09.06.08

In a recent situation, a non-profit organization paid for a trademark with money collected in the form of membership dues, and renewed the trademark 10 years later. The organization is involved in both non-commercial and entrepreneurial activity. They wondered if the expense related to the renewal of the trademark could deducted from their tax payments.

The Moscow offices of the Federal Tax Service answered the query with Letter # 20-12/015948 from February 20, 2008. They stated that a non-profit has the right deduct expenses for trademark renewal as a "production expense," if the trademark has been used for only profit-oriented activity. If it is used for both non-profit and entrepreneurial activity, the expenses may not be deducted.

Also, if a trademark purchased by non-profit organization is paid for with money collected in form of membership dues, the accumulated amortization for this intangible asset may also not be deducted.

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Source: Российский налоговый портал