Accounting for advertising costs under the simplified taxation system (STS)
Posted: Sun Jan 19, 2025 4:59 am
If only the income received by the entrepreneur is selected for taxation, no recording of promotion expenses is made.
Under the “income minus expenses” scheme, advertising costs are taken into account in accordance with Article 264 of the Tax Code (subparagraph 20 of paragraph 1 of Article 346.16 of the Tax Code). It is important that the costs are real, i.e. that actual payment is transferred for promotion services (paragraph 2 of Article 346.17 of the Tax Code).
The rule for standardizing physician data package advertising expenses for the simplified tax system is also relevant, but there is one peculiarity when calculating taxes. Not only paid revenue from sold goods, works, services, but also advance payments received from buyers (clients) are taken into account. This is explained by the use of the cash method as the main method of accounting for income on profit tax (letter of the Ministry of Finance dated 11.02.2015 No. 03-11-06/2/5832).
Accounting for advertising costs under the simplified tax system
Source: shutterstock.com
If the advance payment was returned to the consumer, the income calculation for determining the 1% limit is carried out by deducting the amount returned to the buyer.
Accounting for advertising expenses under the Unified Agricultural Tax
Entrepreneurs paying a single agricultural tax also have the right to record expenses on the promotion of their goods as “profitable” expenses (subparagraph 20 of paragraph 2 of Article 346.5 of the Tax Code).
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Accounting for advertising expenses under the patent tax system
The patent taxation system is intended only for individual entrepreneurs. The amount of contributions to the budget depends on the potential income, which is determined based on the type of entrepreneurial activity (Article 346.47 of the Tax Code).
Therefore, advertising costs, like other overhead costs, are not relevant for determining the amount of tax.
Under the “income minus expenses” scheme, advertising costs are taken into account in accordance with Article 264 of the Tax Code (subparagraph 20 of paragraph 1 of Article 346.16 of the Tax Code). It is important that the costs are real, i.e. that actual payment is transferred for promotion services (paragraph 2 of Article 346.17 of the Tax Code).
The rule for standardizing physician data package advertising expenses for the simplified tax system is also relevant, but there is one peculiarity when calculating taxes. Not only paid revenue from sold goods, works, services, but also advance payments received from buyers (clients) are taken into account. This is explained by the use of the cash method as the main method of accounting for income on profit tax (letter of the Ministry of Finance dated 11.02.2015 No. 03-11-06/2/5832).
Accounting for advertising costs under the simplified tax system
Source: shutterstock.com
If the advance payment was returned to the consumer, the income calculation for determining the 1% limit is carried out by deducting the amount returned to the buyer.
Accounting for advertising expenses under the Unified Agricultural Tax
Entrepreneurs paying a single agricultural tax also have the right to record expenses on the promotion of their goods as “profitable” expenses (subparagraph 20 of paragraph 2 of Article 346.5 of the Tax Code).
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Accounting for advertising expenses under the patent tax system
The patent taxation system is intended only for individual entrepreneurs. The amount of contributions to the budget depends on the potential income, which is determined based on the type of entrepreneurial activity (Article 346.47 of the Tax Code).
Therefore, advertising costs, like other overhead costs, are not relevant for determining the amount of tax.