FEATURES OF ACCOUNTING AND TAXATION OF ROYALTY: KEY ASPECTS

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Authors

  • L.S. Novichenko National Academy of Statistics, Accounting and Audit, Department of Audit and Entrepreneurship, Kyiv, Pidhirna str. 1, 04107
  • N.S. Stoika Ferenc Rákóczi II. Transcarpathian Hungarian Institute, Department of Accounting and Auditing, Beregszász, Kossuth square, 6, 90200
  • O.V. Shchyrska National Academy of Statistics, Accounting and Audit, Department of Audit and Entrepreneurship, Kyiv, Pidhirna str. 1, 04107

DOI:

https://doi.org/10.15330/apred.2.16.77-83

Keywords:

right to property, right to use, honorarium, royalty accounting, royalty taxation, adjustment of financial results

Abstract

The article is directed features of accounting and taxation of royalty in Ukraine. Considered the definition of the economic concept of «royalty» in the field of accounting and taxation which contained in regulations. There is determined that the reflection in the accounting of royalty should be provided with appropriate documentation. Royalties, as an object of accounting, provides for the conclusion of a license contract, according to the contract the licensor gives the license permission to use the intellectual property on the terms specified in the contract. Тhere is established that the accounting of royalty is carried out by reflecting the accrued amount of royalties as part of the costs of the reporting period by functional purpose. The features of royalty accounting are systematized, the emphasis is on the importance of developing appropriate documentation for accounting of business transactions related to the calculation of royalty, reflection in the accounts and financial statements of the enterprise. There is determined that the features of royalty taxation are regulated by norms of the Tax Code of Ukraine applies to such taxes as VAT, income tax, single tax, personal income tax, military duty. Research of the features and key aspects of royalty taxation allowed to establish the procedure for taxation of transactions on accrual and payment of royalties of legal entities in different tax systems.

Author Biographies

L.S. Novichenko , National Academy of Statistics, Accounting and Audit, Department of Audit and Entrepreneurship, Kyiv, Pidhirna str. 1, 04107

Ph.D (Econ.),  associate professor

N.S. Stoika , Ferenc Rákóczi II. Transcarpathian Hungarian Institute, Department of Accounting and Auditing, Beregszász, Kossuth square, 6, 90200

Ph.D (Econ.),  associate professor

O.V. Shchyrska , National Academy of Statistics, Accounting and Audit, Department of Audit and Entrepreneurship, Kyiv, Pidhirna str. 1, 04107

Ph.D (Econ.),  associate professor

References

1. Wagner, I.M., Demko, I.I., and G.V.Pryshlyak “Features of accounting and royalty taxation: current aspects.”Socio-economic problems of the modern period of Ukraine, issue 2 (130), 2018, pp.78.
2. Tax Code of Ukraine from 2 December 2010. № 2755-VI. The Verkhovna Rada of Ukraine, zakon.rada.gov.ua/laws/show/2755-17. Accessed 30 Oct. 2020.
3. Regulation (standard) of accounting 15 «Income» Approved by the Order of the Ministry of Finance of Ukraine 29.11.99 № 290. The Verkhovna Rada of Ukraine, zakon.rada.gov.ua/laws/show/z0860-99#Text. Accessed 30 Oct. 2020.
4. Regulation (standard) of accounting 16 «Income» Approved by the Order of the Ministry of Finance of Ukraine 31.12.99 № 318. The Verkhovna Rada of Ukraine, zakon.rada.gov.ua/laws/show/z0027-00#Text. Accessed 30 Oct. 2020.
5. The Civil Code of Ukraine from 16 January 2003. № 435-IV. The Verkhovna Rada of Ukraine, zakon.rada.gov.ua/laws/show/435-15. Accessed 30 Oct. 2020.

Published

2020-11-25