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How is the value of an asset determined, and how is tax calculated in case of a price difference?
How is the value of an asset determined, and how is tax calculated in case of a price difference?
Please be informed that according to Article 143 of the Tax Code, the value of assets includes the expenses incurred for their purchase, delivery, production, construction, installation, and assembly, as well as expenses that the taxpayer has the right to deduct from income, excluding the increase (positive difference) arising from the revaluation of fixed assets, and other expenses that increase the value of assets are included and deducted from income in accordance with Article 108 of the Tax Code.
Please note that within 30 days, the level of prices applied by taxpayers to goods (works, services) of the same characteristics or the same type, taking into account the requirements of Article 14.6.1 of this Code, including losses arising from natural loss norms established by the relevant executive authority and losses occurring without write-off, is compared with the level of prices formed during relevant transactions for the same (analogous) goods (works, services) in the market. If the difference exceeds 10% (higher or lower) in wholesale trade activities, 20% in construction and manufacturing activities, and 30% in other activity areas, the market price is applied.
Additionally, when determining the market prices of goods (works, services), the following factors influencing prices are taken into account:
The volume of goods shipped (works performed, services rendered) (the size of the batch);
The terms for fulfilling obligations, payment conditions;
Changes in demand and supply for goods (works, services), including seasonal fluctuations in consumer demand;
The country of origin of the goods, the place of purchase or provision;
The conditions of delivery of goods (works, services);
The quality of goods and other consumption indicators;
The introduction of new unique goods (works, services) to the market or the entry of goods (works, services) into a new market due to marketing policies, including the provision of product samples to familiarize consumers;
When determining market prices for works and services, including repair, construction, installation works, transport, rental, education, medical services, and other areas, the area where the works are performed or services provided, their quality indicators, and other conditions affecting prices are taken into account.
If the price level applied by taxpayers to the goods (works, services) provided is more than 30% lower than the market price determined according to the Tax Code, taxes are calculated based on market prices; if higher, taxes are calculated based on the actual prices applied.
Please be informed that according to Article 143 of the Tax Code, the value of assets includes the expenses incurred for their purchase, delivery, production, construction, installation, and assembly, as well as expenses that the taxpayer has the right to deduct from income, excluding the increase (positive difference) arising from the revaluation of fixed assets, and other expenses that increase the value of assets are included and deducted from income in accordance with Article 108 of the Tax Code.
Please note that within 30 days, the level of prices applied by taxpayers to goods (works, services) of the same characteristics or the same type, taking into account the requirements of Article 14.6.1 of this Code, including losses arising from natural loss norms established by the relevant executive authority and losses occurring without write-off, is compared with the level of prices formed during relevant transactions for the same (analogous) goods (works, services) in the market. If the difference exceeds 10% (higher or lower) in wholesale trade activities, 20% in construction and manufacturing activities, and 30% in other activity areas, the market price is applied.
Additionally, when determining the market prices of goods (works, services), the following factors influencing prices are taken into account:
The volume of goods shipped (works performed, services rendered) (the size of the batch);
The terms for fulfilling obligations, payment conditions;
Changes in demand and supply for goods (works, services), including seasonal fluctuations in consumer demand;
The country of origin of the goods, the place of purchase or provision;
The conditions of delivery of goods (works, services);
The quality of goods and other consumption indicators;
The introduction of new unique goods (works, services) to the market or the entry of goods (works, services) into a new market due to marketing policies, including the provision of product samples to familiarize consumers;
When determining market prices for works and services, including repair, construction, installation works, transport, rental, education, medical services, and other areas, the area where the works are performed or services provided, their quality indicators, and other conditions affecting prices are taken into account.
If the price level applied by taxpayers to the goods (works, services) provided is more than 30% lower than the market price determined according to the Tax Code, taxes are calculated based on market prices; if higher, taxes are calculated based on the actual prices applied.