Object of taxation: basic concepts and essence of its definition

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The object of taxation is a list of certain legal facts that determine the obligation of a business entity to pay tax for the implementation of the sale of goods. Also, the taxable object includes the import of goods into Russian territory, the presence of property in personal possession, the receipt of an inheritance and simply income.

The current Tax Code of the Russian Federation defines the concept of "object of taxation" as operations related to the sale of goods, property, as well as income, profit or any other object that can be assessed in value, quantitative and physical terms. With the presence of these criteria, the tax legislation stipulates the occurrence of obligations to pay taxes.

However, this definition cannot be recognized as clear only in connection with the presence of the value of the cost of goods sold. The corresponding obligation may arise only upon actual sale, and their cost is the basis fordetermining the basis for taxation.

It should be noted that each individual tax has its own object of taxation, which is regulated by part 2 of this Code.

As property, the current tax legislation implies some objects of civil rights that can be attributed to property pursuant to the Civil Code of the Russian Federation.

The object of VAT taxation is regulated by art. 146 of the Tax Code of the Russian Federation, it is based on the following elements:

- Realization of goods, services and works on the Russian territory. This also includes the transfer of property rights. At the same time, it should be understood as the transfer of ownership of goods on a reimbursable basis, as well as the results of work performed by one person to another, or the provision of certain services for a fee (clause 1, article 39 of the Tax Code of the Russian Federation).

- Realization carried out in the form of the sale of collateral and the transfer of goods in accordance with the concluded agreement on the provision of innovation.

It should be taken into account that the object of taxation includes the transfer of goods in Russia for use in one's own needs and only if the costs associated with the acquisition of these goods will not be taken into account when taxing profits.

When considering tax issues, we must not forget about the use of a simplified system. When applying the "simplification" in the form of an object of taxation, the following can be used:

-income;

- income that is reduced by expenses.

The object of taxation "income minus costs" is recognized as the most effective for a business entity, since the use of such a system will allow taking into account the expenses incurred by the payer. However, it must be remembered that only expenses included in a special list, which is constantly expanding, are taken into account.

The tax rate when taking into account income minus expenses is 15%. When used as an object of income, a single tax is payable at 6%. Therefore, the payer has the right to determine for himself which principle of taxation is beneficial to him.