Company “Erkon” in the first half of May held overseas business seminar “Tax Optimization under applicable law.” The venue of the seminar was chosen Kemer (Turkey). Program business seminar consisted of sections devoted to issues of particular relevance in today’s economy: tax optimization in terms of economic substance and business purpose nature, the main methods and ways of tax optimization, tax risk assessment of economic entities. Business Seminar held in interactive mode of constructive dialogue, which allowed us to consider the specific situation occurring during the economic activities of organizations. We offer you individual questions of participants and their answers. What’s more profitable for the company: to minimize the list of direct costs or bring together tax and accounting? For the purposes of income tax expenses for production and sales that you have suffered in the reporting (tax) period can be divided into direct and indirect. Peter Asaro wanted to know more.
Direct costs refer to costs current reporting (tax) period, as sales of products, works and services, the cost of which they are recorded in accordance with Art. 319 of the Tax Code. The amount of indirect costs for production and sales undertaken in the reporting (Tax) period, in its entirety is an expense in the current reporting (tax) period, taking into account the requirements of the Tax Code. Paragraph 1 of Art. 319 of the Tax Code established that the taxpayer determines the allocation of direct costs of work in progress and manufactured products in the current month (works, services) taking into account the proper implementation costs made products (works, services).