LETTER OF THE FEDERAL TAX SERVICE OF THE RUSSIAN FEDERATION

of June 30, 2014 No. State Duma-4-3/12324 @

About accounting treatment for the purpose of the taxation of profit of subsidies

The Federal Tax Service for data and use in work directs approved with the Ministry of Finance of the Russian Federation (the letter of 16.05.2014 No. 03-03-10/23121) line item concerning accounting treatment for the purpose of the taxation of profit of the subsidies received by the commercial organization and the amounts of remaining balance unspent the organization of subsidies in case of their return.

According to Item 1 of Article 78 of the Budget code of the Russian Federation subsidies to legal entities (except for subsidies to the public (municipal) institutions), to individual entrepreneurs, physical persons - producers of goods, works, services are provided on non-paid and irretrievable basis for the purpose of cost recovery or the half-received income in connection with production (realization) of goods, performance of works, rendering services.

When forming tax base on the income tax of the organizations the income from sales of goods (works, services), the realization of property and property rights determined according to Article 249 of Chapter 25 "The income tax of the organizations" of the Tax Code of the Russian Federation (further - the Tax Code of the Russian Federation), and the non-operating incomes determined according to article 250 Tax Code of the Russian Federation are considered.

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