Article 271. Procedure for Recognising Incomes When Using the Calculation Method

1. For the purposes of this Chapter, the incomes shall be recognised in the reporting (tax) period in which they have taken place, irrespective of the actual incoming of monetary funds, of other property (works, services) and (or) of the rights of property (method of calculation).

2. As concerns incomes referring to several reporting (tax) periods and if the connection between the incomes and the outlays cannot be clearly identified or is identified only in an indirect way, these shall be distributed by the taxpayer on his own, with account taken of the principle of evenness in recognising incomes and outlays.

3. For incomes from sale, unless otherwise envisaged by the present Chapter, recognised as the date of deriving an income shall be the day of sale of these commodities (works, services, rights of property), defined in conformity with Item 1 of Article 39 of the present Code, regardless of the actual arrival of monetary funds (other property /works, services/ and /or/ of the rights of property) in payment for them. In the sale of commodities (works, services) under a contract of commission (under an agency agreement) by the tax paying consignor (the principal), the date of receiving incomes from sale thereof shall be the date of selling the property (property rights) owned by the consignor (the principal) which is indicated in the notice of the commission agent (agent) on the sale thereof and (or) in the report of the commission agent (agent).

4. Recognised as the date of obtaining an income for the extra-realisation incomes shall be:

1) the date of the parties' signing an act on the transfer and acceptance of the property (of the acceptance and handing over of works or services), - as concerns the incomes:

- in the form of property (works, services) received free of charge; - other similar incomes;

2) the date of arrival of monetary funds to a taxpayers's settlement account (his cashier's office) - as regards incomes:

in the form of dividends from share participation in the activity of other organizations;

in the form of monetary assets received free of charge;

in the form of the sums of returned contributions previously paid to non-profit making organizations which were included into the composition of outlays;

in the form of other similar incomes;";

3) the date of settlements or of the taxpayer's submitting the documents in accordance with the terms of the concluded agreements - as concerns the incomes:

from leasing property;

in the form of license payments (including royalties) for the use of objects of intellectual property;

in the form of other similar incomes;

4) the date of one's recognition as a debtor or the date of entry of a court decision into legal force - as regards incomes in the form of fines, penalties and (or) other sanctions for violating the terms of contractual or debt liabilities, as well as in the form of the sums for the recompense of losses (damage);

5) the last day of the reporting (tax) period - as concerns the incomes:

- in the form of the sums of replenished reserves and other similar incomes;

- in the form of an income placed in favour of the taxpayer, if he is taking part in a simple partnership;

- incomes from the trusted management of the property;

- other similar incomes;

6) the date of exposing an income (of receiving and /or/ of revealing documents confirming the existence of the income) - as concerns the incomes of previous years;

7) the date of the transfer of ownership with regard to foreign currency and precious metals, when making transactions in foreign currency and precious metals, as well as the last day of the current month - as regards incomes in the form of positive exchange rate difference in respect of property and the claims (liabilities), whose cost is expressed in foreign currency, and positive revaluation of the cost of precious metals;

8) the date of compiling an act on the liquidation of the depreciated property formalised in accordance with the demands of business accounting - as concerns incomes in the form of materials or other kinds of property received during the liquidation of the depreciated property withdrawn from use;

9) the date when the recipient of property (including monetary assets) actually used said property (including monetary assets) not for the purpose they were intended for, or violated the terms and conditions under which they were provided - as regards the incomes in the form of property (including monetary assets) specified in Items 14 and 15 of Article 250 of this Code;

10) the date of transfer of ownership of foreign currency - as regards incomes from sale (purchase) of foreign currency.

5. In the sale by a financial agent of financing services against the cession of a monetary claim, as well as the sale by a new creditor who has obtained the said claim, of financial services, the date of receiving the income shall be defined as the day of the subsequent cession of the given claim or of the debtor's settlement of the given claim. In the case of the cession by the tax paying seller of the commodity (works, services) - of the right of claim to a third person, the date of deriving an income from the cession of the right of claim shall be defined as the day of the parties' signing the act on cession of the right of claim.

6. As concerns debt and other similar contracts (other debt liabilities including securities) concluded for a term of more than one reporting (tax) period, the income for the purposes of this Chapter shall be recognized as received and shall be included into the composition of appropriate incomes, as on the end of an appropriate report period.

In the event of termination of a contract (repayment of a debt) prior to the expiry of a report period the income shall be recognized as received and shall be included into the composition of appropriate incomes, as on the date of termination of the contract (repayment of the debt).

7. The sum difference shall be recognized as an income:

1) for a taxpaying seller - as on the date of paying bills receivable concerning acquired goods (works, services), property, property rights and other rights, and in the event of advance payment - as on the date of acquiring goods (works, services), property, property rights and other rights.

2) with the buyer taxpayer - as of the date of redemption of the payables for the purchased commodities (works, services), property, property or other rights, and in case of an advance payment - as of the date of purchase of the commodities (works, services), property, property or other rights.

8. The incomes expressed in foreign currency shall be conversed for the purposes of taxation into roubles at the official exchange rate established by the Central Bank of the Russian Federation, as on the date of recognizing the appropriate income. The claims and liabilities expressed in foreign currency and the property in the form of currency values shall be conversed into roubles at the official exchange rate established by the Central Bank of the Russian Federation, as on the date of transfer of ownership with regard to transactions in said property, termination (execution) of claims and liabilities, and (or) on the last day of a report (tax) period depending on what has happened before.

Article 272. Procedure for Recognising the Outlays When Using the Calculation Method

1. The outlays accepted for taxation purposes with account taken of the provisions of this Chapter and shall be determined subject to the provisions of Articles from 318 to 320 of this Code shall be recognised as such in the reporting (tax) period to which they refer, regardless of the time of the actual payment out of the monetary funds and (or) of other forms of their coverage.

The outlays shall be recognised in the reporting (tax) period in which these outlays arise, proceeding from the terms of the deals (on deals with concrete time terms of execution) and from the principle of an even and proportionate formation of incomes and outlays (on deals continuing longer than one reporting /tax/ period).

Where the terms and conditions of a contract provide for the receipt of incomes within more than one reporting period and handing over of goods (works, services) by stages is not stipulated, the outlays shall be distributed by a taxpayer independently subject to the principle of evenness in recognizing incomes and outlays.

Taxpayer's outlays which cannot be directly referred to the expenditures made on specific kinds of activity shall be distributed proportionately to the share of the corresponding income in the summary volume of all the taxpayer's incomes.

2. Recognised as the date of effecting material outlays shall be:

- the date of handing over raw and other materials into production - in the part of the raw and other materials falling on the put out commodities (performed works, rendered services);

- the date of the taxpayer's signing the act on the acceptance - handing over of the services (works) - as concerns the services (works) of production nature.

3. Depreciation shall be recognised as the outlays every month, proceeding from the sum of the computed depreciation calculated in accordance with the procedure laid down by Articles 259 and 322 of the present Code.

4. The outlays on the remuneration of labour shall be recognised as the outlays every month, proceeding from the sum of the outlays on the remuneration of labour computed in conformity with Article 255 of the present Code.

5. The outlays on the repairs of fixed assets shall be recognised as outlays in the reporting period in which they were actually made, regardless of their remuneration with account taken of the specifics envisaged by Article 260 of the present Code.

6. The outlays on obligatory and voluntary insurance (on non-state pension security) shall be recognised as outlays in the reporting period in which the taxpayer has actually transferred (handed out from the cashier's office) the monetary funds for making insurance (pension) contributions in conformity with the terms of the agreement. If the terms of the agreement of insurance (of the non-state pension security) envisage the payment of the insurance (pension) contribution in a single-time deposit, the outlays made under the agreements signed for a term of over one reporting period shall be recognised evenly in the course of the term of operation of the agreement.

7. Recognised as the date of making the extra-realisation and other outlays shall be, unless otherwise established by Articles 261, 262, 266 and 267 of the present Code:

1) the date of calculation of the taxes (fees) - for outlays in the form of the sums of the taxes (advance payments of taxes), fees and of other obligatory payments;

2) the date of calculation in compliance with the requirements of this Chapter - as regards outlays in the form of allocations to the reserves recognized as outlays in compliance with this Chapter;

3) the date of settlements in compliance with the terms and conditions of contracts made or the date of submitting to the taxpayer the documents which serve as a basis for making settlements, or the last day of a report (tax) period - as regards the outlays:

in the form of the sums of commission fees;

in the form of payments to outside organizations for the works carried out (the services rendered) by them;

in the form of rentals (of the leasing payments) for the rented property (for that taken into leasing);

in the form of other similar outlays;

4) the date of transfer of the monetary funds from the taxpayer's settlement account (of the payment out from his cashier's office) - for outlays:

- in the form of the sums of the paid out travelling allowances;

- in the form of compensation for the use of personal cars and motorbikes in business trips;

5) the date of approval of an advance report - for outlays:

on business trips;

on the maintenance of the company's transport;

for representation outlays;

for other similar outlays;

6) the date of the transfer of ownership with regard to foreign currency and precious metals when making transactions in foreign currency and precious metals, as well as the last day of the current month - as regards outlays in the form of the negative exchange rate difference in respect of the property and claims (liabilities) which cost is expressed in foreign currency, and in the form of the negative revaluation of the cost of precious metals;

7) the date of realisation or of other kinds of withdrawal of securities - for the outlays involved in the acquisition of securities, including their cost;

8) the date of one's recognition as a debtor, or the date of entry into legal force of a court decision - as regards the outlays in the form of the sums of fines, penalties and (or) other sanctions for breach of contractual or debt liabilities, as well as in the form of the sums of recompense for losses (damage);

9) the date of transfer of ownership in respect of foreign currency - as regards the outlays on sale (purchase) of foreign currency.

8. On loan and other similar agreements (other debt liabilities including securities) concluded for a term of over one reporting period, for the purposes of this Chapter the outlays shall be recognized as effected and shall be included into the composition of the corresponding outlays, as on the end of an appropriate report period.

In the event of terminating a contract (repaying a debt liability) prior to the expiry of a report period outlays shall be recognized as effected and shall be included into the composition of appropriate outlays, as on the date of terminating the contract (repaying the debt liability).

9. A sum difference shall be regarded as an outlay:

for a taxpaying vendor - on the date of repaying bills receivable for sold goods (works, services), property rights, and in the event of an advance payment - on the date of selling goods (works, services), property rights;

for a taxpaying purchaser - on the date of repaying bills payable for acquired goods (works, services), property, property rights and other rights, and in the event of an advance payment - on the date of acquiring goods (works, services), property, property rights or other rights.

10. The outlays expressed in foreign currency for the purposes of taxation shall be conversed into roubles at the official exchange rate established by the Central Bank of the Russian Federation, as on the date of recognizing an appropriate outlay. The claims and liabilities expressed in foreign currency, property in the form of currency values shall be conversed into roubles at the official exchange rate established by the Central Bank of the Russian Federation, as on the date of transfer of ownership, when making transactions in such property, of termination (execution) of a liability or claim, and (or) on the last day of the report (tax) period depending on what has happened before.

Article 273. Procedure for Defining the Incomes and Outlays Using the Cash Method

1. Organisations (safe for banks) shall have the right to define the date of receiving an income (of effecting an expenditure) with the use of the cash method, if over the previous four months the sum of earnings from the sale of commodities (works, services) of these organisations not taking into account value added tax and sales tax, has not exceeded one million roubles in every quarter.

2. For the purposes of this Chapter, recognised as the date of deriving an income shall be the day of arrival of the funds onto the accounts in banks and (or) to the cashier's office, and of the receipt of other property (works, services) and (or) of the rights of property, as well as a repayment of a debt with regard to the taxpayer in other way (the cash method).

3. Recognised as taxpayers' outlays shall be expenditures made after they are actually paid for. For the purposes of this Chapter, seen as payment for commodities (works, services) and (or) for the rights of property shall be the termination of the reciprocal liability by tax paying acquirers of the said commodities (works, services) and of the rights of property to the seller, which are directly connected with the delivery of these commodities (with the performance of works and with rendering services, or with the transfer of the rights of property).

The outlays shall in this case be recorded in the composition of the outlays, taking into account the following specifics:

1) the material outlays, as well as the outlays on the remuneration of labour, shall be recorded in the composition of outlays as at the moment of repaying the indebtedness by way writing off the monetary funds from the taxpayer's settlement account or as at the moment of paying these out of the cashier's office, and if the other method for the repayment of the indebtedness is applied - as at the moment of such repayment. A similar order shall be applied with respect to the payment out of interest for the use of the borrowed funds (bank credits included) and in case of remuneration of the services of third persons. The outlays on the acquisition of raw and other materials shall in this case be recorded in the composition of the outlays as soon as the given raw and other materials are written off to production;

2) depreciation shall be recorded in the composition of the outlays in the sums calculated for the reporting (tax) period. It is admissible to record only the depreciation of the depreciated property paid for by the taxpayer which is used in production. A similar order shall be applied with respect to the capitalised outlays stipulated by Articles 261 and 262 of the present Code;

3) the outlays on the payment of taxes and fees shall be recorded in the composition of the outlays in the amount of their actual payment by the taxpayer. If there is indebtedness in the payment of taxes and fees, the outlays on its settlement shall be recorded in the composition of the outlays within the limits of the actually settled indebtedness and in those reporting (tax) periods when the taxpayer has been liquidating the said indebtedness.

4. If a taxpayer who has switched to defining the outlays and expenditures using the cash method has exceeded in the tax period the ultimate amount of the sum of earnings from the sale of commodities (works, services) fixed by Item 1 of the present Article, he shall be obliged to switch to defining the incomes and expenditures using the method of calculation as from the start of the tax period in the course of which such excess has taken place.

5. Taxpayers defining receipts and expenditures in compliance with this Article for the purposes of taxation shall not record in the composition of receipts and expenditures sum differences, where under the terms and conditions of the transaction a claim (liability) is expressed in conventional monetary units.