FEATURES OF ACCOUNTING AND TAXATION OF ROYALTY: KEY ASPECTS
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.
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.
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution NonCommercial NoDerivs 4.0 Unported License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access)