Taxes on lump sum contribution
Posted: Mon Jan 06, 2025 3:30 am
Depends on the tax system the company is on. We will separately examine taxes on the main tax system: VAT and income tax. And then we will move on to the simplified system (USN), when there is no VAT.
Important! From 2025, there will be changes in VAT for those who use the simplified tax system. Read the article to find out who will have to pay VAT from January 1, 2025 .
VAT
Let's consider three situations :
When there is no VAT . If you transfer the rights to use bangladesh phone number lead inventions, utility models, know-how, and the contract price includes the amount for these rights, then VAT is not charged on it. The key point here is that you find this object in subparagraph 26.2 of paragraph 2 of Article 149 of the Tax Code of the Russian Federation.
When VAT is involved . If you transfer exclusive rights that do not fall under the categories above and are not listed in the subparagraph of the Tax Code, then such transfer is subject to VAT.
Mixed option . If the contract contains both VAT-exempt rights and other exclusive rights, VAT will be charged only on part of the payment.
Income tax
The franchisor will account for the fixed fee as income for income tax purposes. If the transfer of rights under the franchise agreement is a regular activity, then such income will be considered sales income. If this is a one-time receipt, then it will be classified as non-sales income (Article 248 of the Tax Code of the Russian Federation).
The franchisee, in turn, records the contribution in expenses for income tax. Specifically, these will be other expenses related to production and/or sales (subparagraph 49 of paragraph 1 of Article 264 of the Tax Code of the Russian Federation).
Important! From 2025, there will be changes in VAT for those who use the simplified tax system. Read the article to find out who will have to pay VAT from January 1, 2025 .
VAT
Let's consider three situations :
When there is no VAT . If you transfer the rights to use bangladesh phone number lead inventions, utility models, know-how, and the contract price includes the amount for these rights, then VAT is not charged on it. The key point here is that you find this object in subparagraph 26.2 of paragraph 2 of Article 149 of the Tax Code of the Russian Federation.
When VAT is involved . If you transfer exclusive rights that do not fall under the categories above and are not listed in the subparagraph of the Tax Code, then such transfer is subject to VAT.
Mixed option . If the contract contains both VAT-exempt rights and other exclusive rights, VAT will be charged only on part of the payment.
Income tax
The franchisor will account for the fixed fee as income for income tax purposes. If the transfer of rights under the franchise agreement is a regular activity, then such income will be considered sales income. If this is a one-time receipt, then it will be classified as non-sales income (Article 248 of the Tax Code of the Russian Federation).
The franchisee, in turn, records the contribution in expenses for income tax. Specifically, these will be other expenses related to production and/or sales (subparagraph 49 of paragraph 1 of Article 264 of the Tax Code of the Russian Federation).