Property owned by the LLC and its founders exists as two separate categories. The company cannot count on the money of its members. Nevertheless, the owner has the opportunity to assist the company in increasing working capital. You can issue it in various ways. Let us further consider how the provision of gratuitous financial assistance is carried out.
General classification
The increase in working capital can be carried out in four ways. Thus, a company can receive free financial assistance, contributions to the authorized capital, a loan and a contribution to property. All these operations are reflected in accounting records differently.
Financial gratuitous aid
According to the general rule, such property of an organization should be recognized as its non-operating income. This provision is established in Art. 250, paragraph 8 of the Tax Code. In this case, property should be understood as civil law objects (except property) that belong to this category under the Civil Code. Consequently, cash is included here . Along with this, in the taxation of income the company does not arise if:
- The share of the participant in the authorized capital is more than 50%.
- From the date of acquisition of the property during the year, it will not be transferred to third parties.
However, it should be noted that financial gratuitous assistance will no longer be included in income if the condition on the share of the participant is met. Moreover, money can be transferred to third parties at any time.
Financial assistance free of charge: postings
The funds transferred by a member of the company act as other income. Gratuitous financial assistance from the founder is recognized at the date of receipt. However, according to the Instructions for the application of the Chart of Accounts, they are reflected in accounting for an account that records income in future periods (98), subaccount 98-2.
Controversial moment
Financial assistance free of charge, according to the Civil Code, is regarded as a gift. This provision is given in Art. 575, p. 1. Along with this, gifts, the value of which is more than 3 thousand rubles, are prohibited between legal entities. This requirement is contained in sub. 4 specified paragraph of this article. In accordance with this, the tax service often refuses to implement a sub. 11, paragraph 1. of Article 251 of the Tax Code regarding property received free of charge from the legal entity-founder. It should be noted here that the arbitration practice has not developed a consensus on this issue. Representatives of the Federal Antimonopoly Service of the North-Western District considered that if the Tax Code allows the receipt of property free of charge by one domestic organization from another, subject to the necessary conditions, then sub. 4, paragraph 1, in Art. 575 Civil Code is not applicable. The judges of the Moscow District in their ruling indicated slightly different facts. In particular, in their opinion, the implementation of sub. 11, paragraph 1, of Article 251 of the Tax Code is permissible only if financial gratuitous aid is transferred in compliance with the provisions of the current legislation on the prohibition of donation.
Contribution to Property
It can be carried out without changing the value of the authorized capital, as well as the nominal value of the shares in it. In this case, it refers to the obligation of the founders to invest in common property by decision of the meeting. Contributions are made by the participants in proportion to the shares owned by them in the authorized capital, unless otherwise specified in the Charter. In accounting, gratuitous financial assistance from the founder in the form of a contribution will not be recorded as company income. Contribution of the participant shall be reflected on the debit of property accounts and credit of the account for additional paid-in capital. This, in turn, means that the decision to transfer deposits leads to an increase in the size of the company's net assets. The procedure for their determination by law is not established. In this regard, LLCs may apply the rules applicable to joint stock companies. The value of net assets should be taken as the value obtained by deducting liabilities from current assets accepted for calculation. In essence, the amount shows the size of the company's equity. Moreover, under sub. 3.4, paragraph 1, article 251 of the Tax Code, incomes, which are property transferred to the company to increase working capital, including the formation of additional capital, are not taken into account when taxing profits.
Loan
The participant can provide the company with temporary financial assistance by signing a loan agreement with her. This provision is provided for in Art. 808, paragraph 1 of the Civil Code. In accordance with the general rule, the participant, acting as a lender, has the opportunity not only to return the amount, but also to receive interest. Their size and accrual order are established in the contract. However, the same agreement may provide for financial assistance free of charge. The conditions for such a loan should be explicitly stated in the contract. This is prescribed by Art. 809, paragraph 1 of the Civil Code. Financial gratuitous assistance in the form of a loan will not act as the company's income. Moreover, repayment of the loan is not recognized as an expense. In the same way, the loan received is not included in income taxable on income tax. At the same time, expenses aimed at its repayment, reduce the base on it. Along with this, with the free use of funds by the company's income under Art. 41 NK will save on interest. In ch. 25 does not establish the procedure for assessing and determining the material benefits that the company will receive in this case. In this regard, such profit is not taken into account in taxation.
Contribution to capital
At the general meeting of the founders, it may be decided to increase the charter capital by making additional contributions. For this, according to the general rule, at least 2/3 of the total number of owners of the company is required. The Charter may nonetheless provide for a larger number. The total value of deposits, a uniform ratio for all founders between it and the amount by which the nominal value of each share will be increased, is determined directly in the decision. This requirement is present in Art. 19, paragraph 1 of the Federal Law No. 14. Each founder has the opportunity to make an additional contribution, which will not exceed the total cost of additional. deposits, in proportion to its own share in the company’s capital. This right must be exercised no later than 2 months after the adoption of the above decision. Within a month from the end of this period, the meeting must approve the results of the addition. contributions and related changes in the constituent documentation of the enterprise. At the same time, an application for registration of these adjustments should be sent to the tax service. Changes will come into force only after state registration. Generalization of information on the status and movement of the company’s MC is carried out on account 80. Records on it are made after registration of the changes in the constituent documents adopted at the meeting.
Taxation of additional contributions
Funds received in this way will not increase the base. Nevertheless, legal founders will have to pay tax on the increase in the nominal value of their share. A similar rule applies to individual participants. This amount will be subject to personal income tax. In this case, the obligation to calculate, withhold and pay will lie directly with the company acting in this case as a tax agent.