 2017, the following entries were made in the accounting records:

		Amount, rub.	Description
			purchased a copy machine
			reflected incoming VAT
			VAT is accepted for deduction
			the device is put into operation

In June 2017, the following entries were made in accounting:

		Amount, rub.	Description
01 subaccount “Disposal of fixed assets”			reflects the initial cost of the disposedapparatusA
	01 subaccount “Disposal of fixed assets”		depreciation of the retiring equipment is reflected
	01 subaccount “Disposal of fixed assets”		the residual value of the device has been written off
			VAT has been restored from the residual value of the device (RUB 52,966 × 18%)
			recovered VAT is charged to other expenses
			reflected PNO RUB 52,966. × 20%

Look for clarification on VAT accounting in the next section.

VAT on disposal of fixed assets as charitable donation

According to sub. 2 p. 3 art. 170 of the Tax Code of the Russian Federation, the tax must be restored if the fixed asset will be used in transactions that are not subject to VAT. Charity is considered to be such an operation according to subparagraph. 12 clause 3 art. 149 of the Tax Code of the Russian Federation - the main thing is that charity activities comply with the law 135-FZ and the asset is not excisable.

To calculate the amount of VAT related to retired fixed assets or intangible assets that must be restored, you need to calculate the residual value of the object and take the corresponding VAT percentage from it. The proportional calculation applies only to the indicated two types of assets; for other assets, the tax is fully restored. The restored VAT is charged to other expenses (subclause 2, clause 3, article 170 of the Tax Code of the Russian Federation).

Results

Charitable assistance can be provided through a charitable foundation or independently by legal entities and citizens. In our article we looked at accounting in a charitable foundation, reporting of charitable foundations, as well as accounting in charitable organizations. A special feature is that in foundations, charitable transactions do not affect the financial results accounts; in a regular organization, charitable expenses are other.