Restrictions on pandemia negatively influenced the activities of entrepreneurs. More than once, business trips abroad had to be canceled at the very last moment when tickets were already bought, and the hotel was booked. Today, such situations are also possible.
In this article, we will analyze whether it is possible to take into account the unstoppable travel expenses when calculating income tax. To begin with, consider chapter 25 of the Tax Code of the Russian Federation.
What costs can be taken into account
It states that taxation of expenses is possible if they are recognized as reasonable and documented. Costs should be intended for activities that are aimed at receiving income.
These costs are also considered the losses specified in paragraph 2 of Article 265 of the Tax Code of the Russian Federation. These include losses obtained by the organization in the reporting period.
Based on the above, we can conclude that when the business trip is canceled, the company has the right to take into account unstoppable expenses when calculating income tax. But they must be justified, documented and not indicated among expenses that are not taken into account for tax purposes (Article 270 of the Tax Code of the Russian Federation).
This confirms the letter of the Ministry of Finance of Russia dated 03.07.2020 No. 03-03-06/1/57735. Does this also refer to business trips canceled due to coronavirus or due to closed boundaries?
Cancellation of the trip due to the closure of borders
If the trip was canceled due to insurmountable circumstances, which include spontaneous disasters, epidemics (including coronavirus infection), the closure of the transport message, then when calculating income tax, expenses can be taken into account.
For example, in the case of Pandemia, Koronavirus, Rospotrebnadzor recommended that the foreign labor in the pandemic be abandoned (letter dated 10.03.2020 No. 02/3853-2020-27). But these expenses are not in Article 270 of the Tax Code of the Russian Federation, so they could be safely attributed to the expenses of subparagraph 6 in paragraph 2 of Article 265 of the Tax Code of the Russian Federation (losses from emergency situations).
Grounds for accounting for costs for a penalty for returning tickets
Let us turn to subparagraph 13, paragraph 1 of Article 265 of the Tax Code of the Russian Federation. It indicates that the company has the right to include expenses in the form of non -operating expenses sanctions for violation of contractual obligations. The sanctions for violation of the contract include the penalty when returning tickets.
This is also stated in the letter of the Ministry of Finance dated 08.09.2017 No. 03-03-06/1/57890:
The company has the right to take into account the costs of the penalty when returning tickets. Again, they must be documented and are not indicated in Article 270 of the Tax Code of the Russian Federation.
Exception
If the trip is canceled due to the fault of a business being, then the costs of non -reflective tickets and the paid hotel cannot be included in the costs of costs for profit tax. This is indicated in the letter of the Federal Tax Service of Russia dated 01.29.2020 No. SD-4-3/1352@.
