In the normal course of business organizations have representation expenses, intended for official receptions, service representatives present at the negotiations on the installation and maintenance of cooperation between enterprises.They relate to other costs incurred in production and its realization.That is why when calculating the income tax, they are counted as indirect costs of the enterprise.
Representation expenses include the costs of:
- negotiations, official receptions (lunches, breakfasts and other similar events) for certain individuals, and official representatives of the enterprises of the taxpayer involved in the negotiations;
- catering services negotiations and official meetings;
- to ensure the delivery of transport officials to a place of hospitality;
- for the services of hired translators who are not included in the state-enterprise taxpayer, but provide the translation.
Hospitality can not include the cost of recreation, entertainment organization, treatment and prevention of diseases, visiting cultural events.They can not be considered normal and dinners at restaurants, the cost of accommodation, the cost of tickets, visas, anniversaries and holidays.These costs do not reduce the tax base.
in accounting representation costs include other costs completely.For tax accounting they are accounted for within the defined standards.The total amount may be included in other expenses in the limit of 4% of the cost of the enterprise payroll.Such costs include payroll salary and wage rates, allowances, compensations, bonuses, employee costs, provided by collective agreements.The excess of cost over the established norm is not included in other expenses.
Management Accounting representation expenses is made depending on the purpose for which they are intended.They are written off against certain assets of the enterprise:
- the cost of production;
- distribution costs of trade;
- capital investments;
- other expenses that appear in the financial result, accepts or Items not for tax purposes;
- targeted sources of funding;
- bills, which take into account the value (for example, those associated with the purchase of securities).
capital costs associated with the equipment rooms for business meetings, for entertainment expenses can not be attributed.
Making such costs must be done by order or orders of the head of the company, which will specify all the details of design.Tax Code of the specific requirements for registration of primary documents is free.The company establishes the procedure for spending of funds representative, documentation and control of it.Hospitality, postings which are carried out by primary documents, containing information on the location, the date of the event, the list of Representatives, the appointment of a particular cost, the result of the negotiations should be made out a certain set of documents.It should include: an order on the implementation of such costs, the cost, the report (act) on their implementation, primary documents, accounting certificate from the calculation of the standard limit.
Hospitality appear in the debit account 44 "Selling expenses", 20 "Primary production" and 26 "general expenses", well on the loan - the accounts VI, section "calculations" and the accounts of 50 "Cashier", 19 "VAT"51" accounts ", 71" Payroll ".
