income tax reduction tool in 2023

income tax reduction tool in 2023

The legislator implemented new support measures for domestic organizations that create or use their own Russian software. The Ministry of Finance explained the procedure for applying the change introduced from 2023 by Law No. 321-ФЗ in subsection 6 clause 2 of Art. 259.3 of the Tax Code of the Russian Federation.

The supplement allows taxpayers to profit, apply a special coefficient (not higher than 3) to the basic rate of depreciation regarding NMA in the form of exclusive rights to programs for computers and databases on the basis of artificial intelligence (AI), included in ERPEOM. Based on their economic needs, taxpayers will independently determine the specific coefficient that will be used when calculating depreciation amounts.

According to financiers, the increasing factor can be applied starting from the new year only in those reporting (tax) periods during which such programs for computers and databases will be in ERPEOM. With the application of the coefficient depends on the date of commissioning of the corresponding NMA facility.

The decision to apply the increasing coefficient, its size should be reflected in the accounting policy for taxation purposes.

Impact on the accounting of the increasing factor

– during the stay of the program in the ERPEOM during the period of the ISP.

Example:

In April 2023, the organization acquired exclusive rights to the program for computers and databases related to field II, included in the ERAPEOM. The costs of its acquisition, delivery, bringing it to a condition suitable for operation amounted to 2,079,100 rubles. without VAT The organization recognized the exclusive rights of the NMA with a term of useful use of 85 months. In the accounting policy for the purpose of taxation for this type of NMA, the organization provided for the use of special coefficients that increase:

  • 1.5 – to the costs that form the original value of the asset;

  • 3.0 – to the rate of depreciation in the tax periods of the program’s stay in ЕРPEОМ.

Taking into account the increasing factor of 1.5, the initial cost of the NMA will be 3118650 rubles. (2079100 rubles x 1.5).

With the linear method of calculating NMA depreciation, the depreciation rate will be 1.17647% (1: 85 x 100). When using the special coefficient 3, the rate of depreciation in tax accounting will increase to 3.52941% (1.17647% x3). Based on this in tax accounting:

  • the amount of monthly depreciation for NMA – 110070 rubles/month. (3118650 rubles x 3.52941% / month);

  • the object will be fully depreciated in 29 months (28.33333 months (3118650 rubles: 110070 rubles/month), that is, in September 2025 (29 months (8 + 12 + 9), where 8, 12 and 9 the number of months of amortization in 2023, 2024 and 2025).

During this time, the difference between the original value of the NMA in tax and accounting accounting will be completely written off. It will arise in connection with an increase of 1.5 times the amount of incurred costs of 1,039,550 rubles. (3118650 – 2079100). Therefore, the size of such a monthly difference will be 36690 rubles. (1039550 rubles: 28.33333 months x 1 month).

It is permanent, as it is taken into account in relation to the tax base from the income tax of the reporting period, but is recognized for the purpose of accounting as income and expenses of both the reporting and subsequent reporting periods.

Monthly depreciation deductions for the object in accounting will amount to 24460 rubles (2079100 rubles: 85 months x 1 month)

There is a discrepancy in the amount of 85,610 rubles between the amounts of monthly depreciation in tax and accounting. (110070 – 24460). This amount, in addition to the mentioned permanent difference, includes another one, the monthly amount of which is 48,920 rubles. (85610 – 36690). In 28.33333 months, the total amount of the second difference will be 1386066.50 rubles. (48,920.00 rubles/month x 28.33333 months).

In accounting for 28.33333 months, depreciation for NMA in the amount of 693,033.25 rubles will be charged. (24460 rubles/month x 28.33333 months). Based on this, the residual value of the object at this moment will be 1,386,066.75 rubles. (2079100 – 693033.25).

As you can see, the total amount of the second difference (1,386,066.50 rubles) at the end of depreciation in tax accounting is equal to the value of the residual value of the NMA in accounting at this moment (1,386,066.75 rubles) (the difference of 0.25 is formed due to the rounding error fractional numbers.

The resulting temporary difference is taxable because it results in deferred income tax. This tax should increase the amount of income tax payable to the budget following the reporting period or in subsequent reporting periods. The presence of a temporary taxable difference entails the accrual of a deferred tax liability (DTL).

Thus, in the first month of amortization (in May 2023), the following occur:

  • constant difference in the amount of 36,690 rubles,

  • temporary taxable – 48,920 rubles;

  • permanent tax income – 7338 rubles. (36,690 rubles x 20%);

  • deferred tax liability – 9784 rubles. (48,920 rubles x 20%).

This is reflected in the accounting records:

Debit 68 subaccount “Income tax calculations” Credit 99

– 7338.00 rubles. – Permanent tax income is accrued;

Debit 68 subaccount “Income tax calculations” Credit 77

– 9784.00 rubles. – accrued deferred tax liability.

The data with the above indicators are generated every month until August 2025 (the 28th month of depreciation calculation).

At the end of August:

  • the temporary taxable difference is 1,369,760 rubles. (48,920 rubles/month x 28 months);

  • deferred tax liability – 273,952 rubles. ((9784 rubles/month x 28 months) = 1369760 rubles x 20%)).

In September, depreciation in the amount of rubles will be charged in the tax accounting. 36,689.63 rubles. (110,070 rubles x 0.33333), in accounting – 36,690.00 rubles. (There will not be a difference of 0.27 rubles if instead of 0.33333 we take 1/3). Since the given amounts are equal, at the end of the month the amounts of the temporary difference of 1369760 and the deferred tax liability of 273952 rubles will remain unchanged.

In October, only 24,460 krb of depreciation is charged to accounting. (30th month of accrual). This leads to a decrease in the temporary taxable difference to 1,345,300 rubles. (1369760 – 24460) and partial repayment of the VNO for 4892 rubles. (24460 rubles x 20%):

Debit 77 Credit 68 subaccount “Income tax calculations”

– 4892 rubles. – IT is partially repaid.

The size of the VNO at the end of the month is 269,060 kr. (273952 – 4892).

In accounting, depreciation will continue for another 55 months (85 – 30) up to and including May 2030. During this time:

  • the temporary taxable difference will decrease to 0 rubles. (1,345,300 rubles – 1,345,300 rubles (24,460 rubles/month x 55 months));

  • the deferred tax liability will be fully repaid (269,060 rubles – 269,060 rubles (4,892 rubles/month x 55 months).

End of example.

– in case of withdrawal of the program from ERPEOM during the SPI.

At the beginning, we focused on the opinion of the Ministry of Finance regarding the fact that the increasing coefficient can be applied only in those reporting (tax) periods during which the program for computer based on II is in the ERPEOM. When the program is removed from the register, depreciation in tax accounting must be calculated in the general manner.

Example:

Let’s slightly change the condition of the previous example. Let’s assume that the program was in ERPEOM in 2023 and 2024, from January 1, 2025 it was removed from the unified register and was no longer listed there.

Finding the program in the register allowed the taxpayer in the period from May 2023 to the end of 2024 to use an increasing factor when calculating depreciation to the norm. 3.

For 20 months (8 + 12) of the application of the coefficient, depreciation for the NMA was calculated in the amount of 2,201,400 rubles. (110,070 rubles/month x 20 months), residual value of the object 917,250 rubles. (3118650 – 2201400).

During this period, postings from the previous example are formed every month in the accounting:

Debit 68 subaccount “Income tax calculations” Credit 99

– 7338.00 rubles. – Permanent tax income is accrued;

Debit 68 subaccount “Income tax calculations” Credit 77

– 9784.00 rubles. – accrued deferred tax liability.

Withdrawal of the program from the register from January 1, 2025 means the impossibility of using factor 3, which increases the rate of depreciation. The amount of depreciation without increasing the coefficient will be 1.17647% and will be applied until the object is fully depreciated in tax accounting. And this will happen in January 2027 – in 25 months. ((917,250 rubles: 36,690 rubles/month), where 36,690 rubles (3,118,650 rubles x 1.17647%) (taking into account rounding by 0.02 rubles) – Amount of monthly depreciation).

For 20 months of accrual of depreciation in accounting, its amount will be 489,200 rubles. (24,460 rubles/month x 20 months), and the residual value of the NMA – 1,589,900 rubles. (2079100 – 489200).

The difference between depreciation deductions taken into account in tax and accounting in 2023 and 2024 will be 1,712,200 rubles. (2201400 – 489200).

This value includes:

  • 733800 rubles. (36,690 rubles/month x 20 months) – The permanent difference that arose in connection with the application of a factor of 1.5 to the incurred expenses related to the purchase of the program;

  • 978400 rubles. (48,920 rubles/month x 20 months) – Temporary difference.

So on January 1, 2025, the organization will include:

  • the balance of the difference between the original value of the NMA in tax and accounting accounting is 305,750 rubles. (1039550 – 733800);

  • temporary difference 978,400 rubles;

  • deferred tax liability (IT) – 195,680 rubles. (978,400 rubles x 20%).

During the next 25 months, depreciation will be accrued:

  • in tax accounting in the amount of 36,690 rubles. (3118650 rubles x 1.17647%);

  • in accounting – 24,460 rubles.

The monthly difference between them will be 12,230 rubles. (36690 – 24460). The balance of the difference between the initial prices of NMA in tax and accounting accounting is 305,750 rubles. fully repaid in 25 months. 305750 rubles. = 12230 rubles/month. x 25 months

The size of the temporary difference is 978,400 rubles. do not expect anything to change, since the balance of monthly depreciation in tax accounting is 24,460 kr. (36690 – 12230) is equal to the amount of depreciation calculated in accounting – 24460 rubles.

The residual value of the NMA in accounting at the end of January is 978,400 rubles. ((1,589,900 – 611,500), where 611,500 rubles (24,460 rubles/month x 25 months) – Amount of accrued depreciation for the analyzed period) will be equal to the temporary difference.

From February 2027, depreciation in the amount of 24,460 rubles. the organization will count only in accounting. This amount will be reduced by the temporary difference, and the deferred tax liability will be repaid by 4,892 kr. (24460 rubles x 20%):

Debit 77 Credit 68 subaccount “Income tax calculations”

– 4892 rubles. – IT is partially repaid.

In accounting, depreciation will continue to be calculated for another 39 months (85 – 20 – 25 – 1) until May 2030. This month will be fully repaid:

  • temporary difference – (978,400 – 24,460 – (24,460 rubles/month x 39 months));

  • deferred tax liability – (195,680 – 4892 – (4892 rubles/month x 39 months).

End of example.

Summarizing

As we see the application of a special coefficient allows taxpayers – owners of exclusive rights to Russian software to increase the amount of accrued depreciation. Including these amounts in costs related to production and (or) sales, taxpayers will be able to reduce the tax base from the income tax of organizations.

But it should be remembered that if the taxpayer sets the useful life of software independently (paragraph 2, clause 2, article 258 of the Tax Code of the Russian Federation), he loses the opportunity to force the calculation of depreciation with the use of an increasing coefficient.

Thus, the legislator gave the taxpayer the opportunity to choose between two mechanisms that allow to reduce the tax base from the income tax of organizations:

  • determine the useful life of the NMA, which cannot be less than two years, or

  • use the increased coefficient to the basic rate of depreciation.

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