ACCOUNTING AND TAXATION FOR DEPRECIATION OF FIXED ASSETS

Abstract

Optimization of accounting and tax registration by means of their maximum convergence and tax savings are, as a rule, the main goals of the organization, which places a priority on one of them. The choice of the method for accounting of fixed assets plays a significant role in their implementation. The purpose of the study is to establish the causes of tax differences when accounting for depreciation of fixed assets and to develop recommendations for the convergence of accounting and tax accounting and tax savings. Materials and methods. The main sources of information are laws and regulations governing accounting and tax accounting. The main methods used in the study are comparative and analytical ones. Results. Temporary tax differences are formed when income and expenses are recognized in both accounting and tax accounting, but in different time periods, which leads to a discrepancy in the calculated amounts of income tax. The difference arises due to differences in the methods for calculating depreciation, as well as due to depreciation premiums peculiar only to tax accounting and due to liquidation value peculiar to accounting, etc. The choice of the accounting method and the application of certain recommendations in the field of its optimization, developed in the paper, directly depends on the goals pursued by the organization. Some of them are aimed at reducing the complexity of accounting and tax accounting, and the others are at tax savings. Conclusions. The choice of a linear method for calculating depreciation, as well as the establishment of zero liquidation value and a cost criterion for recognizing property as a fixed asset, will allow us to achieve maximum convergence of accounting and tax accounting. At the same time, the use of a depreciation premium and a non-linear method of calculating depreciation will make it possible to achieve tax savings, which has a beneficial effect in conditions of inflation.