According to Chapter 25 of the Tax Code of the Russian Federation, a company is obligated to keep independent tax records.

Accounting rules for object grouping with business activity for tax purposes differ from the rules that are used in general accounting. The tax base for each reporting tax period is calculated on the basis of tax accounting data.

The following documents are used as data for tax accounting:

  • Primary accounting documents.

  • Analytic tax registers that systematize revenue and expenses for tax purposes.

  • Calculation of the tax base for the reporting period.

The purpose of keeping tax records is to generate a basis for calculating taxes and providing proof of the accuracy of these tax report calculations:

  • Profit tax and the receipt of a profit tax statement report.

  • Assessed tax and the receipt of an assessed tax statement report.

  • VAT (Value Added Tax) and the receipt of a VAT statement report.

The Microsoft Dynamics AX tax register system is based on a tax register system recommended by the Ministry of Taxation (MoT) for calculation of profits in accordance with the norms of Chapter 25 of the Tax Code. The Microsoft Dynamics AX tax register system offers basic tax registers, each of which consists of a set of figures that, according to the MoT, are essential for calculating the tax base in accordance with Chapter 25 of Tax Code. The groupings of expenses and revenue lie at the heart of the MoT register system.

The principle behind creating a register system is as follows: Based on the end goal of tax accounting, the receipt of a justification of the tax report figures through the tax registers is linked to the feedback from the original documents.

The fundamental difference between tax registers and general accounting forms is that all figures in the register lines must be reconciled with the original document in order to confirm the validity of assigning the referenced expense or revenue to one group or another.

The implementation of tax accounting in Microsoft Dynamics AX requires specification of the type of expense or revenue. The type should be specified for the original documents and data (orders, purchases, accounts, advance orders, employee pay records, FA (Fixed asset) cards, inventory journals, and so on), as well as supplier, client, and personnel transactions, during account creation and inventory transactions.

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