Taxation of non-operating income under income and profit tax

Taxation of non-operating income under income and profit tax



We inform you that non-operating income refers to income from participation in the activities of other enterprises as a shareholder, income from shares, bonds, and other securities owned by the enterprise, as well as other income not directly related to the production and sale of goods or services, including amounts received as fines or compensation for damages, foreign exchange gains from currency transactions, and creditor deposit amounts for which the statutory claim period has expired in accordance with the legislation.

Non-operating income of income and profit taxpayers (excluding taxes withheld at source) is subject to income and profit tax.

According to Article 219.1 of the Tax Code, the tax base includes the total revenue received during the reporting period by simplified taxpayers (excluding taxpayers specified in Article 218.4 of this Code) from goods (works, services) and property provided, as well as non-operating income (excluding income subject to withholding tax).

At the same time, we inform you that non-operating income does not create a taxable base for VAT purposes.