Sample provision on representation expenses in a budgetary institution. Representation expenses Sample provision on representative expenses of an enterprise

According to p.p. 22 paragraph of Article 264 of the Tax Code of the Russian Federation, other expenses associated with production and sales include entertainment expenses associated with the official reception and maintenance of representatives of other organizations in negotiations in order to establish and maintain cooperation, in the manner provided for in paragraph 2 of Art. 264 of the Tax Code of the Russian Federation.

According to paragraph 2 of Art. 264 of the Tax Code of the Russian Federation, hospitality expenses include expenses for:

Holding an official reception (breakfast, lunch or other similar event) for these persons, as well as officials of the taxpaying organization participating in the negotiations;

Transport support for the delivery of these persons to the venue of the representative event and (or) the meeting of the governing body and back;

Buffet service during negotiations;

Payment for the services of interpreters who are not on the staff of the organization to provide translation during representative events.

According to the letter of the Federal Tax Service of Russia dated April 18, 2007 No. 04-1-02 / 306 @, the list of hospitality expenses is closed and is not subject to extended interpretation.

All or part of these expenses may be paid in cash through accountable persons. At the same time, the costs associated with conducting business negotiations must be confirmed by relevant documents drawn up in accordance with the law. Documents serving to confirm hospitality expenses may be (letter of the Ministry of Finance of Russia dated March 22, 2010 No. 03-03-06 / 4/26):

Order (instruction) of the head of the organization on the implementation of hospitality expenses;

Estimate of hospitality expenses;

Primary documents, including in the case of using any goods purchased on the side for representative purposes, payment for services of third-party organizations;

Report on hospitality expenses for hosted entertainment events, which reflects:

The purpose of representative events, the results of their implementation;

Other necessary data about the event, as well as the amount of expenses for entertainment purposes.

The head of the organization issues internal organizational and administrative documents, which reflect:

The list of persons entitled to receive funds as an account for hospitality expenses;

The procedure for issuing accountable amounts for hospitality expenses;

The procedure for spending such amounts;

Documentation and procedure for writing off accountable amounts for hospitality expenses.

When deciding to hold an official reception (meeting), the head of the host organization must issue an order to send an invitation to a business meeting, containing the purpose of the arrival of representatives of a third-party organization. Such a goal can be: either negotiating within the framework of an already concluded contract, or establishing mutual cooperation on the main activities of the organization. It is mandatory to appoint a person responsible for holding an official event.

The program of the business meeting is submitted to the accounting service of the organization, indicating the date, place and timing of the business meeting, the number of invited persons and participants from the organization and from the invitees. In addition, an estimate of hospitality expenses approved by the head, drawn up on the basis of the norms for spending funds on certain types of entertainment expenses, applied at the enterprise, must be submitted to the accounting department. After the approval of such an estimate, the accountable person is given money in the form of an advance according to an expenditure cash order.

As a rule, funds for entertainment expenses are issued to employees of the enterprise under the report. Therefore, the enterprise must have an order from the head on the procedure for issuing accountable funds, which should contain a list of persons to whom such funds can be issued. The procedure for exercising control over spending and writing off funds for hospitality expenses is also established by an order for the organization.

After negotiations, official meetings, the employee of the organization, who was responsible for carrying out these events and to whom the funds were issued against the report, submits to the accounting department of the enterprise an advance report with all supporting documents (contracts, invoices, invoices, acceptance certificates for work performed, invoices, work orders, KKT checks, sales receipts, other payment documents).

Representation expenses during the reporting (tax) period are included in other expenses in the amount not exceeding 4% of the taxpayer's labor costs for this reporting (tax) period.

According to article 255 of the Tax Code of the Russian Federation, labor costs include, in particular:

1) amounts accrued at tariff rates, official salaries, piece rates or as a percentage of proceeds in accordance with the forms and systems of remuneration adopted by the taxpayer;

2) accruals of a stimulating nature, including bonuses for production results, bonuses to tariff rates and salaries for professional skills, high achievements in labor and other similar indicators;

3) accruals of a stimulating and (or) compensatory nature related to the mode of work and working conditions, including allowances for tariff rates and salaries for night work, multi-shift work, for combining professions, expanding service areas, for working in difficult, harmful, especially harmful working conditions, for overtime work and work on weekends and holidays, carried out in accordance with the legislation of the Russian Federation;

4) the cost of utilities provided to employees free of charge in accordance with the legislation of the Russian Federation, food and products provided to employees of the taxpayer in accordance with the procedure for free housing established by the legislation of the Russian Federation (the amount of monetary compensation for the failure to provide free housing, utilities and other similar services);

5) expenses for the acquisition (manufacturing) of uniforms and uniforms (in part of the cost not compensated by employees) issued in accordance with the legislation of the Russian Federation to employees free of charge or sold to employees at reduced prices, which remain in the personal permanent use of employees. In the same order, expenses for the acquisition or manufacture of uniforms and footwear by the organization, which indicate that employees belong to this organization, are taken into account;

6) the amount of average earnings accrued to employees, kept for the duration of their performance of state and (or) public duties and in other cases provided for by the legislation of the Russian Federation on labor;

7) the cost of wages kept by employees for the period of vacation provided for by the legislation of the Russian Federation, the actual costs of paying for the travel of employees and dependents of these employees to the place of use of the vacation in the territory of the Russian Federation and back (including the cost of transportation baggage of employees of organizations located in the regions of the Far North and areas equivalent to them) in the manner prescribed by applicable law - for organizations financed from the relevant budgets and in the manner prescribed by the employer - for other organizations, additional payment to minors for reduced working hours, payment costs breaks in the work of mothers for feeding the child, as well as the cost of paying for the time associated with the passage of medical examinations;

8) monetary compensation for unused vacation in accordance with the labor legislation of the Russian Federation;

9) accruals to employees released in connection with the reorganization or liquidation of the taxpayer, reduction in the number or staff of the taxpayer's employees;

10) lump-sum remuneration for length of service (bonuses for work experience in the specialty) in accordance with the legislation of the Russian Federation;

11) allowances due to regional regulation of wages, including accruals according to regional coefficients and coefficients for work in difficult natural and climatic conditions;

12) allowances for continuous work experience in the regions of the Far North and equivalent areas, in regions of the European North and other regions with severe natural and climatic conditions;

12.1) the cost of travel at actual expenses and the cost of carrying luggage at the rate of not more than 5 tons per family at actual expenses, but not higher than the tariffs provided for transportation by rail to an employee of an organization located in the regions of the Far North and equivalent areas (in the absence of railway, these expenses are accepted in the amount of the minimum fare for air transport), and to members of his family in the event of moving to a new place of residence in another area in connection with the termination of an employment contract with an employee for any reason, including in the event of his death, for exclusion of dismissal for guilty actions;

13) the cost of remuneration, kept in accordance with the legislation of the Russian Federation for the period of study holidays provided to the employees of the taxpayer, as well as the cost of travel to and from the place of study;

14) labor costs for the time of forced absenteeism or the time of performing lower-paid work in cases provided for by the legislation of the Russian Federation;

15) has become invalid;

16) the amounts of payments (contributions) of employers under compulsory insurance contracts, the amounts of employers' contributions paid in accordance with the Federal Law "On additional insurance premiums for the funded part of labor pensions and state support for the formation of pension savings", as well as the amounts of payments (contributions) of employers for voluntary insurance contracts (contracts of non-state pension provision) concluded in favor of employees with insurance organizations (non-state pension funds) that have licenses issued in accordance with the legislation of the Russian Federation to conduct relevant types of activities in the Russian Federation.

17) amounts accrued in the amount of the tariff rate or salary (when performing work on a rotational basis), provided for by collective agreements, for calendar days of being on the way from the location of the organization (collection point) to the place of work and back, provided for by the shift work schedule, and also for days of delay of workers on the way due to meteorological conditions;

18) the amounts accrued for the work performed by individuals engaged to work for the taxpayer in accordance with special contracts for the provision of labor with state organizations;

19) in cases stipulated by the legislation of the Russian Federation, accruals at the main place of work to workers, managers or specialists of the taxpayer during their training with a break from work in the system of advanced training or retraining of personnel;

20) labor costs of donor workers for the days of examination, blood donation and rest provided after each day of blood donation;

21) the cost of remuneration of employees who are not on the staff of the taxpaying organization for the performance of work by them under concluded civil law contracts (including work contracts), with the exception of remuneration under civil law contracts concluded with individual entrepreneurs;

22) accruals provided for by the legislation of the Russian Federation to military personnel who are doing military service at state unitary enterprises and in construction organizations of federal executive bodies in which military service is provided for by the legislation of the Russian Federation, and to private and commanding staff of internal affairs bodies, the State Fire Service, provided for by federal laws, laws on the status of military personnel and on institutions and bodies executing criminal penalties in the form of deprivation of liberty;

23) additional payments to disabled people provided for by the legislation of the Russian Federation;

24) expenses in the form of deductions to the reserve for the upcoming payment of vacations to employees and (or) to the reserve for the payment of annual remuneration for length of service, carried out in accordance with Article 324.1 of this Code;

24.1) expenses for reimbursement of employees' expenses for the payment of interest on loans (credits) for the acquisition and (or) construction of residential premises. These expenses for taxation purposes are recognized in the amount not exceeding 3 percent of the amount of labor costs;

25) other types of expenses incurred in favor of the employee, provided for by the employment contract and (or) the collective agreement. 3

Hospitality spending continues to be one of the most controversial. That is their legal nature. What applies to them? How are they standardized? We will help reduce tax risks, tell you how to apply in 2019 and provide a sample posting.

Events

Representation expenses include the costs of official reception and servicing of representatives of other organizations or members of the board of directors, business owners.

When taxing, representation expenses can be taken into account. Documentation in 2019, however, continues to be a necessity. This category includes the costs of the following activities:

Negotiating with company partners or clients. This also includes counterparties - potential or currently cooperating with the company.
Meetings of the top management bodies of the organization - the board of directors, chairmen of the board, the supervisory board.

Generally accepted allowable costs

When making hospitality expenses, documentation is necessary only for official expenses, which include the following:

Holding official receptions, meetings and meetings (breakfasts, lunches and other similar expenses are taken into account), taking place both on the territory of the organization and outside it (restaurants, hotels). This category includes spending on alcoholic beverages.
Transportation costs for transporting guests to and from the venue of the event.
Services and costs for the buffet.
Payment for the work of translators who are not on the staff of the company.

Stop costs

When taxing, the following items of expenses cannot be taken into account:

Any entertainment (excursions, bowling, billiards, etc.) and recreational (pools, fitness rooms, saunas) activities for employees and customers, business partners.
Accommodation and travel expenses for persons arriving from other settlements.
Acquisition of presents, gifts, awards and diplomas given to participants.

Documentation 2019

A specific list of documents that need to be used to confirm hospitality expenses is not established in paragraph 2 of Article 264 of the Tax Code of the Russian Federation. However, each fact of economic life must be formalized with primary accounting documents. At the same time, they must contain all the mandatory details listed in part 2 of article 9 of the Law of December 6, 2011 No. 402-FZ (part 1 of article 9 of the Law of December 6, 2011 No. 402-FZ, article 313 of the Tax Code of the Russian Federation).

To confirm hospitality expenses, registration of primary accounting documents is necessary for taxation. This includes all invoices and deeds. In addition, it is necessary to draw up a report on the past event, which is approved by the head of the company. The report contains the following points:

Place and date of the event.
The program under which the event was held.
The full composition of the participants from the side of hosts and invitees.
The cost of holding an event.

When processing hospitality expenses, it is necessary to indicate in the document whether any transactions with partners were concluded in the process. Such a document will serve as confirmation of the fact that all costs were associated with the organization of a representative party.

Before you issue hospitality expenses, consisting of the above reports, it is advisable to take care of two additional documents:

An order to hold a representative event, signed by the head. It should clearly reflect the purpose of the event that caused such costs, as well as a list of company employees who will take part in it.
Cost estimate, confirmed by the personal signature of the head.

The presented samples demonstrate how to arrange hospitality expenses correctly. They can be used at any enterprise in the Russian Federation.

Representation expenses for a business trip

Representative expenses of a seconded employee include the following expenses:

for official reception and (or) service (including buffet service) of representatives of other organizations, as well as officials of the organization itself;
for transport support for delivery to the venue of the representative event and (or) meeting of the governing body and back;
to pay for the services of translators (not on the staff of the organization) during representative events.
Hospitality expenses do not include expenses for the organization of entertainment, recreation, prevention or treatment of diseases.

Such rules are established by paragraph 2 of Article 264 of the Tax Code of the Russian Federation.

Representation refers to expenses intended for the implementation of receptions of future business partners. Their list is limited by the labor code, money is issued only to a certain circle of persons enshrined in the order on accountable persons. The procedure for negotiating and spending representative money is determined in the order, a sample of which can be downloaded below.

The list of hospitality expenses is indicated by the Tax Code (clause 2 of article 264):

payment for business receptions, meetings in hotel and restaurant complexes or meetings with partners on the territory of the enterprise (for example, breakfasts and lunches);
expenses for strong, alcoholic drinks and buffet;
the cost of transporting guests to their destination;
payment for the work of a translator who is not part of the company's team.

These costs allow a company that applies the general taxation system to work to reduce the taxable base within the established limit - 4% of the company's salary costs. In order to be able to write off these expenses, it is necessary to prepare an order for hospitality expenses.

Expenses for renting a meeting room or a banquet hall, entertainment events (bowling, sauna, excursions), treatment of diseases, holding an employee’s anniversary celebration, decorating holidays, purchasing souvenirs, gifts and awards cannot reduce the base for calculating income tax.

The main document is an order for entertainment expenses, certifying the fact of their implementation and validity.

The order might look like this:

How to write an order for entertainment expenses in 2017

Each organization has the right to independently develop an order form.

This document contains information:

the name of the business entity;
title of the order (on negotiations, business lunch) and its serial number;
date of preparation of the document and location of the subject;
the purpose of the event (maintaining business communication, increasing sales);
designation of responsible specialists for the execution of this procedure, indicating specific tasks for each employee;
date and time of the event;
enumeration of scheduled working moments;
appointment of a responsible officer for the preparation of cost estimates and control over the implementation of the order and the subsequent formation of a report on the actions taken;
instructions to the accountant on the issuance of the required amount;
visa of the head of the subject and the specialists indicated in the document.

In the form of annexes to the order, the program of the event and the estimate of hospitality expenses can be used.

The program reflects all the planned stages, indicating the specific time and day of the official reception.

The estimate is signed for each cost item separately: transport, banquet service, flowers, souvenirs. Both documents must be approved by the director of the company.

When the amount of expenses is approved by the employer, the employee indicated in the order is given money against a report from the company's cash desk. In any form, an application is written to the director indicating the amount of money and the term for its issuance.

Drawing up the results of a business meeting

Upon completion of business negotiations, the employee responsible for their conduct and control of negotiations in the name of the head of the enterprise draws up a report on the tasks performed and the results achieved. For example, reflect the signing of a new supply agreement, an increase in the range of goods under an already concluded contract.

The report also records the presence of the balance of funds from the allocated amount or its absence, additional expenses.

Then an act is drawn up for writing off expenses (representation), displaying the exact amount of expenses incurred, which must be confirmed by the relevant invoices, contracts, checks. The form is signed by the director of the enterprise and the chief accountant.

The recognition of costs as representative for tax legislation does not depend on the outcome of negotiations (whether the goal of concluding a new contract has been achieved), the main thing is that all primary documentation complies with the norms of Article 9 No. 402-FZ. Otherwise, expenses will not be classified as representative and automatically fall into the base for income taxation.

Sample design

Sample order for hospitality expenses 2017 - download.

Documentation of hospitality expenses

In order to develop business, to expand mutually beneficial cooperation with its partners and clients and conclude new and new contracts, the company must hold various events. They often affect the majority of employees. Usually the manager entrusts the organization of meetings and banquets to the secretariat, but such happiness sometimes falls to the lot of the personnel department. This means that the personnel officer will need to draw up an action plan and cost estimates. If the leader approves the plan, then preparations for the meeting can begin. But the most important test will be waiting for the cadre worker not during the event, but after the fun has died down.

The fact is that the organizer bears the burden of collecting and preparing documents for a corporate event. The ability to take into account the costs will depend on how competently he copes with this. Recall that the costs of such events are commonly referred to as hospitality expenses.

There is one pressing issue related to entertainment expenses. To write them off, the costs must be economically justified and documented, otherwise state auditors may find fault with the first check.

However, at the moment, a specific list of documents that must be issued in order to include hospitality expenses in the total costs has not been legally approved. Therefore, organizations must independently determine the procedure for their documentation and control. The author will tell you how to document hospitality expenses and what are the features of their accounting.

Reasonable Principles

In accordance with paragraph 1 of Art. 252 of the Tax Code of the Russian Federation, expenses are economically justified and documented expenses that were incurred by the organization. Documented expenses are understood as expenses certified by documents that are drawn up in accordance with the legislation of the Russian Federation.

Therefore, the personnel worker should pay special attention to the execution of documents for hospitality expenses. We are talking about both internal administrative documents and external primary documents (invoices, waybills, acts, sales receipts, etc.).

Since there is no specific list of documents that must be drawn up to include hospitality expenses in the total costs, the company can independently determine the procedure for spending funds under this item, their documentation and control.

On the one hand, this is a real advantage.

After all, an organization can reflect such expenses in any form, and then write off. On the other hand, such "arbitrariness" gives room for cavils on the part of state controllers. So, what documents should be confirmed representative events?

Internal Documentation

Representation expenses are documented by the following internal organizational and administrative documents:

Order of the head of the organization on the implementation of expenses for the specified purposes.
The program of events, the composition of the delegation, indicating the positions of the invited party.
A list of representatives of the organization who take part in negotiations or meetings of the governing body.
A list of officials of the organization who have the right to receive funds under the report for holding representative events.
The procedure for issuing funds for representative events under the report.
Representation expenses. It should indicate the estimated amount of expenditure, broken down by specific items of expenditure. In addition, it is necessary to determine the person who will be responsible for receiving the delegation and for all expenses incurred.
Act (report) on the implementation of hospitality expenses. This document must be signed by the head of the organization. It should indicate the amount of actual entertainment expenses incurred, as well as links to documents confirming the expenses incurred.
A report on spent souvenirs or samples of finished products indicating what, to whom and in what quantity was handed over.
Menu approved by the director of the canteen, if the lunch was provided by the canteen of the enterprise. The calculation must be made without markup.
Advance report with the attachment of the originals of the relevant primary documents: KKM checks and sales receipts with a detailed breakdown of the type and quantity of inventory items, invoices from the restaurant, waybills, invoices, trade and purchasing acts, etc.

The personnel worker draws up the documents listed above for a specific event that he was instructed to organize. All of them, with the exception of the advance report, must contain the mandatory details referred to in Art. 9 of the Federal Law of November 21, 1996 N 129-FZ "On Accounting". Recall these details:

document's name;
Date of preparation;
the name of the organization that compiled the document;
the content of the business transaction;
business transaction meters in physical and monetary terms;
the name of the officials responsible for the business transaction, and the correctness of its execution;
personal signatures of the said persons.

In addition, these documents must include the following information:

the date of the business meeting or reception;
the location of the event;
program of events;
composition of participants from the organization and representatives of another organization;
purpose of the event;
the amount of expected expenses.

According to the tax authorities, if an organization has all the supporting documents listed above, then the costs of holding a meeting with a business partner organization can be recognized as representation expenses for tax accounting purposes, even if the act does not indicate the last names, first names and patronymics of the representatives present partner organization.

Therefore, the personnel officer must carefully prepare the documents in accordance with the above requirements so that the accountant, who will then deal with them, does not have problems with attributing the costs to representation expenses.

Reference. The purpose of official receptions should be brought into line with the wording given in paragraph 2 of Art. 264 of the Tax Code of the Russian Federation.

Document fragment. Paragraph 2 of Art. 264 of the Tax Code of the Russian Federation

Representation expenses include the expenses of the taxpayer for the official reception and (or) service of representatives of other organizations participating in negotiations in order to establish and (or) maintain mutual cooperation, as well as participants who arrived at meetings of the board of directors (management board) or other governing body of the taxpayer, irrespective of the location of these events. Representation expenses include expenses for holding an official reception (breakfast, lunch or other similar event) for these persons, as well as officials of the taxpaying organization participating in the negotiations, transport support for the delivery of these persons to the venue of the representative event and (or) meeting of the governing body and vice versa, buffet service during negotiations, payment for the services of translators who are not on the staff of the taxpayer to provide translation during representational events.

Hospitality expenses do not include expenses for the organization of entertainment, recreation, prevention or treatment of diseases.

For example, the purposes of the official reception may be the following:

Discussion of issues on correcting shortcomings in the work under existing contracts.
Discussing issues of financing work under existing contracts or increasing the amount of funding under these contracts.
Discussing the issue of concluding new contracts.
Discussion of technical aspects of existing and proposed contracts (technical terms, etc.).

It is recommended that these formulations as standard, as well as other technical aspects of the meeting, be reflected in all internal documents of the organization: in the order for organizing an official reception, in the program of the meeting, in the report on the negotiations.

It is necessary that the personnel officer involved in the organization of the event agree with the invited counterparties on the inclusion of the wording "negotiating" in the primary documents for entertainment expenses that the organizing company will receive from them.

In order for the accountant to subsequently include entertainment expenses in the cost of ordinary activities, the personnel officer must take care that the relationship between the official reception and the activities of the enterprise can be traced. This can be confirmed:

concluded contracts;
signed contracts, protocols of intent;
business correspondence.

The result of the meeting of the council, the general meeting of shareholders, the board must be the adoption of a decision or a protocol.

Often, accountants have a question, in what amount can representation expenses be taken into account if the actual costs differ from the planned ones?

The opinion of the tax authorities on this issue is as follows. If the actual costs are less than those provided by the program, then the actual costs can be taken into account in the costs. But if the actual expenses exceed the planned expenses, then the profit can be reduced only by the amount of the planned expenses.

In our opinion, this position is not correct.

In accordance with paragraph 42 of Art. 270 of the Tax Code of the Russian Federation, no more than 4 percent of the cost of wages for the tax (reporting) period in which the entertainment expenses were incurred can be spent on entertainment expenses. Therefore, the attribution of expenses to entertainment expenses depends on compliance with this limit. There are no other restrictions set by the Tax Code.

This means that the staff member must budget hospitality expenses in such a way that the planned expenses are higher than the organization would like to spend on business meetings. In this case, the company will definitely meet the amount of pre-agreed hospitality expenses.

Source documents

After the representative events, the personnel officer - the organizer must collect all the documents that confirm the costs incurred by the company for the official reception.

Costs associated with holding an official reception (breakfast, lunch or other similar event) of representatives (participants).

Acquisition of products by accountable persons during the official reception is accounted for according to the advance report.

These products are written off based on:

consignment notes of standard unified form N TORG-12;
waybills for internal movement, transfer of goods, containers of a standard unified form N TORG-13.

The write-off of other material assets, for example, souvenirs, is drawn up by the requirement-waybill of the standard unified form N M-11, approved by the Decree of the State Statistics Committee of the Russian Federation of October 30, 1997 N 71a.

Transportation for the participants of the reception.

One of the types of entertainment expenses is the transportation of guests during the negotiations (from the airport to the hotel, from the hotel to the place of negotiations and back) (clause 2, article 264 of the Tax Code of the Russian Federation).

Transportation of the delegation can be carried out by a specialized organization with which the host party must conclude an appropriate agreement. After the provision of transport services, the receiving party must receive:

bilateral Act on the provision of transport services, signed by the customer and the contractor;
account for payment of transport services;
invoice for the amount of transport services rendered;
waybills of vehicles providing transport services.

For transport services, the receiving party may use its own transport. In this case, the documents that confirm the fact of representation expenses will be:

waybills of vehicles involved in this event;
advance reports of drivers for the purchase of fuel and lubricants with the application of checks for gas stations.

Buffet service during negotiations and events of the cultural program.

Buffet service includes, as a rule, the offer to participants during short breaks in negotiations of tea, coffee, mineral water, juices, etc.

The costs for buffet service are issued:

accounts;
service contracts;
order-accounts of the standard unified form N OP-20, certificates for the supply of food by bank transfer of the standard unified form N OP-22, which are approved by the Decree of the State Statistics Committee of the Russian Federation of December 25, 1998 N 132.

Payment for the services of translators who are not on the staff of the organization.

These costs are confirmed by the contract and the act of acceptance and transfer of services.

Visiting cultural and entertainment events.

A visit to cultural and entertainment events can be confirmed by an invoice for the purchase of entrance tickets.

Example 1.

I approve
CEO
LLC "Oranta-M"
Petrov
——— P.P. Petrov
(signature)
11.01.2007
——————
(date of approval)

The act of writing off hospitality expenses for the official reception of representatives of CJSC "Fast Wind" 05.01.2007

Responsible Fedosov
for holding the event ————- F.F. Fedosov
(signature)
Ivanov
Director of Human Resources ————- I.I.

Ivanov
(signature)
Kozyrev
Chief Accountant ————- K.K. Kozyrev
(signature)

Can tips be taken into account?

Another interesting problem arises when holding an event outside the walls of the organization - accounting for tips. It's no secret that in addition to lunch or dinner in a restaurant, the host party, in accordance with generally accepted norms of etiquette, has to tip the waiter. Of course, in this case, the employee cannot provide any supporting documents, because the tip amount is not included in the bill and is not a payment for restaurant services.

If we are talking about an employee who represents the interests of the company during a business meeting, then the organization can compensate for his expenses for tips to the waiter on the basis of his application and the order of the head of the organization.

The question arises, how to account for such costs? Since the amount of compensation is included in the taxable income of the employee, it is advisable to increase the amount of tips by the amount of personal income tax that will be withheld from the employee. To do this, the amount of the tip must be divided by 87 percent. In this case, the employee will not lose anything.

If we are talking about paying tips from the corporate pocket, then, since their amount is not documented, these costs cannot be taken into account as part of hospitality expenses.

Example 2. An employee of CJSC "Roza" holds a meeting with business partners. The official reception was organized in a restaurant. After a business dinner, the employee gave the waiter a tip of 500 rubles.

On the basis of the employee’s application and the order of the head of Roza CJSC, the organization compensated him for the cost of tips, taking into account personal income tax, in the amount of:

500 rub. : 87% \u003d 500: 0.87 \u003d 574.71 rubles.

The Company classifies these expenses as other expenses.

* * *

So, there are a lot of pressing problems associated with entertainment expenses and their reflection in the company's documentation. But you can take the above order as a basis. If the auditors come with an audit, then this procedure can be explained by referring to the internal documents of the company - the charter, regulations on working in the company, etc. It is very important not to forget: it is better to “fix” any procedure for documenting hospitality expenses on paper. Then the organization and holding of corporate events will not be a headache for you or your accountant.

K.A. Lieberman

HR consultant

How to make an order for representation expenses

Representation expenses are expenses of an accountable person in the interests of the company, listed in paragraph 2 of article 264 of the Tax Code of the Russian Federation. For their production, it is necessary to issue an order, which will indicate the amount to be spent, as well as information on the direction of representation expenses. A sample order can be downloaded below.

Representation expenses include the expenses of the accountable person for holding various events, meetings of partners, business conversations, organizing the accommodation of the company's guests, their meals (for example, breakfasts, lunches with representatives of counterparties), expenses for transporting the company's guests to their place of residence, expenses for translation services for foreign guests.

Funds for carrying out such activities are issued as a report to the representative of the company on the basis of his statement justifying the expenses. After agreeing the application with the head and confirming the absence of debts for previously issued advance amounts, the accountable person can receive funds for hospitality expenses.

The company can set the norms for such expenses for the year ahead, limiting the amount of expenses to the norms for various types of hospitality expenses. An order may be issued in relation to a specific event that the company needs to organize, for example, an order to organize negotiations.

How to apply for representation expenses

If the order is drawn up for the whole enterprise for a year in order to establish the norms for hospitality expenses, then an order is given to establish these norms in a certain amount - then a list of expenses is given indicating the expenses in rubles per person per day.

In such an order, a person responsible for execution and control is appointed. Such a document is drawn up at the beginning of the year for which the estimate is made.

Download a sample order on representation expenses for 2018 - link.

If the order is issued in relation to a specific event - negotiations, meeting, business lunch, etc., then the corresponding heading is indicated, briefly describing the essence of the content.

Hold the specified event - information about the event to be organized, the date and place of its holding, as well as a list of persons who must prepare this event, are indicated, it is these persons who receive funds for hospitality costs associated with the specified event;
Information about the program of the event, which should be guided by the appointed persons;
To make hospitality expenses taking into account the estimate drawn up for this event;
Prepare documentation by responsible persons about the event and the funds spent - usually a period of no more than three days is allotted for the preparation of reports, an act of debiting money and other papers;
Write off hospitality expenses on the basis of documents submitted by responsible persons in accounting, this order is usually given to the chief accountant;
Appoint a person responsible for monitoring the execution of the order.

Such an administrative form is approved by the head, after which all the responsible persons named in it get acquainted with it against signature.

Download Sample

Sample order for negotiation - download.

“Public institutions: audits and audits of financial and economic activities”, 2010, N 9

Representative expenses. How to avoid errors in their reflection?

The financial and economic life of budgetary institutions is impossible without representation expenses. Discussing a possible agreement with potential partners during a business lunch, treating the hosted delegations with tea, coffee, sweets - all these techniques make it possible to increase the effectiveness of negotiations. How to correctly reflect hospitality expenses in accounting and tax accounting and avoid complaints from regulatory authorities? You will learn the answer to this question from our article.

Representation expenses: define the concept

To avoid errors when recording hospitality expenses, you should clearly understand what costs can be attributed to this expense item. The relevance of the definition of this concept is largely due to the fact that managers put much more meaning into it than the current legislation suggests.

Let's start with the fact that there is no definition of entertainment expenses in the budget legislation, so we will turn to the Tax Code for the relevant clarifications.

Subparagraph 22 of paragraph 1 of Art. 264 of the Tax Code of the Russian Federation includes hospitality expenses associated with the official reception and maintenance of representatives of other organizations participating in the negotiations in order to establish and maintain cooperation.

Note. Representative tax legislation includes expenses associated with the official reception and maintenance of representatives of other organizations participating in negotiations in order to establish and maintain cooperation.

However, a more complete and detailed definition is given by paragraph 2 of Art. 264 of the Tax Code of the Russian Federation: here, the expenses of the organization for the official reception and (or) servicing of representatives of other organizations participating in negotiations in order to establish and (or) maintain mutual cooperation, as well as participants who arrived at a meeting of the board of directors (board) or other the governing body of the taxpayer, regardless of the location of these events.

Also, paragraph 2 of Art. 264 of the Tax Code of the Russian Federation provides, as far as possible, a detailed list of expenses related to representation:

- expenses for holding an official reception (breakfast, lunch or other similar event) for representatives of other organizations, as well as officials of the taxpaying organization participating in the negotiations;

– transport support for the delivery of these persons to the venue of the representative event and (or) the meeting of the governing body and back;

— buffet service during negotiations;

— payment for the services of translators who are not on the staff of the taxpaying organization during representational events.

However, situations that arise in real life are often not regulated by the norms of the Tax Code of the Russian Federation.

What other expenses can be classified as hospitality? We will try to extract the answer to the question posed from the explanations of the main financial department:

— expenses for negotiations not only with existing clients, but also with potential ones (Letter of the Ministry of Finance of Russia dated November 16, 2009 N 03-03-06 / 1/759);

- the costs of negotiations not only with legal entities, but also with individuals, in the event that the latter are potential clients of the organization (Letter of the Ministry of Finance of Russia dated 05.27.2009 N 03-03-06 / 1/351);

- expenses for negotiations with individuals - clients of the organization, including in an informal setting (during breakfasts, lunches and other similar events) (Letter of the Ministry of Finance of Russia dated March 27, 2009 N 03-03-06 / 2/64);

- expenses for organizing an official meeting with clients in terms of expenses for the purchase of food products, including alcoholic beverages (Letter of the Ministry of Finance of Russia dated 03.25.2010 N 03-03-06 / 1/176). According to the Ministry of Finance, the organization's expenses for alcoholic products during an official reception may be included in hospitality expenses, which are taken into account in an amount not exceeding 4% of the taxpayer's expenses for wages for the reporting (tax) period, if they are carried out in the amounts provided for by business customs. turnover during negotiations (transactions). At the same time, Art. 5 of the Civil Code of the Russian Federation recognizes as a business practice a rule of conduct that has developed and is widely used in any area of business activity, not provided for by law, regardless of whether it is recorded in any document or not.

A similar position is presented in later clarifications of the Ministry of Finance of Russia (Letter dated March 26, 2010 N 03-03-06 / 2/59).

The Ministry of Finance also talks about what expenses cannot be taken into account as hospitality:

- expenses for paying for the accommodation of participants of a foreign delegation (cannot be included in hospitality expenses for profit tax purposes, since this type of expenses is not provided for in paragraph 2 of article 264 of the Tax Code of the Russian Federation) (Letter of the Ministry of Finance of Russia dated 16.04.2007 N 03-03 -06/1/235);

- the cost of hotel accommodation for officials - foreign business partners who came to an official meeting in order to establish and maintain long-term cooperation (Letter of the Federal Tax Service of Russia for Moscow dated April 12, 2007 N 20-12 / 034115);

- expenses for the organization of entertainment, recreation, prevention or treatment of diseases (Letter of the Ministry of Finance of Russia dated March 25, 2010 N 03-03-06 / 1/176);

- expenses for the purchase of prizes, the production of diplomas, the design of the hall (clause 2 of article 264 of the Tax Code of the Russian Federation is not provided for and, therefore, cannot be taken into account as part of entertainment expenses for income tax purposes) (Letter of the Ministry of Finance of Russia dated 03.25.2010 N 03- 03-06/1/176).

Representation expenses: we confirm with documents

All expenses, both in tax and accounting, must be documented without fail. What documents will be enough for confirmation? The opinion of specialists of the Ministry of Finance of Russia on the composition of documents confirming hospitality expenses is contained in Letter No. 03-03-06/4/26 dated March 22, 2010. According to the provisions of the said Letter, such documents are:

- an order (instruction) of the head of the organization on the implementation of expenses for the specified purposes;

- Estimate of hospitality expenses;

- primary documents, including in the case of using any goods purchased on the side for representative purposes, payment for services of third-party organizations;

- a report on hospitality expenses for entertainment events held, which reflects the purpose of entertainment events, the results of their conduct and other necessary data on the event, as well as the amount of expenses for entertainment purposes.

The cost estimate should include:

- time and place of the event;

- the composition of the participants of the events;

- the amount of expenses for the reception and servicing of delegations.

After the implementation of all the budgeted expenses, a report is drawn up, which indicates all the entertainment expenses incurred, as well as the purpose, results, date and place of the entertainment events, their program. In this case, all expenses listed in the report must be confirmed by the relevant primary documents.

If goods (services) for representative purposes are purchased by an accountable person, then confirming are the primary documents issued by the relevant organizations to the specified accountable person. For example, cash and sales receipts, acts of acceptance and transfer of goods (services rendered), etc., as well as an advance report on the use of accountable amounts.

When concluding an agreement with a third-party organization (for example, with a public catering enterprise), the contract with this organization, an act of performing work (rendering services), an order invoice, an invoice will serve as documentary evidence of the entertainment expenses. If translators who are not on the staff of the organization are involved, the costs are also confirmed by the relevant contracts, certificates of work performed and other documents.

It is worth noting that, in the opinion of the judiciary, it is not necessary to have an estimate to confirm such expenses (Resolution of the FAS SZO dated 14.01.2008 in case N A56-338 / 2007).

After the implementation of entertainment expenses, the taxpayer also draws up an act on their implementation, approved by the head of the organization, indicating the amounts of entertainment expenses actually incurred.

If supporting documents are not available or are not properly executed, the expenses incurred are not recognized as representation.

This, in particular, is stated in the Letter of the Ministry of Finance of Russia dated March 22, 2010 N 03-03-06 / 4/26. Support specialists of the Ministry of Finance and the judiciary.

So, in the Decree of the FAS UO dated 03.24.2005 N F09-971 / 05-AK, a taxpayer's cassation complaint against the decision of the arbitration court and the appellate instance on the illegality of the decision of the tax authority was considered. The courts concluded that the expenses incurred by the taxpayer for the reception and servicing of a foreign delegation cannot be considered representative, since the documents confirming the expenses incurred were not drawn up in accordance with the procedure established by the legislation of the Russian Federation.

Representation expenses: determine the amount

According to paragraph 2 of Art. 264 of the Tax Code of the Russian Federation, entertainment expenses during the reporting (tax) period are included in other expenses in the amount not exceeding 4% of the taxpayer's expenses for wages for this reporting (tax) period.

In accordance with Ch. 25 of the Tax Code of the Russian Federation, the list of expenses attributable to wages is defined in Art. 255 of the Tax Code of the Russian Federation. It should be noted that, unlike Instruction N 148n<1>, a list of labor costs in Art. 255 of the Tax Code of the Russian Federation is much wider.

———————————
<1>Instructions for budget accounting, approved. Order of the Ministry of Finance of Russia dated December 30, 2008 N 148n.

To calculate the maximum amount of representation expenses, it is necessary to take the accrued amount of labor costs (clause 4, article 272 of the Tax Code of the Russian Federation).

Based on paragraph 7 of Art. 274, Art. 315 of the Tax Code of the Russian Federation, when calculating the tax base for income tax, income and expenses are determined on an accrual basis from the beginning of the tax period. Consequently, during the tax period, the amount of labor costs for income tax purposes will increase.

This means that the maximum amount of representation expenses, which can be taken into account for tax purposes, will also change.

From all of the above, we can conclude: excess entertainment expenses that were not recognized by a budgetary institution when calculating income tax in one reporting period can be taken into account by it accordingly in subsequent reporting periods of the current calendar year (clause 42, article 270 of the Tax Code of the Russian Federation) .

For reference. In accordance with Art. 285 of the Tax Code of the Russian Federation, the tax period for income tax is a calendar year, and the reporting period is the first quarter, six months and nine months of the calendar year.

The reporting periods for taxpayers who calculate monthly advance payments based on the actual profit received are a month, two months, three months, etc. before the end of the calendar year.

Example 1. From March 12 to 16, 2010, a delegation from Germany, consisting of 12 people, was invited to a federal research institute to hold a conference with the aim of exchanging experience. Payment for the reception and service of a foreign delegation was made at the expense of funds received from income-generating activities that are not subject to VAT. The total amount of expenses amounted to 32,175 rubles, including:

- official reception in a restaurant (12 people of a foreign delegation + 3 people of the host party) - 7800 rubles;

— conclusion of an agreement with a higher educational institution for the provision of translation services (3 people) — 6,000 rubles;

- buffet service for a foreign delegation during the conference (12 people + 3 translators) - 1875 rubles;

– conclusion of an agreement for transport services for the delegation – 15,000 rubles;

– visit by a foreign delegation to the drama theater – 1500 rubles.

The wage fund for 3 months of 2010 (January - March) at the federal research institute will amount to 700,000 rubles.

Based on the provisions of Art. 264 of the Tax Code of the Russian Federation, the official reception of the delegation, payment for the services of translators, buffet and transport services will be attributed to the hospitality expenses of the federal research institute, that is, for tax purposes, the costs of receiving and servicing a foreign delegation will be taken into account in the amount of 30,675 rubles. (7800 + 6000 + 1875 + 15000). Expenses for visiting the theater will not be taken into account for the purpose of calculating income tax, since, according to paragraph 2 of Art. 264 of the Tax Code of the Russian Federation, they relate to the costs of organizing entertainment and recreation.

Taking into account the fact that the expenses incurred for the reception and servicing of a foreign delegation exceed the established standards for calculating income tax in the amount of 28,000 rubles. (700,000 rubles x 4%), for tax purposes, hospitality expenses will be accepted within the limits of the standard. Excessive expenses in the amount of 2675 rubles. (30,675 - 28,000), which were not recognized by the federal research institute when calculating income tax in one reporting period, can be taken into account in subsequent reporting periods of the current calendar year.

Representation expenses: reflected in accounting

In accordance with the Letter of the Ministry of Finance of Russia dated 05.02.2010 N 02-05-10 / 383 “On the submission of Methodological recommendations on the application of the classification of transactions in the public administration sector”, accounting for hospitality and protocol expenses in accordance with the legislation of the Russian Federation, expenses incurred when receiving and servicing foreign delegations (to pay for renting accommodation, meals, holding official receptions (breakfast, lunch or other similar event), buffet service, cultural program events, consumer services, translation services, souvenirs and memorable gifts, services of halls of officials and delegations at airports and at railway stations, rental of premises, transport support), is carried out under article 290 “Other expenses” of KOSGU.

Despite the specific nature of costs, the accounting of hospitality expenses is rather banal and boils down mainly to reflecting operations under contracts for the provision of services and settlements with accountable persons.

Expenses for the reception and servicing of foreign delegations and individuals can be made both for cash and for non-cash payments.

Payment of representation expenses in cash is carried out by issuing money to a sub-report and is reflected in the debit of the relevant accounts of the analytical accounting of account 208 00 000 “Settlements with accountable persons” and the credit of account 201 04 610 “Disposal from the cash desk”. After hospitality expenses are incurred, their acceptance for accounting is reflected in the debit of account 106 04 340 “Increase in the cost of manufacturing inventories of finished products (works, services)” and the credit of the corresponding accounts of analytical accounting account 208 00 000.

Example 2. Let's use the data of example 1. Suppose that the payment for the services of a transport organization and translators in the amount of 21,000 rubles. produced from the personal account of the federal research institute. The remaining expenses for the reception and servicing of a foreign delegation totaling 11,175 rubles. paid for in cash. The personal account is serviced in OFK.

In the accounting of the federal research institute, operations will be reflected as follows:

————————————-T————T————T———-¬
¦ Operation content ¦ Debit ¦ Credit ¦ Amount, ¦
¦ ¦ ¦ ¦ rub. ¦
¦Money issued under report ¦2 208 18 560¦2 201 04 610¦ 11 175 ¦
¦on entertainment expenses ¦ ¦ ¦ ¦
+————————————+————+————+———-+
¦Reception expenses written off and ¦ ¦ ¦ ¦
¦serving a foreign delegation: ¦ ¦ ¦ ¦
¦- in terms of expenses attributable to ¦2,106 04,340¦2,208 18,660¦ 9,675¦
¦ cost of goods, works, services; ¦ (Article 290 ¦ ¦ ¦
¦ ¦ KOSGU) ¦ ¦ ¦
¦- at the expense of funds remaining after ¦2 401 01 130¦2 208 18 660¦ 1 500 ¦
¦payment of income tax (expenses ¦(Article 290 ¦ ¦ ¦
¦ to visit the theater) ¦KOSGU) ¦ ¦ ¦
+————————————+————+————+———-+
¦Transport services and services rendered¦2 106 04 340¦2 302 18 730¦ 21 000 ¦
¦ translators ¦ ¦ ¦ ¦ Issuing Christmas gifts to the children of employees

CITY DUMA OF THE MUNICIPAL FORMATION OF THE CITY OF SALEKHARD

SOLUTION

ON THE APPROVAL OF THE REGULATIONS ON THE ORDER AND RATES OF SPENDING

dated 06/21/2013 N 42, dated 12/13/2013 N 80, dated 06/23/2014 N 50, dated 12/24/2015 N 101, dated 12/23/2016 N 84)

In order to streamline the spending of funds provided for the reception and servicing of official delegations and individuals, for events in the local authorities of the city of Salekhard, in accordance with Article 264 of the Tax Code of the Russian Federation, guided by the Budget Code of the Russian Federation, Federal Law of October 06, 2003 N 131-FZ "On the general principles of the organization of local self-government in the Russian Federation", the Charter of the municipal formation of the city of Salekhard, the City Duma decides:

1. Approve the Regulations on the procedure and norms for spending money on entertainment expenses and expenses for events of the local governments of the city of Salekhard in accordance with the annex to this decision.

3. Excluded. - Decision of the City Duma of the Moscow Region, the city of Salekhard of December 13, 2013 N 80.

Chairman of the City Duma
city of Salekhard
A.M. SPIRIN

REGULATIONS ON THE PROCEDURE AND RATES FOR SPENDING MONEY FOR REPRESENTATION EXPENSES AND EXPENSES FOR EVENTS OF LOCAL GOVERNMENT BODIES OF THE CITY OF SALEKHARD

(As amended by the decisions of the City Duma of the Moscow Region Salekhard dated 06/21/2013 N 42, dated 12/13/2013 N 80, dated 06/23/2014 N 50, dated 12/24/2015 N 101, dated 12/23/2016 N 84)

1. General Provisions

1.1. This Regulation establishes the procedure and norms for spending funds from the budget of the city of Salekhard for entertainment expenses and expenses for events of local governments of the city of Salekhard, regulates the reporting of the use of these funds.

1.2. The main objectives of the implementation of the expenses specified in paragraph 1.1 are the development of cooperation and interaction between the local authorities of the city of Salekhard with other bodies and organizations, members of the public, individuals, honoring individuals and legal entities.

1.3. For the purposes of this Regulation, the following concepts are used:

Representation expenses - expenses associated with holding official receptions of representatives of other organizations, servicing official delegations, organizing and holding negotiations, meetings, conferences in order to establish and (or) maintain mutually beneficial cooperation.

Expenses for events - expenses related to holding presentations, meetings, meetings, working meetings, public and parliamentary hearings, round tables, conferences, opening of exhibitions, receptions and other events held by local authorities of the city of Salekhard.

dated 13.12.2013 N 80)

Event expenses include expenses for the purchase of souvenirs (gifts, including souvenirs, printed and printed products, including greeting cards, invitations, booklets, etc.), flowers and flower arrangements, stationery and writing supplies, catering for participants , the purchase of food for the reception, transport, buffet and cultural services.

1.4. The authority to carry out entertainment expenses and expenses for activities of the local governments of the city of Salekhard may be transferred to subordinate municipal government institutions, on the basis of a legal act of the relevant local government.

(clause 1.4 was introduced by the decision of the City Duma of the Moscow Region Salekhard of December 13, 2013 N 80)

2. The procedure for allocating funds from the budget of the city of Salekhard for entertainment expenses and expenses for events

2.1. Funds for entertainment expenses and expenses for events are planned by the local governments of the city of Salekhard annually in the budget estimate in the amount of:

Administration of the city of Salekhard - no more than 2% of the annual wage fund;

City Duma of the city of Salekhard - no more than 4% of the annual wage fund;

The Chamber of Control and Accounts of the city of Salekhard - no more than 4% of the annual wage fund.

(clause 2.1 as amended by the decision of the City Duma of the Moscow Region, the city of Salekhard dated December 24, 2015 N 101)

2.2. The basis for the allocation of funds for entertainment expenses and expenses for holding an event of local governments is the order of the local government of the city of Salekhard indicating the name and purpose of the event, the timing of the event, the responsible person.

(As amended by the decision of the City Duma of the Moscow Region, the city of Salekhard of June 23, 2014 N 50)

2.3. The allocation of funds for hospitality expenses and expenses for events of local governments of the city of Salekhard is made in accordance with the norms of expenses established by these Regulations.

2.4. Hospitality and event expenses may be indexed to inflation forecasts as required by applicable law.

3. Composition and procedure for spending funds

3.1. Representation expenses related to the reception, sending and (or) servicing of delegations and individuals participating in events are carried out on the basis of section 2 of these Regulations.

3.1.1. The program of the event includes:

Names of organizations of participants;

Surname, name, patronymic and position of the person responsible for the event;

Number of officials and representatives from participating organizations;

The number of participants from the local self-government bodies of the municipality of the city of Salekhard;

Events planned for holding, indicating the date, time and place of their holding;

Other information related to the specifics of events.

3.1.2. The cost estimate for organizing the event, approved by the head of the local government or a person authorized by him (a municipal government institution authorized by him), contains the following information:

(As amended by the decisions of the City Duma of the Moscow Region, the city of Salekhard dated 12/13/2013 N 80, dated 06/23/2014 N 50)

Expenses for paying for the hotel and booking places;

Food expenses;

Expenses for holding an official reception (breakfast, lunch or other similar event);

Costs for buffet service;

Transport service costs;

The paragraph has been deleted since June 23, 2014. - Decision of the City Duma of the Moscow Region, the city of Salekhard dated 06/23/2014 N 50;

Other expenses related to the specifics of the events.

(As amended by the decision of the City Duma of the Moscow Region, the city of Salekhard of June 23, 2014 N 50)

3.1.3. For the reception of official delegations and individuals, maximum expenditure rates are established in accordance with Appendix No. 1 to this Regulation.

3.1.4. Spending funds for representation expenses is recognized as reasonable and documented if there are primary accounting documents drawn up in accordance with the legislation of the Russian Federation.

Expenses for expenses are confirmed by the following documents:

Legal act of the local self-government body on holding the event;

dated 13.12.2013 N 80)

Legal act of the local self-government body (order of the authorized municipal state institution) on hospitality expenses incurred and expenses associated with holding events;

(As amended by the decision of the City Duma of the Moscow Region, the city of Salekhard of December 13, 2013 N 80)

Estimate of hospitality expenses;

An act on the write-off of inventories of the established form, signed by an official, an authorized head of a local government body (director, deputy director of an authorized municipal state institution);

(As amended by the decision of the City Duma of the Moscow Region, the city of Salekhard of December 13, 2013 N 80)

List of participants of the event, including the composition of the delegation and the host;

Documents confirming hotel accommodation and travel to and from the venue of the event;

Report on the incurred hospitality expenses.

Within 3 days after the end of the events, the person responsible for their conduct draws up a report on hospitality expenses incurred in accordance with the requirements for the preparation of financial statements in the Russian Federation. In the report on the representation expenses incurred, the following must be indicated:

Date and place of the event;

List of hospitality expenses incurred, indicating the number of persons who participated in them;

The amount of expenses incurred, including for each event;

Other mandatory details in accordance with the Federal Law "On Accounting".

3.2. Expenses for activities of local government bodies of the city of Salekhard are carried out on the basis of the action plan of the local government body, a written invitation, legal act, instructions from the head of the local government body or a person authorized by him.

(As amended by the decision of the City Duma of the Moscow Region, the city of Salekhard of December 13, 2013 N 80)

Registration of expenses for events of local governments of the city of Salekhard, the timing and procedure for reporting is carried out in the manner established by clause 3.1 of this Regulation for hospitality expenses.

Expenditure costs can also be additionally supported by the following documents:

Sales receipt, receipt or other document confirming the receipt of funds for the relevant goods;

Advance report of the financially responsible person.

To carry out relevant activities, funds are allocated within the established norms in accordance with Appendix No. 2 to this Regulation.

3.3. The expenses specified in paragraphs 3.1 and 3.2 can be made both for non-cash and for cash.

Representation expenses and expenses for events of local governments of the city of Salekhard can be carried out as independent expenses, as well as as part of the general expenses for holding events.

3.4. Write-off of expenses for entertainment expenses or expenses for events is carried out if:

Invoices or other settlement and payment documents;

Acts of work performed, services rendered;

Other documents evidencing the amount of expenses incurred.

Write-off of expenses for entertainment expenses and expenses for events is made in amounts not exceeding the norms of expenses specified in Annexes No. 1, No. 2 to this Regulation.

Control over the eligibility of writing off funds for entertainment expenses and expenses for events is carried out by a commission, the composition of which is approved by each local government independently.

In the cases provided for in paragraph 1.4 of this Regulation, the composition of the commission is approved by order of the authorized municipal government institution.

(the paragraph was introduced by the decision of the City Duma of the Moscow Region Salekhard of December 13, 2013 N 80)

Appendix N 1. MARGINAL RATES FOR REPRESENTATION EXPENSES

Appendix No. 1

money for entertainment expenses
and expenses for the activities of the authorities
local government of the city of Salekhard

LIMITS FOR REPRESENTATION EXPENSES


	Name of the event
	Hotel payment (per day per person): - honorary citizens of the city of Salekhard, who have made a great contribution to its development and who live outside it; - persons invited to city and inter-municipal events, representatives of official delegations headed by the Chairman of the City Duma of the city of Salekhard, the Head of the Administration of the city of Salekhard, traveling to events of the international (inter-regional, inter-municipal) level	according to actual expenses, but not more than 5000 rubles
	Payment for meals (per day per participant)	according to actual expenses, but not more than 1500 rubles
	Buffet service (buffet) during negotiations, meetings, conferences and other mass events (per participant)	according to actual expenses, but not more than 500 rubles
	Payment for travel to the venue of the event and back by public air, rail, road (except for passenger taxis), water transport	according to the actual costs of the fare, but not higher than the cost of travel: - in the economy class cabin when traveling by air; - in a compartment car of a fast branded train when traveling by rail; - in the cabin of the 2nd class of passenger displacement ships of all lines of communication when traveling by water transport (except for cruise ships)
	Expenses for paying for the services of halls of official delegations at the airport of the city
	Expenses for servicing delegations by road	according to actual expenses (according to the contract)
	Payment for photo and video services at official events	according to actual expenses (according to the contract)
	Premises for rent	according to actual expenses

Annex N 2

Appendix No. 2
to the Regulations on the procedure and norms of spending
money for entertainment expenses
and expenses for the activities of the authorities
local government of the city of Salekhard

MARGINAL RATES OF EXPENDITURE FOR EVENTS OF LOCAL GOVERNMENT BODIES OF THE CITY OF SALEKHARD

(As amended by the decision of the City Duma of the Moscow Region, the city of Salekhard of December 23, 2016 N 84)


	Expenses associated with the participation of representatives of local governments of the city of Salekhard in the city and beyond in ceremonial events on the occasion of festive, anniversaries, historical and other dates, including those held in the form of shares (festivals, forums) (memorable gift or souvenir in per person)	No more than 4000 rubles
	Expenses associated with the participation of representatives of local authorities of the city of Salekhard in celebrations, on the occasion of festive, anniversary, historical and other dates, including those held in the form of shares (festivals, forums) organized by other entities in the city of Salekhard:
	a) a gift to a legal entity on an anniversary date (multiple of 25 years);	No more than 10,000 rubles
	b) a gift to a legal entity and an individual for other dates	No more than 4000 rubles
	Expenses associated with the participation of representatives of local authorities of the city of Salekhard in solemn festive events organized by other entities outside the territory of the city of Salekhard (souvenirs, memorable gifts)	No more than 10,000 rubles
	Expenses associated with the participation of representatives of local authorities of the city of Salekhard in meetings aimed at developing relations between the municipality of the city of Salekhard and other municipalities, constituent entities of the Russian Federation and foreign countries (memorable gift, printing and souvenir products, including with the symbols of the municipality)	No more than 10,000 rubles
	Costs associated with holding:
	a) meetings, conferences, working meetings, meetings and other official events of local governments (per participant);	Not more than 1000 rubles
	b) public or parliamentary hearings (per participant)	No more than 400 rubles
	Expenses associated with holding receptions organized by the local authorities of the city of Salekhard:
	a) buffet service per participant;	Not more than 1000 rubles
	b) gala lunch (dinner) per participant;	Not more than 2500 rubles
	c) a memorable gift or souvenir per participant	No more than 4000 rubles
	Expenses for the purchase of coffee, tea, drinks (drinking water, milk, cream), sugar, confectionery (biscuits, sweets), fruits:
	a) for the reception rooms of the Chairman of the City Duma of the city of Salekhard, the Head of the Administration of the city of Salekhard, the Chairman of the Chamber of Control and Accounts of the city of Salekhard;	No more than 10,000 rubles per month
	b) for reception deputies of the Head of the City Administration	No more than 2000 rubles per month
	Expenses associated with the participation of representatives of local authorities of the city of Salekhard in honoring honorary citizens of the city, honored anniversaries (a memorable gift or souvenir per person)	No more than 4000 rubles
	Costs related to:
	a) the ceremony of presenting state awards of the Russian Federation, awards of the YNAO, awards of local authorities of the city of Salekhard, as well as incentives in other forms (a memorable gift or souvenir per person);	No more than 4000 rubles
	b) congratulations to the heads of state authorities, federal structures, local governments, institutions and enterprises operating in the city of Salekhard, heads of municipalities, in connection with anniversaries, holidays (including professional holidays), historical and other memorable dates (commemorative gift or souvenir per person)	No more than 4000 rubles
	Expenses associated with the participation of representatives of local authorities of the city of Salekhard (purchase of flowers and flower arrangements):
	a) in mourning events dedicated to memorable all-Russian dates;	Not more than 20,000 rubles
	b) in other mourning events;	No more than 10,000 rubles
	c) in solemn events on the occasion of festive (including professional), anniversary, historical and other dates;	Not more than 3000 rubles
	d) in honoring honorary citizens of the city, honored anniversaries;	Not more than 3000 rubles
	e) in ceremonial receptions per person;	Not more than 3000 rubles
	f) in the ceremony of presenting state awards of the Russian Federation, awards of the YNAO, awards of local authorities of the city of Salekhard, as well as incentives in other forms per person;	Not more than 3000 rubles
	g) in congratulations to the heads of state authorities, federal structures, local governments, institutions and enterprises operating in the city of Salekhard, heads of municipalities, in connection with anniversary, holidays (including professional holidays), historical and other memorable dates (per person)	Not more than 3000 rubles
	Stationery, printed, printing products, including those with appropriate symbols, and other consumables (per person)	Not more than 1000 rubles

"Tax news of the Moscow region", N 4, 2002

Norms and standards for entertainment expenses, advertising expenses and for training and retraining of personnel under agreements with educational institutions regulating the amount of attribution of these expenses to the cost of products (works, services) for tax purposes, and the Procedure for their application, approved by Order of the Ministry of Finance of Russia dated 15 March 2000 N 26n, it was established that hospitality expenses related to the activities of the organization are the expenses of the organization for the reception and maintenance of representatives of other organizations (including foreign ones) participating in negotiations with the aim of establishing and (or) maintaining mutually beneficial cooperation, and also participants who arrived at meetings of the council (board) or other similar body of the organization.

Representation expenses include expenses related to the official reception (breakfast, lunch or other similar event) of representatives (participants), their transportation, attendance at cultural and entertainment events, buffet service during negotiations and events of the cultural program, payment for the services of translators, not on the staff of the organization.

Inclusion of hospitality expenses in the cost of products (works, services) is allowed only if primary accounting documents are available, which must indicate the date and place of the business meeting (reception), invited persons, participants from the organization, the specific purpose of expenses and the amount of expenses. The organization is recommended to determine the specific procedure for spending funds for representation, their documentation and control, including the establishment of a circle of persons related to this activity of the organization.

To include hospitality expenses in the cost price, certain conditions must be met.

First of all, the organization issues an order from the head on the procedure for issuing accountable funds for entertainment expenses, indicating the persons entitled to receive such funds. The procedure for exercising control over spending and writing off funds for hospitality expenses is also established by an order for the organization. It is mandatory to appoint a person responsible for holding an official event.

Paragraph 1 of the Letter of the Ministry of Finance of Russia dated October 6, 1992 N 94 recommends that organizations determine the specific procedure for spending funds on representation.

An order to send an invitation to a business meeting must contain an indication of the purpose of the visit. Representatives of a third-party organization visit the organization that carries out the reception for negotiations, which should take place within the framework of an already concluded agreement (contract), or to establish mutual cooperation on the main activities of the organization.

The program of the business meeting is submitted to the accounting service of the organization, indicating the date, place, timing, number of invited persons and participants from the organization. The estimate of representation expenses for the reporting year must be approved by the minutes of the meeting of the founders. The cost estimate for each reception is compiled on the basis of the Norms for hospitality expenses of foreign delegations and individuals, approved by the Letter of the Ministry of Finance of Russia dated May 27, 1996 N 49.

After the business meeting, a report on the costs of holding a business meeting and an act for writing off hospitality expenses / advance report of the person responsible for holding the official event with supporting documents must be submitted to the accounting department.

Hospitality expenses must be confirmed by:

documents on payment of transport costs;
catering accounts;
other primary accounting documents.

Arbitrarily drawn up acts cannot serve as supporting documents confirming the expenditure of funds (Letter of the State Tax Service of Russia dated August 28, 1992 N IL-6-01 / 284). Documented representation expenses are included in the cost of production in full.

From representative expenses of commercial organizations, it is necessary to distinguish expenses similar in essence, carried out by executive authorities.

For example, Decree of the Government of the Russian Federation of March 21, 1994 N 222 "On the procedure for spending funds for the reception and servicing of foreign delegations and individuals by federal executive authorities, executive authorities of the constituent entities of the Russian Federation, as well as budget-financed organizations and institutions" approved the relevant norms for specific items of expenditure:

hotel payment;
food payment;
payment for breakfast, lunch, dinner or other similar event related to the official reception of delegations;
buffet service;
cultural service;
household service;
salary of a translator;
purchase of souvenirs (commemorative gifts) with Russian symbols;
payment for hotel rooms;
travel expenses for foreign delegations;
costs associated with hotel reservations;
the cost of paying for the services of halls for official delegations at airports and train stations.

Moreover, for a number of senior government officials, special features of hospitality expenses have been established. So, for example, Decree of the President of the Russian Federation of September 14, 1995 N 941 "On measures to ensure material guarantees for the independence of judges of the Constitutional Court of the Russian Federation" established that "a judge of the Constitutional Court of the Russian Federation is monthly allocated funds for entertainment expenses in the amount of five minimum amounts wages. A report on the expenditure of these funds is not submitted. "

We emphasize in particular: all these features of hospitality expenses have nothing to do with commercial organizations. Commercial organizations may not include personal services or the purchase of souvenirs in hospitality expenses (souvenirs with branded symbols may be subject to another regulated cost item "Advertising Expenses" with the obligatory charge of advertising tax).

The norms of the Regulations on the Composition of Costs and the Tax Code of the Russian Federation that regulate the composition of hospitality expenses differ significantly, since, according to paragraph 2 of Article 264 of the Tax Code of the Russian Federation, the list of expenses included in hospitality expenses has been reduced.

Representation expenses in accordance with the Tax Code of the Russian Federation are only the following expenses:

expenses for holding an official reception (breakfast, lunch or other similar event). At the same time, in relation to hospitality expenses, the Ministry of Finance of Russia in its Letter of February 8, 1999 N 04-02-05 / 1 explained that we are talking about "carrying out one-time events, and not about constant restaurant service for representatives of other organizations." Although neither the Regulations on the Composition of Costs nor the Tax Code of the Russian Federation specify what is included in the concept of "holding an official reception" (whether only food or also dishes, serving items and interior design), it follows from judicial practice that "the costs of holding an official reception" should be understood in a broad sense. So, for example, in the Decree of the FAS MO of March 16, 1999 in case N KA-A41 / 561-99, the eligibility of including in the cost of production (works, services) "the costs of acquiring a coffee service, carpets and a gas stove" is confirmed, since these items necessary for the implementation of promotional and representational activities. In the Letter of the Ministry of Finance of Russia dated December 17, 1996 N 16-00-17-163, it was explained that the depreciation of refrigerators, televisions, tape recorders and other similar equipment can be legitimately attributed to the cost of products (works, services) as expenses necessary for the implementation of advertising and representative events;
transport support for the delivery of persons participating in the negotiations to the venue of the representative event (unfortunately, the Tax Code of the Russian Federation does not specify where the participants are delivered from: it concerns the borders of one settlement or one can talk about long-distance and international flights). The Letter of the Ministry of Finance of Russia dated December 27, 1996 N 04-04-06 stated that the payment of expenses associated with the arrival (departure) of participants in entertainment events, their accommodation in hotels does not apply to hospitality expenses and is not subject to inclusion in the cost price ;
buffet service during negotiations;
payment for the services of translators who are not on the staff of the organization to provide translation during representative events.

Attention should be paid to the exclusion from the list of entertainment expenses related to the holding of cultural program events. Clause 2 of Article 264 of the Tax Code of the Russian Federation explicitly states that hospitality expenses do not include expenses for organizing entertainment, recreation, prevention or treatment of diseases.

Paragraph 2 of Article 264 of the Tax Code of the Russian Federation establishes that hospitality expenses are such regardless of the place where these events are held. This also followed from the Regulations on the Composition of Costs and was recognized by the courts. So, for example, in the Decree of the FAS MO of June 28, 1999 in case No. KA-A40 / 1883-99, it is recognized that hospitality expenses may also be expenses for receiving representatives of other organizations not at the actual location of the host party.

Entertainment expenses for taxation purposes until January 1, 2002 are regulated by Order of the Ministry of Finance of Russia dated March 15, 2000 N 26n, which establishes that the actual expenses attributed to the cost of products (works, services) for taxation purposes should not exceed the maximum amounts, calculated according to the following standards:

At the same time, organizations engaged in trading activities, when calculating the maximum size of representation expenses, use the indicator of gross profit.

From January 1, 2002, in accordance with paragraph 2 of Article 264 of the Tax Code of the Russian Federation, for tax purposes, hospitality expenses are accepted within 4% of labor costs for the reporting (tax) period.

G.I. Mironova

IMNS of Russia N 16