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LETTER OF THE FEDERAL TAX SERVICE OF THE RUSSIAN FEDERATION

of September 3, 2013 No. ED-4-3/15969 @

About accounting for the purpose of the taxation of profit of the amounts of the taxes paid in the territories of foreign states

The Federal Tax Service in coordination with Department of tax and customs and tariff policy of the Ministry of Finance of the Russian Federation (the letter No. 03-03-10/32521) concerning accounting for the purpose of the taxation of profit of the organizations of the amounts of the taxes paid in the territory of foreign states reports of 12.08.2013 the following.

According to article 274 Tax Code of the Russian Federation tax base for the purposes of the taxation of profit of the organizations monetary value of the profit determined according to article 247 Tax Code of the Russian Federation taxable is recognized.

Profit for the Russian organizations for the purpose of the specified Chapter the gained income reduced by the size of the made expenses which are determined according to Chapter 25 "The income tax of the organizations" (article 247 Tax Code of the Russian Federation) is recognized.

According to Item 1 of article 252 Tax Code of the Russian Federation expenses the proved and documentary confirmed costs (and in cases, the stipulated in Article 265 Tax Code of the Russian Federation, losses) performed (suffered) by the taxpayer are recognized. Reasonable expenses are understood as economically justified costs which assessment is expressed in cash.

Expenses any costs are recognized provided that they are made for implementation of the activities directed to income acquisition.

The taxes and fees accrued only according to the procedure, established by the legislation of the Russian Federation are provided in the subitem 1 of Item 1 of article 264 Tax Code of the Russian Federation, at the same time the list of the other expenses connected with production and realization is open.

So, according to the subitem 49 of Item 1 of article 264 Tax Code of the Russian Federation other expenses connected with production and (or) realization belong to the other expenses connected with production and realization.

Besides, article 270 Tax Code of the Russian Federation establishing the closed list of the expenses which are not considered for the purpose of the taxation does not contain direct specifying on the fact that the taxes paid in the territory of foreign state are not accepted as expenses.

Considering stated, expenses in the form of the amounts of the taxes and fees paid in the territory of foreign state can be carried to other expenses considered among others the expenses connected with production and (or) realization according to the subitem 49 of Item 1 of article 264 Tax Code of the Russian Federation.

At the same time taxes on which the Tax Code of the Russian Federation directly provides procedure for elimination of double taxation by offsetting of the tax paid in the territory of foreign state in case of payment of the corresponding tax in the Russian Federation are not subject to accounting as a part of expenses when calculating the income tax of the organizations.

So, for example, the expense of the Russian organization in type of tax on profit, paid in foreign state, is considered by offsetting method based on special provisions of article 311 Tax Code of the Russian Federation, also based on special provisions of article 386.1 Tax Code of the Russian Federation the offsetting method on the property tax of the organizations is provided.

The Departments of FNS of Russia for subjects of the Russian Federation are entrusted to bring this letter to subordinate tax authorities.

Valid counselor of state of the Russian Federation 3 classes

D. V. Egorov


 

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

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