Ministry of Finance is preparing a new blow to business
The Russian Ministry of Finance proposes to prescribe in the Tax Code the maximum allowable interest rates on corporate loans. Thus, the ministry expects to simplify tax accounting and avoid the situation when companies take such expenses into account when calculating income tax. Amendments may enter into force in 2015.
According to Izvestia, the Ministry of Finance of the Russian Federation is now working on amendments to Art. 269 of the Tax Code, according to which the rules for accounting for expenses on loans will be revised. The Office proposes to prescribe the maximum allowable interest rates on corporate loans, the costs of which can be taken into account when reducing the base for calculating income tax.
The director of the Department of Tax and Customs Tariff Policy of the Ministry of Finance Ilya Trunin explained that these amendments will become a reference point, according to which the rules for accounting for expenses on loans will be revised. The planned changes in the Ministry of Finance explain that it is necessary to simplify tax accounting as much as possible. According to a source in the department, the current procedure is too complicated for both companies and tax authorities, since they all have to justify the market-based interest rates on loans. If you prescribe a specific size, then it will become easier for everyone. But not the fact that it is more profitable.
Recall that at present, companies can reduce the basis for calculating income tax on all expenses incurred on a loan if its value is market value. The exception is if the organization has taken its first loan. Then its value in rubles is limited by the Central Bank refinancing rate increased by 1.8 times (14.85% per annum). If the loan rate is higher, the borrower must take this excess into account when calculating the base for income tax, the Chief Accountant recalls.
The Ministry of Finance in its development proposes to directly prescribe in the Code the maximum allowable interest rates on corporate loans, the costs of which can be taken into account in the database for calculating income tax. As Klerk.ru notes, various options for limiting the rate are being considered. Probably, the starting point will be the statistics of the Central Bank of the Russian Federation on average rates on corporate loans. According to the results of August 2013, the average weighted rate on annual corporate loans amounted to 9.3% per annum.
Although the content of this initiative is quite obvious, many experts believe that this proposal of the Ministry of Finance will result in additional costs for companies. For small and medium-sized businesses, which are credited at 15-20% per annum and above, the inability to write off these expenses for profit can become an overwhelming burden.
The situation is further complicated by the fact that in many respects the bank-enterprise combination is a closed system in which credit risks are reflected in the rate. For banks to lower rates, the situation in the economy should change in the direction of increasing the profitability of enterprises. This is not to be expected. That is why Russian small business receives money so dearly, and is trying to write off the costs of the loan to where the law allows. Attempts to limit this process to the Ministry of Finance may lead to results that are far from ideal.
It is assumed that the new rules will come into force in 2015, but if the agency manages to do everything sooner, the dates may change. In any case, it makes sense for enterprises to take into account the likelihood of future changes and really calculate their strength in long-term projects with borrowed money. Otherwise, difficulties cannot be avoided.