Confirmation of payment as the basis for recognizing the expenditure in costs
Each taxpayer should know the definition of tax deductible costs as well as the conditions for recognizing an expense as a business cost.Company costs may be costs incurred in order to obtain income, preserve or secure its source (except for the costs listed in Article 23 of the PIT Act). At the same time, these expenses must be properly documented. Can the confirmation of payment be the basis for recognizing the expense in costs?
In order for an expense to be tax-deductible, it must not only meet the statutory definition, but also be properly documented. The most popular accounting voucher is of course an invoice, but it is not only on the basis of it that you can post an expense in costs. The basis for entries in the KPiR may also be other documents, including payment confirmation, but only those listed in the regulation of the Minister of Finance.
The basis for entries in the KPiR may be:
- VAT invoices, margin VAT invoices, RR VAT invoices, invoices - cash method,
- customs documents,
- correction invoices and correction notes,
- daily statements of evidence (sales invoices) prepared for posting with a collective entry,
- accounting notes,
- evidence of shifts,
- proofs of postage and bank charges,
- other proofs of fees, including those made on the basis of payment books, and documents containing the data required for accounting vouchers,
- internal evidence - but only in strictly defined situations,
- receipts or vouchers - only in strictly defined situations,
- descriptions or specifications of materials or commercial goods received.
The cost can only be booked against the receipt in certain situations. A fiscal receipt can be the basis for posting:
A motorway ticket may also be accepted as an accounting document, if it contains:
If motorway receipts contain the above data, they are considered invoices, which additionally allows taxpayers to deduct VAT from them.
The so-called simplified invoices. If the total amount of the transaction does not exceed PLN 450 or EUR 100 (when the amount due is denominated in EUR), taxpayers do not have to provide all the necessary data on the invoice issued. However, it is necessary to include, among others NIP (tax identification number) of the buyer, tax rates and its amount. The document is then considered a simplified invoice and can be booked.
The act also mentions cases where an expense may become a cost only at the time of its payment. Check when a proof of payment is required for an expense to qualify as a business expense!
Entrepreneur's ZUS contributions and payment confirmation
One of the expenses that can be settled only at the time of payment are social security contributions.
In practice, most often ZUS contributions paid in a given period are settled in advance for income tax for this period (the social contribution paid reduces the taxable income, and the paid health insurance contribution reduces the tax payable). If the entrepreneur pays the Labor Fund, it is always entered into the KPiR.
An alternative for an entrepreneur may be posting the paid social insurance and Labor Fund contributions directly in the KPiR as tax deductible costs. Accounting is only made on the actual payment date.
The health insurance premium can be deducted only from tax, so it cannot be included in tax deductible costs, but only deducted from the moment of calculating the advance for income tax for the period in which it was paid.
On May 9, 2016, Mr. Piotr paid ZUS contributions for April. This means that they cannot be settled until May.
Interest on liabilities
Interest on liabilities may in principle be tax deductible, provided that it has been paid by the entrepreneur - payment confirmation is required. Company costs include:
- interest on loans and credits taken for the purposes of the business,
- late payment interest for failure to settle obligations with contractors,
- the interest part of the financial lease installment.
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Salaries in costs and payment confirmation
In practice, employees' wages are most often paid in arrears, so only after a working month. Usually by the 10th day of the following month at the latest. If the settlements between the employee and the employer are made on other dates than the monthly settlement, the payment dates are regulated by the company's internal records. Tax deductible costs include salaries that have actually been paid.
Basic salaries for a given month, paid on time, ie by the 10th day of the following month, are booked in the month to which they relate. If the basic salary is not paid on time, it should only be charged to the costs when the actual payment is made.
It is different in the case of civil law contracts, because they always constitute a cost in the month in which they were actually paid.
Wages and salaries and social security contributions in costs
If the basic salaries have been paid on time, the ZUS contributions in the part financed by the employer may also be included in the costs in the same month, provided that they have been paid within the applicable period.
If basic salaries are paid on time, but in the next month (in accordance with the contracts concluded with employees), the calculated ZUS contributions are included in the tax deductible costs in the month of its payment (provided that they were paid by the 15th day of the month in which the salary was paid). ).
In the case of civil law contracts, ZUS contributions may always be a company expense only after they are paid.
Social benefits fund
The Company Social Benefit Fund is created by employers who, as of January 1, employ at least 20 employees (converted into full-time jobs). If this condition is not met, the employer may create the Company Social Benefits Fund voluntarily. No provision specifies the amount of contributions to the Company Social Benefits Fund.
Contributions to the Social Fund may be recognized as tax deductible only at the time of payment of funds to a separate bank account.