Newsletter EN

The Ministry of Finance explains how to reflect excess profits tax in accounting and reporting.

The amount of the tax assessed and the amount of the security payment remitted thereon are reflected in the 2023 entries:
The actual settlements with the budget for the tax year 2024 are recorded as follows:
A provision is recognized at the amount that reflects the best estimate of the expenditure required to settle the obligation. The taxpayer calculates this amount by considering the anticipated tax amount, their intention to either remit or not remit the security payment, and the realization of their entitlement to a deduction.

In the event of a justifiable change in intent and in accordance with the actual transfer or non-transfer of the security payment, the estimated liability may be adjusted as of December 31, 2023.

The interim financial statements for the first nine months of 2023 include the following:

  • amount of the estimated tax liability - as a part of estimated liabilities;

  • amount of the estimated liability recognized as an expense - in the line "Other" of the statement of financial results.

The annual financial statements for the year 2023 indicate:

  • transferred security payment - within accounts receivable;

  • amount of the estimated tax liability - as a part of estimated liabilities;

  • amount of the estimated liability recognized as an expense - in the line "Other" of the statement of financial results.

Document: Information message of the Ministry of Finance of Russia from September 14, 2023 N ИС-учет-46.