07.02.08

If a joint stock company places its shares, for example, on the London Stock Exchange where one of the trading conditions is providing financial reports according to US GAAP confirmed by independent auditors, and the company also has foreign investors interested in receiving such financial reports, expenses for the completing a US GAAP audit can be written off from the company's taxable profit. The reason is that the auditing is necessary for preparing US GAAP financial reports, and, at the same time, is necessary to carry out normal business activities.

The Ministry of Finance has not opposed this position (according to the Letter 03-03-06/1/6 from January 14, 2008) and even reminds us that the list of “other production and marketing expenses,” provided in Article 264 of the Tax Code, remains open.

Read More about Accounting Services from Alinga Consulting Group