Finance and Statistics - Ковалева А.М.

5.5 PROFIT DISTRIBUTION IN CONDITIONS OF MODERN TAXATION SYSTEM

The distribution and use of profits is an important economic process that provides coverage for the needs of entrepreneurs and the formation of state revenues.

The mechanism of profit distribution should be built in such a way as to promote in every way the increase of production efficiency, to stimulate the development of new forms of management.

Depending on the objective conditions of social production at various stages of the development of the Russian economy, the profit distribution system changed and improved. One of the most important problems of profit distribution both before the transition to market relations and in the conditions of their development is the optimal ratio of the share of profit accumulated in the budget revenues and remaining at the disposal of economic entities.

With the development of privatization and corporatization, enterprises have the right to use the received profit at their own discretion, except for that part of it that is subject to mandatory deductions, taxation and other areas in accordance with the law.

Thus, there is a need for a clear system of profit distribution, first of all at the stage preceding the formation of net profit, i.е. Profit that remains at the disposal of the enterprise.

An economically sound system of profit distribution must guarantee the fulfillment of financial obligations to the state and maximize the production, material and social needs of enterprises.

We note how the gross profit is adjusted in the distribution process, after which we will disclose in details the individual directions of profit.

First of all, gross profit is reduced by the amount: income from equity participation in the activities of other enterprises located within Russia; Dividends and interest received on shares owned by the enterprise, as well as on income from state securities of the Russian Federation, constituent entities of the Russian Federation and local self-government bodies; Income from leasing and other uses of property.

Then, the gross profit is reduced by the amount of profit: from mass concerts of o-entertainment events in open areas, stadiums hosting more than 2,000 people; From the casino, video salons and the use of gaming machines; From intermediary transactions and transactions.

From the gross profit, the amount of profit, on which tax privileges are established, is excluded.

Since 1994, the incomes of legal entities on government bonds and other state securities, as well as from the provision of services for the placement of government securities and the reserves of the Federal Treasury of the Russian Federation, which are not subject to income tax, are also excluded from gross profit. The gross profit remaining after these adjustments is subject to taxation.

With this profit is paid to the budget income tax. After payment of the tax there is a NET PROFIT. This profit is at the full disposal of the enterprise and is used by it independently. In Fig. 5.2 is a diagram of the formation and distribution of the gross profit of the enterprise.

Let us explain the reasons for excluding certain types of income, payments and deductions from gross profit,

From gross profit since 1991, payments for the use of natural resources (land, water, minerals) were deducted. These payments are called rental payments, because they are due to the presence of differential rent arising under more favorable natural conditions. In this regard, enterprises generate additional income, not earned by the efforts of the labor collective, which is subject to transfer to the budget for national needs.

Education and distribution of gross profit

Since 1997, rental payments are not excluded from gross profit taken for tax purposes.

In the process of distribution, gross profit is reduced by the following types of income (profit): from equity participation in the activities of other enterprises; Dividends, interest received on shares owned by the enterprise, as well as on income from state securities of the Russian Federation, constituent entities of the Russian Federation and local self-government bodies; From carrying out of mass concert-entertainment events on open areas, stadiums; From the work of video shows Goth video displays), from the rental of video and audio cassettes and recording on them. These types of income (profit) are subject to independent taxation, and therefore to avoid double taxation are excluded from the gross profit.

As for the income of legal entities on government bonds and other government securities, as well as from the provision of services for their placement, they are excluded from gross profit, since they are not generally taxable.

Gross profit excludes income from leasing and other uses of property, as well as profit from intermediary transactions and transactions, the calculation of tax is carried out in a different order. At the same time, one should take into account that the work of procuring, supply-and-marketing, trade organizations (except for commission activity), as well as insurance activity, banking operations and transactions, production and sale of agricultural products does not belong to intermediary activities.

In the course of further distribution, part of the gross profit before 1997 was transferred to the reserve fund or other similar Funds. In 1997, the reduction in profit on the amount of deductions to the reserve and other similar funds formed in accordance with the law was abolished. Only the banks retained the right to reduce gross profit on the created reserves for the depreciation of securities and for possible losses on loans.

From the gross profit, the amount of profit, on which tax privileges are established, is excluded. Existing income tax incentives stimulate the development of entrepreneurship, expansion of investment activities, growth of the scientific and technical potential of enterprises, provision of social needs of workers and employees, etc.

After all of the above adjustments, the taxable profit becomes taxable, with which the income tax is paid. Having paid to the budget a corresponding tax on profits, the enterprise receives at its disposal the remaining NET PROFIT.