Charitable activities, in accordance with Article 1 of the Federal Law No. 135 of 1995-11-08, are voluntary activities of legal entities and citizens to disinterestedly transfer property and funds to other legal entities or citizens, perform work gratuitously, provide services and provide other support. How can a legal entity arrange charity correctly?
Instructions
Step 1
If you purchased equipment or other goods for any organization, then to display information about the movement of these inventory items, use account number 41 ("Goods") in accounting. However, regardless of whether you donate equipment or funds, the organization's expenses related to charity are other expenses and are recorded in the corresponding account # 91.
Step 2
According to the accounting rules, expenses related to the organization's charitable activities are reflected in Form No. 2 (“Profit and Loss Statement”). The transfer of any equipment and things is carried out according to the invoice drawn up in duplicate and signed by the parties. The organization providing assistance takes one copy of the invoice for itself.
Step 3
In taxation, the value of the transferred property and the amount of funds in expenses are not taken into account when determining the tax base. Therefore, expenses related to charity, and reflected in the form No. 2, should not be indicated in the tax return.
Step 4
Submit the following documents to the tax office to prove expenses related to charity: - an agreement between your organization and the recipient of assistance for the free transfer of goods (provision of services, performance of work, etc.) or funds; - certified copies of documents confirming acceptance registered by the recipient of assistance free of charge received goods (works, services) or monetary funds; - certified copies of acts and other documents confirming the intended use of the received material funds within the framework of charity.
Step 5
Evidence that material values were donated as part of a charitable activity are usually: - a letter from the recipient of the charitable aid requesting material and technical or financial assistance for specific purposes; - a payment order for the transfer of funds by a philanthropist organization.
