None of thebusiness entity can exist without an authorized capital. We consider in the light of recent legislative changes, the peculiarities of accounting and taxation of contributions to the authorized capital of a limited liability company.
Direct investment
A transaction on transfer funds or property in the authorized capital >(hereinafter - AC) of a legal entity in exchange for corporate rights issued by it is considered to be a direct investment (para. 14.1.81 of the Tax Code of Ukraine, hereinafter -TCU).
Value Added Tax
The transaction on the transfer of funds to the AC of a limited liability company (hereinafter - LLC) in exchange for corporate rights does not fall under the object of VAT taxation. Similarly, VAT and securities issuance and corporate rights should not be taxed (para. 185.1, paras. 196.1.1 of TCU).
At the same time, transactions of VAT payers for the supply of goods and services in the customs territory of Ukraine are the subject to VAT taxation, taking into account the requirements of para. 185.1 of TCU. It should be recalled that the supply of goods means any transfer of the right to dispose of goods as the owner (para. 14.1.191 of TCU).
Taking into account the aforementioned, a transaction of transfer of inventory to the AC of the LLC by the founder - the VAT payer is the subject to VAT taxation and is subject to taxation on general grounds at a basic rate of 20%. LLC, to AC of which the inventory to be entered, has the right to a tax credit for this transaction on the basis of a tax invoice drawn up by the founder and registered in the Unified Register of Tax Invoices (hereinafter - URTI).
Of course, if the founder is a non-payer of VAT, tax credit is out of the question. Since the right to draw up a tax invoice is granted only to VAT payers.
Unified tax
The amounts of money and the value of the property received by LLC as contributions to the AC are not subject to the unified tax. Despite the fact that for the purpose of taxation of the unified tax, the income is considered to be any income in monetary, material and non-material forms, the specified amounts of contributions do not belong to the taxable income (para. 292.1, 292.11 of TCU).
Income tax
Under the general rule, the subject to the income tax is the income with a source of origin from Ukraine and abroad, which is determined by adjusting the financial results before tax (profit or loss) on the difference that arises in accordance with the provisions of the TCU (para. 134.1.1 of TCU).
At the same time, the TCU does not provide for any differences that would be adjusted for the financial result from the received contributions to the AC.
Information about the state and movement of the AC, as well as contributions to the declared, but not yet registered AC should be aggregated on the account 40 “Registered (share) capital”.
LLC reflects the AC on the subaccount 401 “Authorized Capital”. An increase in the AC is reflected under the credit of subaccount 401, and under debit - its decrease (withdrawal). The balance on this subaccount must correspond to the size of the AC, which is fixed in the constituent documents of LLC. Analytical accounting of the AC is carried out by types of capital for each founder (participant).
Unpaid capital is recorded on the account 46 “Unpaid capital”. The debit of this account reflects the debts of the founders (participants) by contributions to AC of LLC, the loan - its repayment. An analytical account is also conducted by each founder (participant) of LLC.
Consequently, in the accounting, contributions do not lead either to an increase in income or to an increase in costs. Thus, both the property and the cash contributions of the participants do not affect the object of taxation of the income tax.
