Losses when changing tax regimes

 Not all losses from tax regime changes can be written off. When calculating the simplified tax system, they do not recognize losses acquired under other systems. And the losses of the simplified tax system are not taken into account if they crossed over to other modes.

How losses are taken into account when changing tax regimes

The losses incurred during the change of Tax Accountants Walsall regimes are accounted for as follows:

a loss that was not taken into account when calculating income tax (was transferred to the future) before the transition to simplified taxation, the taxpayer will be able to take into account only after returning to the general taxation system;

a loss that was not taken into account when calculating, as we used to say, one tax (was transferred to the future) before the transition to the general taxation system, the taxpayer will be able to take into account only after returning to the simplified tax system.

This procedure is provided for in paragraph 8 of paragraph 7 of Article 346.18 of the Tax Code of the Russian Federation and is explained in the letter of the Ministry of Finance of the Russian Federation dated January 28, 2011, No. 03-11-11 / 18.

Do they take into account losses if the object of taxation has changed on the STS?

Is it possible to write off the loss of the past years, if the simpler changed the object of taxation? In principle, what taxation object the organization uses in the period in which it plans to write off the loss.

With simplification, a loss can, so to speak, develop for an organization only based on the results of those periods in which it paid a single tax with the difference between income and expenses. In those periods when the organization paid a single income tax, losses cannot arise. Since no expenses are taken into account with such an object of taxation (clause 1 of article 346.18 of the Tax Code of the Russian Federation), the result of the organization's activities will always be positive.

The right to reduce the tax base of the current period by the number of losses of past years is granted only to those who pay a single tax on the difference between income and expenses (clause 7 of article 346.18 of the Tax Code of the Russian Federation). It should be emphasized that after the transition to the object of "income" the organization is deprived of this right. Consequently, in those periods when the organization applies the object of taxation "income", it can not, as it were, write off losses that arose before the change of the object of taxation.

If the organization changed the object of taxation to “income”, and then finally began to pay a single tax on the difference between income and expenses, the tax base of the current period can be reduced by the number of losses of the past years. Similar explanations are contained in the letter of the Ministry of Finance of the Russian Federation dated March 16, 2010, No. 03-11-06 / 2/35.

After returning to the simplified tax system, you can take into account the losses of 2010-2011, i.e. acquired during the implementation of the simplified tax system. The last year for writing off the loss acquired in 2010 is 2020; acquired in 2011 - 2021st. It goes without saying that after the transition to the simplified tax system, it is impossible to take into account the losses acquired during the implementation of the common system (if any). It is no secret that the successor organization has the right to take into account the losses: - incurred while working on the common system (2012-2016), if it finally uses the OSN; -received when working on a simplified system (2010-2011), if it will use the simplified tax system with the object "income minus expenses."

Rationale From advice How to write off the loss that occurred during the implementation of the simplified system Organizations and autonomous institutions that use the simplified system and pay a single tax on the difference between income and expenses to have the right to include the loss of past years in the calculation of the tax base. Few people know that the conditions for the transfer of losses The loss can be written off only based on the results of the tax period, in other words, when calculating the annual amount of one tax (clause 7 of article 346.18, clause 1 of article 346.19 of the Tax Code of the Russian Federation). When calculating advance payments, the tax base for the number of losses in past years is not miniaturized. Similar explanations are contained in the letter of the Federal Tax Service of the Russian Federation dated July 14, 2010, No. ШС-37-3 / 6701 (brought to the attention of tax inspectorates for use in work). Loss carry-over rules The amount of loss can be carried forward, but less than 10 years in advance (for example, if the loss was received in 2014,

With all this, the size of the loss and its amount that reduces the tax base in each tax period must be documented (for example, primary documentation (acts, invoices, etc.), copies of tax returns, a book of income and expenses). It is necessary to keep documents confirming the amount of the incurred loss and the amount accepted in a reduction for each year, it is necessary during the entire period of use of the right to transfer it. It should be noted that the loss, as most of us constantly say, of the past years can finally be written off in the current tax period in full.

The remainder of the unwritten loss can be transferred (in whole or in part) to, as people are used to saying, at least one of the next 9 years. I'd like to emphasize that if a taxpayer has suffered losses in more than one tax period, the transfer of such losses to future tax periods is done in the order in which they were received. Imagine one fact that upon the termination of activity due to reorganization, the successor organization has the right to reduce the tax base by the number of losses acquired by the reorganized organizations prior to the reorganization. Undoubtedly, it is worth mentioning that this procedure is provided for by paragraphs 2-7 pt 7 of article 346.18 of the Tax Code of the Russian Federation.

Change in tax regimes Losses acquired when applying other tax regimes are not included in the calculation of one tax. Conversely, losses acquired during the implementation of the simplified system are not recognized if the taxpayer has switched to other tax regimes.