Planning costs for the restoration of fixed assets

Classification of repair costs

Making requests for repairs

Reflection of expenses for repairs, modernization, additional equipment in the accounting of budgetary organizations

Each institution has fixed assets on its balance sheet as part of non-financial assets. During operation, fixed assets wear out, repairs are carried out to maintain them in working order.

Works on the restoration of fixed assets can be qualified by the nature of the types of work for:

• Maintenance;
• overhaul;
• modernization;
• reconstruction;
• retrofitting.

Note!

The reflection of operations in accounting and tax accounting depends on the type of work: the costs of current, medium and major repairs of fixed assets are taken into account as part of the current expenses of the institution, and the costs of modernization, reconstruction are attributed to an increase in the initial cost of fixed assets.

Depending on whether repairs or upgrades were carried out, income tax is calculated (provided that the work was carried out at the expense of funds received from entrepreneurial activity) and intended use budget funds, since the costs of modernization and repair are reflected in different KOSGU codes. If the fixed asset is acquired through entrepreneurial activity, the costs of repairing these facilities reduce the income tax base as part of other expenses (paragraph 1 of article 260 tax code RF (hereinafter referred to as the Tax Code of the Russian Federation)).

The institution has the right to net profit received from entrepreneurial activity, at its discretion after paying income tax to the budget. Therefore, first you need to pay income tax, and the rest of the profit can be used to repair fixed assets.

For your information

During repair, reconstruction and modernization, work similar in nature can be performed, it is not always easy to distribute them by type, and inspection bodies find many errors made by accountants when recording these operations.

It is necessary to determine the types of work in order to plan the budget of expenses, correctly attribute the costs to articles (sub-articles of KOSGU), use budgetary and extrabudgetary funds for their intended purpose.

Repair- this is a set of works to eliminate malfunctions, restore the operability of non-financial assets, maintain technical, economic and operational indicators (useful life, capacity, quality of use) at the initially envisaged level, i.e. this is the restoration of the functions of fixed assets for their further use . Repair involves preventive measures, elimination of damage and malfunctions, replacement of worn structures and parts.

Note!

Although during the repair process, individual parts of the fixed asset can be replaced with more modern and durable ones, such an event is not associated with a change in important technical and economic indicators of the fixed asset.

According to the volume and nature of the work performed, repairs can be current and capital. They differ in complexity, volume, deadline and frequency of implementation.

Maintenance is carried out several times a year, capital - no more than once a year or less often. During the current repair, individual parts are replaced, during the overhaul, the object is dismantled and the faulty components are replaced. During the current repair, minor malfunctions detected during the daily use of the fixed asset are eliminated, while the object practically does not go out of service. Current repairs are works on the systematic and timely protection of OS objects from premature wear by carrying out preventive measures.

During a major overhaul restore the lost original characteristics, eliminate malfunctions by replacing worn parts, assemblies.

For your information

In the budget classification and the procedure for maintaining budget accounting between the current and overhaul there are no differences, so there is no need to distinguish between such costs.

Modernization- is a set of works to improve the object of fixed assets, to improve the technical level and economic characteristics of the object by replacing its structural elements and systems with more advanced ones (for example, installing more RAM on a computer).

For your information

Modernization involves the replacement of nodes, while the replaced part must be serviceable before replacement. If a defective unit is replaced during work, then such work is not an upgrade, but a repair.

Reconstruction- this is a change in the parameters of capital construction objects, their parts (height, number of floors, area, indicators of production capacity, volume) and the quality of engineering and technical support.

The concept of reconstruction is applicable only to capital construction objects (buildings, structures). It involves changing the parameters of the object. Improvement in the quality of engineering and technical support can also be attributed to the reconstruction.

Additional equipment- addition of fixed assets with new parts, details and other mechanisms that were not previously available, which will form a single whole with this equipment, give it new additional functions or change performance indicators. It will not be possible to use them separately.

Completion- this is the construction of new parts to the fixed asset (usually to real estate). At the same time, new parts must be inseparable from the main tool itself without causing damage.

Repair planning

To determine which category to include expenses (repair, reconstruction, modernization or additional equipment), first of all, you need to find out what type of work needs to be done to restore fixed assets:

• if work is being carried out to restore operability, maintain technical characteristics or external changes that do not affect the change in the original functions of the fixed asset, then this is a repair;
• if work is carried out to improve the main characteristics and add new functions to a serviceable object, then this type of work should be attributed to reconstruction, modernization or retrofitting.

In this case, you need to define the purpose of the operation:

If it is necessary to replace units or parts, this is modernization (reconstruction);

If nodes and parts are added to the object - retrofitting (completion).

As a rule, in organizations, by order, they appoint those responsible for the operation of property (for example, the head of the laboratory is responsible for laboratory equipment, the metrologist is responsible for measuring instruments, etc.). Their responsibilities include, among other things, drafting requests for repairs or upgrades for the coming financial year.

The organization develops the application form independently.

Approves the application head of the institution.

Based on the applications, the economic department plans the amounts by type of repair in the estimate of income and expenses. Each planned type of expense must be justified. This will make it possible to draw up a work plan, conclude contracts with suppliers for repair work, systematize the activities of the institution for the maintenance and service of property, guarantee the continuity of the production process, and ensure the efficiency of the institution's main activities.

Fragments of applications by structural unit (laboratory for control of physical and chemical factors) are presented in the table.

Fragments of applications for the repair of fixed assets

Object name	Application number	Cause	Planned events	Planned result
		The image on the monitor is fuzzy, the adjustments are not eliminated	Diagnostics and repair, if necessary - by means of a third-party organization
automated workplace(computer included)		Installing a hard drive in the system unit	Repair of the system unit, replacement of the hard drive	Restoring the operation of the system unit
Automated workstation (computer included)		System resources - the amount of RAM - are not enough to use the "Bank-Client" program	Retrofitting additional RAM	Possibility to use the "Bank-client" program
Autoclave AG-1000 horizontal		Systemic automated system autoclave controls	Autoclave modernization	Ability to use the sterilization mode, indexing (time, pressure, temperature)
Copy machine		Machine beeps but won't pick up paper from tray	Replacing a worn roller with a new one	Recovery
Car VAZ-2107 (Lada)		Knocking when shifting into next gears	Do-it-yourself repair	Recovery
Laboratory building		The roof is leaking	Partial roof replacement	Recovery of performance

We conclude contracts for the performance of work on the restoration of fixed assets

When concluding contracts with suppliers and contractors for repair work, it is necessary to determine what type of work on the restoration of fixed assets is provided for by this contract in order to correctly attribute the costs to KOSGU items.

If actions are planned, activities that will increase the cost of fixed assets (reconstruction, modernization, etc.), code 310 KOSGU “Increase in the cost of fixed assets” should be used, but if it refers to the repair of a faulty fixed asset, code 225 KOSGU “Works, property maintenance services.

Within the framework of one contract, various types of work may be provided, therefore, in the section “Subject of the contract”, the costs of the corresponding types of work should be indicated separately. The contractor must issue various reporting documents for the work performed.

We reflect the costs of current, medium and major repairs in accounting

Expenses for current, medium and major repairs of fixed assets are taken into account as part of the current expenses of the institution under sub-article 225 of KOSGU “Works, services for the maintenance of property”. Note that the cost of purchasing spare parts ( building materials) are reflected not under sub-article 225, but under sub-article 340 of KOSGU “Increase in the cost of inventories”, write-off of used materials - under sub-article 272 of KOSGU “Expenditure of inventories”.

Note!

This rule does not apply if the cost of the materials used is included in the overall estimate of the repair and is taken into account by the contractor when drawing up the acceptance certificate for the work performed.

Expenses for the repair of property are reflected on account 0.109.61.225 “Costs for work, services for maintaining property in the cost of finished products, work, services”.

If the repair costs are uneven throughout the year, they must first be reflected on account 0.401.50.000 "Deferred expenses" with subsequent equal write-off (clause 302 of the Instructions for the use of the Unified Chart of Accounts accounting for public authorities, local governments, government agencies off-budget funds, state academies of sciences, state (municipal) institutions, approved by Order of the Ministry of Finance of Russia dated December 1, 2010 No. 157n (as amended on August 6, 2015; hereinafter - Instruction No. 157n)).

The remaining spare parts after the repair must be credited, in accounting this will be reflected in the following entries:

Debit of account 0.105.00.000 "Material stocks" (on the corresponding analytical accounts) Credit of account 0.401.10.180 "Other income".

Costs that increase the cost of spare parts (such as the cost of delivering them to the institution or bringing them to a usable condition) are first accumulated in account 0.106.00.000 “Investment in non-financial assets» (according to the relevant analytical accounts).

After the final formation of the cost of spare parts, it is written off to account 0.105.00.000 (according to the corresponding analytical accounts).

Situation 1

The institution entered into an agreement for the repair of a copier at the expense of funds from entrepreneurial activities. During the repair, the worn paper pickup roller was replaced with a new one.

The transaction costs should be reflected in the following accounting entry:

Account debit 2.109.61.225 Account credit 2.302.25.730.

The replacement of the worn-out roller did not affect the improvement of the technical level and technical characteristics of the copier, therefore, the repair of equipment is included in the current expenses of the institution.

Modernization of fixed assets

During operation, fixed assets morally and physically wear out. Modernization is one way to restore them.

If the modernization improves or increases the initial performance of the functions of the fixed asset (useful life, capacity or other technical characteristics), then the cost of them increases the initial cost after all work is completed.

Completion of restoration work is formalized by an act of acceptance and delivery of modernized facilities, which indicates data on changes in the technical characteristics and cost of the fixed asset. On the basis of the act, the costs are written off as an increase in the value of the fixed asset in the Debit of account 0.101.00.000 "Fixed assets" (for the corresponding analytical accounts).

2 ways to upgrade fixed assets:

1) economic (by the institution's own resources);

2) contract (with the involvement of third-party organizations, entrepreneurs, citizens).

Documenting

All business transactions must be confirmed by primary documents (part 1 of article 9 federal law dated 06.12.2011 No. 402-FZ “On Accounting”, paragraph 7 of the Instruction to the Unified Chart of Accounts No. 157n), therefore, an order should be issued signed by the head of the institution on the modernization of fixed assets.

In the order, it is mandatory to indicate: the reasons, the timing of the modernization and those responsible for its implementation.

After the modernization, an act of acceptance and delivery of the modernized fixed assets is drawn up (according to the form No. OS-3 (0306002)). If the upgrade was economic way- in one copy, for the contractor - in two: for himself and the contractor.

The act reflects:

• the cost of the OS object before the modernization;
• the amount of expenses;
• the cost of the fixed asset after the work has been completed.

On the basis of the act, the accumulated costs are written off on account 0.106.00.00 “Investments in non-financial assets” and entries are made in the inventory card. The completed deed is signed by:

• members of the commission for the receipt and disposal of non-financial assets established in the organization;
• employees responsible for carrying out the modernization of the fixed asset, or representatives of the contractor;
• employees responsible for the safety of the fixed asset after modernization.

The signed act is approved by the head of the institution, after which the act is transferred to the accounting department.

Note!

If the contractor carried out the modernization of a building, structure or premises, these works are related to construction and installation, therefore, in addition to the act, an acceptance certificate should be signed in the form No. KS-2 and a certificate of the cost of work performed and costs in the form No. KS-3 (approved by the Decree Goskomstat of Russia dated November 11, 1999 No. 100).

When concluding an agreement on the restoration of a fixed asset, technical documentation and a construction estimate must be drawn up for all work (Article 743 of the Civil Code of the Russian Federation).

Reflecting expenses in accounting

Expenses for completion, additional equipment, reconstruction and modernization of fixed assets are preliminarily reflected and accumulated in the debit of account 0.106.00.000 “Investments in non-financial assets” (according to the corresponding analytical accounts). This account reflects all costs for these works:

• the cost of the materials used;
• depreciation of machinery and equipment that were used for work;
• wage employed in the completion, reconstruction or modernization and social contributions from it;
• expenses for paying for services of third parties, etc.

After the completion of all work and the delivery of the completed (refurbished, reconstructed or modernized) fixed asset, the indicated costs are written off as an increase in its value in the Debit of account 0.101.00.000 "Fixed assets" (for the corresponding analytical accounts).

Consider the procedure for reflecting in accounting the costs of modernizing a fixed asset.

Situation 2

In August-September 2016, the FBUZ "Center for Hygiene and Epidemiology" upgraded the laboratory equipment "GP Sterilizer" in a contracted way at the expense of funds received from business activities.

The cost of work performed by the contractor is 70,800 rubles, including VAT - 10,800 rubles.

The act of acceptance and transfer of work performed was signed in October.

The institution pays income tax quarterly. accounting and tax accounting match up.

The initial cost of the equipment at which it is accepted for accounting is 504,000 rubles. Listed as a particularly valuable movable property. Upon acceptance for accounting, a useful life of 7 years (84 months) was established. Depreciation is calculated using the straight-line method.

For accounting purposes:

• annual depreciation rate - 14.28572% (1/7 × 100);
• annual depreciation amount - 72,000 rubles. (504,000 rubles × 14.28572%);
• monthly depreciation amount - 6000 rubles / month. (72,000 rubles / 12 months).

Since the modernization lasted less than 12 months, during the period of its implementation, the accountant did not stop accruing depreciation on laboratory equipment.

The modernization did not lead to an increase in the useful life of the equipment, therefore, for the purposes of accounting and tax accounting, the useful life of the modernized equipment was not revised.

During the period of modernization of the equipment of the “Sterilizer GP”, the following accounting operations should be performed:

in August-September:

Debit of account 2.109.61.271 Credit of account 2.104.24.410 - 6000 rubles. — depreciation was accrued for modernized equipment;

in October:

Debit of account 2.106.21.310 Credit of account 2.302.31.730 - 60,000 rubles. (70,800 rubles -10,800 rubles) - the cost of the contractor's work on the modernization of the fixed asset is taken into account;

Debit of account 2.210.10.560 Credit of account 2.302.31.730 - 10,800 rubles. — VAT is taken into account from the cost of the contractor's work;

Debit of account 2.303.04.830 Credit of account 2.210.10.660 - 10,800 rubles. — VAT is accepted for deduction;

Debit of account 2.302.31.830 Credit of account 2.201.11.610 - 70,800 rubles. - paid for the work of the contractor;

Account credit 18 (KOSGU code 310) - 70,800 rubles. — disposal is reflected Money from the account of the institution;

Debit of account 2.109.61.271 Credit of account 2.104.24.410 - 6,000 rubles. — depreciation was accrued for modernized equipment;

Debit of account 2.101.24.310 Credit of account 2.106.21.310 - 60,000 rubles. - the initial cost of equipment has been increased by the amount of the cost of work on its modernization.

The initial cost of the equipment, taking into account the costs of modernization, will be 564,000 rubles. (504,000 rubles + 60,000 rubles).

For accounting purposes:

• the annual depreciation amount is 80,571.46 rubles. (564,000 rubles × 14.28572%);
• monthly depreciation amount - 6714.29 rubles / month. (80,571.46 rubles / 12 months).

From October, the depreciation charge will be reflected in the posting:

Debit of account 2.109.61.271 Credit of account 2.104.24.410 - 6714.29 rubles. — depreciation was accrued on modernized equipment.

The cost of upgrading must be reflected in primary documents on the accounting of fixed assets and in the inventory card of fixed assets.

Related question

Repair or upgrade?

The organization purchased new monitors to replace the old inoperative ones. How to account for such costs - as an upgrade or as a repair?

Purchased parts of computer equipment (including monitors) cannot be separate items of fixed assets, since they perform their functions only as part of an associated set. Computers are accounted for as unified inventory items (letters of the Ministry of Finance of Russia dated 02.06.2010 No. 03-03-06/2110, 06.11.2009 No. 03-03-06/4/95). This procedure applies to both tax and accounting.

Spare parts necessary for the repair and replacement of worn parts in equipment and machines are classified as inventories, which means that the cost of their purchase is attributed to article 340 of KOSGU “Increase in the cost of inventories”.

It follows from this that the operation to replace an inoperative monitor should be regarded as a repair of computer equipment, the costs of which do not increase the initial cost. Therefore, the cost of spare parts that are used in the repair process is attributed to the expense accounts of the institution 0.106.61.000, or 0.106.71.000, or 0.109.81.000, or 0.109.91.000 according to the code 272 of KOSGU “Expenditure of inventories”.

If repair work is performed by a third-party organization, the costs of paying for its services should also be taken into account on cost accounts under code 225 of KOSGU “Works, services for maintaining property”

The same rules apply to other parts of computer technology: network cards, DVD drive, motherboard, etc.

______________________

The procedure for accounting for operations to replace old, but serviceable parts of fixed assets with new and more modern ones is not defined by law. As a rule, if such a replacement leads to an increase in the technical characteristics of the object, then the work is considered as an upgrade and the cost of expended parts, the cost of their installation is included in the initial cost of the computer (for example, replacing an old monitor with a new one with a larger screen area, increasing RAM or hard memory ).

If as a result of the work there is no improvement in the technical characteristics of the fixed asset, the costs of the work are considered as repair, reflecting on cost accounting accounts.

Situation 3

FBUZ replaced the old monitor with a new one with a larger screen area and improved technical characteristics. The work was carried out at the expense of funds from entrepreneurial activities.

The cost of a new monitor is 31,860 rubles. (including VAT 4860 rubles).

Delivery costs by a transport company - 1180 rubles. (including VAT 180 rubles).

The initial cost of the old monitor is 10,000 rubles, depreciation has been charged for 8,000 rubles.

The market price of the old monitor at the date of the modernization work is 3500 rubles.

Let's reflect the costs of modernization:

Debit of account 2.106.24.340 Credit of account 2.302.34.730 - 27,000 rubles. - reflects the cost of purchasing a monitor and accounts payable supplier

Debit account 2.210.10.560 Credit account 2.302.34.730 - 4680 rubles. — “input” VAT is taken into account from the cost of a new monitor;

Debit of account 2.302.34.830 Credit of account 2.201.11.610 - 31,860 rubles. - payment for the purchased new monitor was made from the personal account of the institution in the treasury;

Debit account 2.106.24.340 Credit account 2.302.22.730 - 1000 rubles. - reflected the cost of delivery of the monitor and accounts payable to the transport company;

Debit account 2.210.10.560 Credit account 2.302.22.730 - 180 rubles. - "input VAT" from transport services is taken into account;

Debit account 2.302.22.830 Credit account 2.201.11.610 - 1180 rubles. — expenses for delivery of the monitor are paid;

Debit of account 2.105.26.340 Credit of account 2.106.24.340 - 28,000 rubles. (27,000 + 1,000) - included the initial cost of the monitor as part of inventories;

Debit account 2.303.04.830 Credit account 2.210.10.660 - 4860 rubles. (4680 + 180) - accepted for deduction of VAT from the cost of the monitor and the cost of transport services;

Debit of account 2.104.24.410 Credit of account 2.101.24.410 - 8000 rubles. — written off the depreciation of the old monitor;

Debit of account 2.401.10.172 Credit of account 2.101.24.410 - 2000 (10,000 - 8000) rubles. — written off the residual value of the old monitor;

Debit account 2.105.36.340 Credit account 2.401.10.180 - 3500 rubles. - the old monitor was credited at the market price;

Debit of account 2.106.21.310 Credit of account 2.105.26.440 - 28,000 rubles. - the cost of a new monitor was written off to increase the cost of a computer, an increase in investments in fixed assets;

Debit of account 2.101.24.310 Credit of account 2.106.21.310 - 28,000 rubles. - the cost of upgrading the computer is included in the initial cost.

conclusions

The institution must have an internal regulatory document (for example, Regulations), which will determine what is considered a major overhaul and what is current.

It is necessary to determine the types of work to restore fixed assets for the correct allocation of costs to the relevant items of KOSGU at the initial stage of planning the expenditure budget.

Types of repair work must be distinguished, any type of work must be justified and documented.

Costs should be correctly reflected in accounting: the costs of current, medium and major repairs of fixed assets are taken into account as part of the current expenses of the institution; the costs of additional equipment, reconstruction, modernization are capital, therefore, the costs of them are written off to increase the initial cost of fixed assets.

S. S. Velizhanskaya,
Deputy Chief Accountant of the Federal Budgetary Health Institution "Center for Hygiene and Epidemiology in the Sverdlovsk Region in the Oktyabrsky and Kirovsky Districts of Yekaterinburg"

Repair and modernization (reconstruction, completion, retrofitting) are taken into account in different ways. The cost of repairs is charged to current expenses, and the costs of modernization and reconstruction increase the initial cost of the object and are included in expenses through depreciation. Therefore, before taking into account certain works, the accountant must qualify them. However, sometimes it is not easy to do this, because the accountant, as a rule, does not have technical knowledge.

Regulatory regulation

Modernization and reconstruction

The concepts of "modernization", "reconstruction" and " technical re-equipment"given in paragraph 2 of Art. 257 of the Tax Code of the Russian Federation.

Work on modernization (completion, additional equipment) includes work caused by a change in the technological or service purpose of equipment, a building, structure or other object of depreciable fixed assets, increased loads and (or) other new qualities.

Reconstruction is the reorganization of existing fixed assets, carried out according to the reconstruction project. As a result, the technical and economic indicators of the object increase. The purpose of the reconstruction is to increase production capacity, improve quality and change the range of products.

The concepts of reconstruction and modernization are also given in other regulatory legal acts.

According to paragraph 27 of PBU 6/01 “Accounting for fixed assets”, the modernization (reconstruction) of a fixed asset is associated with an improvement in its characteristics:

Increases the useful life of the object;

Increasing power;

Improving the quality of application;

Other indicators are being improved.

In accordance with paragraph 14 of Art. 1 of the Town Planning Code of the Russian Federation (CC RF), reconstruction is:

Changing the parameters of the capital construction object, its parts (height, number of floors, area, volume), including:

Superstructure, restructuring, expansion of the capital construction object;

Replacement and (or) restoration of load-bearing building structures of a capital construction object, with the exception of the replacement of individual elements of such structures with similar or other elements that improve the performance of such structures and (or) restoration of these elements.

Attention!
The Ministry of Finance emphasizes that, since the Tax Code of the Russian Federation contains a definition of the concept of "reconstruction", companies for tax purposes should be guided by it, and for a more detailed specification of the concept, contact the Ministry of Regional Development (letter of the Ministry of Finance of Russia dated February 15, 2012 No. 03-03-06 / 1 / 87).

Repair

The concept of repair is not provided for in tax legislation, so we will take the meaning of this term from other branches of legislation (clause 1, article 11 of the Tax Code of the Russian Federation).

The general concept of repair (for various property and types of repairs - current, medium and capital) in regulations is rare. In particular, it is given in paragraph 16 of the letter of the Goskomstat of Russia dated April 9, 2001 No. MS-1-23/1480 (hereinafter referred to as the letter of the Goskomstat). According to this document, repair means work to maintain fixed assets in working condition during their useful life, which does not lead to an improvement in the original standard performance indicators.

As a rule, problems with the qualification of work arise during the overhaul, it is the tax authorities who try to present it with modernization and reconstruction.

The definition of a major overhaul can be found in the legal documents governing construction.

According to paragraph 14.2 of Art. 1 of the Town Planning Code of the Russian Federation (CC RF), overhaul of capital construction facilities (with the exception of linear facilities) includes such works as:

Replacement and (or) restoration of building structures of capital construction objects or elements of such structures, with the exception of load-bearing building structures;

Replacement and (or) restoration of engineering and technical support systems and engineering and technical support networks for capital construction projects or their elements;

Replacement of individual elements of load-bearing building structures with similar or other elements that improve the performance of such structures and (or) restoration of these elements.

For your information
A capital construction object is buildings, structures, structures, objects whose construction has not been completed, with the exception of temporary buildings, kiosks, sheds and other similar structures (clause 10, article 1 of the Town Planning Code of the Russian Federation).

Similar characteristics of the overhaul are contained in other documents. So, in accordance with clause 5.1 of the Regulations on the scheduled preventive maintenance of industrial buildings and structures MDS 13-14.2000, approved. Decree of the USSR Gosstroy No. 279 dated December 29, 1973 (hereinafter referred to as Regulation No. 279), overhaul should include:

Troubleshooting of all worn out elements;

Restoration or replacement (except for the complete replacement of stone and concrete foundations, load-bearing walls and frames) for more durable and economical ones that improve the performance of buildings under repair.

Appendix 8 to Regulation No. 279 lists the types of work that are performed during the overhaul.

Paragraph 16 of the letter from the State Statistics Committee clarifies that the overhaul does not include the replacement of the main structures, the service life of which in this facility is the longest (stone and concrete foundations of buildings, pipes of underground networks, etc.).

For your information
When determining the nature of work, the Ministry of Finance proposes to be guided by Regulation No. 279 and Departmental Building Regulations (VSN) No. 58-88 (P), approved by order State Committee for Architecture under the Gosstroy of the USSR dated 11.23.98 No. 312, hereinafter referred to as Norms No. 312) (letter of the Ministry of Finance of Russia dated 03.24.2010 No. 03-11-06 / 2/41).

Definitions of Supervisory Bodies

The Ministry of Finance believes that when distinguishing between modernization and repair of fixed assets, a change in the technological or service purpose of a fixed asset or the acquisition of other new qualities by it is of decisive importance. At the same time, the cost of the work is not a criterion for such a distinction (letter of the Ministry of Finance of Russia dated 04.22.2010 No. 03-03-06/1/289). The replacement of individual failed OS elements, not related to a change in its technological, official purpose or technical and economic indicators, is a repair (letter of the Ministry of Finance of Russia dated 03.08.2010 No. 03-03-06 / 1/518). Repair costs include the cost of work that is carried out to maintain fixed assets in working order (letter of the Ministry of Finance of Russia dated 22.04.2010 No. 03-03-06/1/289).

So, the general conclusion that follows from the explanations of the regulatory authorities is that the reconstruction (modernization) is the work, after which there is a change in the technological or service purpose of the object. And if worn parts are replaced and other work is done to maintain the operating system in good condition, this is a repair.

For your information
There are also "point" explanations of the regulatory authorities, dedicated to any specific situation. For example, the Ministry of Finance recognized the replacement of an elevator as modernization due to the expiration of its service life (letter of the Ministry of Finance of Russia dated August 10, 2012 No. 03-03-06 / 1/392). The Moscow tax authorities noted that the cost of replacing the aircraft units due to their breakdown with new ones with improved technical characteristics should be considered as technical re-equipment (modernization) of the aircraft (letter of the Federal Tax Service of Russia for Moscow dated September 27, 2011 No. 16-12/093516@) .

Unfortunately, neither the findings of the Ministry of Finance, nor the provisions of regulations guarantee the company trouble-free accounting of repair costs. As practice shows, tax officials try to present any work as modernization (reconstruction) and force the company to write off expenses through depreciation.

Let's take a look at a few situations that come to the attention of arbitrators.

Arbitration practice

Installed new wire on the fence

The company on the territory of the electrical substation carried out the installation supporting structures for fastening the Egoza wire, as well as installing the wire itself. The company took into account the cost of the work as a repair.

The inspection considered that such works are modernization. According to the Federal Tax Service Inspectorate, the installation of wire on the fence changed its qualitative characteristics, which made it possible to reduce the penetration of unauthorized persons into the territory of the enterprise.

The court took the side of the company, indicating that in fact the company had repaired the existing fence and restored its worn-out elements. The arguments are as follows (Decree of the Federal Antimonopoly Service of the Urals District dated March 19, 2008 No. F09-11380 / 07-S3, Determination of the Supreme Arbitration Court of the Russian Federation of June 4, 2008 No. 6793/08 refused to transfer the case to the Presidium of the Supreme Arbitration Court of the Russian Federation):

Primary accounting documents confirm that all expenses incurred by the company were in the nature of capital repairs;

The work did not cause changes in the technological or service purpose of the objects, did not give them new qualities, did not increase their technical and economic indicators.

Replaced the alarm

The building's failed fire alarm system was replaced. The company accounted for the cost of the work as a repair. The inspection decided that modernization was carried out under the guise of repair work.

The court indicated that these works cannot be regarded as modernization or reconstruction of fixed assets and are repairs (Decree of the Federal Antimonopoly Service of the West Siberian District dated March 15, 2013 No. A27-11302 / 2012). The arguments are as follows:

The object of accounting as a fixed asset for the company was the building, and not security and fire alarm;

Prior to the overhaul of the building, it already had a fire and security alarm. This is confirmed by the operational logs of the fire automatics system and the defective list;

The reason for the overhaul was the need to replace worn-out elements of the object, and the goal was to restore the properties of the repaired object to close to the original ones;

In the course of work on the signaling, there was no change in the technological or service purpose of the building. The security of the building has improved, but not the building itself.

The warehouse was dismantled and then reassembled

Works were carried out, as a result of which the warehouse was completely dismantled, the foundation of the hangar, load-bearing walls, arches, and sheet structures were dismantled. After dismantling, the hangar was assembled using both old materials and newly acquired ones.

The court recognized that the works are repair. The inspection did not provide evidence that the work carried out was caused by a change in the technological or service purpose of the equipment of the facility, increased loads and (or) other new qualities, carried out in order to increase production capacity, improve quality and change the range of products, including no evidence that that the warehouse after repair is used by the company for new purposes and for these purposes could not be used in the state before repair or could be used, but with a significant decrease in efficiency.

The judges pointed out the following differences between a major overhaul and a reconstruction:

During reconstruction, the essence of the object changes (new qualitative and quantitative characteristics appear), and during a major overhaul, the essence of the object does not change, the replacement or restoration of faulty elements with stronger and more durable ones is carried out;

The repair of fixed assets is aimed at preserving the original characteristics of fixed assets, and the reconstruction is aimed at increasing (improving) them or creating new ones.

It was established that in this case, after the work, the area of ​​the warehouse, its height remained unchanged. The main technical and economic indicators of the warehouse were preserved, it did not have new qualitative or quantitative characteristics, its parameters did not change (Decree of the Federal Antimonopoly Service of the Central District of December 23, 2013 No. A48-1849 / 2013).

Works on different floors

The building owned by the company was undergoing renovation and reconstruction works. On the first two floors of the building, the work was carried out by the tenant. As a result of these works, the facility has turned from an administrative and industrial building into a cultural and entertainment center. On the third floor, the work was carried out by the company - the owner of the building. These works did not lead to any special changes in the characteristics of the building. The company accounted for their cost as a repair. The work was carried out on the basis of different projects, not united by a single reconstruction project.

The inspection pointed out that in this case, the entire building was reconstructed, and the work must be considered comprehensively, without distinguishing between works carried out on different floors. As a result, the owner company was charged additional taxes on the cost of work on the third floor.

The court found that the work performed on the third floor of the building did not result in an increase in the total area, number of storeys and volume of the building, that is, a change in the main technical and economic indicators of the building as a whole; load-bearing (main) structures of the building were not affected. Therefore, the work is regarded as a major overhaul.

During the overhaul, worn-out elements can be replaced with more durable and economical ones that improve the performance of the buildings being repaired. At the same time, an economically feasible modernization of a building or facility can be carried out: improving the layout, increasing the number and quality of services, equipping the missing types engineering equipment, landscaping of the surrounding area (Resolution of the Federal Antimonopoly Service of the Volga-Vyatka District dated November 2, 2010 No. A82-4702 / 2009).

The purpose of one of the premises has changed

The following work was carried out in a separate room in the attic corridor of the building: three partitions were erected, metal doors were installed, and a heating radiator was moved.

After carrying out the work in the room of the attic corridor, an archive was equipped. According to the inspection, the company has upgraded the fixed asset (the official purpose of the attic corridor has been changed).

The court pointed out that neither from the lists of works reflected in the contract, the act of acceptance of work performed, nor from the materials of the field tax audit it does not follow that the work on changing the functional purpose of a separate room of the attic corridor is associated with a change in the technological or service purpose of the entire administrative building as an object of fixed assets.

The tax authority did not provide evidence that the conclusion of the contract for the performance of the disputed work was due to increased loads or the emergence of new qualities of the administrative building, which could lead to the need for modernization work. The inspectorate did not provide evidence that the work performed resulted in an increase in the technical and economic indicators of the administrative building as an object of fixed assets.

Conclusion: a change in the purpose of a separate room in itself does not indicate the modernization of the fixed asset as a whole (Resolution of the Federal Antimonopoly Service of the North-Western District of June 14, 2013 No. A21-7542 / 2012).

Two buildings of one OS facility

In two buildings redevelopment with the erection of partitions was made. At the same time, the area of ​​the building with the letter B has changed slightly due to the use of more modern materials with construction work. And the area of ​​the building with the letter D increased due to the erected extension. In addition, the communications have been replaced. At the same time, work in these buildings was carried out at different times and on the basis of various contracts. As a result of the work, the purpose of the objects has not changed (the premises remained non-residential). The room with the letter D was used as a warehouse, the room with the letter B was used as an office, warehouse and retail space.

The Inspectorate indicated that the works carried out relate to the object of one fixed asset and therefore should be considered as a whole. According to the IFTS, such work is a reconstruction, since they led to an increase in the area of ​​\u200b\u200bthe entire facility.

The court noted that the work was carried out under separate contracts, at different times, in different periods, so they cannot be considered as a whole. The court found that the building with the letter D had indeed been reconstructed. And work in a building with the letter B can be considered a repair.

The logic of reasoning of arbitrators is as follows. For the purpose of calculating income tax, capital investments that increase the value of fixed assets include the following expenses:

To change the technological or service purpose of the object;

Reconstruction of the facility and improvement of its technical and economic indicators in order to increase capacity, improve quality and change the range of products;

Replacement of morally obsolete and physically worn-out equipment with more productive one.

However, not any change (increase) in the technical and economic indicators of an object allows us to talk about its reconstruction, modernization or technical re-equipment. For taxation purposes, in order to recognize works as capital costs, such a change (increase) in technical and economic indicators should result in either a change in the purpose of the object, or an increase in its productivity, or an improvement in the quality of products, or a change in its range. At the same time, all work that does not satisfy the concepts of completion, additional equipment, reconstruction, modernization, technical re-equipment, defined in the Tax Code of the Russian Federation, should not increase the initial cost of fixed assets.

In the case under consideration, the repair work actually had the character of a major overhaul, since in the course of the work, worn-out structures were replaced with newer and more durable ones, the replacement of communications led to an improvement in the operational capabilities of the facility.

The redistribution of the area of ​​premises inside the building is not a basis for recognizing the works as reconstruction. In addition, in Appendix 8 of Regulation No. 279, during major repairs, partial redevelopment is allowed with an increase in the total area of ​​​​partitions of no more than 20%.

At the same time, the redevelopment of a floor with the construction of partitions can be an element of both reconstruction and overhaul; it does not in itself determine the nature of the work performed.

Besides, tax authority there is no evidence of an increase in the technical and economic indicators of real estate objects due to new qualities that correspond to the concept of "reconstruction" after the repair work (Resolution of the Federal Antimonopoly Service of the Central District dated November 05, 2013 No. A54-7269 / 2012).

Neutralization station turned into a shop

The sublessee took over the building of the neutralization station for the purpose of placing a shop in it. In order to prepare the building for its new purpose, the subtenant performed the following works: laying walls of lightweight concrete blocks, changing sections of water pipes and installing heating registers, installing cables and installing power supply devices, changing floors, changing wooden structures, installing stairs and landings, metal structures, laying of individual sections of walls, installation of base plates, installation of arches, installation of a canopy made of polycarbonate, installation of suspended ceilings, installation of window sill boards, change of sheathing of solid flooring from boards, etc.

The court noted that as a result of the work carried out, the premises were re-planned, extensions were erected, an addition to the second floor, the area of ​​​​the second floor increased, the official purpose of the premises changed: the station building began to be used as a store. The type of space in the building has changed - from industrial to retail. Therefore, these types of work do not apply to major repairs (Resolution of the Federal Antimonopoly Service of the Central District dated July 29, 2011 No. A36-3814 / 2010).

conclusions

As you can see, the decision of the court depends on the situation. Still, let's try to make some generalizations:

If the work was carried out on the basis of a single reconstruction project and after these works the purpose of the fixed asset changed dramatically, this is reconstruction;

Changing the purpose of a separate room does not in itself indicate the modernization of the fixed asset as a whole;

If a redevelopment was made inside the building, while its area did not increase and its purpose did not change, this is a repair. It doesn't matter what kind of work was done and how much they cost;

If the tenant performed work on the leased space of the building, as a result of which the purpose of the entire building changed, and the owner repaired the part that he did not lease (and they did not affect the characteristics of the building), then the work performed by the owner is qualified as repair;

The replacement of any structure or device in a building with a newer and more modern one is not a modernization if this replacement did not affect the purpose of the entire building;

Works that were carried out at different times, under different contracts, cannot be considered as a whole, they must be qualified separately;

The inspection must prove its conclusions that the work performed is a reconstruction (modernization) by presenting the opinion of specialists.

Most litigation relates to real estate, cases relating to equipment and transport are rare. However, some of the above conclusions, in our opinion, can be extended to equipment.

As already noted, accounting for the cost of work depends on how the work was qualified - as a repair or as a reconstruction (modernization).

Repair accounting

Repair costs are current and are recognized in accounting and tax accounting as expenses in the reporting (tax) period in which they were carried out, in the amount of actual costs (clause 5 of article 272 of the Tax Code of the Russian Federation, clauses 4, 5, 11 PBU 10/99 "Expenses of the organization", paragraph 1 of article 260, subparagraph 1 of paragraph 1 of article 265 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated 05.12.2012 No. 03-03-06/1/628).

The lines will be like this:

Debit 20, 25, 26, 44 Credit 60, 70, 69

Reflected the cost of repairing fixed assets.

Accounting for reconstruction (modernization)

In accounting, the costs of reconstruction (modernization) of fixed assets increase the initial cost of fixed assets (clauses 26, 27 of PBU 6/01 “Accounting for fixed assets”). The useful life of the fixed asset may be changed if, as a result of the reconstruction or modernization, the characteristics of this object have improved, including its service life has increased (clause 20 PBU 6/01, clause 60 Guidelines on accounting of fixed assets, approved. Order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n).

In tax accounting, the costs of reconstruction increase the initial cost of the fixed asset and are written off through depreciation (clause 2, article 257 of the Tax Code of the Russian Federation). Just as in accounting, after the reconstruction of the fixed assets, the taxpayer has the right to increase the useful life (paragraph 2, clause 1, article 258 of the Tax Code of the Russian Federation). The increase in the SPI is carried out within the time limits established for the depreciation group in which such a fixed asset was previously included (paragraph 2, clause 1, article 258 of the Tax Code of the Russian Federation).

The monthly depreciation calculation depends on whether the useful life has changed.

Situation 1. After the reconstruction, the SPI increased. In this case, from the month following the month of putting the reconstructed fixed asset into operation, depreciation on it is charged according to the formula (clause 1 of article 258 of the Tax Code of the Russian Federation):

Monthly depreciation = (residual value of fixed assets at the end of the upgrade + upgrade costs): (remaining useful life + the period by which the STI increased).

Example 1

Omega LLC on February 28, 2014 modernized a fixed asset, the initial cost of which was 120,000,000 rubles.

Depreciation is accrued on a straight-line basis, the monthly amount of depreciation deductions is 1,000,000 rubles.

The initial useful life is ten years, of which two years have elapsed.

The cost of modernization amounted to 1,200,000 rubles.

The SPI has increased by ten years.

The residual value of the fixed asset as of February 28, 2014 is 96,000,000 rubles. (120,000,000 rubles - 1,000,000 rubles x 2 x 12). New term the useful life of the facility after modernization will be 18 years (10 years - 2 years + 10 years).

The new depreciation amount of Omega LLC for the month, starting from March, will be 450,000 rubles. [(96,000,000 rubles + + 1,200,000 rubles): (18 years x 12 months)].

Situation 2. After the modernization of the fixed asset, the IPV did not increase. In this situation, at the end of this period, the object will not be fully depreciated. After all, the depreciation rate will not change, and the initial cost will increase by the cost of modernization. The Ministry of Finance believes that in this case it is necessary to charge depreciation at the previous rate until the cost of fixed assets is fully written off. In this case, the write-off continues even after the end of the JTI (letters of the Ministry of Finance of Russia dated February 11, 2014 No. 03-03-06 / 1/5446, dated June 9, 2012 No. 03-03-10 / 66). The courts have a different point of view on this issue: the taxpayer has the right to charge depreciation based on the residual value of fixed assets, increased by the amount of modernization costs, and the remaining useful life (Decree of the Federal Antimonopoly Service of the Moscow District dated April 6, 2011 No. KA-A40 / 2125-11, No. КА-А40/4667-09 dated 06/03/2009 - upheld by the Determination of the Supreme Arbitration Court of the Russian Federation dated 12/29/2009 No. VAS-12685/09). In this case, the amount of monthly deductions after the upgrade is increased, and the entire cost is written off during the FTI.

Situation 3: A fully depreciated operating system has been reverse engineered. In this case, the cost of the modernization will be depreciated according to the rates that were determined when this fixed asset was put into operation (letters of the Ministry of Finance of Russia dated 05.02.2013 No. 03-03-06/4/2438, dated 09.06.2012 No. 03-03- 10/66, dated 04/05/2012 No. 03-03-06/1/181).

Example 2

On the balance sheet of Torzhok LLC is a fully depreciated fixed asset with an initial cost of 200,000 rubles. The useful life was set at 51 months, i.e. the monthly depreciation rate was 1.96% (100%: 51 months). In the current period, this fixed asset was modernized in the amount of 85,000 rubles. The useful life has not changed.

The monthly amount of depreciation deductions for fixed assets after modernization will be 5586 rubles. [(200,000 rubles + + 85,000 rubles) x 1.96%].

Depreciation will be accrued for another 16 months (85,000 rubles : : 5586 rubles), starting from the 1st day of the month following the month in which the modernization was completed (paragraph 3, clause 2, article 322 of the Tax Code of the Russian Federation), until when the full write-off of modernization costs occurs, or until the disposal of this fixed asset from the depreciable property (letter of the Ministry of Finance of Russia dated September 23, 2011 No. 03-03-06 / 2/146).

Note that during the reconstruction of a fixed asset, which lasts more than 12 months, depreciation is terminated from the 1st day of the month following the month in which work began (clause 3, article 256 of the Tax Code of the Russian Federation). If a building is reconstructed, which is accounted for as a single inventory object, depreciation is no longer charged from the cost of the entire object, even if in fact part of the building continues to be used (letter of the Ministry of Finance of Russia dated 16.01.2008 No. 03-03-06/1/8).

Documenting

The main document confirming that the work performed is the repair of the OS, and not its reconstruction (modernization), is a defective statement. Data on the repair performed must be reflected in section 5 of the inventory card (you can use form No. OS-6).

Sample

OOO "Omega"
(name of company)

APPROVE

Head of the organization
Ivanov I.I.
(signature) (signature transcript)

accounting
(structural subdivision)

Defective statement No. 1

Place of compilation General Cabinet

Based on an order for Omega LLC No. 2 dated 01/01/2014
(name of company)

Commission
composed of:

Chairman of the Commission Chief engineer Petrov P.P.

Commission members: Head of household Sidorova S.S., accountant Stepanova S.S.
(name, position, place of work)

Made an inspection Stitching machine "Vityaz-M", inv. No. 00123
(name of fixed assets, brand, model, inventory number, etc.)

and established the presence of the following defects (damages, malfunctions, etc.):

Scroll revealed- nyh defects Comrade	Characteristics stick revealed lazy de- effects	List of bot, required smoke for eliminate identified defects	Execute- thread	mother's list scarves and spare parts, necessary for performance of work to eliminate you revealed defects	Timing you- completion works
Curve- nie and tre- tray width feed bu- mages, wear drill	Impossible usability ap- paratha by appointment, holes are not make their way	1. Dismantling old lot- ka. 2. Installation new tray 3. Replacement drill	Timofeev T.T.	Drill NRP 12 Drill NRP 12 mm, mm, Tray "Vityaz- Tray"

Conclusion of the commission: Due to the impossibility of using the device for its functional purpose and the need to replace parts, repairs are necessary. Repairs can be carried out on their own. The estimated cost of spare parts for repairs is 150,000 rubles.

Commission Chairman

Chief engineer Petrov P.P.

Commission members:

Head of household Sidorova S.S.
(position) (signature) (signature transcript)

Accountant Stepanova S.S.
(position) (signature) (signature transcript)

If an institution carries out repairs, reconstruction, modernization, additional equipment, then for the purposes of accounting for a state-owned, budgetary or autonomous institution, it is important to distinguish between these concepts, plan and take into account costs.

Terminology

The definition of repair, reconstruction and modernization terminology for accountants raises a lot of questions. The concepts of reconstruction, retrofitting and modernization are given in the Tax Code of the Russian Federation.

Let's define the concepts:

Repair- this is troubleshooting to maintain the OS in working order (Letter of the Ministry of Finance dated 04/22/2010 N 03-03-06 / 1/289).

Repairs are subdivided into (Letter of the Ministry of Finance dated February 25, 2009 N 03-03-06 / 1/87, paragraph 3.4., 3.11. Regulations of the USSR Gosstroy dated December 29, 1973 N 279 "On approval of the Regulations on the scheduled preventive maintenance of industrial buildings and structures"):

Current - elimination of breakdowns, damages and malfunctions;

Capital - costly and / or long-term measures aimed at maintaining the health of the operating system: changing faulty, damaged or worn-out structures and parts of the operating system, incl. replacing them with more durable and economical ones.

Reconstruction- reorganization of the OS facility, associated with the improvement of production to expand capacity, increase the quantity and improve the quality of products. It is carried out under the reconstruction project. Reconstruction is usually understood as the reorganization of buildings (buildings, structures) (clause 2, article 257 of the Tax Code of the Russian Federation).

Modernization- improvement of the OS object in order to change its purpose, increase the workload, expand the scope of use (clause 2, article 257 of the Tax Code of the Russian Federation).

Additional equipment- addition of the object with parts (parts, mechanisms, units), as a result, the OS acquires new qualities (clause 2, article 257 of the Tax Code of the Russian Federation).

Functional purpose of the fixed asset

Further, when considering the principles that make it possible to draw a line between different types of work, the concept of " functional purpose fixed asset". Before qualifying the type of work, it is necessary to clearly articulate what the fixed asset is intended for, and then determine how the performance of these functions will change as a result of the work. At first glance, it seems that it is not difficult to give such a definition (table).

Having formulated the purpose of the fixed asset in this way, it becomes easier to analyze various situations. For example, in relation to buildings, what conditions should be created for people? - Lighting, water, sewerage. But does the type of wallpaper or the material of the ceiling decoration belong to the necessary conditions for work?

The following sections will show how the definition of the functionality of a fixed asset becomes the key to delineate different types works.

Functional purpose of the fixed asset

TO repair of OS (including capital) differs from the reconstruction, modernization and retrofitting of OS with goals and results (clause 2 of article 257 of the Tax Code of the Russian Federation, clause 27 of Instruction N 157n, Letters of the Ministry of Finance dated 04.22.2010 No. 03-03- 06/1/289, dated 12/05/2012 No. 03-03-06/1/628).

Repair

The concept of "repair" includes not only troubleshooting, but also maintaining the performance of the facility. In other words, repair work is aimed at restoring the full performance of the object of its functions.

Example 1

1. Troubleshooting:

• the car's engine is out of order, the car can't move.

2. Recovery performance:

• the car is still driving, but the engine power has noticeably dropped, fuel consumption has increased sharply, oil waste is significantly higher than the norm;
• the printer is still printing, but the print quality is poor, the printouts are fuzzy, with stripes;
• the window frames are still intact, but they have dried up so much that they cannot be opened, the room cannot be ventilated.

Even if as a result of the repair there was an improvement in the characteristics of the object, its value does not increase. This provision is especially relevant in relation to computer technology, the generations of which are changing very quickly.

Example 2

1. The computer hard disk (HDD) with a capacity of 80 GB has failed. At the time of the repair, there are no longer any discs with a capacity of less than 250 GB for sale. The result was an improvement in computer performance. However, the original reason for replacing the hard drive was to fix a problem, so the cost of the computer will not increase.

2. A very old building was handed over to the institution. The entrance wooden door to the building cracked, the door frame lost its integrity. The door does not provide its functions of protecting the building from the penetration of unauthorized people, as well as from atmospheric influences. A metal door of increased durability was purchased to replace it. There has been an improvement in the performance of the building, as a quality metal door provides better intrusion protection than a wooden one, as well as keeping out drafts and noise, but the root cause was the restoration of operational performance. Therefore, the value of the building does not increase.

3. As a result of hail, the slate roof was partially damaged. After that, the roof was completely covered with metal tiles. There has been an improvement in the performance of the building, as the metal tile resists weather better, but the root cause was the restoration of performance. Therefore, the value of the building does not increase.

traditionally differ different levels repairs: current, medium and capital. At the same time, there is no unambiguous distinction between these concepts in the legislation. For example, in Urban Planning Code In the Russian Federation, the term "overhaul" occurs repeatedly, but its definition is not given. Since there are no differences between current, medium and major repairs in terms of the application of budget classification and the procedure for maintaining budget accounting, the accountant does not need to distinguish between such expenses.

At the same time, it is necessary to take into account the fact that in the practice of construction organizations, major repairs often mean a set of works to improve capital construction projects, which does not correspond to the terminology defined by budget legislation.

Finishing work can be distinguished as a separate type of repair. The Ministry of Finance of Russia does not have a definition for this term, but its meaning can be understood from the above list of works. Finishing works are works that are not caused by the restoration of the object, but do not lead to an improvement in its main characteristics, for example, painting in a different color.

Basically, the term "finishing work" is applied to capital construction objects, but by analogy it can also be attributed to vehicles (a car can also be painted in a different color without the purpose of restoration) and to any other property, when the work concerns only changing the appearance of the object.

It is precisely the definition of the functional purpose of the fixed asset that will help to distinguish between finishing work and work leading to the improvement of the fixed asset. If the work does not affect the quality of the performance of the main functions and does not add new functions, then such work can be classified as finishing.

Example 3

1. Seat upholstery reupholstery in a car does not affect the performance of its main functions - the movement of people and goods. Consequently, these will be works on the maintenance of property - either repair and restoration, or finishing.

2. Replacing the bars on the fence does not affect the performance of its main functions - to mark the boundary of the site and prevent it from crossing (unless, of course, the height of the fence has increased). Consequently, these will be works on the maintenance of property - either repair and restoration, or finishing.

Reconstruction, modernization, additional equipment

The term "reconstruction" is used when expanding or changing the capabilities of a fixed asset.

Reconstruction involves changing the parameters of an object. Reconstruction also includes improving the quality of engineering and technical support, but the content of these works is not explained in the regulatory documents.

Example 4

Internal redevelopment of premises by installing light non-capital partitions is not a reconstruction, but refers to finishing work, since the parameters of the building as a capital construction object do not improve.

The installation of an additional second internal door at the entrance to the building will not be a reconstruction, although it will increase the cost of the object under the retrofitting category of work, since the second door improves winter weather protection and adds intrusion protection.

The term "modernization" involves the replacement of nodes, and these nodes must be in good condition. If a faulty unit is replaced, then such work is not an upgrade, but a repair. If no nodes are replaced, then such work is retrofitting.

Thus, for the correct application of the term "modernization", it should be clearly understood what it means to replace a good part: the part must be good before replacement, but does not have to remain so after dismantling.

Example 5

1. Replacing a good CD-ROM drive on your computer with a new DVD-ROM would be an upgrade, as it would change a good part. If the defective CD-ROM drive is replaced with a new DVD-ROM drive, this should be considered a repair.

2. Adding RAM to a computer is not a modernization, since in this case no nodes are released, but the object is retrofitted.

The term "equipment" involves an inherent improvement in an item of property, plant and equipment. It follows from this that new parts added to the object must, firstly, be difficult to separate, and secondly, give the object new properties.

Example 6

1. Finishing works in the building, even the most seemingly changing its appearance, for example, the installation of an external "ventilated facade", the installation of suspended ceilings inside the premises, do not give the building any new functions beyond the main one - weather protection and ensuring the safety of the existing property . Therefore, finishing works are not retrofitting.

2. Installing an optional roof rack on the car is not retrofitting, since the roof rack is easily removed.

3. Installing a towbar on a car is an additional equipment, since the towbar gives the car new opportunities (towing a trailer) and is not easily removable.

4. The application of road markings, of course, increases road safety, but road markings cannot be considered an integral improvement, since they are erased after 1-2 months. Consequently, the work of marking does not lead to an increase in the cost of the road.

Actual question

Does installing software increase the cost of a computer?

To understand this issue, we use the definitions of reconstruction, modernization and retrofitting. So, these works do not relate to reconstruction, since the computer is not an object of capital construction. Upgrading is also excluded, since when installing programs, even if a replacement program is installed, no components and parts are released from the computer. Additional equipment should also be excluded. Firstly, no program improves the characteristics of a computer and does not give it new properties beyond those that are built into it constructively. Secondly, the program does not form a single whole with the computer, as the definition of the term requires, and can be easily removed.

Thus, within the framework of the current definition of terms, there are no grounds for increasing the cost of a computer at the expense of software. And there is absolutely no difference whether the software is installed after the computer is put into operation or beforehand (the so-called pre-installed software).

Work planning

An important task at the stage of work planning is setting goals and determining the scope of work.

Goal definition

In order to correctly determine which category of work, repair or reconstruction (modernization, retrofitting), the operation that the institution plans to carry out belongs to, first of all, you need to determine the goal.

If the initial goal of the work is to restore working capacity or technical characteristics, or external changes that do not affect the quality of the object's performance of its functions, then repairs are being carried out.

If the purpose of the work is to improve the main characteristics of a serviceable object or add new functions, then they can be classified as reconstruction, modernization or retrofitting. In this case, further it is necessary to decide on the choice of one of the three types of operations. If the operation involves the replacement of components or parts, then this is a modernization (or reconstruction). If the operation involves the addition of nodes and parts, then this is additional equipment (or completion).

Justification of the need for expenses for the work

In order to exclude unnecessary questions about the feasibility of carrying out repair and other work during control and auditing activities, as well as to streamline all operations with property, including the restoration of fixed assets, it is recommended that the institution establish the following procedure at the accounting policy level:

1. Appoint by a separate order (instruction), without including in the text of the accounting policy itself, persons responsible for the operation of various types of property under operational management, use, lease, etc. At the same time, such persons do not have to be financially responsible. For example, the person who owns the computer may be financially responsible for the computer, and a specially designated qualified person may be responsible for the operation of all computers in the institution.

2. To oblige the persons responsible for the operation of property objects to exercise control over their technical condition, as well as to draw up applications for repairs, reconstruction, modernization, and additional equipment. Determine that the specified work is not performed without a corresponding request approved by the manager.

3. Install the application form. A sample of filling out the tabular part of the application is given below (the header should contain the details of the institution, date and number, the signature of the head, and the basement - the signature of the person responsible for the operation of the property).

When carrying out an inventory of capital construction objects, not only their actual availability is checked, but also their technical condition. Consequently, in relation to capital construction objects, the first confirming document for the work will be a text appendix to the Inventory Act, where objects and their parts in need of repair and reconstruction will be marked. An inventory of the state of capital construction objects must also be carried out if they arrive at the institution within of the year.

Application for repair, reconstruction, modernization, retrofitting

Should be taken into account!

When carrying out an inventory of capital construction objects, not only their actual availability is checked, but also their technical condition. Consequently, in relation to capital construction facilities, the first confirmation document for the work will be a text appendix to the Inventory Act, where the facilities and their parts in need of repair and reconstruction will be marked. An inventory of the state of capital construction objects must also be made if they enter the institution during the year.

The person responsible for the operation of the property must draw up applications, whether or not funds are available to carry out the proposed activities. The introduction into practice of the institution of such a procedure for planning repair and other work will solve not only the problems of substantiating expenses during control and audit activities, but also systematizes all the activities of the institution for the maintenance and maintenance of property. Also, when developing an accounting policy, it is advisable to make a decision regarding requests for the replacement of consumables (toner, cartridges) and routine maintenance.

At the stage of planning work on reconstruction, modernization, additional equipment, it is necessary to take into account the requirements of Art. 34 of the RF BC, which establishes the principle of effectiveness and efficiency in the use of budgetary funds. And local governments receiving interbudgetary transfers (with the exception of subventions) should also take into account the requirements of Art. 136 BK RF.

In other words, it is necessary to be ready to justify the expediency of the improvements made to the property and finishing works, as well as the fact that the ongoing improvements are aimed precisely at better implementation of the main activities of the institution. For example, what agency would be able to indicate the reason when drawing up an application for work on installing a car radio in a car (if it was not in the factory delivery)?

For the purpose of taxation of profits, it is very important to correctly qualify the work on the reconstruction, retrofitting and repair of fixed assets. The fact is that in tax accounting, the costs associated with these types of work are recognized as expenses in different ways.

How to distinguish reconstruction from repair

There is no definition of the term "repair" in the tax legislation. But Article 11 of the Tax Code of the Russian Federation states that if the meaning of any concept is not disclosed in the tax legislation, the taxpayer has the right to use the definitions given in other branches of legislation. After all, institutions, concepts and terms of civil, family and other industries Russian legislation given in the Tax Code shall apply in the sense in which they are used in these industries, unless otherwise provided by the Code. Let's see what definition of repair work is given in the Decree of the USSR Gosstroy of December 29, 1973 No. 279. Work on the repair of industrial buildings and structures is a set of technical measures aimed at maintaining or restoring the original performance of both the building (structure) as a whole and its individual structures. It can be concluded that the purpose of repair work is to eliminate damage and malfunctions, replace worn-out structures and parts of buildings and other fixed assets.

The essence of the concepts of "completion", "additional equipment", "reconstruction", "modernization" and "technical re-equipment" of fixed assets is disclosed in paragraph 2 of Article 257 of the Tax Code. For the purposes of taxation of profits, they should be guided by them. Thus, reconstruction is the reorganization of existing fixed assets associated with the improvement of production and an increase in its technical and economic indicators. These works are carried out under the project of reconstruction of fixed assets in order to increase production capacity, improve quality and change the range of products.

Completion, additional equipment and modernization include work caused by a change in the technological or service purpose of an item of fixed assets, increased loads or other new qualities.

Technical re-equipment is a set of measures to improve the technical and economic performance of fixed assets or their individual parts. Such an improvement in indicators is carried out through the introduction of advanced equipment and technology, mechanization and automation of production, modernization and replacement of obsolete and worn-out equipment with new, more productive ones.

After analyzing the above definitions, we can note the following. As a result of modernization, reconstruction and other similar measures, the main technical and economic indicators of depreciable property change, while the purpose of repair work is to eliminate the malfunctions and defects that have arisen and maintain fixed assets in working order. That is, for the correct qualification of the work performed, it is not the content and types of work that are of fundamental importance, but the goals and consequences of their implementation for the object.

In particular, the main technical characteristics of such an object of depreciable property as a building are the area of ​​​​the premises, their capacity, throughput, etc. Reconstruction can be recognized as work, the result of which is the reconstruction of the building, carried out in order to improve production, increase its usable area. Cosmetic repairs in the building, repair of heat, water or electricity systems, work to improve the appearance of the object, which does not lead to a change in the functional purpose, does not increase its usable area, but only helps to maintain the building in proper condition, suitable for its intended use, cannot be qualified as a reconstruction.

In addition, in order to correctly determine the work on modernization and other improvement, in particular, equipment, it is necessary to pay attention to the change in the standard indicators indicated in the passport of the fixed asset or other technical documentation to this object. For example, after modernization, the equipment operates at increased loads, or the volume of products manufactured on it has increased, or the purpose of using the facility has changed.

Tax accounting of expenses for reconstruction, modernization and other OS improvements

In tax accounting, the initial cost of fixed assets is increased by the amount of costs associated with the reconstruction, modernization and other similar work listed in paragraph 2 of Article 257 of the Tax Code of the Russian Federation.

After reconstruction and other work to improve the characteristics of the object, the organization has the right to increase its useful life. For profit tax purposes, this period can be extended only within the depreciation group to which such property belongs. This is stated in paragraph 1 of Article 258 of the Tax Code of the Russian Federation.

Please note: objects that are under reconstruction and modernization by decision of the management for more than 12 months are excluded from the depreciable property (clause 3 of article 256 of the Tax Code of the Russian Federation).

For the reconstructed (modernized) object, the taxpayer will have to recalculate the amount of monthly depreciation.

The amount of depreciation after an increase in the initial cost of a fixed asset is calculated based on its new initial cost (that is, based on the sum of the initial cost determined when the facility was put into operation and the costs of reconstruction and other improvements) and the established depreciation rate according to the formula:

A \u003d (P + R) x 1 / (n + m) x 100%,

where A is the monthly amount of depreciation;

P - the initial (replacement) cost of the fixed asset;

P - the cost of reconstruction (modernization);

n - useful life of the object in months;

m - the number of months by which the useful life of the fixed asset has increased after reconstruction (modernization). If such an increase did not occur, this indicator is equal to zero.

So, as a result of reconstruction and other work to improve depreciable property, the organization may decide to increase its useful life. In addition, the taxpayer has the right to independently increase this period (within the useful life for this depreciation group). But often, after the reconstruction and other improvements of an object, its initial cost increases so much that it cannot be written off to zero through depreciation within the useful life established for this object in the Classification of property, plant and equipment, despite the fact that even after this period the organization continues to operate the main asset. Is it possible in such a situation to recognize, when calculating income tax, expenses in the form of depreciation amounts accrued after the end of the useful life of the named object?

Recall that in tax accounting, the cost of fixed assets is reflected in expenses only through the depreciation mechanism. The grounds on which the organization stops accruing depreciation (and therefore taking into account such amounts in expenses) are listed in paragraph 2 of Article 259 of the Tax Code of the Russian Federation. This is a complete write-off of the value of the object or its disposal from the depreciable property. The expiration of the useful life of the fixed asset is not indicated in the named paragraph.

It follows from the considered norms that the part of the initial cost of the object, which was not depreciated during its useful life, can be further depreciated until the initial cost is completely written off or until the object is retired from the depreciable property. Moreover, the depreciation rate is applied, which was determined based on the useful life of the object (clauses 4 and 5 of article 259 of the Tax Code of the Russian Federation). There are no other indicators for calculating the depreciation rate for income tax purposes.

CJSC "Parus" in August 2008 carried out work on the reconstruction of the premises of the production workshop. As a result, the capacity and throughput of the workshop increased, it became possible to install additional equipment and produce new types of products. The cost of reorganization amounted to 1,100,000 rubles. (without VAT). The initial cost of the workshop in tax accounting is 5,200,000 rubles. When the building was put into operation, the useful life of 260 months was set (the eighth depreciation group). Accordingly, before the reconstruction, the amount of monthly depreciation was 20,000 rubles. (5,200,000 rubles x 260 months).

In tax accounting, the reconstruction work is qualified as a reconstruction of a building. The useful life of the workshop after the reconstruction, the organization decided to increase to 300 months (the maximum period for the eighth depreciation group according to the Classification of fixed assets). Prior to these works, the workshop building had already been used for 180 months, so the remaining useful life of the workshop after reconstruction is 120 months (300 months - 180 months). The reconstructed workshop building was put into operation in August.

The amount of depreciation accrued before the reconstruction of the workshop is 3,600,000 rubles. (20,000 rubles x 180 months).

After the reconstruction, the initial cost of the workshop in tax accounting increased to 6,300,000 rubles. (5,200,000 rubles + 1,100,000 rubles). Since September 2008, the amount of monthly depreciation is 21,000 rubles. (6,300,000 rubles x 300 months).

For the remaining useful life, CJSC Parus will accrue depreciation in the amount of 2,520,000 rubles. (21,000 rubles x 120 months).

Thus, during the useful life (300 months), the organization will accrue depreciation for the workshop building in the amount of 6,120,000 rubles. (3,600,000 rubles + 2,520,000 rubles).

The difference between the initial cost of the workshop and the amount of accrued depreciation is 180,000 rubles. (6,300,000 rubles - 6,120,000 rubles) the organization has the right to take into account in expenses that reduce taxable profit by accruing depreciation in the amount of 21,000 rubles. monthly. Moreover, depreciation can be charged until the full write-off of the cost of the shop (to zero) or the disposal of this fixed asset for any reason.

The organization has the right to include in the expenses of the reporting (tax) period the cost of capital investments of not more than 10% of the initial cost of fixed assets, as well as the costs of completion, additional equipment, reconstruction, modernization, technical re-equipment and partial liquidation of these facilities. The basis is paragraph 1.1 of Article 259 of the Tax Code of the Russian Federation. In this case, the lump-sum write-offs for capital investments are not taken into account when calculating the amount of depreciation.

The depreciation bonus amounts reduce taxable income as indirect expenses of the reporting period in which the depreciation start date falls (the date of change in the initial cost during reconstruction or modernization). This is indicated in paragraph 3 of Article 272 of the Tax Code of the Russian Federation.

CJSC Spektr in April 2008 purchased and put into operation a production machine. Its purchase price is 980,000 rubles. (without VAT). Based on the order of the head, for the purposes of taxation of profits, the machine is assigned to the third depreciation group, its useful life is 37 months. In September 2008, the machine was upgraded. As a result of modernization, it became possible to produce more products on the machine. In addition, the useful life of the machine has increased by 12 months.

CJSC Spektr spent 120,000 rubles on the modernization of equipment. (without VAT). According to accounting policy organizations, capital investments in the amount of 10% of the initial cost of fixed assets and modernization costs are taken into account in the taxation of profits at a time at the start date of depreciation.

In tax accounting, CJSC Spektr accrues depreciation on the machine from the 1st day of the month following the month in which the facility was put into operation, that is, from May 2008. In May, the depreciation bonus in the amount of 98,000 rubles was also included in the expenses. (980,000 rubles x 10%). The monthly amount of depreciation charges from May to September 2008 amounted to 23,838 rubles. [(980,000 rubles - 98,000 rubles) x 37 months].

In September 2008, as a result of modernization, the initial cost of the machine increased by 120,000 rubles. In the same month, the machine was put into operation.

This means that from October 2008 the amount of depreciation on the machine will be 20,204 rubles. [(980,000 rubles - 98,000 rubles + 120,000 rubles - 120,000 rubles x 10%) x (37 months + 12 months)].

Repair, reconstruction or modernization of fixed assets: cost accounting

Paragraph 1 of Article 260 of the Tax Code of the Russian Federation states that the costs of repairing fixed assets are recognized in tax accounting as part of other expenses. They reduce taxable profit in the reporting (tax) period in which they were made, in the amount of actual costs.

To more evenly account for these expenses when taxing profits, you can create reserves for future repairs of fixed assets in accordance with Article 324 of the Tax Code of the Russian Federation.

LLC "Polymer" in August 2008 renovated the office space. Floor coverings and window blocks were replaced, a suspended ceiling was installed, walls were painted, and other finishing work was carried out. After the repair, the technical and economic indicators of the premises have not changed.

The cost of repair work amounted to 675,000 rubles. (without VAT). The accounting policy of Polymer LLC does not provide for the creation of a reserve for future repairs of fixed assets for tax purposes. Consequently, the cost of current repairs in the amount of 675,000 rubles. in August 2008 is included in the costs in full.

Recall that for the purposes of taxation of profits, not only the costs of repairing one's own fixed assets are taken into account, but also the costs of repairing leased facilities (clause 2, article 260 of the Tax Code of the Russian Federation). Provided that the lease agreement does not provide for reimbursement of these expenses by the landlord.

How to draw up documents

All expenses that the organization recognizes for profit tax purposes must be documented (clause 1, article 252 of the Tax Code of the Russian Federation). It is important that the documents are drawn up in accordance with the legislation of the Russian Federation.

As a rule, the need for repair, reconstruction or modernization of fixed assets is identified based on the results of the inventory of these facilities. In the presence of any malfunctions requiring elimination, a defective statement and an estimate of the cost of repairs are compiled. For equipment defects identified during installation, commissioning or testing, as well as based on the results of control, the organization draws up an act on the identified equipment defects (form No. OS-16). In other cases, defective statements are compiled in any form.

Repair, reconstruction or modernization of fixed assets is carried out on the basis of the order of the head of the organization. The transfer of fixed assets after repair, reconstruction or modernization is formalized by an act of acceptance and delivery of repaired, reconstructed, modernized fixed assets (form No. OS-3). The act reflects the type of work, their cost, etc. The act is signed by members of the acceptance committee or a person authorized to accept fixed assets. In addition, the signature is put by the representative of the organization ( structural unit) that carried out repairs, reconstruction or modernization. The acceptance certificate is approved by the head of the organization or a person authorized by him, after which this document submitted to accounting.

As a rule, repair or reconstruction work is carried out by a third party. In this case, the act in the form No. OS-3 is drawn up in two copies. One remains with the performer.

Information about the work carried out on reconstruction, modernization or repair, the owner of the fixed asset is obliged to enter in the inventory card of the fixed asset (form No. OS-6). For this, sections 5 and 6 are provided in the card.

To confirm the costs, in addition to the act in the form No. OS-3, there must be other primary documents indicating the work performed (work acceptance certificates signed by the contractor and the customer). Contracted construction and installation works are drawn up by a special act in the form No. KS-2, approved by the Decree of the State Statistics Committee of Russia dated 11.11.99 No. 100. The act for other types of work is drawn up in any form. The main thing is that all the requirements for the execution of primary accounting documents prescribed in paragraph 2 of Article 9 of the Federal Law of November 21, 1996 No. 129-FZ “On Accounting” are observed.

If the reconstruction, modernization or repair work was carried out by the organization on its own, the corresponding costs can be confirmed, for example, by invoices and invoices from suppliers of the inventory purchased for use in the named works, invoices for the transfer of material assets, payroll statements, as well as accounting references.

1 Unified forms of primary documents for the accounting of fixed assets were approved by the Decree of the State Statistics Committee of Russia dated January 21, 2003 No. 7.

Modernization and reconstruction is the reorganization of an object. As a result, its qualitative characteristics are improved (for example, power increases, technical capabilities expand, service life increases, etc.). As a result of completion or additional equipment, the object acquires additional features(for example, the useful area of ​​the building increases) and can carry increased loads.

How to account for expenses?

The costs of modernization, reconstruction, completion and additional equipment of fixed assets are not included in the composition of "tax" and "accounting" expenses. They are attributed to the increase in the initial cost of the object. This means that expenses will reduce “tax” and “accounting” profits not at a time, but over a long period of time (as they accrue to the fixed depreciation asset).

And yet, 10 percent of the initial cost of fixed assets is allowed to be written off as “tax” expenses immediately in the reporting (tax) period in which the company begins to depreciate them (clause 1.1, article 259 of the Tax Code of the Russian Federation). The same can be done with modernized (completed, retrofitted) facilities.

This procedure is called "depreciation premium".

Example

In February of the reporting year, Aktiv CJSC purchased a computer, the initial cost of which was 30,000 rubles. In the same month, the company put the object into operation and modernized it: improved the technical characteristics of the computer, replacing the processor with a more powerful one and installing a DVD drive. The work was done by a third party. The cost of work (including the cost of new parts) amounted to 8,000 rubles. (excluding VAT).

Thus, the initial cost of the computer, taking into account the costs of modernization, amounted to 38,000 rubles. (30,000 + 8,000). It was at this cost that the computer was reflected in both accounting and tax accounting.

In the accounting and tax accounting policy of "Asset" it is written that the depreciation of fixed assets is charged on a straight-line basis.

The useful life of the computer is 4 years (48 months). This means that the monthly depreciation rate is 2.08% (100%: 48 months). Accordingly, the monthly amount of "accounting" depreciation will be 790.4 rubles. (38,000 rubles X 2.08%). This amount was reflected in accounting in March of the reporting year.

In tax accounting, the "depreciation premium" was accrued:

38 000 rub. X 10% = 3800 rubles.

In addition, the monthly amount of “ordinary” depreciation must be reflected in tax accounting. Its sum is:

(38,000 rubles - 3,800 rubles) X 2.08% \u003d 711.36 rubles.

The amount of "tax" depreciation (711.36 rubles) must be taken into account in March of the reporting year, as well as in subsequent months - until the computer is fully depreciated.

Thus, in March of the reporting year, the following amounts will be reflected in the company's expenses:

In accounting - 790.4 rubles;

In tax accounting - 4511.36 rubles. (3800 + 711.36).

Please note: for fixed assets that the company received free of charge, it is impossible to accrue a “depreciation premium”.

Differences between reconstruction and repair

It is very important to distinguish between the costs of reconstruction and the costs of repairing fixed assets. The fact is that the cost of any repair (current, medium or capital) can be immediately and completely included in the cost. This rule applies to both accounting and tax accounting.

Therefore, it is much more profitable for the company to have the work carried out classified as a repair.

The main difference between reconstruction and repair is that as a result of reconstruction, the qualitative characteristics of the object change. Namely:

The productivity or capacity of the fixed asset increases;

Its functionality is changing.

As a result of the repair work, the qualitative characteristics of the equipment (buildings, structures) remain the same. The purpose of the repair is to keep the facility in working order. Therefore, any costs for the maintenance of fixed assets (technical inspection, maintenance, troubleshooting and breakdowns) are repair costs.

In practice, disagreements with the tax authorities arise precisely because the inspectors are trying to “bring” certain repairs under reconstruction. And the task of an accountant is to prove the opposite.

However, it is unlikely that this will be possible if the word “reconstruction” appears in the contract with the repair company. In this case, you will have to prove that there was no actual reconstruction (which in itself is extremely difficult). Therefore, it is better to refuse such formulations.

Example

The commercial firm repaired the production equipment. All repair costs were included in "tax" costs. In the contract and invoices, the work performed was called "technological modernization and reconstruction of equipment."

When checking this, the inspectors drew attention to this and excluded repair costs from the "tax" costs. They argued their position as follows: it does not follow from the documents that the work performed did not correspond to the name of the contract. And the company did not provide any evidence that the work was exclusively related to the repair.

The matter went to court, and the judges supported the controllers. In their opinion, in such a situation it is necessary “to proceed from the literal interpretation of the text of the documents” (see the resolution of the Federal Antimonopoly Service of the North-Western District of March 21, 2001 No. A56-996 / 00).

If everything is more or less in order with the documents, the company is no longer obliged to prove the legitimacy of writing off certain expenses in tax accounting. If the inspectors do not agree with something, it is they who must argue their position. As practice shows, controllers have much less chances here.

Example

The manufacturing company has repaired the roof. tax inspectors considered it a reconstruction and excluded all expenses from the composition of the "tax" costs. The firm appealed to the court, which upheld it.

The inspectors were unable to provide any evidence that the company's expenses were related to the reconstruction (Decree of the Federal Antimonopoly Service of the North-Western District of February 14, 2000 No. A56-21964 / 99).

Inspectors often fail even in those cases when, it would seem, they have much more chances of winning.

Example

The company paid for the redevelopment of the building, as a result of which the areas of individual premises increased. The inspectors regarded it as a reconstruction. However, the judges did not support them.

According to the arbitrators, “during the reconstruction, the area of ​​the entire building as a whole, and not its individual premises, should be increased” (decree of the FAS of the Moscow District of October 8, 2002 No. KA-A40 / 6684-02).

It is also not easy for inspectors in those cases when, after the work, the purpose of the building does not change. The main thing is that the word "reconstruction" does not appear in primary documents.

Example

The cinema opened a cafe and a shop in its building. Under an agreement with a construction company, it was about the repair of premises. The inspectors did not agree with this and all the costs of equipping the cafe were regarded as reconstruction. In their opinion, there was a re-profiling of the cinema.

The judges found this unconvincing. As stated in the court decision, “placing a cafe and a store in the cinema building did not change its essence as an object of culture” (Decree of the Federal Antimonopoly Service of the East Siberian District of December 26, 2001 No. A19-875 / 01-41-Ф02-3212 / 01 -C1).