Accounting and taxation of non-profit organizations

Legislation allows the creation of various societies. Most of them are established for doing business. Recently, however, non-profit organizations have become more widespread. Taxation and accounting of such associations have a number of specific features. We will examine further in some nuances.

General information

Associations engaged in community service activities are registered as non-profit organizations. Accounting and taxation such companies are carried out according to general and special rules. In most cases, associations are created to conduct socially significant, legitimate activities. However, in practice there are also unscrupulous people who establish NPOs to conceal income and avoid budgetary obligations. The activities of such associations are regulated by Federal Law No. 7 and other regulatory acts. They determine the conditions and rules of work, the procedure for registration and delivery of reporting documentation, as well as the impact of charity on the taxation of nonprofits. It must be said that regardless of the goal for which NPO was established, the association is a full participant in budget relations.

Classification

Non-profit organizations are divided into the following types:

1. Non-state. They carry out activities at their own expense.
2. State. Such NGOs are funded by the government.
3. Standalone.

The Tax Code assigns an obligation to NPOs to prepare reports and provide declarations with all settlements on contributions to the local, federal and regional budgets. In addition, organizations need to keep records and submit documentation on a common basis.

Special rules

Considering the accounting and taxation of non-profit organizations, it should be noted that associations have the right to independently develop reporting forms based on samples approved by the Ministry of Finance. The documentation used to calculate budget payments should contain information on the business and statutory work of the association. If commercial activity is not carried out, respectively, there is no data on it, and the organization has the right not to provide reports on:

1. Adjustment of capital.
2. The movement of financial assets.

In addition, an NPO may not submit annexes to the balance sheet and an explanatory note. Companies financed by the budget are required to report on the use of the funds received. Information is indicated in forms approved by the Ministry of Finance. This document is included in the general reporting. A letter is attached to it, which lists the securities transferred to the supervisory authority.

VAT and income tax

We can say that taxation of socially oriented non-profit organizations based on these two payments. When calculating and collecting benefits, benefits related to the specifics of the activities of NPOs are taken into account. It is determined by the following:

1. Making a profit is not a priority. Moreover, to carry out certain activities, the association must have a license.
2. Non-profit organizations are forced to provide certain types of services to citizens and legal entities or perform profitable work. This situation is determined by the need to ensure the core business of the association.At the same time, an NPO does not pass registration in the status of a business entity.

These two signs determine features of taxation of non-profit organizations.

Conditions for Benefits

The list of types of income that may not be included in the number of objects of budgetary obligations when using funds as intended is approved by the Ministry of Finance. Taxation of non-profit organizations in the Russian Federation can be carried out under such preferential conditions, subject to a number of requirements. They are fixed by industry standards. There are only two requirements:

1. Separate accounting of target revenues and their use exclusively for its intended purpose. At the end of the reporting year, an NPO submits a report to the Federal Tax Service.
2. Keeping records of not only targeted, but also other income.

The latter can be divided into two types:

1. Selling income. Their NPO receives on the basis of the provision of services or work.
2. Non-operating income. These include funds that the association receives from other sources. For example, it can be income from the rental of property, fines and penalties for non-payment of contributions, etc.

In case of non-compliance with any of the above conditions, an NPO loses benefits.

Expenses and income

Non-profit organization taxation carried out in all cases when the association receives income, making its work profitable. For calculation, first of all, the base is determined. It represents the difference between the amount of revenues (excluding excise taxes and VAT) and costs. The latter should have documentary evidence and justification. Taxation of non-profit organizations assumes attribution to expenses:

1. Salary costs to employees.
2. Material costs.
3. Depreciation deductions.
4. Other expenses.

Only those costs that are indicated in the primary or other reporting documents (contracts, payment papers, etc.) can be considered as documented, costs are economically justified when they are incurred as part of the regulatory local acts of the company. Such costs include, for example, travel expenses, fuel and lubricants expenses, etc. As Article 41 of the Tax Code points out, only economic benefit can serve as income. Its NPO can receive in cash or in kind. Accordingly, if the benefits of the income did not bring, then they are not recognized as income.

VAT

Taxation of non-profit organizations, selling products or providing services, includes this deduction without fail. Meanwhile, the legislation provides for the exemption from VAT of certain types of activities. It should be emphasized that exemptions are not intended for the association as a whole. Exemption is permitted in respect of only certain types of activities of the company. These include all works of social importance. Among them, in particular, is supervision of pensioners and disabled people in specialized municipal and state institutions of social protection of the population. Meanwhile, the presence of only a socially significant nature is not enough to exempt activities from VAT. The legislation establishes the following additional requirements:

1. Compliance of the service provided is established by the requirements (for example, place or terms of provision).
2. Availability of permission to conduct activities (if it is subject to licensing).

Customs duty

The rate of a fee does not depend on the legal type of company, the nature of the transaction or other factors. The legislation allows the exemption of certain goods from customs duties. This category includes:

1. Products exported / imported as gratuitous aid for charitable purposes of governments, states, international associations.
2. Teaching aids for schools, preschool educational institutions, other educational institutions, as well as for medical institutions.
3. Humanitarian aid imported and exported as part of measures to eliminate the consequences of natural disasters, catastrophes, accidents.
4. Printed publications related to culture, science, education.

Deductions from property

Taxation of non-profit organizations includes the collection of a number of regional payments. These include, first of all, deductions from property. Moreover, reporting on these payments must be submitted by all NPOs, even those that enjoy benefits. The right to exemptions when paying property tax should be declared upon filing a declaration. The average annual cost of ownership is used to determine the amount of payment. To calculate it, you need to know the residual price of the property (immovable and movable). It is defined as the difference between the initial cost and depreciation accrued every month. This calculation procedure is used in all societies, both commercial and non-profit. NK fixes the rate of deduction from property at 2.2%. Regional authorities, however, may reduce it.

Benefits Features

Taxation of non-profit organizations It is carried out according to different rules, depending on the nature of the relief provided by law. On this basis, it is possible to divide NPOs into 3 groups:

1. Associations vested with an unconditional right to enjoy benefits for an indefinite period. These include scientific state institutions, religious societies, a legal entity that owns cultural and historical monuments, agencies involved in the criminal-executive sphere.
2. Associations using conditional benefits. They may be exempted from the obligation to deduct property tax upon the occurrence of a number of circumstances. This group includes societies of persons with disabilities, in which the number of people with disabilities is at least 80%, as well as other societies, which include at least 50% of employees with disabilities.
3. Associations deprived of the right to receive benefits. This group includes autonomous non-profit organizations, non-profit partnerships, departments, and various funds (except for public ones).

Transport payment

Tax system for non-profit organizations provides for the obligation to make such deductions in accordance with the general rules. Associations must send payments to the regional budget for any vehicles registered in accordance with the established procedure and legally entitled to them (in operational management, ownership, economic management). In this case, it is not only about cars, but also about aircraft, watercraft, snowmobiles and other vehicles.

Land deductions

They are classified as local taxes. The obligation to deduct such payments is established for NPOs that have land in their ownership, lifetime possession, and unlimited use. In the latter case, the plots are transferred to municipal and state-owned enterprises, state authorities, territorial self-government structures, as well as state departments. The land tax rate is 1.5% of the cadastral value of the allotment. The legislation allows for unconditional exemption from the obligation to pay it for:

1. Societies of persons with disabilities, if they act as the sole owners of the land and at least 80% of persons with disabilities participate in them.
2. Religious associations.
3. Penitentiary institutions.

Budget organizations operating in the field of culture, sports, art, cinematography, healthcare, and education are not eligible for benefits. Certain exemptions for them may provide for local authorities.

STS for NPO

Simplified tax system for nonprofits provides for the release of associations from the obligation to make a number of budgetary contributions. In particular, the benefits apply to payments on income and property, as well as VAT.At the same time, the company will have to transfer the single tax provided for by the simplified tax system. The association may choose one of two options enshrined in the Tax Code. So, for NPO rates are provided:

1. 6% when choosing the type of taxation "income". Deductions are made from any income recognized as an economic benefit according to the Tax Code.
2. 15% when choosing the type of taxation "income minus expenses". Accordingly, expenses are deducted from the proceeds, and deductions are made from the difference. In case of its absence (or if the costs exceed income) tax is paid at a minimum rate of 1%.

Important point

In practice, the question often arises: is it envisaged taxation of donations to non-profit organizations? After all, in fact, they are income. Meanwhile, such proceeds are recognized as earmarked funds. Respectively, taxation of donations to non-profit organizations not provided. For all earmarked income, income and expenses should be shown. It is also worth noting that it is not provided taxation:

• membership fees of non-profit organizations;
• grants;
• targeted subsidies;
• funds transferred by the founders.

When using the simplified tax system, the head of the association can independently maintain accounting documents.

Autonomous Nonprofit Organization: Taxation

Before considering the specifics of accrual and payment of funds to the budget, it is necessary to understand what is ANO. An organization established on a voluntary basis is recognized as autonomous. As a rule, such associations are created to provide various services in the fields of culture, science, sports, healthcare and so on. Society can be established by both citizens and legal entities. Moreover, the share of each participant in the capital may not exceed 1/4. The founders transfer their property to the association irrevocably. In practice, the question most often arises: can an STS be applied by an autonomous non-profit organization? Simplified taxation is indeed provided for by law. The same rules apply for ANOs as for other associations. In other words, the management of the company can choose the most suitable rate (6% or 15%). At the same time, it is important to accurately calculate the economic component that will be subject to taxation.

Example

Consider the scheme for calculating tax on the simplified tax system for a conditional association that received profit of 485 thousand rubles. and spent 415 thousand rubles. First, we determine the amount of deductions at a rate of 6%. To do this, multiply the income by the tariff:

485,000 x 6% = 29,100.

Now we will calculate at a rate of 15%:

(485,000 - 415,000) x 15% = 10,500.

Accordingly, from the calculations it is clear which type of taxation is beneficial for combining. We should not forget that the choice is made in strict dependence on the specifics of society. Not always the calculation, profitable for one organization, will be effective for another.

UTII

This type of taxation can also be used by an autonomous organization. The amount of deduction is determined by the formula:

UTII = P x B x KK x KD x 15%, in which:

1. P - physical quantity established for a specific type of activity depending on the working area, number of employees, etc.
2. B - the basic level of income established at the state level for a particular type of work performed by the association.
3. KD - coefficient-deflator. It is established annually by the Government and takes into account a number of indicators.
4. KK - correction factor. It is provided locally.

For the calculation, it is necessary to take into account the specifics of the association, the criteria approved by the authorities.

Deadlines for submission of documents

As for any other companies, an obligation has been established for NPOs to provide timely reports to the regulatory authorities on all taxes. At the same time, for each deduction, its own deadline for submitting a declaration is provided. Consider some periods:

1. Unified tax report.It is provided by payers who conduct activities that do not lead to the movement of money in bank accounts or at the cash desk, and do not have objects of taxation on the corresponding contributions.
2. VAT report. It is rented on a quarterly basis by the 25th day of the first month following the completed quarter.
3. Income tax return. It is sent only by entities with an obligation to pay such a tax. Reporting is provided until March 28 of the period following the reporting year.
4. Declaration of single tax on the simplified tax system. It surrenders until March 31 of the period following the completed one.

The specifics of the transition to the simplified tax system

A non-profit organization is entitled to start using a simplified taxation system subject to a number of conditions:

1. Her income for 9 months. did not exceed 45 million rubles. This amount is determined for the year in which the association submits an application.
2. The average number of employees is not more than 100 people.
3. The association has no branches.
4. The residual value of assets is not more than 100 million rubles.
5. NPO does not produce excisable goods.

The transition to the simplified tax system is allowed from January 1 of next year. The notification to the Federal Tax Service must be sent before December 31 of the current period. Experts do not recommend rushing with the transition to the simplified tax system, unless there is an urgent need for unification.