Ministry of Economic Development prepared tax breaks for Russian companies, write “Vedomosti”. They are offered to free from the payment of VAT in the transfer of goods to non-commercial organizations (NPOs).
The initiative belongs to the Deputy Minister of Economic Development Tatiana Ilyushennaya, who sent the appropriate letter to the Deputy Prime Minister Tatiana Golikova. We are talking about socially significant goods, free of charge for the use of NGOs. Their cost should not exceed one percent of the annual donor revenue. Only in this case, he can count on exemption from VAT.
The current legislation provides for exemption from VAT in the transfer of goods directly to those in need, without the mediation of NPO. In addition, since 2020, companies can reduce the database for income tax on the amount of donations and the cost of goods, free of charge transmitted NGOs, given them as expenses.
In a letter, Ilyushnikova states that after last year’s changes in the Tax Code, companies have become more profitable to list money for charity, rather than convey the goods. Also, the current rules make more preferable for business with the disposal of goods with expiring shelf life – due to the need to carry additional costs in the form of VAT from goods that are actually not implemented. The initiative, according to the Deputy Minister, should change the situation.