Investment tax credits are ...

At the moment, there are almost no organizations that would not use borrowed funds in their activities for production modernization, replenishment of working capital or raw materials. Loans are usually issued in banking institutions of all kinds. However, there is a really unique type of lending, with which it is possible to solve the problem of lack of funds. Here it is a question of such a phenomenon as investment tax credits. They are the responsibility of the state. It is necessary to understand what it is.

general characteristics

In accordance with the Tax Code adopted in Russia, an investment tax credit is not a loan, but a kind of deferred payment. They do not foresee a real receipt of funds by the organization, but only formalize the possibility of paying taxes to the state in a much smaller amount. The terms of lending, for the most part, repeat the conditions under which borrowed funds are issued by various lending institutions, namely banks and fund organizations. The agreement herewith is concluded with the state structure.

Like ordinary bank loans, investment tax credits imply that there is a certain period of the loan, with interest accrued, often very small, and the maturity of the loan. In addition, the contract defines the property liability for non-payment, and provides for the guarantee that both parties will fulfill their obligations.

Features

Quite often, tax debts are noted not only in large companies, but also in individual enterprises, which also need support in resolving problems with budget payments. However, investment tax credits are what are available only to legal entities. This feature consists in the principles of the property lender's liability to the creditor. The organization can withdraw all mortgaged property even without a proper court decision. And to deprive an ordinary citizen of his housing is almost impossible in a similar situation. The Civil Code of the Russian Federation clearly specifies points for the protection of private property, especially if it is necessary for permanent residence.

Loan objectives

An investment tax credit can be provided to an organization, for example, to pay income taxes. If the timing of its payment is violated by the state, various sanctions, fines, and fines are often imposed. That is why, in order to avoid the need to pay significant amounts of money to the treasury, it is required not to violate the terms for the payment of taxes. Investment tax credits can be used not for such an extensive list of purposes, which the state has taken care of. Together with the tax on profits, lending to regional and local budget payments is made.

Act

Investment tax credits, like other types of lending, have their own specific mechanism of action, through which the organization, as mentioned above, can reduce payments for the past period. A contractual relationship between the parties will be completed when the amount of the unpaid tax will go up one level with the amount of the loan. Such an agreement from the side looks like the state's permission for the existence of debts. The organization has no right to reduce payments indefinitely. The state established a limit equal to 50% of the total tax amount paid under ordinary conditions. Investment tax credits provide a time frame, traditional for all other loans. And here it is a question of the majority of bank products. An investment tax credit is granted for a period of 1-5 years. Usually this time is enough to solve the financial problems of the organization.

Features of work

An investment tax credit can be provided to any organization, and there are cases when such a company receives losses in a certain period or must pay a smaller amount of taxes than expected. In this case, there is a so-called surplus of credit resources. From this situation it is very easy to get out - all the saved funds need to be transferred to the next period.

While an investment tax credit can be granted for a period of 1-5 years, all this time the tax authorities have been scrupulously controlling the organization that issued it. It should not only prepare a very solid justification for the need for such a reduction in the amount of tax payments, but also provide detailed reports on the financial activities carried out during the whole credit period. In addition, the organization will constantly check the tax authorities, much more often than usual. This is quite natural, since the state is aimed at strict control over the expenditure of funds from the budget.

The subtleties of the process

An investment tax credit is a good opportunity for a taxpayer to reduce his tax payments within certain limits within a certain period, so that in the future, not only the loan itself, but also the interest accrued on it, be phased out. This type of loan is provided for income tax, as well as for some local and regional.

An investment tax credit can be provided under the corporate income tax. At the same time, the organization that received it has the right to reduce its tax payments during the contract period. A reduction will be made for the relevant tax for each payment. This is done until the funds paid by the company due to such reductions are equal to the amount of the loan that was provided under the relevant contract. The document itself provides for all the points concerning the specific procedure for reducing tax payments.

Multiple agreements

In the event that the company has several concluded agreements for the provision of a loan, the validity of which at the time of the next payment has not expired, the accumulated amount of the loan will be determined separately for each of them. Its increase in this case is carried out in order, starting with the contract, which was concluded first, after reaching the amount for this document of the established limits, the organization will have the opportunity to increase the accumulated amount under the following contract.

While an investment tax credit can be granted under a profit tax, its amount can not exceed half of the total amount of tax. If the amount of savings on the loan exceeded this 50%, then the difference between the amount received and the maximum allowable is transferred to the next reporting period. In the event that for an individual reporting period the organization had losses based on the results of its activities, then the surplus of the accumulated amount is transferred to the next period, but it is recognized as the accrued loan amount in the first reporting period.

Who is given?

In accordance with Article 67 of the Tax Code, an investment tax credit may be granted if the company meets certain requirements:

- The organization is engaged in research, development, or technical re-equipment of its production, including those aimed at creating jobs for people with disabilities, as well as protecting the environment from pollution with industrial waste. In such a situation, investment tax credits are provided for an amount that is 30% of the value of the purchased equipment intended for all these purposes.

- For organizations that conduct innovative or innovative activities, including creating new or improving the technologies used, creating new types of materials or raw materials. In this case, investment tax credits can be provided for amounts that will be negotiated by the organization and the authorized body.

- For organizations that carry out orders for socio-economic development of particular importance, as well as providing especially important services to the civilian population. In this case, the loan amount will also be determined by the results of the agreement of the parties.

Contract clause

The agreement or loan agreement necessarily contains the following items:

- the order, according to which the tax payments will decrease;

- amount of credit;

- validity;

- indication of the tax on which the described loan will be granted;

- the amount of interest to be accrued on the loan amount;

- the repayment procedure;

- responsibility of the parties.

Related documents

Investment tax credits will not be provided if you do not issue a pledge for property or a suretyship agreement. In this regard, it is required to attach to the contract documents on the property, which will serve as the subject of pledge. In addition, the contract requires the provision of provisions to prevent during its operation the transfer into possession or sale of equipment or other property, if its acquisition has become one of the points for providing the organization of the described loan.

conclusions

In relation to local or regional tax authorities, own conditions for granting an investment tax credit are established. At the same time, the law allows you to establish your own terms and conditions for granting a loan and the reasons for this, as well as change the deadlines for the loan.