Open AccessInvestment tax deduction as an alternative to amortization
Author(s) -
Шабанова Мария Романовна,
Шумяцкий Роман Иванович
Publication year - 2020
Publication title -
finansy i upravlenie
Language(s) - English
Resource type - Journals
ISSN - 2409-7802
DOI - 10.25136/2409-7802.2020.1.29570
Subject(s) - amortization , economics , tax deduction , investment (military) , double taxation , tax reform , finance , business , accounting , public economics , state income tax , gross income , political science , law , loan , politics
The object of this research is the investment tax deduction, which gives organizations the ability to reduce the calculated income tax contributing to reduction of income tax burden, freeing up finances, and allowing for faster replenishment of the capital asset fund of the organization. The subject of this research is the ability to use this deduction as an alternative to amortization. The author examines the economic impact of an organization in application of investment tax deduction and amortization withholdings based on various forms of property and international accounting standards. This article presents the results of comparative analysis of amortization withholdings and investment tax deduction. The author calculates the economic impact of application of investment deduction, methods of amortization, as well as application of amortization bonus, and studies international experience. Despite the difficulty of the question in hand from the practical perspective, in light of absence of statistical data and clarification from the Ministry of Finance of the Russian Federation, as well as case law on the application of this legislative norm, the author determines the key advantages and disadvantages of using investment deduction. The description is given to the risks of applying investment tax deduction; recommendations are formulated for using the investment tax deduction.