Subsidies in corporate tax
Posted: Thu Dec 26, 2024 3:58 am
Income derived from teaching courses or conferences can be considered an economic activity when the person who obtains it organizes the event themselves, advertises it or even charges some kind of entrance fee to the event. In that case, it would be necessary to register it in the appropriate section and issue an invoice . Income is also treated this way when we are already carrying out an economic activity related to the subject being taught, so that it can be understood that it is one more service that we provide.
In this case, it would be necessary to determine whether it is a business or professional activity to know whether it is subject to withholding or not. It would also be necessary to analyze the subject matter to be taught, because, if it is formal training, it would be exempt from VAT.
To declare subsidies in cambodia whatsapp number data Income Tax, we must adhere to their classification as capital or operating subsidies. However, in Corporate Tax , the regulations require that they be applied in the income statement depending on whether they are considered repayable or non-repayable.
Repayable grants are those whose receipt is conditional on the fulfillment of certain requirements during a certain period of time. Consider, for example, public aid for hiring, which grants a company a sum of money on condition that it keeps a worker on its payroll for a certain number of years. If this requirement is not met, the company must return the amount received in proportion to the period of time remaining to be fulfilled.
The procedure for declaring this type of subsidy would be as follows: the grant is recorded in the accounting records on the date it is made and the payment is made when it is received. However, from a fiscal point of view, it does not represent a major income for the year as long as the employee's commitment to remain in the company is not fulfilled. The subsidy is charged to results at the end of the year in proportion to the period of time fulfilled .
In this case, it would be necessary to determine whether it is a business or professional activity to know whether it is subject to withholding or not. It would also be necessary to analyze the subject matter to be taught, because, if it is formal training, it would be exempt from VAT.
To declare subsidies in cambodia whatsapp number data Income Tax, we must adhere to their classification as capital or operating subsidies. However, in Corporate Tax , the regulations require that they be applied in the income statement depending on whether they are considered repayable or non-repayable.
Repayable grants are those whose receipt is conditional on the fulfillment of certain requirements during a certain period of time. Consider, for example, public aid for hiring, which grants a company a sum of money on condition that it keeps a worker on its payroll for a certain number of years. If this requirement is not met, the company must return the amount received in proportion to the period of time remaining to be fulfilled.
The procedure for declaring this type of subsidy would be as follows: the grant is recorded in the accounting records on the date it is made and the payment is made when it is received. However, from a fiscal point of view, it does not represent a major income for the year as long as the employee's commitment to remain in the company is not fulfilled. The subsidy is charged to results at the end of the year in proportion to the period of time fulfilled .