Hello. If the income does not exceed 60 million rubles. for the reporting period, then you can choose the simplified tax system

Article 346.13. Procedure and conditions for the beginning and termination of the application of the simplified taxation system
1. Organizations and individual entrepreneurs who have expressed a desire to switch to a simplified taxation system from the next calendar year, notify the tax authority at the location of the organization or the place of residence of the individual entrepreneur no later than December 31 of the calendar year preceding the calendar year from which they switch to simplified taxation system. The notification indicates the selected object of taxation. Organizations also indicate in the notification the residual value of fixed assets and the amount of income as of October 1 of the year preceding the calendar year from which they switch to a simplified taxation system.

2. A newly created organization and a newly registered individual entrepreneur have the right to notify of the transition to a simplified taxation system no later than 30 calendar days from the date of registration with the tax authority specified in the certificate of registration with the tax authority issued in accordance with paragraph 2 of the article 84 of this Code. In this case, the organization and individual entrepreneur are recognized as taxpayers applying the simplified taxation system from the date of their registration with the tax authority, indicated in the certificate of registration with the tax authority.

Organizations and individual entrepreneurs that have ceased to be taxpayers of the single tax on imputed income have the right, on the basis of a notification, to switch to a simplified taxation system from the beginning of the month in which their obligation to pay the single tax on imputed income was terminated.

3. Taxpayers applying the simplified taxation system do not have the right to switch to a different taxation regime before the end of the tax period, unless otherwise provided by this article.

4. If, at the end of the reporting (tax) period, the taxpayer’s income, determined in accordance with Article 346.15 and subparagraphs 1 and 3 of paragraph 1 of Article 346.25 of this Code, exceeded 60 million rubles and (or) during the reporting (tax) period there was a non-compliance with the requirements established by paragraphs 3 and 4 of Article 346.12 and paragraph 3 of Article 346.14 of this Code, such a taxpayer is considered to have lost the right to apply the simplified taxation system from the beginning of the quarter in which the specified excess and (or) non-compliance with the specified requirements was allowed.

If the taxpayer applies simultaneously the simplified taxation system and the patent taxation system, when determining the amount of income from sales for the purpose of complying with the limitation established by this paragraph, income under both specified special tax regimes is taken into account.(

In this case, the amounts of taxes payable when using a different taxation regime are calculated and paid in the manner prescribed by the legislation of the Russian Federation on taxes and fees for newly created organizations or newly registered individual entrepreneurs. The taxpayers specified in this paragraph do not pay penalties and fines for late payment of monthly payments during the quarter in which these taxpayers switched to a different taxation regime.

The value of the taxpayer's income limit specified in paragraph one of this paragraph, which limits the taxpayer's right to apply the simplified taxation system, is subject to indexation in the manner prescribed by paragraph 2 of Article 346.12 of this Code.

4.1. If, at the end of the tax period, the taxpayer’s income, determined in accordance with Article 346.15 and subparagraphs 1 and 3 of paragraph 1 of Article 346.25 of this Code, did not exceed 60 million rubles and (or) during the tax period there was no non-compliance with the requirements established by paragraphs 3 and 4 of Article 346.12 and paragraph 3 of Article 346.14 of this Code, such a taxpayer has the right to continue using the simplified taxation system in the next tax period.

5. The taxpayer is obliged to inform the tax authority about the transition to a different taxation regime, carried out in accordance with paragraph 4 of this article, within 15 calendar days after the expiration of the reporting (tax) period.

6. A taxpayer applying a simplified taxation system has the right to switch to a different taxation regime from the beginning of the calendar year, notifying the tax authority no later than January 15 of the year in which he intends to switch to a different taxation regime.

7. A taxpayer who has switched from a simplified taxation system to another tax regime has the right to switch again to a simplified taxation system no earlier than one year after he lost the right to use the simplified taxation system.

8. If a taxpayer terminates a business activity in respect of which the simplified taxation system was applied, he is obliged to notify the tax authority at the location of the organization or the place of residence of the individual entrepreneur of the termination of such activity, indicating the date of its termination, no later than 15 days from the date of termination of such activity. activities.

Based on paragraph 4 of Article 346.13 of the Tax Code of the Russian Federation (hereinafter referred to as the Tax Code of the Russian Federation), the conditions for applying the simplified taxation system are: the organization’s income for the reporting period should not exceed 15 million rubles and the residual value of fixed assets and intangible assets should not exceed 100 million rubles.

Note! When applying the simplified tax system, when drawing up an estimate, the organization must provide for the costs of paying “input” VAT by suppliers, since this tax cannot be deducted from the budget.

The State Committee of the Russian Federation for Construction and Housing and Communal Sector in its Letter dated October 6, 2003 NZ-6292/10 “On the procedure for determining the estimated cost of work performed by organizations operating under a simplified tax system” explains the following: organizations and individual entrepreneurs working under a simplified the taxation system is paid a single tax instead of profit tax, corporate property tax, and unified social tax (UST) and value added tax (VAT).

Let's consider the options that are encountered when construction organizations use the simplified tax system.

The contractor uses the simplified taxation system, and the subcontractor uses the regular taxation system

In accordance with paragraph 2 of Article 346.11 of the Tax Code of the Russian Federation, the use of a simplified system of taxation by organizations provides for the replacement of the payment of corporate income tax, corporate property tax and the unified social tax with the payment of a single tax calculated based on the results of the economic activities of organizations for the tax period.

Organizations applying the simplified taxation system pay insurance premiums for compulsory pension insurance in accordance with the legislation of the Russian Federation.

Other taxes are paid by organizations applying the simplified taxation system in accordance with the general taxation regime.

Organizations applying the simplified taxation system are not recognized as taxpayers of value added tax, with the exception of value added tax payable when importing goods into the customs territory of the Russian Federation.

Consequently, the contractor will not charge value added tax on the cost of the work performed.

The contractor will not have to issue invoices to his customers, because the obligation to draw up invoices, keep logs of received and issued invoices, purchase books and sales books is assigned only to value added tax payers (clause 3 of Article 169 of the Tax Code of the Russian Federation).

The same explanations are given in paragraph 1.2 of the Methodological Recommendations for application of Chapter 21 “Value Added Tax” of the Tax Code of the Russian Federation.

If an organization that has switched to the simplified tax system issues an invoice to the customer and allocates VAT, it will have to provide a VAT return for the given tax period. And therefore, according to this declaration, the organization must pay to the budget the tax allocated in the invoice (subparagraph 1 of paragraph 5 of Article 173 of the Tax Code of the Russian Federation). The organization cannot claim value added tax on material resources used by the organization in carrying out construction work for deduction from the budget (clause 1.6 of the Methodological Recommendations for the Application of Chapter 21 “Value Added Tax” of the Tax Code of the Russian Federation).

Subclause 3 of clause 2 of Article 170 of the Tax Code of the Russian Federation establishes that value added tax on goods (work, services) for production purposes used in its activities by an organization that has switched to the simplified tax system is not accepted for deduction from the budget; the amount of the tax is included in the cost of purchased goods (works, services). On this issue, the same explanations are given in paragraph 1.3 of the Methodological Recommendations on the Application of Chapter 21 “Value Added Tax” of the Tax Code of the Russian Federation.

Let's look at what should be the procedure for preparing invoices and accounting for value added tax if a contractor, transferred to the simplified tax system, engages a subcontractor who applies the general tax regime to perform the contract.

The subcontractor issues an invoice to the contractor for the amount of work performed and highlights the value added tax as a separate line. Next, the subcontractor registers an invoice in the sales book, reflects the amount of value added tax in the tax return and pays it to the budget.

The contractor, having received an invoice and a certificate of completion from the subcontractor, includes the entire cost of construction work, taking into account value added tax, as part of its expenses and reflects it on account 20 “Main production”.

After completing the construction work under the contract, the contractor hands it over to the customer, and a delivery and acceptance certificate is signed. The contractor will not issue an invoice to the customer, since he is not a value added tax payer. The customer includes the cost of work performed as part of the costs of creating a non-current asset and reflects them on account 08 “Investments in non-current assets”.

To make it clearer, let's look at an example:

The customer LLC "Remstroy" entered into a contract for the construction of a warehouse with the contractor JSC "Remfasad", the cost of work under the contract was 600,000 rubles (excluding VAT). Work under the contract must be completed by September 21. To carry out the finishing work and to ensure that the work was completed on time, Remfasad CJSC hired a subcontractor, Remservis LLC. The cost of work performed under the contract is 200,000 rubles (excluding VAT). To carry out the work, Remservis LLC purchased materials in the amount of 94,600 rubles (including VAT - 14,430.51 rubles). Other expenses for the construction of a warehouse (construction workers' wages, taking into account unified social tax, insurance contributions to the Pension Fund, depreciation of equipment) amounted to 60,000 rubles

Let's consider the reflection of transactions in the accounting records of all parties.

Subcontractor (Remservis LLC):

Reflection of transactions with the customer Remstroy LLC:

Reflection of transactions with the contractor CJSC Remfasad:

In accordance with paragraph 3 of Article 4 of the Accounting Law, organizations using the simplified tax system are exempt from accounting.

End of the example.

If an entrepreneur decides to organize a construction business, he is faced with the question: what should be the taxation system for individual entrepreneurs during construction? It is important for every businessman starting his own business to decide which system he will use to make payments, because the complexity of tax and accounting, as well as the type of payments he needs to make to the budget, depends on this choice.

A single tax on imputed income

All individuals engaged in entrepreneurial activities are required to submit reports to the Federal Tax Service and pay taxes on time and within the established deadlines. This scheme for making payments to the state greatly simplifies the life of entrepreneurs. But there is one pitfall: this type of payment can only be used for certain types of activities, a list of which is contained in the Tax Code of the Russian Federation. When considering the scheme for paying UTII, an entrepreneur needs to determine whether he should make these payments from his type of activity, since now the UTII regime for certain types of business is mandatory.

This taxation system for individual entrepreneurs (construction) can also be applied to activities such as the provision of household services to the population. Household services may include the repair and construction of housing and other buildings, excluding the construction of private houses. Thus, if an individual entrepreneur is engaged in providing repair and construction services to the population and if in the territory where he carries out this activity, UTII has been introduced for this type of activity, then the individual entrepreneur is obliged to pay UTII.

If an individual entrepreneur carries out, along with those types of work that are subject to UTII, other activities, he will pay taxes and fees in accordance with the taxation scheme that he has chosen for this type of activity. If an individual entrepreneur is not subject to mandatory taxation under the UTII scheme, he has the right to choose any other system for making payments to the budget.

A significant advantage of this type of payments to the budget is that their amount is always fixed and does not depend on the actual income of the individual entrepreneur, and the amount of payments is determined by the scale of the business itself, for example, the number of employees or vehicles. This tax can be reduced by insurance premiums paid for employees. Sometimes due to this it is possible to reduce the tax amount by almost half.

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Simplified taxation system

This is the most common scheme found among beginning entrepreneurs. Using this scheme, a businessman pays only one tax instead of three, and it is paid once a quarter, and reports are submitted only once a year. An entrepreneur engaged in construction can switch to this taxation system on a voluntary basis, and he can combine it with UTII for those types of work that are subject to this type of payment without fail.

Individual entrepreneurs engaged in home repair and construction can also switch to a simplified taxation scheme based on a patent. But it is necessary to take into account that according to such a scheme regulating the taxation of construction individual entrepreneurs, a businessman can attract hired workers, the average number of whom for the reporting period does not exceed 5 people.

To choose this system, you need to submit an application to the Federal Tax Service no later than 30 days after registering an individual entrepreneur or before December 31 in order to switch to this scheme immediately after the next year. Please note that this system may not always be used. There are restrictions on certain types of businesses that cannot use it. In addition, there are restrictions on the maximum annual income and on some other factors.

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General tax regime

If an individual entrepreneur does not necessarily pay UTII and does not use a simplified system of payments to the budget, he must calculate the amount of payments and make them according to the general taxation regime. In this case, the individual entrepreneur pays personal income tax and VAT in accordance with established regulations.

If an individual entrepreneur has property for which contributions must be made to the state, he is obliged to pay:

• land payment;
• property tax for individuals;
• transport payment.

This mode is not always profitable, especially for entrepreneurs taking their first steps in business.

A businessman himself must keep full accounting records, create a book of income, expenses and business transactions.

For each payment to the budget it will be necessary to submit reports.

Most often, the main criterion for choosing or rejecting this scheme is VAT. Calculating it is not so easy; to do this, you will need to keep all documentation, all invoices in order and submit reports to the Federal Tax Service every quarter. Based on all this, if a businessman does not have good knowledge of accounting, he should think about other types of deductions to the budget.

If an individual entrepreneur engaged in construction activities has not decided which system to switch to and has not reported this to the Federal Tax Service, then he is automatically transferred to this system, that is, the general taxation regime is used by regulatory authorities by default. It operates without restrictions for all types of business. In this system there are no restrictions not only on types of activities, but also on the number of employees, income received, and so on.

Thus, each individual entrepreneur, who is an individual entrepreneur, chooses taxation for construction work based on the characteristics of his business and which system seems simpler and better for him in all respects. But whatever your choice, ideally completed tax reporting and timely payments to the state are the main step to business success.

After completing the construction work under the contract, the contractor hands it over to the customer, and a delivery and acceptance certificate is signed. The contractor will not issue an invoice to the customer, since he is not a value added tax payer. The customer includes the cost of work performed as part of the costs of creating a non-current asset and reflects them on the “Investments in” account.

To make it clearer, let's look at an example:

Example 1.

The customer LLC "Remstroy" entered into a contract for the construction of a warehouse with the contractor JSC "Remfasad", the cost of work under the contract was 600,000 rubles (excluding VAT). Work under the contract must be completed by September 21. To carry out the finishing work and to ensure that the work was completed on time, Remfasad CJSC hired a subcontractor, Remservis LLC. The cost of work performed under the contract is 200,000 rubles (excluding VAT). To carry out the work, Remservis LLC purchased materials in the amount of 94,600 rubles (including VAT - 14,430.51 rubles). Other expenses for the construction of a warehouse (builders, taking into account unified social tax, insurance contributions to the Pension Fund, depreciation of equipment) amounted to 60,000 rubles.

Let's consider the reflection of transactions in the accounting records of all parties.

Subcontractor (Remservis LLC):

Reflection of transactions with the customer Remstroy LLC:

Reflection of transactions with the contractor CJSC Remfasad:

In accordance with paragraph 3 of Article 4 of the Accounting Law, organizations using the simplified tax system are exempt from accounting.

End of the example.

Considering the situation in which the subcontractor has been transferred to the simplified tax system, and the contractor operates under the regular taxation system, you should pay attention to the fact that, in this case, accepting work from the subcontractor, the contractor cannot claim value added tax on these works for deduction from the budget . Since in this situation the subcontractor will not issue him an invoice.

The contractor must charge value added tax on the entire cost of work performed for the customer. Indeed, in accordance with paragraph 1 of Article 702 of the Civil Code of the Russian Federation (hereinafter referred to as the Civil Code of the Russian Federation), under a contract, one party (contractor) undertakes to perform certain work on the instructions of the other party (customer) and deliver it on time. And the customer undertakes to accept the result of the work and pay for it. If a contractor hires a subcontractor to perform some work, the subcontractor usually does not enter into a relationship between the customer and the contractor (clause 3 of Article 706 of the Civil Code of the Russian Federation). After all, under a contract, it is the contractor who carries out all the work for the customer. And it doesn’t matter that part of the construction work was carried out by third-party organizations.

Let us conclude that if the contractor accepts the general taxation system, and the subcontractor applies the simplified tax system, then the preparation of invoices and value added tax accounting will proceed as follows.

Having completed a certain stage of work under the contract, the subcontractor hands it over to the contractor. But in this case, the subcontractor does not issue an invoice to the contractor. The contractor includes as expenses the cost of work performed by the subcontractor, which is recorded on account 20 “Main production”.

Having completed all the work under the contract, the contractor will hand it over to the customer, while he issues an invoice to the customer, registers it in the sales book, and reflects the corresponding amount of value added tax in the tax return. This amount is subject to payment to the budget.

The customer reflects the cost of work performed on account 08 “Investments in non-current assets”. Having received an invoice and a certificate of delivery and acceptance of completed work from the contractor, the customer will assign the allocated amount of VAT to account 19 “Value added tax on acquired assets”. The customer will submit this amount of VAT for deduction from the budget if he is a value added tax payer.

Example 2.

Let's use the data from example 1. The subcontractor Remservis LLC uses the simplified tax system. Let's consider the reflection of transactions in the accounting records of all parties.

For the construction of a warehouse, the contractor Remfasad LLC purchased construction materials in the amount of 250,000 rubles (including VAT - 38,135.59 rubles) and incurred expenses excluding subcontractor services in the amount of 75,000 rubles.

Subcontractor LLC "Remservis".

Organizations that have switched to the simplified tax system are exempt from accounting (clause 3 of article 4 of the Accounting Law).

Reflection of accounting transactions with the contractor CJSC Remfasad:

Reflection of accounting transactions at the customer Remstroy LLC

Note!

The customer has the right to deduct VAT from the moment depreciation is calculated.

Based on paragraph 5 of Article 172 of the Tax Code of the Russian Federation, the customer will present the amount of tax for deduction from the budget as the object is registered. The moment of accrual of depreciation for an object of depreciable property begins on the 1st day of the month following the month in which this object was put into operation.

End of the example.

In a situation where the contractor and subcontractor carry out work under the simplified taxation system, they are exempt from accounting (clause 3 of Article 4 of the Accounting Law). Consequently, neither the contractor nor the customer will issue invoices, which means that the customer will not be able to deduct value added tax from the budget for the work performed.

Warehouse put into operation

End of the example.

How to write off VAT on purchased materials if the organization performing construction and installation work uses the simplified tax system, and the object of calculation of the single tax is income.

Clause 2 of Article 346.11 of the Tax Code of the Russian Federation establishes that organizations using the simplified tax system are not VAT payers (except for cases when they import goods into Russia). Consequently, such organizations cannot take advantage of VAT deductions. Organizations using the simplified tax system include VAT on purchased goods (works, services) as expenses.

If an organization pays a single tax only on income, it will not be able to reduce its taxable income by the amount of “input” VAT.

If an organization has chosen income minus expenses as an object of taxation, then it will be able to reduce its taxable income by the amount of “input” VAT (subclause 8 of clause 1 of Article 346.16 of the Tax Code of the Russian Federation).

There are two points of view on accounting for the costs of construction of fixed assets and costs for the acquisition and completion of unfinished construction objects under the simplified tax system.

The point of view of the tax department is not interpreted in favor of the taxpayer; in accordance with Article 346.16 of the Tax Code of the Russian Federation, expenses for the construction of fixed assets and expenses for the acquisition and completion of unfinished construction projects are not directly provided for. The acquisition of fixed assets is a purchase under sales and purchase agreements. Therefore, the construction of fixed assets cannot be equated to the acquisition and such costs cannot be written off as expenses.

The position of the tax department is contained in the Letter of the Ministry of Taxation of the Russian Federation dated May 7, 2004 No. 22-1-14/853 “On the simplified taxation system”:

“The Small Business Tax Administration reports the following.

The list of expenses accepted when calculating the tax base for the single tax paid by taxpayers in connection with the application of the simplified taxation system is established by paragraph 1 of Article 346.16 of the Code.

Expenses for the construction of fixed assets and expenses for the acquisition and completion of unfinished construction projects are not included in the above list of expenses.

Based on this, in the case where the object of taxation is income reduced by the amount of expenses, taxpayers, when applying the simplified taxation system, do not have the right, when calculating the tax base, to reduce the amount of income received for expenses for the construction of fixed assets and the completion of unfinished construction projects.”

But there are other opinions on this issue.

Many share the same opinion as the tax authorities, based on paragraph 1 of Article 257 of the Tax Code of the Russian Federation and paragraph 8 of PBU 6/01, from which it follows that in tax and accounting legislation the concepts of “acquisition” and “construction” of fixed assets are separated. Consequently, construction costs and costs for the acquisition of fixed assets are different types of costs.

Customer-developer, shared construction of housing by contract method. Which taxation regime for the developer is more profitable than the simplified tax system or the general one?

All other things being equal, and also if income under the simplified tax system does not exceed the maximum permissible values, it is better to apply a special tax regime.
With the contract construction method, targeted financing received from shareholders for the construction of the facility is not taken into account in income (subclause 1, clause 1.1, article 346.15, subclause 14, clause 1, article 251 of the Tax Code of the Russian Federation).

The income of a developer who builds by contract is remuneration for services provided to shareholders. As a rule, this is a saving of targeted funds that remain at the disposal of the developer after completion of construction (letter of the Ministry of Finance of Russia dated January 20, 2012 No. 03-11-06/2/7). In this situation, it turns out that under the simplified tax system the saving rate is 15 percent (6 percent), and under the income tax it is 20%.
Moreover, in practice, the construction of houses with non-residential premises is common. Under the general taxation system, remuneration for the construction of such objects, the VAT benefit does not apply either in the case of receipt of remuneration or in the case of the sale of finished premises. This conclusion follows from subparagraph 4 of paragraph 3 of Article 39, subparagraph 1 of paragraph 1 of Article 146 and subparagraph 23.1 of paragraph 3 of Article 149 of the Tax Code of the Russian Federation and letter of the Ministry of Finance of Russia dated November 28, 2014 No. 03-07-10/60920.
With the simplified tax system you do not need to pay VAT.

Oleg the Good, Head of the Department of Profit Taxation of Organizations of the Department of Tax and Customs Tariff Policy of the Ministry of Finance of Russia

How can a developer reflect shared construction of residential buildings in accounting and taxation?

OSNO: contract construction

The procedure for calculating taxes during the construction of a residential building under an agreement of participation in shared construction depends on the method of construction:

• contract method;

In the case of the contract method, under agreements of shared participation in construction, funds received from shareholders for the construction of an object are not recognized as income of the developer. Do not take such funds into account when calculating income tax only if separate accounting is maintained. This is stated in subparagraph 14 of paragraph 1 of Article 251 of the Tax Code of the Russian Federation.

Sales income is revenue from the provision of developer services (Clause 1, Article 249 of the Tax Code of the Russian Federation). Developers account for revenue in the general manner provided for tax accounting of income from sales. For more information, see:

• How to reflect the implementation of work (services) in accounting and taxation;
• How to take into account income and expenses from the sale of manufactured products (work, services) when calculating income tax;
• How to take into account income relating to several reporting periods when calculating income tax.

Situation: at what point should a developer take into account the financial result under an equity participation agreement in construction when calculating income tax. Construction is carried out by contract method. The developer uses the accrual method

The answer to this question depends on whether the contract stipulates the amount of remuneration for the developer or not.

As a rule, the construction of residential buildings under agreements for participation in shared construction is a production with a long technological cycle. Therefore, if the amount of remuneration for the developer is determined by the contract, the developer must distribute the income from the sale of his services independently in accordance with the principle of formation of expenses. This means that income must be distributed between the reporting periods during which the contract is fulfilled.

Distribute your income in one of the following ways:

• evenly;
• in proportion to the share of actual expenses of the reporting period in the total amount of expenses provided for in the estimate.

This procedure is established in paragraph 2 of paragraph 2 of Article 271 and the Tax Code of the Russian Federation and is confirmed by letters of the Ministry of Finance of Russia dated January 13, 2014 No. 03-03-06/1/218, dated September 21, 2011 No. 03-03-06/1 /581, letter of the Federal Tax Service of Russia dated September 15, 2004 No. 02-5-10/54.

If the price of the developer’s services is not established by the contract, but is determined as the amount of savings of the shareholders’ target funds, determine the financial result as of the date the residential building is put into operation.

This is explained by the fact that the amount of revenue can be determined only when the cost of a residential building is fully formed, taking into account all costs. Until this moment, the amount of revenue cannot be determined, and therefore the organization should not take it into account when calculating income tax.

dated August 16, 2011 No. 03-03-06/1/488 and dated February 7, 2011 No. 03-03-06/1/77. The courts also support this position (see decisions of the Federal Antimonopoly Service of the West Siberian District dated January 31, 2011 No. A27-6086/2010, dated October 15, 2010 No. A46-23193/2009, Volga District dated April 30, 2009 No. A55 -8908/2008, dated January 26, 2009 No. A55-8357/2008).

Situation: can a developer take into account losses from the construction of a residential building when calculating income tax? The loss arose due to the excess of construction costs over funds received from shareholders

No, he can not.

Income in the form of funds from shareholders accumulated on the developer’s accounts is targeted financing, therefore they are not taken into account when calculating income tax (subclause 14, clause 1, article 251 of the Tax Code of the Russian Federation). The developer's expenses for the construction of a real estate project, made at the expense of targeted financing, are also not taken into account for the purposes of calculating income tax (Clause 17, Article 270 of the Tax Code of the Russian Federation). Therefore, the amount of loss received by the developer due to the excess of construction costs over the contract value cannot be taken into account when calculating income tax.

A similar opinion is shared by the Russian Ministry of Finance in letters dated February 3, 2012 No. 03-03-06/1/62 and No. 03-03-06/1/63, dated September 16, 2011 No. 03-03-06/1/ 554.

The chief accountant advises: the developer has the right to take into account, when calculating income tax, the loss that resulted from the excess of construction costs over the funds of shareholders

The shared construction agreement provides for the amount of construction costs, which is covered by the funds of the shareholders. If the actual expenses turn out to be higher and the shareholders’ funds are not enough to cover them, a loss will result. And the developer covers this loss at the expense of his own funds, and not at the expense of targeted financing. That is, it takes into account the loss within the framework of activities that generate income.

In a number of cases, during inspections, inspectors opposed the attribution of losses received on one shared construction project to reduce profits on others. Tax inspectors insisted that profit (loss) must be determined for each apartment. At the same time, the loss cannot be taken into account as part of non-operating expenses when calculating income tax, since paragraph 2 of Article 265 of the Tax Code of the Russian Federation contains a closed list in which losses from construction are not provided for. However, arbitration courts adhere to the position expressed by the Ministry of Finance of Russia (see the rulings of the Supreme Arbitration Court of the Russian Federation dated August 18, 2008 No. 10337/08, dated May 23, 2008 No. 4609/08, resolutions of the FAS Volga District dated May 30, 2008 No. A12- 12669/07 and the Volga-Vyatka District dated October 15, 2008 No. A38-1907/2007-12-110(12/3-2008)).

Situation: does the developer need to take into account, when calculating income tax, the amount of free balances of shareholders' target funds temporarily placed on a deposit account as income based on their misuse

No no need. Placing free balances of target funds in a deposit account with a bank should be considered a form of saving, rather than spending, funds, since the ultimate purposes of their use cannot be determined until the completion of construction.

Therefore, these amounts do not need to be taken into account when taxing profits. However, to do this, the developer must fulfill the following conditions:

• document the minimization of the risk of loss (depreciation) of temporarily free balances of target funds placed on deposit accounts;
• document that such placement of temporarily free balances of shareholders' target funds will not lead to a reduction (cessation) of construction;
• document that receiving income from the placement of funds will allow achieving the construction result;
• not have expenses aimed at generating income from the placement of free targeted funds of shareholders.

If these conditions are not met, the activity of placing funds from shareholders will be classified as entrepreneurial. And this will mean misuse of the funds received. Consequently, amounts placed on deposit will be subject to income tax in the general manner.

In this case, take into account interest received on deposits as part of non-operating income ().

A similar point of view is reflected in letters from the Ministry of Finance of Russia dated February 2, 2015 No. 03-03-06/1/3926 and dated December 11, 2009 No. 03-03-06/1/806.

When constructing by contract, VAT is not assessed:

• funds received from shareholders under an agreement for participation in shared construction;
• developer's remuneration under the contract. This rule also applies in the case when the remuneration is determined as the amount of savings of target funds of shareholders (letters of the Ministry of Finance of Russia dated October 26, 2011 No. 03-07-10/17, dated July 29, 2011 No. 03-07-07/43, dated July 27, 2011 No. 03-07-10/13).

This benefit applies only to the construction of residential premises. When the developer receives remuneration for services for shared construction of non-residential premises, VAT must be paid.

For VAT-taxable and non-VAT-taxable transactions, the developer must provide separate accounting (clause 4 of Article 149 of the Tax Code of the Russian Federation).

simplified tax system

The procedure for calculating the single tax when simplified under an agreement of participation in shared construction depends on the method of construction:

• contract method;
• on your own.

The income of a developer who builds by contract is remuneration for services provided to shareholders. As a rule, this is a saving of targeted funds that remain at the disposal of the developer after completion of construction (letter of the Ministry of Finance of Russia dated January 20, 2012 No. 03-11-06/2/7). Income in the form of savings should be taken into account on the date of signing the transfer deed for the apartment (letter of the Ministry of Finance of Russia dated September 15, 2014 No. 03-11-09/45958).

If the developer carries out the construction on his own, then take into account all funds received from equity holders in the income. This is explained by the fact that the developer in this case performs the functions of a contractor. For more information about this, see How to reflect the contractor’s income under a construction contract in accounting and taxation. Consider expenses in the same order as contractors.

In addition, the developer can build part of the apartments in a residential building at his own expense for the purpose of their further sale. In this case, the developer takes into account the proceeds from the sale of apartments in a residential building (clause 1 of Article 346.15).

In the case of construction of residential buildings at your own expense for the purpose of further sale of apartments, reduce the proceeds from sales by expenses associated with the production and sale of products (clause 2 of Article 346.18 of the Tax Code of the Russian Federation). In this case, take into account only those expenses that are named in paragraph 1 of Article 346.16 of the Tax Code of the Russian Federation. Such expenses may include, in particular:

• material costs, including costs for the purchase of raw materials and supplies;
• labor costs, etc.

For more information on how to take expenses into account when calculating a single tax, see