12.05.08

Corporate parties are famous for their unforeseen consequences, but now the tax authorities have added one more. The Ministry of Finance, in a letter dated April 15, 2008 N 03-04-06-01/86, advises that organizations estimate the economic gain received by all individuals within the course of the party and act as the tax agent for paying personal income tax on this "income."

However, in the second half of that letter, the Ministry says that if the economic gain received by each participant of the corporate party cannot be evaluated, then the "profit" is not subject to personal income tax.

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Source: Российский налоговый портал