21.10.08

If an organization enters into an agreement with a cellular operator, and the mobile communication services are used directly by the organization’s staff through the use of their personal cell phones, and the company does not reimburse staff members for the charges, then the charges will be considered non-operating income for Russian accounting purposes.

Profits, property, or property rights are considered to be obtained free of charge for tax purposes if the recipient of the property or property rights is not obligated to return the property to the donor. This provision would apply also when receiving permission to use the profit, property, or property rights.

With regard to recognizing the use of cellular services according to the agreement between the organization-tax payer and the mobile operator, it must be confirmed that calls from cellular phones were made for business purposes.

The Department of Financial and Tax Services in Moscow reported this citing a Letter from the Supreme Arbitration Court from December 22, 2005 № 98. This is according to the Federal Tax Service’s Letter dated June 30, 2008 N 20-12/061156.

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Source: Российский налоговый портал