In addition, VAT related to the supplier supplying advertising services is also deductible.

Income tax on the sponsored party.

If an organization uses the accrual method when calculating income tax, then sponsorship assistance transferred in advance is not the income of the recipient (clause 1, clause 1, article 251 of the Tax Code of the Russian Federation). The moment of receiving income from sponsorship is the date of sale of services (clause 3 of Article 271 of the Tax Code of the Russian Federation).

Thus, the determination of income tax occurs at the recipient at the time of signing the act of provision of services. In addition, expenses related to the provision of advertising services are included in expenses (Article 252 of the Tax Code of the Russian Federation).

Performer LLC plans to hold a sporting event. He finds a sponsor, which is Advertiser LLC. Based on the agreement concluded between the parties, the sponsor undertakes to provide assistance in the amount of RUB 1,770,000.

Donations can be accepted by citizens, medical, educational, social protection institutions, charitable, scientific and educational institutions, foundations, museums and other cultural institutions, public and religious organizations, as well as the state and other subjects of civil law specified in Art. 124 Civil Code of the Russian Federation.

A legal entity accepting a donation for which a specific purpose has been established must keep separate records of all transactions involving the use of the donated property.

Accounting and taxation of a charitable organization

VAT

When transferring goods free of charge (performing work, providing services) within the framework of charitable activities for the purposes specified in Art. 2 of the Law on Charity, there is no obligation to pay VAT. This conclusion follows from paragraphs. 12 clause 3 art.

Sponsorship of a non-profit organization taxation

According to the sponsorship agreement, the sponsored company, Advertising Technologies CJSC, provided advertising services to Product-Service CJSC by placing information about the sponsor on stands when awarding the winners of the competition.

In this case, the transfer of property to Advertising Technologies CJSC also constitutes sponsorship. However, this assistance cannot be recognized as charitable, since it was provided to a commercial company on a reimbursable basis (Article 1 of Federal Law No. 135-FZ of August 11, 1995). Consequently, when transferring property to CJSC Advertising Technologies, CJSC Product-Service will not be able to take advantage of the benefit, and VAT will have to be paid on the value of the transferred property.

Is charitable assistance to individuals subject to personal income tax?

The company carries out retail trade in rented stores.

Attention

154 of the Tax Code of the Russian Federation). VAT deduction from the sponsored party based on the invoice is accepted according to the general rules.

Sponsor's income tax

The transfer of finished products as sponsorship is taken into account as a tax base for income tax. Revenue is considered to be revenue from ordinary sales (excluding VAT) and is reflected in income at the time of shipment (clause 3 of Art.

Moreover, any gratuitous transfer of property from the transferring party for the purposes of Chapter 25 of the Tax Code of the Russian Federation does not generate income, since according to Art. 41 of the Tax Code of the Russian Federation, income is recognized as economic benefit in cash or in kind, and with a gratuitous transfer, the organization does not receive any economic benefit.

In accordance with paragraph 16 of Art. 270 of the Tax Code of the Russian Federation, when determining the tax base, expenses in the form of the cost of gratuitously transferred property (work, services, property rights) and expenses associated with such transfer are not taken into account (see also letters of the Ministry of Finance of Russia dated 04.04.2007 N 03-03-06/4/ 40, Federal Tax Service of Russia.

When receiving materials for conducting statutory activities, the following entries are made: Dt Kt Description 76 86 reflects the receivable for receipt of a charitable contribution 10 76 materials received 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: Dt Kt Description 20 (26) 10, 60, 70, 69... expenses for non-commercial statutory activities of the foundation are reflected 86 20 (26) costs are covered by targeted financing 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.

Accounting for charitable assistance

The amount of assistance reflected in the contract and act for the provision of services amounted to 38 thousand rubles. The cost of the event was 5,000 rubles.

The sponsorship agreement contains the following information: - place and time of the event; - a condition on mentioning the organization as a sponsor, including the placement of a trademark, logo, emblem; - location of information; - duration of the promotion; - method of advertising distribution: visual information (leaflets, flyers, banners, etc.), advertisements in the media; - method of providing assistance: transfer of assistance by the sponsor in cash or in kind.

The contract must indicate how the provision of services will be confirmed. Most often, to confirm the service, they use an acceptance certificate with supporting documents attached: on-air certificates, mock-ups of banners or streamers, copies of leaflets, etc.

If the target program is designed for a longer period, then the funds are spent throughout the entire period of its implementation.

In accordance with the Budget Code (Article 163 of the Budget Code of the Russian Federation) and the Tax Code (Clause 14 of Article 250 of the Tax Code of the Russian Federation), an organization that has received targeted funding is required to submit reports on the use of budget funds. Information about the intended use of property, work, services received as targeted income, targeted financing is included in the income tax return.

In case of inappropriate use, such funds are included in non-operating income and are subject to income tax in accordance with clause 14 of Art. 250 Tax Code of the Russian Federation. That is, if property or funds are directed to purposes that do not comply with the conditions for their receipt, then this is considered misuse of targeted proceeds.

The Law on Advertising (clause 10, article 3) provides another definition that should interest us. We are talking about sponsorship advertising. It is recognized as advertising distributed under the condition of mandatory mention in it of a certain person as a sponsor. Based on these concepts, we can conclude that paid sponsorship is a relationship between a sponsor and a sponsored person, in which they act as an advertiser and advertising distributor.

Sponsorship fee in accounting

The main question in accounting for sponsorship contributions is how to classify them: as targeted funding or commercial income of an independent non-profit organization? As the Ministry of Finance noted, a sponsorship contribution is not a charitable donation, it is of a targeted nature and involves reciprocal obligations of the parties to provide advertising services (Letter dated 01.09.2009 N 03-03-06/4/72).

Paid sponsorship received before the event is subject to VAT as advances received. The sponsor has the right to deduct VAT, which is an integral part of paid sponsorship, when transferring an advance payment (sponsorship fee) to the service provider (Clause 12 of Article 171 of the Tax Code of the Russian Federation). The deduction is made on the basis of an invoice issued by the sponsored person upon receipt of the advance payment, a payment document for its transfer and an agreement providing for the transfer of the advance payment (clause

9 tbsp. 172 of the Tax Code of the Russian Federation).

At the end of the promotion, after signing the act of provision of services and if there is an invoice, VAT can be deducted for the further use of these services in transactions subject to VAT (clause 1, clause 2, article 171 of the Tax Code of the Russian Federation).

"Autonomous organizations: accounting and taxation", 2009, N 11

To carry out their activities, autonomous non-profit organizations receive funding from various sources. Today we will talk about sponsorship contributions, the recipients of which are often non-profit organizations, including autonomous ones, holding various public events (sports competitions, theatrical performances, exhibitions). How to reflect sponsorship contributions on accounting accounts? Do they need to be taken into account for profit tax purposes? You will find answers to these and other questions in this article.

What is sponsorship?

The current legislation does not provide for the concept of “sponsorship”. At the same time, there is the concept of “sponsor”. In accordance with paragraph 9 of Art. 3 of the Law on Advertising<1>A sponsor is a person who provided funds or ensured the provision of funds for the organization and (or) holding of a sports, cultural or any other event, the creation and (or) broadcast of a television or radio program, or the creation and (or) use of another result of creative activity. Since the definition does not indicate that, in response to the provision of funds, the sponsored must be provided with services for distributing advertising about the sponsor, we draw the following conclusion: sponsorship can be paid or gratuitous.

<1>Federal Law of March 13, 2006 N 38-FZ.

So, autonomous non-profit organizations can receive sponsorship contributions free of charge, for example, for conducting statutory activities. In this case, the agreement does not provide for a reciprocal obligation of the party receiving funds to distribute advertising about the sponsor. Moreover, such assistance can be regarded as charitable if it meets one of the purposes listed in paragraph 1 of Art. 2 of the Law on Charitable Activities and Charitable Organizations<2>.

<2>Federal Law of August 11, 1995 N 135-FZ.

Let us dwell in more detail on the paid sponsorship agreement. The Law on Advertising (clause 10, article 3) provides another definition that should interest us. We are talking about sponsorship advertising. It is recognized as advertising distributed under the condition of mandatory mention in it of a certain person as a sponsor. Based on these concepts, we can conclude that paid sponsorship is a relationship between a sponsor and a sponsored person, in which they act as an advertiser and advertising distributor.

Sponsorship fee in accounting

The main question in accounting for sponsorship contributions is how to classify them: as targeted funding or commercial income of an independent non-profit organization? As the Ministry of Finance noted, a sponsorship contribution is not a charitable donation, it is of a targeted nature and involves reciprocal obligations of the parties to provide advertising services (Letter dated 01.09.2009 N 03-03-06/4/72). A similar opinion is expressed by the courts.

Thus, the Ninth Arbitration Court of Appeal (Resolution dated June 10, 2009 N 09AP-8442/2009-GK) noted: based on the terms of the agreement concluded by the parties and Art. 3 of the Law on Advertising, sponsorship is of a paid nature. The criterion for recognition of sponsorship is the provision of funds for certain events. Thus, an agreement on sponsorship of an event has the legal nature of a contract for the provision of services for a fee, according to which the contractor undertakes, on the instructions of the customer, to provide services (perform certain actions or carry out certain activities), and the customer undertakes to pay for these services. Thus, the sponsorship fee is a payment for advertising. This point of view is not new (see, for example, Resolution of the Federal Antimonopoly Service of the Moscow Region dated May 27, 2008 N KA-A40/4424-08).

Based on the foregoing, the sponsorship fee received under a fee-based agreement must be included in accounting as income from business activities related to the provision of services for distributing advertising about the sponsor.

Example. In accordance with the terms of the agreement, a sponsorship fee in the amount of 200,000 rubles was transferred to the autonomous non-profit organization in October 2009, for which the organization must advertise the sponsor as part of a sporting event in December 2009. Advertising expenses amounted to RUB 100,000. (without VAT).

The following entries will be made in the ANO's accounting regarding sponsorship:

Contents of operation	Debit	Credit	Sum, rub.
In October 2009
Sponsorship contributions have been received into the account of the ANO	51	62	200 000
VAT charged (RUB 200,000 x 18/118)	76-AV	68-2	30 508
In December 2009
Costs associated with the provision of services for distributing advertising about the sponsor	20 (26)	10, 60, 69, 70	100 000
Services provided for distributing advertising about sponsor	62	90-1	200 000
Expenses associated with the provision of services for distribution of advertising about the sponsor, included in the cost of services	90-2	20 (26)	100 000
VAT charged on the provision of services	90-3	68-2	30 508
Previously accrued VAT has been restored	68-2	76-AV	30 508
The result of sponsorship was revealed services (200,000 - 100,000 - 30,508) rub.	90-9	99	69 492

The accountant must clearly distinguish what kind of assistance is provided: sponsorship or charity. Therefore, in order to mistakenly not count charitable assistance as sponsorship contributions, you need to carefully read the text of the sponsorship agreement and correctly determine the essence of the contractual relationship, since this affects both accounting and taxation.

Sponsorship contribution in tax accounting Income tax

The Financial Department in Letters dated 09/01/2009 N 03-03-06/4/72, dated 12/26/2008 N 03-03-06/4/102 indicated: sponsorship fees (contribution) can be recognized as a payment for advertising and, accordingly, considered for tax purposes, profit as income from the provision of services for a fee. At the same time, both Letters pay attention to the inclusion of donations received by a non-profit organization as part of targeted non-taxable income.

Officials recognize that the sources of formation of the property of a non-profit organization can be, among other things, voluntary property contributions and donations (Article 26 of the Law on Non-Profit Organizations<3>). For profit tax purposes, targeted revenues for the maintenance of NPOs and the conduct of their statutory activities, received free of charge from other organizations and (or) individuals and used by the specified recipients for their intended purpose, according to the list of such revenues established by clause 2 of Art. 251 Tax Code of the Russian Federation. The closed list given in the specified paragraph includes, in particular, entrance fees, membership fees, shares, donations made in accordance with the legislation on non-profit organizations, recognized as such in accordance with the Civil Code. Sponsorship contributions are not included in the list of specified income of NPOs, which are not subject to income tax. If sponsorship contributions meet the concept of a donation, then they do not need to be taken into account as part of tax income. Example- Resolution of the Federal Antimonopoly Service of the North-West District dated 08.08.2008 in case No. A56-13732/2007. The arbitrators assessed the terms of the sponsorship agreement and found that the museum did not incur any counter-costs to fulfill the obligations of the agreement (with the exception of providing a separate status to the sponsor). The tax authority did not provide evidence that the institution provided advertising distribution services to its sponsor, so the court did not consider the funds received as revenue for services, but classified them as non-taxable targeted income. Thus, in the situation under consideration, there was a donation, not sponsorship.

<3>Federal Law of January 12, 1996 N 7-FZ.

Under the sponsorship agreement, the NPO, as part of its statutory activities (organizing and holding certain events), undertakes the obligation to conduct an advertising campaign for the sponsor. That is, the sponsorship fee is a payment for advertising, and not a gratuitous transfer of property, as happens when providing a donation. In support of this position, financiers in Letter dated December 26, 2008 N 03-03-06/4/102 refer to the court decision - Resolution of the Federal Antimonopoly Service of the Moscow Region dated May 27, 2008 N KA-A40/4424-08. If the sponsoring organization recognizes sponsorship funds as advertising expenses, these receipts from the sponsored organization can be recognized as income from the provision of services and taken into account for profit tax purposes in accordance with the established Chapter. 25 of the Tax Code of the Russian Federation (that is, as part of taxable income).

If an ANO receives sponsorship contributions (rather than donations) and takes them into account as part of taxable income, it, accordingly, has every right to reduce these incomes for expenses associated with advertising the sponsor and its activities. For example, in the Resolution of the Ninth Arbitration Court of Appeal dated June 11, 2008 N 09AP-5273/2008-AK it is noted: the NPO legally took into account the costs associated with organizing and conducting events during which advertising was carried out in fulfillment of contractual obligations with the sponsor. Without the specific costs of organizing and holding these events, it would be impossible to advertise sponsors. The fact that it is impossible to determine from the agreements concluded with sponsors the exact amounts of expenses aimed at implementing sponsorship advertising does not give tax authorities the right not to recognize the expenses of NPOs as a decrease in income from sponsorship support.

Value added tax

Let us remind you that the object of VAT taxation is the sale of goods (works, services). On the one hand, the funds received from the sponsor are not related to the sale of goods (work, services); on the other hand, they can be regarded as an advance payment for advertising services. Therefore, VAT must be charged on them.

Please note that sponsorship as payment for advertising is not subject to clauses. 12 clause 3 art. 149 of the Tax Code of the Russian Federation. According to this subclause, the transfer of goods (performance of work, provision of services) free of charge within the framework of charitable activities is not subject to VAT. At the same time, if there is no evidence that the ANO, within the framework of the sponsorship fee agreement, provided any services to the sponsor, including advertising, the organization may not tax such contributions if they can be classified as assistance provided for charitable purposes<4>.

<4>See Resolution of the Federal Antimonopoly Service dated November 10, 2005 N A55-2057/2005-29.

If we assume that sponsorship assistance is taxable, then the ANO can take advantage of VAT deductions for expenses incurred through this assistance. It should be remembered that the social services of many autonomous non-profit organizations are not subject to VAT. Carrying out taxable and non-taxable transactions obliges the organization to maintain separate accounting for this tax, but even in this case, the ANO is not immune from claims from tax authorities regarding the issue of VAT refund.

Let us turn to the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated 03.03.2009 N 13708/08. Based on the results of a desk audit, the tax authorities recognized the legality of applying tax deductions for VAT paid to suppliers of advertising products, but they did not agree with the deductions of tax amounts paid for the purchase of other goods (work, services) related to the organization and holding of sports competitions. The tax authorities decided that since these competitions are aimed at realizing the statutory goals of the club as a non-profit organization, then the tax on them is not deductible, but is taken into account as part of the expenses incurred using targeted funds. It should be noted that the cassation court agreed with the opinion of the inspectors, without taking into account the fact that the agreements between the NPO and the sponsor for the provision of advertising services are directly related to the organization and conduct of sports competitions.

The placement of logos and emblems of sponsors on athletes' uniforms, on the boards, on the ice, radio and video advertising of sponsors during broadcasts are directly related to the spectacular event. Without such events, the conclusion of agreements, the subject of which is the distribution of advertising about sponsors, could not take place, since the club would not be of commercial interest to the sponsors. Consequently, business transactions carried out for the organization and conduct of competitions, at which and in connection with which sponsors were advertised, were also carried out to fulfill the club’s obligations to sponsors under contracts for the provision of advertising services. As a result, the highest court recognized the legality of the use of deductions for the services of booking and accommodation of athletes in hotels, organization of transportation, purchase of medicines and sports equipment. The listed costs are associated with the organization of competitions, during which taxable advertising of sponsors was distributed on the basis of contracts.

The adopted court decision suggests that the ANO receiving a sponsorship contribution has the opportunity not only to improve their financial situation, but also to save on taxes by deducting VAT on many expenses related to the event.

If sponsorship contributions are not fully spent

In practice, the following situation cannot be excluded. ANO received the funds in full as provided for in the agreement, but did not spend all of it. What to do with the remaining, unused funds? There are two options: return it to the sponsor or spend it, preferably on statutory activities. Both options do not violate the provisions of the Law on Non-Profit Organizations and the Law on Advertising. If sponsorship contributions were earmarked funds (like donations), they should be returned to the source. But since the sponsorship fee is revenue under a service agreement, there is no need to return it (of course, provided that the obligations to the sponsor for advertising are fulfilled in full).

Attention, don't let your sponsor down!

ANOs receiving sponsorship contributions should be more attentive to their obligations to the sponsor, since failure to fulfill them (the so-called poor performance) can lead to tax problems for the sponsor. For example, tax authorities may not recognize his contributions as advertising expenses (even as normalized at 1% of revenue) and charge additional income tax, as was done in the Resolution of the Ninth Arbitration Court of Appeal dated July 22, 2009 N 09AP-12051/2009- AK. The auditors considered that the theater did not fulfill its obligations by failing to indicate the company’s status as an official (general) sponsor and partner of the theater during performances. Despite this, the sponsor managed to defend in court the advertising nature of the expenses and the possibility of taking them into account for tax purposes. As it turned out, the theater disseminated information about the sponsor during performances, only not in the way required by the tax authorities and the terms of the contract, but in a “simplified” version (“with the support of the sponsor”). The use of different terminology (general sponsor, sponsor, support) in this case cannot indicate a failure to fulfill obligations on the part of the sponsored person, because the nature of the legal relationship does not change. As a result, sponsorship contributions were still recognized as advertising expenses, and the tax authorities’ claims were considered unfounded. A similar decision in favor of the sponsor was made in the Resolution of the Ninth Arbitration Court of Appeal dated 02/18/2008 N 09AP-463/2008-AK, stopped without changes by the Resolution of the Federal Antimonopoly Service of the Moscow Region dated 05/27/2008 N KA-A40/4424-08.

Yu.A. Lokteva

Journal expert

"Autonomous organizations:

accounting and taxation"

The nursing home has no counter-obligations to Product-Service CJSC.

The donation of clothing to a home for the disabled does not fall under the definition of sponsorship (Clause 9, Article 3 of Federal Law No. 38-FZ of March 13, 2006). However, such a transfer is recognized as charitable assistance (Article 2 of the Federal Law of August 11, 1995 No. 135-FZ). Consequently, when transferring property to a home for the disabled, Product-Service CJSC can take advantage of the benefit.

Operation 2

CJSC "Product-Service" sponsored the All-Russian children's drawing competition and donated valuable gifts to the organizer of the competition, the non-profit charitable association "Childhood of Russia", for awarding the winners for a total amount of 200,000 rubles.

Under the Tax Code of the Russian Federation, a charitable organization that has received funds or property for charitable purposes does not take them into account when determining the tax base, subject to certain conditions. These conditions include:

1. Organizations that have received funds - charitable contributions are required to maintain separate tax records of such income and expenses incurred at their expense, as well as the amounts of income and expenses from activities related to the production and (or) sale of goods, works, services and property rights, and income and expenses from non-operating operations.

The need to maintain separate accounting does not arise only for those non-profit organizations that do not have income from sales and exist only through targeted financing and (or) targeted receipts (charitable contributions), recognized as such from the point of view of income taxation.

Sponsorship of a non-profit organization taxation

Debit 76, 99 Credit 86.

Sponsorship

The concept of “sponsorship” assistance is legislatively enshrined in the Law of the Russian Federation of July 18, 1995 N 108-FZ “On Advertising”. In Art. 19 states that “Sponsorship... is understood as the making by a legal or individual (sponsor) of a contribution (in the form of providing property, results of intellectual activity, provision of services, carrying out work) into the activities of another legal or individual (sponsored) on the terms of the sponsored’s distribution of advertising about sponsor, his goods.

The sponsor has no right to interfere with the activities of the sponsored person.”

Following from the article of the Law, this type of assistance implies the reciprocal provision of advertising services by the sponsor.

According to the order of the Ministry of Health of Russia dated April 18, 2013 No. 229, the competence of the Working Group includes: - interaction with charitable and socially oriented NPOs; - development of proposals and recommendations on the financing of non-profit charitable programs aimed at providing medical care (including medication and medical rehabilitation) to patients suffering from severe chronic diseases, citizens with disabilities, orphans and children without parental care. While awaiting the recommendations of the Working Group, it would be more appropriate to focus on issues of charity for which there are already clarifications.

Legal subtleties

Article 251 of the Tax Code of the Russian Federation allows certain types of gratuitous income to be excluded from taxation, provided that they are spent in accordance with their intended purpose.

Attention

In this case, the agreement does not provide for a reciprocal obligation of the party receiving funds to distribute advertising about the sponsor.

Therefore, in order to mistakenly not count charitable assistance as sponsorship contributions, you need to carefully read the text of the sponsorship agreement and correctly determine the essence of the contractual relationship, since this affects both accounting and taxation.

Sponsorship contribution in tax accounting Income tax

The Financial Department in Letters dated 09/01/2009 N 03-03-06/4/72, dated 12/26/2008 N 03-03-06/4/102 indicated: sponsorship fees (contribution) can be recognized as a payment for advertising and, accordingly, considered for tax purposes, profit as income from the provision of services for a fee.

The following entries are made in the accounting of the Sportlandia enterprise:

1. The receipt of funds is reflected: Dt 51 Kt 62/2 in the amount of 38,000 rubles;
2. The services provided were accounted for: Dt 62 Kt 90/1 in the amount of 38,000 rubles;
3. The expenses incurred are reflected in the accounting: Dt 90/2 Kt 44 in the amount of 5,000 rubles;
4. The advance payment was offset: Dt 62/1 Kt 62/2 in the amount of 38,000 rubles.

The primary accounting documents are the contract, act, and payment forms. Taxation of the recipient of funds For taxation, sponsorship is taken into account as income received from the provision of advertising services.

Sponsorship and charity are the main financial support for sports, cultural and other events. When a company finances an event, in order to determine taxation, it is necessary to know exactly what type of assistance is provided: sponsorship or charity.
It all depends on the purpose for which the funding is being used: advertising or not. Let's consider these nuances in more detail.

Who is a sponsor? Based on clause
9 tbsp. 3 of Federal Law 38-FZ of March 13, 2006, a sponsor is a person who provides or provides funds for the organization and conduct of a sports, cultural and other event, for the creation and broadcast of a television or radio program, or the creation or use of another result of creative activity.

A prerequisite for sponsorship is sponsorship advertising, i.e.

Info

— consignment note in form 1-T, approved by Decree of the State Statistics Committee of the Russian Federation dated November 28, 1997 N 78.

According to arbitration judges, letters requesting charitable assistance are sufficient documentation (resolution of the Federal Antimonopoly Service of the North-Western District dated November 17, 2005 N A56-11300/2005).

Income tax

In accordance with Art. 247 of the Tax Code of the Russian Federation, the object of taxation for corporate income tax is the profit received by the taxpayer. For the purposes of Chapter 25 of the Tax Code of the Russian Federation for Russian organizations, profit is recognized as income received, reduced by the amount of expenses incurred, which are determined in accordance with Chapter 25 of the Tax Code of the Russian Federation.

Income is determined in accordance with Art.

Personal income tax requires that it pay (issue 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).

05.04.2019

Question:

An educational institution entered into an agreement under which a commercial organization transferred 50,000 rubles to the institution free of charge. for the implementation of educational activities. Is this agreement recognized as a donation agreement? Is the amount received subject to income tax if it was used in accordance with its intended purpose?

This agreement is essentially a donation agreement, and the amount received by the institution under it is exempt from income tax on the basis of paragraphs. 1 item 2 art. 251 Tax Code of the Russian Federation.

Rationale. According to paragraph 1 of Art. 572 of the Civil Code of the Russian Federation, under a gift agreement, the donor gratuitously transfers or undertakes to transfer to the donee an item of ownership or a property right (claim) to himself or to a third party, or releases or undertakes to release her from a property obligation to himself or to a third party. If there is a counter transfer of a thing or right or a counter obligation, the contract is not recognized as a donation.

Clause 1 of Art. 582 of the Civil Code of the Russian Federation determines that a donation is the donation of a thing or right for generally beneficial purposes. Donations may be made to educational organizations.

According to paragraph 1 of Art. 2 of Federal Law No. 135-FZ, charitable activities are carried out, among other things, to promote activities in the fields of education, enlightenment, and spiritual development of the individual.

In the situation under consideration, the donation was made to an educational institution for the implementation of educational activities, that is, for generally beneficial purposes, and is therefore recognized as a donation.

According to paragraphs. 1 item 2 art. 251 of the Tax Code of the Russian Federation, when determining the income tax base, targeted revenues for the maintenance of non-profit organizations and the conduct of their statutory activities, received free of charge on the basis of decisions of state authorities and local governments and decisions of governing bodies of state extra-budgetary funds, as well as targeted revenues from other organizations and (or) individuals and used by the specified recipients for their intended purpose. Targeted revenues for the maintenance of non-profit organizations and the conduct of their statutory activities include donations made in accordance with the legislation of the Russian Federation on non-profit organizations, recognized as such in accordance with the civil legislation of the Russian Federation.

The Letter of the Federal Tax Service for Moscow dated October 19, 2011 No. 16-15/101183@ concluded: if donations from individuals made in favor of a state educational institution meet the requirements of the Civil Code of the Russian Federation and Federal Law No. 135-FZ, then income in the form of the specified donations are not taken into account by the institution on the basis of paragraphs. 1 item 2 art. 251 of the Tax Code of the Russian Federation, provided that the donations received are used in accordance with their intended purpose, which is determined by the donor, and also provided that separate records are kept of such income and their expenditure.

Question:

The educational institution received financial sponsorship. Does such assistance qualify as a donation and is it exempt from income tax?

Sponsorship is not considered a donation and is included in income for income tax purposes.

Rationale. The legislation does not contain the concept of “sponsorship”, but defines the terms “sponsor” and “sponsored advertising”.

In our opinion, in the issue under consideration we must proceed from the following terminology presented in Art. 3 of the Federal Law of March 13, 2006 No. 38-FZ “On Advertising” (hereinafter referred to as Federal Law No. 38-FZ):

• sponsor is a person who provided funds or ensured the provision of funds for the organization and (or) holding of a sports, cultural or any other event, the creation and (or) broadcast of a television or radio program, or the creation and (or) use of another result of creative activity;
• Sponsorship advertising is advertising distributed under the condition of mandatory mention in it of a certain person as a sponsor;
• advertising - information disseminated in any way, in any form and using any means, addressed to an indefinite circle of people and aimed at attracting attention to the object of advertising, creating or maintaining interest in it and promoting it on the market.

Thus, sponsorship to an educational institution consists of the sponsor providing funds to the institution, which is obliged to disseminate advertising information about the sponsor, that is, sponsorship is of a paid nature and is not recognized as a gift or donation.

Accordingly, the tax exemption provided for in paragraphs. 1 item 2 art. 251 of the Tax Code of the Russian Federation does not apply to sponsorship.

A similar approach is set out in the Letter of the Ministry of Finance of the Russian Federation dated 01.09.2009 No. 03-03-06/4/72, in which, on the basis of Federal Law No. 38-FZ, it was concluded that the sponsorship contribution is of a targeted nature and involves reciprocal obligations of the parties to provide advertising services, therefore the sponsorship contribution can be recognized as a payment for advertising and relates to income from the provision of services for a fee for profit tax purposes.

Question:

Do parents of school students have the right to make donations to an educational institution? If so, can the PTA determine a minimum donation amount? How should a parent make donations to the school: cash and/or non-cash?

Parents of school students have the right to make donations to the educational institution, which should be done without coercion.

The Parents Committee does not have the right to determine the minimum amount of donations.

Donation funds must be deposited into the institution's bank account.

Rationale. The Letter of the Ministry of Education and Science of the Russian Federation No. VK-2227/08 explains that, guided by Art. 4 of Federal Law No. 135-FZ, parents (legal representatives) of students of general education organizations have the right, individually or in association, to make donations to a general education organization, including making charitable contributions, and exclusively on a voluntary basis.

The procedure for making a donation is as follows. If you, of your own free will (without any pressure from the administration, employees of the educational institution, parent committees, foundations, other individuals and legal entities) want to provide charitable (voluntary) assistance in the form of funds to the school where your child is studying , you can transfer any amount feasible for your family budget to the institution’s current account at any time convenient for you.

It is not allowed to force parents (legal representatives) of students to contribute funds or provide other forms of financial assistance from the administration and employees of educational institutions, as well as self-government bodies created at the institutions, including parent committees, boards of trustees in terms of forced collection of parental contributions and charitable funds.

Establishing fixed amounts for charitable assistance also refers to forms of coercion (putting pressure on parents) and is a violation of Federal Law No. 135-FZ.

When parents provide financial assistance, funds must be deposited into the current account of the educational institution.

Any initiative group of citizens, including the parent committee, board of trustees and other self-government bodies of an educational institution, has the right to make a decision to contribute (collect) funds only in relation to themselves (members of the committee, board of trustees), and not to the parents of all children attending this institution.

The administration, employees of the institution, and other persons are not entitled to:

• demand or accept cash from benefactors;
• require the benefactor to present a receipt or other document indicating that funds have been credited to the institution's current account.

Question:

Does the parent who has made a donation to the school have the right to control the intended use of it?

Yes, the benefactor has such a right.

Rationale. The Letter of the Ministry of Education and Science of the Russian Federation No. VK-2227/08 explains that the benefactor has the right:

• within ten days from the date of voluntary transfer of funds to the institution’s current account, submit an application to the institution (if desired, attach a copy of the receipt or other supporting document) and indicate in it the intended purpose of the transferred funds;
• obtain from the manager (upon request) complete information about spending and the possibility of monitoring the process of spending non-cash funds contributed by the benefactor or the use of property provided by the benefactor to the institution;
• obtain information about the intended use of non-cash funds transferred to the institution from the annual public report on the attraction and expenditure of extra-budgetary funds, which must be posted on the official website of the educational institution.

Question:

Does the method of making a donation (depositing cash, transferring to a current account, transferring money from a telephone, through a terminal, etc.) affect its exemption from income tax?

The donation is tax-deductible regardless of the method of depositing the funds.

Rationale. The Civil Code does not determine the method of gratuitously depositing funds to be recognized as a donation.

Clause 2 of Art. 251 of the Tax Code of the Russian Federation does not contain exceptions for various methods of making donations to exempt them from taxation.

The Letter of the Federal Tax Service of the Russian Federation dated November 25, 2016 No. SD-4-3/22415@ states that the method of sending by donors (directly to the current account (cash) of the organization or through an agent (intermediary)) does not affect the qualification of these proceeds as donations, if the taxpayer can document the gratuitous nature of these receipts and their generally beneficial purpose.

Question:

Can a transfer to an educational institution of the right to use premises for educational activities free of charge be recognized as a tax-exempt donation?

The transfer of this right is recognized as a donation, exempt from taxation.

Rationale. According to paragraph 1 of Art. 582 of the Civil Code of the Russian Federation, a donation is the donation of a thing or right for generally beneficial purposes.

A donation agreement is a type of gift agreement. Clause 1 of Art. 572 of the Civil Code of the Russian Federation stipulates that under a gift agreement, the donor transfers the property or property right to the donee free of charge.

The Letter of the Ministry of Finance of the Russian Federation dated December 10, 2010 No. 03‑03‑06/4/121 states: if a donation is made by transferring the donor’s right to things or property rights to the entities listed in Art. 582 of the Civil Code of the Russian Federation, it is not taken into account when determining the tax base.

The Letter of the Ministry of Finance of the Russian Federation dated 06/02/2010 No. 03‑03‑06/4/59 concluded that if the right to free use of property when carrying out statutory educational activities meets the requirements of Art. 582 of the Civil Code of the Russian Federation, then the income of this educational institution in the form of the acquired right is not taken into account on the basis of paragraphs. 1 item 2 art. 251 Tax Code of the Russian Federation.

In December 2019, the educational institution was provided with free legal services as a donation.

The results of the services began to be used by the institution in January 2019, but in accordance with purposes other than those determined by the donor.

Question:

When does an institution have non-operating income? From what moment should income be reflected in section. 7 income tax returns? Should this section be included in the income tax return submitted for the first quarter of 2019?

This income is included in non-operating income in January 2019.

In the income tax return for the first quarter of 2019, sect. 7 is not included, since this section is filled out only as part of the declaration submitted for the tax period.

Rationale. Clause 14 of Art. 250 of the Tax Code of the Russian Federation establishes that non-operating income includes income in the form of property (including funds) used for other purposes than for its intended purpose, work, services received as part of charitable activities (including in the form of charitable assistance, donations), targeted revenues, targeted financing, with the exception of budget funds.

Taxpayers who received property (including money), work, services as part of charitable activities, targeted income or targeted financing, at the end of the tax period, submit to the tax authorities at the place of their registration a report on the intended use of the funds received as part of the tax return.

Such a report is sheet 07 “Report on the intended use of property (including funds), work, services received as part of charitable activities, targeted income, targeted financing” of the income tax declaration, the form and procedure for filling which are approved by the Order of the Federal Tax Service of the Russian Federation dated 10/19/2016 No. ММВ-7-3/572@.

In clauses 15.1 and 15.2 of the Procedure for filling out the declaration, it is noted that the income indicated in column 7 of the report is subject to inclusion in non-operating income at the moment when the recipient of such income actually used it for other than its intended purpose (violated the conditions for receiving it) (clause 14 of Article 250 Tax Code of the Russian Federation).

In the situation under consideration, the use of the results of the services began in January 2019, and from the very beginning they were used not in accordance with the purposes outlined by the donor. Consequently, the institution’s non-operating income arises in January 2019.

Clause 1.1 of the procedure for filling out the declaration stipulates that sheet 07 is filled out by organizations upon receipt of targeted funding, targeted income and other funds specified in paragraphs 1 and 2 of Art. 251 of the Tax Code of the Russian Federation, when preparing a declaration only for the tax period.

Consequently, this sheet is not included in the income tax return for the reporting periods: I quarter, half a year, nine months.

Question:

A commercial organization donated 100,000 rubles to a state educational institution. as a gift for Knowledge Day. Is the institution required to include this amount in income for tax purposes?

This amount is included in non-operating income on the basis of clause 8 of Art. 250 Tax Code of the Russian Federation.

Rationale. According to paragraphs. 1 item 2 art. 251 of the Tax Code of the Russian Federation, when determining the tax base, targeted revenues for the maintenance of non-profit organizations and the conduct of their statutory activities, received free of charge from other organizations and (or) individuals and used by these recipients for their intended purpose, including donations, are not taken into account.

The amount considered in the question does not apply to targeted receipts, as well as donations, since the donor did not indicate that this was a donation, and also did not indicate the purpose for using the gift.

According to paragraphs. 22 clause 1 art. 251 of the Tax Code of the Russian Federation, when determining the tax base, income in the form of property received free of charge by state and municipal educational institutions for the conduct of their main activities is not taken into account.

In the situation under consideration, the purpose of allocating the amount is not indicated, so it cannot be said that it is aimed at conducting the main activities.

Consequently, the exemption provided for in paragraphs. 22 paragraph 1 and paragraphs. 1 item 2 art. 251 of the Tax Code of the Russian Federation, is not applicable in the analyzed situation.

In paragraph 14 of Art. 250 of the Tax Code of the Russian Federation, non-operating income is recognized as a taxpayer’s income in the form of property (including funds) used for other purposes than for its intended purpose, which was received as part of charitable activities (including in the form of donations).

Since in our case the purpose of the gratuitous transfer of funds was not determined, this rule is not applicable.

In paragraph 8 of Art. 250 of the Tax Code of the Russian Federation, non-operating income includes income in the form of property received free of charge, with the exception of the cases specified in Art. 251 Tax Code of the Russian Federation.

Thus, in our opinion, the educational institution is obliged to include the said amount in non-operating income on the basis of clause 8 of Art. 250 Tax Code of the Russian Federation.

Charitable assistance is a type of financial and non-financial support for organizations and foundations, budgetary institutions (for example, schools and museums), sports and socially oriented non-profit organizations, as well as individual citizens. The state encourages such activities, in particular, by offering preferential taxation. In our review, we will tell you in detail what tax benefits exist and methods of accounting for transactions related to the gratuitous transfer of funds.

Many legal entities turn to charity at a certain period of their development. But if for citizens this type of activity does not require specific registration, then the law is stricter for organizations. Any activity must be reflected in accounting and tax accounting.

Charitable activities in the Russian Federation are regulated by (), (), Federal Law of August 11, 1995. No. 135-FZ “On charitable activities and charitable organizations.”

The concept of charity

The concept of charitable activity is contained in Federal Law No. 135-FZ and is understood as providing “disinterested (free of charge or on preferential terms)” assistance to those who need it.

Assistance can be provided in the form of a voluntary “transfer of property, including funds, to citizens or legal entities, disinterested performance of work, provision of services, and provision of other support.” In addition, voluntary donations are allowed.

What are the goals of charitable activities?

Please note that the goals of charitable activities are enshrined in law. Their list is given in Art. 2 of Federal Law No. 135-FZ and looks like this:

• social support and protection of citizens, including improving the financial situation of low-income people, social rehabilitation of the unemployed, disabled people and other persons who, due to physical or intellectual characteristics or other circumstances, are not able to independently realize their rights and legitimate interests;
• preparing the population to overcome the consequences of natural disasters, environmental, industrial or other disasters, and to prevent accidents;
• providing assistance to victims of natural disasters, environmental, industrial or other disasters, social, national, religious conflicts, victims of repression, refugees and internally displaced persons;
• promoting the strengthening of peace, friendship and harmony between peoples, the prevention of social, national, and religious conflicts;
• promoting the strengthening of the prestige and role of the family in society;
• promoting the protection of childhood, motherhood and paternity;
• promoting activities in the field of education, science, culture, art, enlightenment, spiritual development of the individual;
• promoting activities in the field of prevention and protection of citizens' health, as well as promoting a healthy lifestyle, improving the moral and psychological state of citizens;
• promoting activities in the field of physical culture and sports (with the exception of professional sports);
• environmental protection and animal welfare;
• protection and proper maintenance of buildings, objects and territories of historical, religious, cultural or environmental significance, and burial sites;
• training the population in the field of protection from emergency situations, dissemination of knowledge about protecting the population and territories from emergency situations and ensuring fire safety;
• social rehabilitation of orphans, children without parental care, street children, children in difficult life situations;
• providing free legal assistance and legal education to the population;
• promoting volunteerism;
• participation in activities to prevent neglect and juvenile delinquency;
• promoting the development of scientific, technical, artistic creativity of children and youth;
• promoting patriotic, spiritual and moral education of children and youth;
• support for socially significant youth initiatives, projects, children's and youth movements, children's and youth organizations;
• facilitating activities for the production and (or) distribution of social advertising;
• assistance in the prevention of socially dangerous forms of behavior of citizens."

At the same time, sending money and other material resources, providing assistance in other forms to commercial organizations, as well as supporting political parties, movements, groups and campaigns is not charitable activity. It is also prohibited to conduct pre-election campaigning or explanatory work on referendum issues simultaneously with charitable activities.

Who is involved in charitable activities?

Individual citizens or organizations that provide charitable assistance, as well as recipients of this assistance, take part in charitable activities. The legislation divides participants in charitable activities into three categories: philanthropists, volunteers, and beneficiaries.

1. Philanthropists are persons who carry out charitable activities in the form of “disinterested (free of charge or on preferential terms) transfer of ownership of property, including funds, provision of services to charitable organizations for the purposes of charitable activities.”
2. Volunteers are “individuals who carry out charitable activities in the form of gratuitous work or provision of services (volunteer activities).”
3. Beneficiaries are persons who receive assistance from philanthropists and volunteers.

Both private and legal entities can participate in charitable activities.

To encourage charitable activities, in addition to the Federal Law of August 11, 1995 N 135-FZ “On Charitable Activities and Charitable Organizations,” our state has adopted a number of tax regulations that provide tax benefits to taxpayer organizations and individual taxpayers. Let's look at their pros and cons.

Income tax

Current tax legislation requires organizations engaged in charitable activities to provide assistance to those in need only from net profits. In this regard, organizations are not exempt from paying income tax on amounts that were allocated to charity.

Invoice

From January 1, 2014, when performing transactions that are not subject to VAT in accordance with Art. 149 of the Tax Code of the Russian Federation, there is no need to issue invoices, keep logs of received and issued invoices, purchase books and sales books. Changes have been made to clause 5 of Art. 168 of the Tax Code of the Russian Federation and paragraph 3 of Art. 169 Tax Code of the Russian Federation. The mentioned obligations remain for taxpayers who apply tax benefits under Art. 145 Tax Code of the Russian Federation. Such persons draw up invoices without allocating the corresponding tax amounts (clause 5 of Article 168 of the Tax Code of the Russian Federation).

Accounting for charitable donations

Organizations that engage in charitable activities are required to reflect this in their accounting records. The general procedure for recognizing expenses in accounting has been established (hereinafter referred to as PBU 10/99).

Paragraph 17 of PBU 10/99 states that the expenses of a business entity are subject to recognition in accounting, regardless of its intention to receive revenue or other income, as well as the form of such expenses (monetary, in-kind and other). All expenses, according to paragraph 4 of PBU 10/99, are divided into:

• expenses for ordinary activities;
• other expenses.

According to clause 11 of PBU 10/99, other expenses include the transfer of funds (contributions, payments, etc.) related to charitable activities, as well as expenses for sporting events, recreation, entertainment, cultural events educational activities and other similar events. Thus, taking into account the provisions of the Chart of Accounts for accounting the financial and economic activities of organizations and the Instructions for its application, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n, in the accounting records of the organization, the transfer of donations will be reflected using account 91 “Other income and expenses” .

In accordance with clauses 4 and 7, the organization must exclude from the calculation of the tax base for income tax for both the reporting and subsequent periods the costs incurred in connection with the provision of gratuitous charitable assistance. According to this indicator, a permanent tax liability is formed in accounting. The wiring is as follows:

Debit 76 - Credit 51 - funds were transferred in the form of donations;
Debit 76 - Credit 41 - goods transferred as part of charitable assistance;
Debit 91 - Credit 76 - donation expenses are included in other expenses;
Debit 91 - Credit 76 - the cost of goods donated is included in other expenses;
Debit 91 - Credit 68 - VAT is charged on the cost of goods transferred free of charge;
Debit 99 - Credit 68 - reflects the permanent tax liability on the cost of transferred funds, transferred goods and the amount of VAT.

Filling out a tax return

According to the Procedure for filling out a VAT return, approved. By Order of the Federal Tax Service of Russia dated October 29, 2014 N ММВ-7-3/558@, transactions that are not subject to taxation (exempt from taxation) are subject to reflection in section. 7 VAT returns. In column 1 on line 010 section. 7 of the declaration reflects the transaction codes established in Appendix 1 to this Procedure. For the gratuitous transfer of goods and/or property rights (for the gratuitous performance of work or provision of services) within the framework of charitable activities, code 1010288 is provided.

Charitable activities of individuals and personal income tax

Tax legislation of the Russian Federation also supports philanthropists - individuals. Article 219 of the Tax Code of the Russian Federation provides that citizens who are philanthropists have the right to a social tax deduction. This means that the taxpayer will be returned part of the funds spent on charity: taxes will be reduced by the amount of social tax deduction in an amount equal to this assistance. That is, he will receive from the budget part of the personal income tax (NDFL) he paid for the year, that is, in fact, 13% of the amount of his expenses for charity.

Who to help

Citizens can count on a reduction in personal income tax if they provide gratuitous assistance to organizations whose activities are socially oriented. So, according to paragraphs. 1 item 1 Art. 219 Tax Code of the Russian Federation The taxpayer has the right to receive a social tax deduction in the amount of income transferred by him in the form of donations to the following organizations:

• charity organisations;
• socially oriented non-profit organizations (for their implementation of activities provided for by the legislation of the Russian Federation on non-profit organizations);
• non-profit organizations operating in the field of science, culture, physical culture and sports (except for professional sports), education, enlightenment, healthcare, protection of human and civil rights and freedoms, social and legal support and protection of citizens, assistance in protecting citizens from emergency situations , environmental protection and animal welfare;
• religious organizations (to carry out their statutory activities);
• non-profit organizations (in the matter of forming or replenishing endowment capital in accordance with Federal Law of December 30, 2006 N 275-FZ “On the procedure for the formation and use of endowment capital of non-profit organizations”).

According to paragraph 2 of Article 11 of the Tax Code of the Russian Federation, organizations in this case mean all legal entities that are formed in the Russian Federation, as well as foreign legal entities, companies and other corporate entities with civil legal capacity, created in accordance with the legislation of foreign states, international organizations , branches and representative offices of these foreign persons and international organizations established on the territory of the Russian Federation. Thus, if financial assistance was provided to branches and representative offices of Russian organizations, it will not be taken into account when receiving a social tax deduction. Also, if a citizen provides financial assistance directly to an individual, he will also not be able to reduce his tax base.

In what form to provide assistance?

Tax authorities and financial departments (see Letter of the Ministry of Finance dated March 2, 2010 No. 03-04-05/8-78) believe that in order to receive a social deduction, a charitable donation must be made in cash.

Arbitration courts have a different opinion (see Resolution of the FAS UO dated 08.12.2008 N F09-9086/08-S2, Resolution of the FAS PO dated 28.06.2006 in case No. A12-29703/05-S51). The donation can be made by donating food, in which case the taxpayer retains the right to receive a social tax deduction. To substantiate their position, the courts rely on the norm of paragraph 1 of Art. 582 of the Civil Code of the Russian Federation, by virtue of which “a donation is recognized as the donation of a thing or right for generally beneficial purposes.”

In accordance with Art. 1 of Federal Law N 135-FZ “charity is understood as the charitable activities of citizens and legal entities through the disinterested (free) transfer of property, including money, to citizens or legal entities, the disinterested performance of work, the provision of services, and the provision of other support.”

From the meaning of these norms it follows that the transfer of funds is only one of the possible ways of providing charitable assistance.

In this regard, the tax authorities’ restrictive interpretation of paragraphs. 1 clause 1 art. 219 of the Tax Code of the Russian Federation contradicts paragraph 3 of Art. 39 of the Constitution of the Russian Federation. It says that “in Russia, voluntary social insurance, the creation of additional forms of social security and charity are encouraged.”

How to calculate the amount of deduction and tax refundable

The amount that the taxpayer spent from personal funds is subject to deduction. But the total benefit cannot exceed 25% of annual income, and this limitation generally applies to all expenses related to charity and donations.

However, only income taxed at a rate of 13% is taken into account. Therefore, taxpayers who are non-residents of the Russian Federation, for whom the personal income tax rate is different, cannot take advantage of the social deduction. At the same time, the balance of the social tax deduction for charity is not carried over to the next year. It remains unused.

Example: Citizen A. in 2016 donated 200,000 rubles for the statutory activities of a religious organization. They also received charitable assistance to a non-profit sports organization in the amount of 275,000 rubles.

The amount of the annual income of citizen A. for 2016 before applying all tax deductions amounted to 4,521,000 rubles, including non-taxable personal income tax - 300,000 rubles.

Thus, the total limit for charity and donations is RUB 1,055,250. ((4,521,000 - 300,000) rub. x 25%). The total amount of charity was 475,000 rubles. (200,000 + 275,000).

Since the amount of donations is less than the amount of the possible limit, all of it is taken into account when calculating personal income tax for the year.

How to transfer money to charity

Citizens can transfer their funds to charity in the following ways:

• through the accounting department at the place of work, submitting a corresponding application to the chief accountant;
• from a bank account or in cash through a bank;
• through the cash desk of the organization to which the citizen provides assistance.

Transfer through an organization

An organization that is a citizen’s source of income can transfer funds to charitable purposes only on the basis of his written application. The application can indicate the frequency of transfers, specific amounts or shares (percentages) of wages and other information. And be sure to provide the account details of the beneficiary organization. The application form is free.

In this case, the documents confirming the expenses incurred will be copies of payment orders for the transfer of money for charitable purposes with the bank’s mark on execution. When filling out a payment order, in the “payment purpose” field, you must indicate: “From full name to help the boarding school”, “From full name to carry out statutory activities”. Some tax authorities require, in addition to copies of payment receipts, to also submit a certificate from the organization about the transfers made.

Transfer via bank

If the taxpayer transferred funds from his bank account, then the expenses are confirmed by a bank statement about the transfer of funds for charitable purposes.

It is convenient to transfer money through branches of Sberbank of Russia. I draw your attention to the fact that when filling out a document according to form No. PD-4, in the line “name of payment” you should write “transfer of funds for charitable purposes.” A receipt for this form with a bank mark is submitted to the tax authority.

If a citizen deposits money directly into the cash desk of an organization to which he provides financial assistance, then the supporting document will be a receipt for the receipt order indicating the purpose of using the deposited funds. For example: “Charitable assistance for sporting events.”

Charity from legal entities to foundations

Among Russian businessmen, it is more common to provide assistance indirectly to those in need, through specially created structures - charitable foundations, one of which is the St. Petersburg charitable foundation AdVita ("For Life"). In most cases, this approach is driven by the desire to independently determine the circle of recipients of donations, as well as confidence in controlling costs. After all, a fund that collects and distributes funds, for example, for the treatment of cancer patients, is registered in Russia as an NPO, its activities are regulated by law, and the donor can be sure that his funds will be spent in the targeted manner. Such funds have a staff of employees responsible for searching for projects, and also submit reports to the tax authorities.

Although all charitable organizations, including foundations, are exempt from income taxation within the framework of their statutory activities, they are required to annually submit reports to the tax authorities on the expenditure of funds received as part of charitable contributions. If the Federal Tax Service considers such expenses to be inconsistent with the statutory goals, then all funds received will be recognized as income of the fund, subject to taxation. For example, a charitable foundation does not have the right to buy real estate or make other investments with donors’ money.

As for the charitable organizations themselves, as mentioned above, you can transfer money to a charitable foundation or transfer property only at the expense of your profits, if the taxpayer applies the general taxation system. Taxpayers under the simplified taxation system also cannot reduce their income by amounts of charitable assistance. A closed list of expenses by which organizations using the simplified tax system can reduce the income received is given in Article 346.16 of the Tax Code of the Russian Federation, and charity costs are not included.

Where to go and what documents are needed to receive a deduction

Tax legislation does not establish a clear list of documents required to confirm the taxpayer’s right to receive a social tax deduction in the amount of donations.

According to the general rules, a social tax deduction for charity is provided to the taxpayer on the basis of his written application to the tax authority at his place of residence after the end of the tax period. In the application you must indicate the number of your bank account to which the refundable tax should be transferred, and the bank details. According to paragraph 2 of Article 219 of the Tax Code of the Russian Federation, “the taxpayer is obliged, along with the application, to submit a tax return in form 3-NDFL for the tax period in which the donations were transferred.” This is a prerequisite for tax reduction.

The application is usually accompanied by:

1. income certificate in form No. 2-NDFL;
2. payment documents confirming the transfer of money for charitable purposes.

A tax return claiming the deduction can be filed within three years after the end of the tax period in which the charitable expenses were incurred. That is, in 2020 you can still submit a declaration for 2016-2018.

The tax benefits provided by our legislation to philanthropists are quite limited. That is, you can, of course, provide assistance to any organizations, foundations and individuals, in any amount, but not all of this assistance can receive a tax benefit from the state. However, you should not refuse to use those limited benefits to which benefactors are entitled.