01.10.08

A recent letter from the Ministry of Finance (MinFin) examines the criteria by which expenses may be considered "directly related to the production of goods and services," which is important for being able to claim them as deductions.

If the taxpayer uses accrual-based accounting, then production and sales expenditures incurred during the fiscal period may be considered direct or indirect. The ministry emphasized: a taxpayer has the right to determine which expenses to place in this category by formalizing a list within an internal accounting policy.

This is according to the Letter of the Ministry of Finance (MinFin) #03-03-06/1/597 of August 27, 2008

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Source: Российский налоговый портал