Taxes (FI-AP/AR)
The Taxes (FI-AP/AR) component covers the most important laws and business practices specific to Russia. The following documentation covers these aspects of the component. For generic information about Taxes, see Taxes (FI-AP/AR).
Features
Value-Added Tax
VAT (value-added tax) is liable on most sales and purchases of goods and services. VAT is recognized not on presentation of an invoice but on payment, and it is thus handled in the SAP system using the deferred tax functions.
Profit Tax
A company's profit is liable to income tax (known in the system as profit tax). However, the basis for taxation is not the net profit given in your income statement. Instead, the law requires you to use a separate set of accounting regulations to calculate your taxable profit.
Example
In financial accounting, all insurance contributions for employees are recognized as expenses, whereas in profit tax accounting, there is a limit of a maximum of RUB 10,000 per employee. Some expenses can only be recognized over a period of years. Finally, some low-value assets in financial accounting are recognized as fixed assets in profit tax accounting.
In order to handle these two different sets of accounting regulations, the system keeps two sets of books in parallel. It thus records each business transaction twice: Once in the general ledger and it subledgers, as normal; and once in a special ledger for profit tax accounting.
At closing, you calculate your profit for taxation purposes from the special ledger, and prepare the profit tax return accordingly.