Coordination of business trips of leaders with the founder. Founder Spends on Company
When qualifying an economic transaction related to the payment of founders' expenses, an accountant has to deal with difficulties arising from contradictions contained in the norms of Russian law, fuzzy definitions of the economic and legal content of facts of economic life, and the special status of founders as owners of the company. You will learn about how to properly draw up and take into account the expenses of the founder in the article
13.02.2015Actual Accounting
Who is the founder?
We’ll try to understand who the founder is and what his rights are with regard to the disposal of the organization’s financial resources. We note right away that we will be talking about commercial organizations whose main purpose is to make a profit.
Often, among entrepreneurs, it is believed that the founder is the owner of the business. It is to the founders that the organization owes its existence, since they invested their resources and efforts in its creation. However, Russian law determines that the property of owners is separate from the property of the organization they created. The founder (participant) of a legal entity is not responsible for the obligations of the legal entity, and the legal entity is not responsible for the obligations of the founder (participant) (paragraph 3 of article 56 of the Civil Code of the Russian Federation). The founder owns a share (stock) in the authorized capital of the community, and not the property of the organization itself. The obligations of the founders are limited to their share in the authorized capital and the need to participate in the management of the organization. Thus, the founder is not entitled to dispose of the property of the company. The federal laws on joint-stock companies and limited liability companies define the obligations of the founders (Federal laws of 08.02.1998 No. 14-FZ, dated 26.12.1995 No. 208-FZ). Among them, we highlight the following: the need to contribute to the authorized capital, participation in the general management and management of a commercial organization, and the creation of a board of directors. Note that the founders may be members of the board of directors, but may not be members of the company's permanent governing body. The founder’s affiliation to the board of directors is an essential point in qualifying his expenses for taxation of profits.
Payments to founders and the Tax Code
Expenses and payments related to the founders are governed by the following provisions of the Tax Code:
- sub. 49 p. 1 art. 264 - other expenses associated with production and (or) sale (in some cases, the financial department allows the recognition of expenses under this item);
- section 2, Art. 264 - the composition of hospitality expenses related to other expenses associated with production and (or) sale includes the expenses of participants who arrived at meetings of the board of directors (board) or other governing body of the taxpayer, regardless of the location of these events;
- sub. 16 p. 1 Article 265 - non-operating expenses include expenses for holding meetings of shareholders (participants, shareholders), in particular: rental of premises, preparation and distribution of information necessary for holding meetings, and other expenses directly related to holding the meeting;
- section 21, Art. 270 - expenses not taken into account for tax purposes include expenses on any types of remuneration provided to management or employees in addition to remuneration paid on the basis of labor agreements (contracts);
- section 48.8 Art. 270 - expenses not taken into account for tax purposes include the amounts of remuneration and other payments made to members of the board of directors.
As can be seen from the above rules for taxation of profit, the list of situations that allow to recognize the expenses of founders in tax accounting is small. In our opinion, a significant limitation on the recognition of such expenses is clause 48.8 of Article 270 of the Tax Code, which literally deletes all payments to members of the board of directors from the calculation of income tax.
The official position of the Ministry of Finance of Russia is that the relations of members of the board of directors and organizations do not apply either to civil law relations or to labor relations if the relevant agreements are not concluded (letter of the Ministry of Finance of Russia dated 05.03.2010 No. 03-03-06 / 1 / 116). Referring to this letter from the financial department, we consider it necessary to clarify the following situation. The letter addresses a specific episode of the payment of remuneration to members of the board of directors. This suggests that expenses not related to incentive payments do not apply to the findings of the letter. However, the phrase "other payments" literally means all payments in favor of members of the board of directors.
Thus, in order to avoid tax risks on income tax, all payments to members of the board of directors should be qualified by the taxpayer as expenses not included in taxation. If an employment or GPC agreement has not been concluded with a member of the board of directors, then all expenses for these persons are not taken into account when calculating income tax (travel expenses, hotel expenses, hospitality expenses, etc.).
Founder's expenses in individual cases
Consider the most common situations when the founder acts in the interests of the company:
- participation in organizational activities for the management of a business company as provided for in the charter;
- performance of certain functions of company employees;
- representation of company interests in various relationships with third parties (meetings with customers, suppliers, authorities).
Note that the personal needs of the founders in their own interests can be paid by the company, but only within the limits of the dividends set by it or by agreement with other members of the company. This situation is sometimes found in practice, but should not be regular. Otherwise, the company will become unprofitable, and this does not serve the main purpose of creating a commercial organization - profit. Such expenses are not explicitly taken into account for tax purposes.
Consider the first situation when the founder needs to come to the general meeting of the founders in a subsidiary. In this case, the founder may be located at the location of the subsidiary, or may reside in another city or other country. Moreover, he may have an employment contract with her, or may not be on her staff.
If the founder lives in the location of the subsidiary, then he does not need travel expenses. If he is in another city or country, it is necessary to take care of the organization of his trip (purchase of tickets, visa, accommodation, meals, etc.).
Let's see if this trip can be considered a business trip? A business trip is a trip of an employee by order of an employer for a certain period of time to carry out a service assignment outside the place of permanent work (Article 166 of the Labor Code of the Russian Federation). At the same time, employees who are in labor relations with the employer are sent on business trips (clause 2 of the post of the RF Government dated October 13, 2008 No. 749).
There are frequent cases when the parent company sends its representative to the meeting of the founders of the subsidiary by issuing a business trip order. In this case, the parent company will incur travel expenses. In our opinion, such expenses can be accepted by the parent organization in tax accounting, as they are associated with activities aimed at generating income. After all, the funds invested in the authorized capital of a subsidiary are financial investments and should bring dividends.
Please note: if the subsidiary has an employment contract with the founder, then it can qualify the trip of such an employee as a business trip. The costs of such a trip are best taken into account under the heading “Other expenses associated with production and sale”.
If, however, an agreement has not been drawn up between the founder and the subsidiary, then this trip is not a business trip. Therefore, the founder’s expenses for traveling to the place where the meeting of the founders of the subsidiary is held cannot be taken into account under the item “Travel expenses” (subparagraph 12, clause 1 of article 264 of the Tax Code of the Russian Federation).
Some experts believe that the travel expenses of the founders in question can be considered as hospitality expenses. Others are of the opinion that the list of hospitality expenses is closed and cannot be expanded. Therefore, the organization itself must decide on the recognition of such expenses in tax accounting, assessing all possible risks.
Issues related to the recognition of travel expenses of founders (payment of passenger tickets, transfer, hotels, visas, meals, transportation, etc.) are controversial. On the one hand, these are the expenses of the founders themselves, as they are required and interested to participate in the management of the subsidiary. On the other hand, a subsidiary is also required to attract founders in its activities. These relationships should be governed by the charter.
In our opinion, the costs of organizing a trip of founders in tax accounting can be attributed to other expenses associated with production and (or) implementation (sub. 49 para. 1 of article 264 of the Tax Code of the Russian Federation). At the same time, the purpose of the trip should be provided for in the charter and the presence of the founder is mandatory for solving company issues. For example, the appointment of the General Director, Auditor, Auditor, approval of the annual report and other activities necessary for the company. These expenses are not regulated by tax legislation. However, it will be useful for the company to draw up a budget or an event budget, coordinate this document with all the founders and approve it with the general director. In this case, it is necessary to inform the founders of their obligation to provide the company with documents confirming their expenses. A convenient document for such a situation is the advance report form in the form of AO-1 with all the necessary documents attached to it.
A subsidiary company can take the initiative and independently pay part of the costs of organizing the trip and accommodation of the founders on the basis of contracts with transport agencies and hotels by bank transfer. Then, the supporting documents will be provided by the relevant counterparties through the responsible persons of the company.
If the purpose of the event for which the founder arrived is not stipulated in the charter, it will be difficult for the organization to prove the economic feasibility of the founder’s travel expenses. After all, all the functions of the current activities of the company should be provided by regular employees. Most likely, the tax authorities will consider the payment of such a trip not as a company’s expense, but as an individual’s income. If a similar situation arises, it is preferable for the organization to provide information to the tax office about the impossibility of withholding personal income tax.
Buffet service (buffet), breakfast, lunch, transport for the delivery of founders to the venue of the meeting, payment for translation services during a representative event is recognized as an expense for tax purposes. However, if the events held, such as dinner at a restaurant, are not official or if there are no documents confirming official business negotiations, the costs of their conduct are not taken into account for profit tax purposes (letter of the Ministry of Finance of Russia dated 16.11.2009 No. 03-03-06 / 1/759).
To confirm entertainment expenses, we recommend issuing an order to hold the event, approving the cost estimate and appointing a person responsible for the event. The responsible person must submit a report on the event and attach to it all the documents confirming the costs. Representation expenses during the reporting (tax) period are included in other expenses in an amount not exceeding four percent of the taxpayer expenses for labor remuneration for this reporting (tax) period.
Consider the second situation, when the founders perform certain functions of the company's employees.
If an employment contract is concluded with the founder, then the expenses on his salary or business trips are usually accepted when calculating income tax.
If the founder is not an employee of the company, then his participation in the current activities of the company should be regulated by a contract of work, paid services or another contract of civil law nature (GPC).
The founder’s expenses for business trips or hospitality are stipulated in the terms of the GPC agreement and reimbursed to him on the basis of an application, provided that the relevant supporting documents are attached to the latter.
Under the GPC agreement, the founder should be assigned remuneration, which is taken into account in expenses. The choice of expense item depends on the subject of the contract.
Moreover, remuneration for the performance of labor functions or obligations under the GPC agreement should be clearly distinguished from remuneration for the fulfillment of the duties of a member of the board of directors. Since expenses in the form of amounts of remuneration and other payments made to members of the board of directors are not taken into account for tax purposes (paragraph 48.8 of article 270 of the Tax Code of the Russian Federation).
Consider a situation where the founder represents the interests of the company in various relationships with third parties (meetings with customers, suppliers, authorities).
The circumstances of this situation are very similar to the previous relations of the founder and subsidiary. If the founder acts in the interests of the company, this means that he performs specific functions. But often the founder does not express a desire to conclude any contract with a subsidiary.
If the founder is paid remuneration without an employment contract, then its amount is not taken into account in expenses (paragraph 21 of article 270 of the Tax Code of the Russian Federation). If the remuneration is not paid, then the activities of the founder in favor of the company can be qualified as the provision of services free of charge, which entails the occurrence of non-operating income in the taxation of profit.
The expenses of the founder for representative purposes are accepted in tax accounting if they are documented and aimed at generating income. It can be negotiations with suppliers or buyers, representatives of authorities. The purpose of negotiations with representatives of authorities should be related to resolving issues that are essential for the company’s activities, the composition of expenses and their amount - reasonable within the business practice: water, coffee, tea, cookies, etc. No souvenirs, gifts are not included in the list of hospitality expenses.
Care should be taken in qualifying payments that compensate the founders if they are members of the board of directors. Because the literal reading of paragraph 48.8 of Article 270 of the Tax Code does not allow for the purposes of taxation to recognize any payments to members of the board of directors.
Often when carrying out the activities of the founders in the interests of the company there is a need to use official vehicles.
In this case, the cost of travel to the venue of the meeting can be included in hospitality expenses. At the same time, travel expenses must be confirmed by a waybill, and the purpose of the trip is connected with the solution of issues that are essential for the company’s activities.
To summarize and present our findings in a table (see below).
Justification of the expenses of the founder in tax accounting
Founder's expenses before company registration
When calculating income tax, organizational expenses until the moment of registration are not reflected regardless of whether they are, in accordance with constituent documents, a contribution to the authorized capital or not. This is explained by the following.
The legal capacity of the organization arises at the time of its registration (paragraph 3 of article 49, paragraph 2 of article 51 of the Civil Code of the Russian Federation). In accordance with paragraph 1 of Article 252 of the Tax Code, expenses are justified and documented expenses incurred by the taxpayer. Prior to registration, the organization is not a taxpayer, therefore, the expenses incurred before registration are not taken into account when calculating income tax.
Accounting for settlements with founders
Information on all types of settlements with founders (participants) of the organization is reflected in account 75 "Settlements with founders".
The expenses of the founders associated with the production and sale are reflected in the posting:
DEBIT 20 (26, 44) LOAN 75.
Other expenses of the founders are recorded as follows:
DEBIT 91 LOAN 75.
When paying income from participation in the organization, a record is made:
DEBIT 84 LOAN 75.
If the founder is an employee of the organization, then the accrual and payment of income from participation in the organization to him is reflected not on account 75, but on account 70 "Settlements with staff on remuneration". The following record is performed.
It is known that can be easily found in specialized journals for accountants. It would seem that it is not difficult to take advantage of the ready-made experience. However, if the purpose of the trip is not formulated correctly, the costs of it cannot be taken into account in expenses to reduce the taxable profit of the enterprise. Therefore, it is necessary to justify the business trip of an employee thoughtfully and carefully.
What documents to prepare
It is very convenient when a specialist is working in the organization who knows how to arrange a business trip. But at the time, many owners of small enterprises have to independently keep records and make up the majority of official papers.
Private entrepreneurs and employees who have not completed accounting courses, if necessary, are interested in how travel arrangements are processed.
It is no secret that this procedure includes several stages.
1. The head of the company issues a business trip order in form T9. It contains:
- FULL NAME. employee
- his personnel number;
- position;
- the division of the company (department, sector, department) in which the employee works;
- travel, its timing, sources of financing (usually the funds of the employer);
- destination.
A document is attached to the order - the basis of the business trip or invitation).
Until 2013, it was also required to prepare a travel certificate. Now these forms are optional. The workload of accountants was reduced, but new questions arose: how to confirm the fact of a trip as required and how to prove that the purpose of the trip was achieved?
In this regard, in many organizations employees continue to issue travel certificates. This is a small and at the same time very informative document. The purpose in the travel certificate is the same as in the order.
2. The employer purchases a hotel room reservation.
3. The seconded employee signs that he is familiar with the order, receives travel tickets and information about the place of residence.
4. The per diem is calculated. According to the legislation they comprise:
700 rub per day - when traveling within the territory of the Russian Federation.
2500 rub. per day - with foreign business trips.
The employer may, on his own initiative, increase payments, but in this case he will be required to contribute to the personal income tax budget charged from amounts in excess of the indicated values.
5. The employee’s salary is calculated for the duration of his stay outside the place of primary service. It is the average daily earnings multiplied by the number of days of a business trip. If the time spent on a business trip falls partly on weekends or holidays, wages for this day are calculated in double size.
6. Upon returning from a trip, an employee fills in an advance report on expenses incurred in the form No. AO-1 and attaches supporting documents: travel tickets, a hotel voucher, a waybill, checks for paying for fuel and lubricants, if necessary.
7. The results are summarized: is the purpose of the trip achieved? The employee prepares a written report or submits documents confirming the fulfillment of the job assignment.
What if the stated purpose of the trip is not achieved?
Is it possible to take business trip expenses into account in order to reduce the tax base? This issue still causes controversy between accountants and representatives of the Federal Tax Service. The latter argue that the cost of an inconclusive trip is not accepted for tax accounting.
Accountants and business owners, in turn, bring lawsuits to recognize that the employee’s business trip is operational, regardless of its outcome. Often they manage to defend their point of view in court.
In particular, a very common example of the purpose of business trips is “Sign a contract with a customer”. It is likely that the transaction will not take place. In this case, the tax authorities consider it unreasonable to attribute the costs of a business trip to expenses to reduce profits. However, business leaders have repeatedly managed to prove that during the negotiations strong business ties were established with potential customers, which could lead to the conclusion of a contract in the future. The court recognized the right of the taxpayer to accept travel expenses for tax accounting.
"Universal" formulations for job assignments
Currently, experienced auditors recommend: if there is any doubt that the purpose of the trip will be achieved, it is better to indicate it in the order with general phrases. When setting tasks, it is allowed to use free formulations. Here are examples of business trip goals that do not oblige an employee to document the fact of a task:
“Ivanov I. And sent to the city of N-sk for:
- solving production issues
- negotiations on possible cooperation,
- establishing business contacts,
- market research on the possibility of acquiring goods. "
The seconded employee did not fulfill the task indicated in the order
If a specific goal has been set, and it has not been achieved, it is permissible to request an explanatory note from the employee containing information about:
- why it was not possible to complete a job assignment,
- what is the result of the trip
- than the completed “journey” is economically beneficial for the company.
If there is a letter from the employee, the tax authorities, as a rule, recognize as legitimate the adoption of travel expenses for tax accounting.
What conditions must be observed when assigning a job?
Unfortunately, the normative documents do not indicate as an example the correct examples of the purposes of business trips. The tasks that the employee must solve during the trip, the employer determines independently. However, when drawing up the order, it is important to consider some points:
- In order to travel expenses could be taken into tax accounting, the production need to move an employee to another city or country should be obvious. For example, the costs associated with a trip to a corporate celebration or award ceremony cannot be included in expenses to reduce profits.
- The goals and objectives of the trip should correspond to the official duties of the employee.
- The term and route of the “trip” cannot contradict its reason. For example, if an employee was sent on a business trip to participate in the exhibition, he must depart in the opposite direction within 24 hours after the end of the event.
Executive Travel
Top executives of companies and their deputies travel to other cities and countries, as a rule, for:
- conducting key negotiations with partners,
- participation in official events,
- with potential customers.
The business trip of the head is usually made out not by an order in form T9, but by an order containing the phrase: “I am departing to .______________ for the purpose of ...”. At the disposal, as in the order, it is necessary to indicate the full name and employee position, destination, purpose and mission objectives.
Here are examples of job assignments that the first person of the company can appoint for himself or his deputies:
- conducting negotiations with LLC “Komplekt”;
- demonstration of product samples of LLC Standard;
- participation in the exhibition “Electrical Materials of Russia”, Moscow, September 27, 2016;
- conducting a presentation for the participants of the meeting "Space Engineering" July 20, 2016;
- participation in the seminar “How to Survive the Financial Crisis” on August 21, 2016, held by the Consultation Training Center LLC in Moscow;
- giving a lecture to students and post-graduate students of Moscow State University on the topic “State support of domestic producers”;
- exchange of experience with participants of the conference “Business is easy and with pleasure”, held from October 10 to October 15, 2016;
- professional development;
- familiarization with new technologies.
The business trip of the director and his deputies may also be related to checking the quality of work of the company’s branches. Here are some examples:
- summarizing the financial and economic activities of a subsidiary of Our Firm LLC for the 1st half of 2016;
- participation in the audit of financial and trade operations of the branch of LLC Enterprise in the city of N-sk;
- analysis of the quality of work and certification of personnel of the additional office No. 0233 in A-sk from September 2 to 10, 2016
If necessary, the purpose of the trip can be divided into several narrower tasks. They are usually not indicated in the order, but are reflected in the internal documents of the company.
So, for example, the following tasks may be set for the goal of “negotiating with the Perspektiva LLC on possible cooperation”:
- Acquaintance and personal meeting with the general director of LLC Perspektiva: demonstration of advertising materials, product samples, discussion of delivery conditions.
Expected Result:
- establish contact with the head of LLC “Perspective”,
- to bring to him information about the competitive advantages of the products of LLC “Our company” and the benefits of cooperation,
- agree to conclude a contract for the supply of the first batch of goods.
2. Participation in a meeting with the procurement department of LLC “Enterprise”, discussion of the terms of the contract.
Expected Result:
- Achieve the right to supply goods on the basis of 100% prepayment, subject to the provision of LLC “Perspective” wholesale discount in the amount of not more than 20% of the price indicated in the price list (1 option);
- Agree on the supply of goods in the amount of one ton of raw materials per month, without discount, with installment payment for a period of not more than 3 weeks (option 2).
Upon returning from the trip, the director summarizes whether the purpose of the trip has been achieved.
Business Travel Sales Managers
How to arrange a business trip for an employee responsible for customer service and product marketing? Sales managers usually set clear goals, expressed in quantitative terms. On how efficiently and effectively the employee fulfills the business plan, his earnings and career prospects depend.
If the employee responsible for working with clients is unable to complete the main task of a business trip (to make a sale), the employer still wants to get as much information as possible about the potential customer, prospects for cooperation with him, as well as about the reasons why it was not possible to conclude a deal.
In addition, it is important for the head of a company aimed at expanding the client base to understand with which of the competing firms the potential customer cooperates and on what conditions the contracts are concluded.
Therefore, when the sales manager goes on a business trip, he is set a multi-level goal, which includes tasks related not only to negotiations with the customer, but also to the collection of market information.
The main job assignment may sound as follows:
- conducting negotiations and establishing initial contact with Future Client LLC;
- conclusion of a contract for the supply of materials for the company AO Customer;
- expanding the customer base, exploring the possibilities of the N-ska market;
- participation in the exhibition “Building Materials Today” on August 1, 2016;
- exchange of experience with sales managers of the Western branch of the company; participation in the corporate conference “Profitable Transactions”;
- training new employees in the sales department of the Western branch;
- organization and holding of the seminar “Successful work”.
“The conclusion of a contract for the supply of goods” is the most popular purpose of business trips of employees responsible for working with clients. It can be disclosed in the tasks:
- meeting with a representative of the procurement department of LLC “Future Customer”, identification and analysis of needs;
- a visit to competing enterprises LLC “Rival 1” and JSC “Rival 2” as a “mystery shopper”: receiving price lists, collecting information about the conditions of cooperation with customers, drawing up a report for the marketing department, identifying the strengths of LLC Rival 1 and Opponent 2 JSC;
- negotiations with the head of the procurement department of LLC Future Client, demonstration of product samples, agreement on the terms of the contract;
- meeting with the CEO of Future Client LLC, signing a contract.
Upon returning from a trip, the sales manager is required to submit a report on the implementation of each task and the results obtained. Attached are the minutes of the negotiations, an analysis of the needs of the potential client, materials for marketing research, copies of commercial offers, a signed contract (if any).
Similarly, the goals of a trip can be formulated for the head of the client department or the director of the sales department.
The following tasks can be set for the management team:
- conducting an internal audit of sales transactions,
- control over the work of a company branch,
- participation in the meeting of the Committee on improving the quality of customer service,
- submitting a sales report to board members at the annual meeting.
Travel to purchase materials
Directors of enterprises, as well as employees of procurement departments, often go on business trips in order to purchase goods for the needs of the enterprise.
In this case, the order can specify any example of the purpose of business trips from the following:
- negotiations with LLC “Possible supplier 1” and LLC “Possible supplier 2”, discussion of the terms of cooperation;
- establishing business contacts with Zavod LLC, studying the production process and product samples;
- conclusion of contracts for the purchase of raw materials and components with OOO Material and JSC Details;
- coordination of the terms of the contract with the supplier LLC “Producer”.
Workers traveling
Often "travel" has to engineers for the installation and installation of equipment, builders, workers. For these specialists, any example of a business trip task out of the following is relevant:
- installation and initial testing of the production equipment “Line-1” in the shops of the company JSC “Customer”,
- installation, commissioning and commissioning of the conveyor-100 equipment,
- warranty service of the A-2 machine,
- routine maintenance on the production line of JSC "Customer",
- unscheduled repair, correction of machine breakdown,
- equipment prevention.
Business travel drivers
“Steering workers” often have to travel to other cities in order to transport goods, documents, deliver specialists to workplaces.
A business trip of an employee of this category is usually associated with the following tasks:
- delivery of the commercial director of Standard LLC to the place of negotiation with OOO Client,
- receipt of materials at the supplier’s warehouse, delivery of goods to the territory of LLC “Our company”,
- car repair, purchase of spare parts,
- technical diagnostics of a car in a certified car service.
Conclusion
Now you know what points it is important to pay attention to when arranging an employee’s business trip. In this article, you can find an example of the purpose of business trips that is suitable personally for your case.
For some domestic business entities, a director’s business trip is not something extraordinary, others are faced with this for the first time, asking questions such as “how to draw it up,” “what documents are needed, and who will endorse them.” The answers to them, as well as detailed instructions on processing a business trip for the leader, are presented in the article.
Normative regulation of travel issues
The definition of “service” is given in Art. 166 TC and reads as follows: this is a trip of a subordinate with a separation from a permanent workplace to fulfill the instructions given by the leadership.
Such shall not be considered trips of employees hired for traveling work.
Features referral to it contains the eponymous government Decree No. 749 of 10/13/2008.
These acts govern the organization of the business trip of the head of the organization, since he is also an employee, but authorized to represent the side of the employer in relations with other members of the team (relevant if the head is not a founder).
So, according to them:
- determines the duration of this trip, due to the volume of available tasks and their complexity;
- the manager is provided with certain guarantees for the period of absence (in particular, regarding the retention of his position and average earnings, as well as the reimbursement of the targeted expenses incurred on his return).
- certain restrictions are set.
Duration of stay on a business trip is not regulated. The only thing - persons admitted to a state secret cannot stay in it for more than six months (Decree No. 63 of February 6, 2010).
The legislation decides the obligation to compensate the leader in full for the targeted ones that took place on a business trip.
Restrictions should be understood as a ban on travel on business trips to such categories of leaders:
- women expecting a baby;
- single parents who are dependent on minors under 5 years of age, children with disabilities or disabled households.
The restrictions also apply to managers raising children under three years old on their own. They can be sent on a business trip, but only with written consent and a medical certificate confirming good health.
Travel Director: Documents
The trip is accompanied by documents adopted by the resolution of the State Statistics Committee No. 1 from 05.01.2004 to 2013.
Before proceeding to their design, you should study the statutory documentation. It indicates the person authorized to draw up and sight local orders. Sometimes this is a deputy head or chief accountant, which is allowed by paragraph 3 of Art. 53 GK. If he is the director himself, then he must deal with the signing of the required papers.
- f. No. T-10a;
- f. No. T-9;
- order for the temporary replacement of the head;
- f. No. T-10.
The first form is a job assignment for sending on a business trip and a report on its implementation. It summarizes the results of the trip and the costs incurred.
On its basis, an order for secondment is issued (paragraph 2) and, in parallel, an order for the replacement of the head.
The fact of being on a business trip and its duration is proved by a travel certificate (Clause 4), issued in one copy when traveling around the Russian Federation for a period exceeding one day. It contains personal data of the traveler, the purpose of the trip, time stamps about the time of arrival at the destination and return back, provided by the head of the accounting service along with the expense report.
All of the above is signed by the head of the organization, if the right to this is not delegated to another person. That is, he independently commanded.
From the beginning of 2015, the documents from paragraph 1 and paragraph 4 are considered optional (Decree No. 1595 of December 29, 2014), however, they still exist in many domestic companies.
The order to send the director on a business trip
Since 2017, the order has been the main basis for processing business trips and compensating for the expenses incurred in them.
The issue of the number of copies of the document at the federal level has not been considered, so managers decide it themselves, taking into account the needs of office work. Most often they publish one original, a copy of which is transferred to the accounting service.
The header contains information about the company name, OKPO code, and document numbering.
In the body of the order are indicated:
- the duration of the trip (in cal. days);
- dates of disposal and return;
- destination;
- purpose of the trip;
- personal data of the head;
If necessary, the party financing the trip is mentioned.
The document must be endorsed by the head (or authorized person) and certified with a seal imprint. Instead of a signature on familiarization, you can put a date.
The order is stored in the archive:
- 5 years - if the trip was short, that is, did not exceed a year (or 6 months, as mentioned above);
- 75 years - in the case of a long-term business trip.
Transfer by the head of his authority - how is it carried out, what is supported by
When sending a manager, attention should be paid to the issue of delegation of his duties. They can be transferred to any employee, but with his written consent. If it is given, an appropriate order is issued.
In the model document:
- duration and prerequisites of substitution are reflected;
- powers are being specified. If this is not done, the replacement person will have to perform all the functions defined by the Charter;
- contains a clause on the payment of temporary substitution, if it is not included in the duties of the subordinate.
In this case, it is advisable to conclude an additional agreement with his subordinate to his employment contract.
Also, a power of attorney is issued for the deputy to conduct business (Article 185 of the Customs Code). Basically, it is valid for three years. But the head has the right to indicate a shorter period. It does not require notarization.
In order for the deputy to be able to sign not only local documents, but also financial ones, the manager must provide a card with the deputy's signature to the bank servicing organization (if it is not in the original version).
Reimbursement and per diem
Ideally, before sending on a business trip, the head is given a daily subsistence allowance for the fulfillment of target expenses in the amount of:
- 700 p. for each day - if the trip does not provide for going abroad;
- 2500 p. - if the director’s business trip is planned.
The indicated amounts are registered at the federal level. They are exempt from tax and may be increased. In this case, the difference is taxed at a rate of 13%. If the duration of the trip abroad was more than 183 days, the rate increases to 30%.
The mechanism and amount of cost compensation is determined at the macro and micro levels (in local documents).
So, within three days from the date of returning to work after a trip, the director provides an advance report of a standardized form on travel expenses and a package of supporting documentation (travel tickets, checks, receipts), based on which the accounting officer makes the final settlement with the head. If the amount spent is less than the amount received before departure, the difference is returned to the cashier. Overspending is either compensated to the director or not if it is inappropriate.
The documentary basis for the issuance of money is RKO, its details are entered in the expense report.
The director’s trip on a personal car is confirmed by the itinerary, paid checks and receipts confirming the route. At the initial stage of processing a business trip, he must provide a data sheet or a power of attorney if the car is not in his ownership.
Additional funds may be paid to the Director for repairing or maintaining the condition of the vehicle for its use for business purposes. This should be prescribed in the agreement between the head and the legal entity.
In addition to the above funds, each business day of a business trip is paid based on average earnings (for 12 months). If it is less than a salary, sending a manager is unprofitable. In this case, an additional payment may be provided for him, the basis of which calculation is the salary.
Director's business trip on the day off
Sometimes company leaders have to go on a business trip or stay out of it. In general, this is prohibited by Art. 113 TC, but it also contains exceptional cases where this is allowed.
So, sending a director on a weekend and non-working holiday is possible only with his written consent and should be conditional on the need for the prompt implementation of unforeseen tasks, on which the normal functioning of the business entity depends.
Upon arrival, the head of Art. 153 shopping malls are provided:
- payment in an increased (minimum - double) amount;
- single payment + additional day of rest at any time convenient for him.
Features of the trip of the head of a budget organization
In the local documents of non-profit organizations (in particular, in the order on sending on a business trip), the sources of compensation for travel expenses should be indicated. This can be both budgetary funds and income from the provision of paid services.
In many budgetary institutions, the head can combine posts. Therefore, he is seconded both in the main and in the additional workplace.
It follows from the foregoing that the business trip of the head, in fact, is no different from the business trip of an ordinary subordinate. The only caveat is the delegation of authority during the absence of the director, which is executed by the relevant documents signed either by an authorized person or by the head himself, unless otherwise provided by the Charter. Also, since 2015, it is not necessary to compile a job assignment and issue a business trip certificate. Documentary evidence of the trip and the basis for its compensation are the order to send on a business trip and travel documents.
The general director of the company can also go on a business trip, since there are issues in the solution of which his personal presence is necessary. Personnel officers sometimes have questions about how to properly arrange a business trip for the director, what documents are needed and who should sign them. We will answer them, and also consider the features of the registration of the founder’s business trip.
Normative base
The procedure for sending employees on business trips is regulated by regulatory enactments. The first of them is the Labor Code of the Russian Federation, in particular, Art. 166. It defines the business trip. The second document, which is also the main one, is the Regulation on the specifics of sending employees on official business trips. It was approved by Decree of the Government of the Russian Federation of October 13, 2008 No. 749.
Reasons for the director’s trip
The objectives of the business trip of the head of the organization may be the following:
- meetings with future contractors, the implementation of new business ideas;
- opening new representative offices in other cities or even countries;
- work related to the opening of a new project, participation in negotiations with contractors, conclusion of contracts with them;
- settlement of disputes arising from the inspection of branches or separate divisions by state control bodies.
The documented basis is always a duly executed memo.
The purposes of a business trip are also indicated in the trip order.
Registration of the director’s business trip and necessary documents
The CEO, who is not both the founder of the company, is exactly the same employee as the rest. The only difference is that he is the legal representative of the employer in relations with other employees. Therefore, the procedure for processing his business trip will have only slight differences from the official travel arrangements for an ordinary employee.
So, the order of design is as follows:
- A memo is written by the head about sending him on a business trip. This paper is considered the basis for issuing a travel certificate and order.
- An order is drawn up to send the employee on a business trip to. It prescribes the purpose of the trip, date, place and other important information.
- The order is registered in the order registration journal, the employee gets acquainted with the document and puts his signature in the journal in agreement.
- A travel certificate is issued for. Organizations do it on their own initiative, since it is not necessary to do it by law. It is written out only for internal control.
- The Director General, like any other employee, is given an advance payment to pay for the costs associated with the trip.
- Not necessarily, but it is possible to record the fact that the employee was sent on a trip in the register of employees retiring on business trips. The company is entitled to provide for the existence and maintenance of such a journal at its own request.
- After the employee, and in this case, the general director, went on a business trip, the days of stay in the trip are noted in the timesheet.
- Upon return, the employee provides a report on the funds spent in connection with the business trip. Checks and receipts confirming expenses are attached.
Documents need to be drawn up correctly, the fate of the company's tax base will depend on this (subparagraph 12, paragraph 1 of article 264 of the Tax Code of the Russian Federation). For example, if you issue an order later, it turns out that the number of days on a business trip is taken into account by accountants in a smaller amount, and then the amount of expenses in the tax base will also be less than the actual amount (which the CEO received when he went on a trip). Therefore, it is so important to comply with the timing of the preparation of primary documentation. All the nuances are indicated in the Decree of the State Statistics Committee of the Russian Federation No. 1 of January 5, 2004.
Who signs the order and other documents
All documents must be signed by the head of the organization, respectively, and the general director signs the order and the memo for himself. Thus, it turns out that he directs himself on a business trip.
Assignment of duties
In those cases when the head is absent from the workplace, and in this case, went on a business trip, his authority is transferred to another employee for the purpose of fulfilling the duties of the director: signing contracts, orders, etc. The choice of such an employee may depend on the decision of the manager. But in most cases, such an employee becomes the one who is registered in the organization’s charter documentation (Article 53 of the Civil Code of the Russian Federation).
As a rule, these are the following employees:
- deputy Director;
- head of Human Resources;
- the head of a unit or department;
- co-founder, if any;
- accountant.
Things to consider when assigning the duties of the CEO to another employee:
- The employee begins to perform new duties, which are additional to the main ones, therefore this fact must be agreed with the employee. New duties and payment features should be prescribed in an additional agreement to the employment contract.
- In order to transfer the right to sign, it is necessary to draw up a power of attorney (Article 185 of the Labor Code of the Russian Federation). Its term can be any, but, as a rule, it corresponds to the period of the trip.
- It is necessary to obtain the written consent of the employee.
- An order is issued to transfer the powers of a manager for a specified period.
Attention! If an employee was vested with the authority of a manager prior to arranging a business trip for the latter, then he is entitled to sign all documents related to the trip.
Founder's business trip
There are situations when it is necessary to send the founder to a business trip. More precisely, the trip must be arranged as a business trip, because the founder goes on business, and the costs must be taken into account as business trips. But he is not an employee of the company, so you cannot send him on a business trip (Article 166 of the Labor Code of the Russian Federation) and give out money for the report either. If this rule is neglected, then the tax may have questions.
To arrange the official trip of the founder (and at the same time write off expenses in tax accounting, do not withhold and receive a deduction for), you can use three ways.
Labor contract
The first way is to conclude a fixed-term employment contract with the founder and accept a position (for example, an assistant director) with a minimum salary. Then you can arrange a business trip in accordance with all the rules: with payment of accommodation and per diem.
Important! In the employment contract, it is necessary to spell out the duties related to the business trip: participation in negotiations, preparation for conclusion of transactions, etc. The salary in this case should not be lower than the minimum wage.
Civil contract
The second method is the conclusion of a civil law contract for each “business trip”. Specific objectives should be spelled out in such an agreement: what should it do, what result should be obtained.
The contract can be of two types: the provision of services and instructions (it is concluded if you need to sign any documents during the trip, a power of attorney is also drawn up for the right to sign documents on behalf of the company).
In the case of the conclusion of the GPA, the company must reimburse the founder for the costs of this trip or herself to buy tickets, pay for accommodation, etc. In the first case, personal income tax and insurance premiums are not charged for cost compensation, this amount is included in the tax expenses of the organization. All expenses must be confirmed by the primary, VAT deductible will not be accepted, because only the founder will appear in the documents.
If the company itself pays for travel and accommodation, then VAT deduction will be possible, because Documents will be executed in the name of the company.
Cash for the trip is not issued under the report, but simply from the cashier as funds necessary for the implementation of the GPA. The cash and cash warrant must indicate the date and number of this contract.
Without an agreement
No contracts will be required if the trip is connected with a transaction, the conclusion of which requires the presence and approval of the founder. There are types of transactions that the director cannot conclude independently:
- large (these are transactions with property worth more than 25% of the value of the property of the enterprise);
- with interest;
- which are prescribed in the charter of the LLC as requiring approval.
If the reason for the trip is one of these transactions, then the Federal Tax Service will not doubt the reasonableness of the cost of the trip (Article 252 of the Tax Code). Typically, such expenses are accounted for as other or.
Since the funds did not go to pay the personal expenses of the founder, but to pay the expenses of the company, no personal income tax and insurance premiums are required. VAT can be deductible.
The procedure for processing a business trip in 2020 is relevant in connection with the cancellation of travel certificates in 2020. To complete a business trip, reports on completed work and job assignments are also not used.
Dear readers! The article talks about typical ways to solve legal issues, but each case is individual. If you want to know how solve your problem - contact the consultant:
APPLICATIONS AND CALLS ARE ACCEPTED 24 HOURS AND WITHOUT DAYS OFF.
It is fast and IS FREE!
Consider how to properly arrange a business trip for the head using the new legislation.
Normative base
A business trip is possible only for persons in an employment relationship with the employer.
Employees of third-party organizations or performers under a civil law contract cannot be sent on a business trip, since expenses will not be recognized as tax expenses.
The main regulatory acts governing the process of sending personnel on business trips, their terms, are the Labor Code of the Russian Federation, Decree of the Government of the Russian Federation of October 13, 2008 No. 749 “On the peculiarities of sending employees on official business trips” together with the Regulation of the same name, which is used for business travelers on the territory of the Russian Federation and foreign countries.
The rules and requirements of the norms of current legislation also apply when a manager is on a business trip, since he is an employee of the organization.
Travel Objectives
Service goals are reflected in the current Decree of the Government of the Russian Federation No. 749.
The purpose of the business trip of the Director General is to perform official duties in accordance with his position in order to improve the work of the organization.
The documentary basis of the trip is the order of the head in the form of a formal memo.
Examples of travel goals for a director abroad and within a country include:
- start of a new project, negotiations with contractors and other contractors, conclusion of long-term cooperation agreements with them;
- conducting an audit of the branch if serious violations are detected during inspections of the controlling state bodies at business units located in another city or region. This requires the presence of the head of the settlement of all disputes;
- the search for new opportunities for business development, meetings with potential partners of the enterprise, the creation and implementation of new business projects;
- opening of new structural divisions, branches or branches in other cities and countries.
The purposes of business trips are not fixed in normative or personnel documents. They must always be indicated either in a memo from the head, or in.
Travel arrangements for the head (director) in 2020
Rules and requirements
According to Art. 166 of the Labor Code of the Russian Federation, a business trip is an employee’s trip on the orders of the employer for a specific period to carry out official assignments outside a permanent workplace.
A business trip meets the conditions:
- an employee’s trip on behalf of the employer;
- the assignment is not related to a permanent job;
- the trip is limited in time;
- the employee on the way does not perform his work, and his work is not related to travel.
How many days can a trip last?
The duration of the trip is set taking into account the specifics of the service order.
Today, the maximum trip period for the leader is not set. Therefore, the trip can be issued for any period necessary for the execution of the service order.
During a business trip, an employee retains a permanent place of work and basic labor functions. Therefore, the duration of the trip should be clearly established.
In such situations, “reasonable” terms are mentioned, although this concept is relative.
Replacement clearance
The duty of the leader is to sign with employees, bring employees to disciplinary liability, and others. These powers may be temporarily or permanently transferred to another person.
By delegating his authority, the head transfers to the employee additional new responsibilities that need to be agreed with him. New responsibilities must be provided for in the employment contract.
The transfer of signature rights must be secured with a power of attorney (Article 185 of the Labor Code of the Russian Federation).
It is drawn up for a period of not more than 3 years, however, when the manager is on a business trip, the deadlines are set to minimum.
The power of attorney can prescribe a limitation of the period of its validity. Notarization is not required.
According to Art. 185 of the Civil Code of the Russian Federation a power of attorney is issued for the representative office of the employer to third parties. The document indicates all the actions that will be performed by the representative of the employer.
If it is necessary to transfer the powers of the head for the duration of his business trip, in addition to the order on the assignment of duties to the employee, it is concluded with him with the terms of additional work and its payment.
Obtaining the written consent of the employee is also required.
After that, an order is issued by personnel on the assignment of additional tasks.
An example of a power of attorney:
![](https://i1.wp.com/kadriruem.ru/wp-content/gallery/sroki2/%D0%9F%D1%80%D0%B8%D0%BC%D0%B5%D1%80-%D0%B4%D0%BE%D0%B2%D0%B5%D1%80%D0%B5%D0%BD%D0%BD%D0%BE%D1%81%D1%82%D0%B8.jpg)
An example of an order on the transfer of authority:
![](https://i0.wp.com/kadriruem.ru/wp-content/gallery/sroki2/%D0%9F%D1%80%D0%B8%D0%BA%D0%B0%D0%B7-%D0%BE-%D0%BF%D0%B5%D1%80%D0%B5%D0%B4%D0%B0%D1%87%D0%B5-%D0%BF%D0%BE%D0%BB%D0%BD%D0%BE%D0%BC%D0%BE%D1%87%D0%B8%D0%B9.jpg)
An example of an additional agreement:
![](https://i0.wp.com/kadriruem.ru/wp-content/gallery/sroki2/%D0%9F%D1%80%D0%B8%D0%BC%D0%B5%D1%80-%D0%B4%D0%BE%D0%BF%D0%BE%D0%BB%D0%BD%D0%B8%D1%82%D0%B5%D0%BB%D1%8C%D0%BD%D0%BE%D0%B3%D0%BE-%D1%81%D0%BE%D0%B3%D0%BB%D0%B0%D1%88%D0%B5%D0%BD%D0%B8%D1%8F.jpg)
Documents
The documents used for business trips in 2020 depend on the type of transport on which the head traveled.
The actual period of stay in the trip is set:
- when using any type of transport in the absence of travel documents - based on a service note;
- in other cases, based on travel documents.
The head, within 3 working days after returning from the trip, presents the funds spent with supporting documents:
- expenses related to the trip (travel, etc.);
- use of transport (bills, checks, receipts, waybill and others);
- memo about the period of the trip.
Order
The basis for the trip of the head is the decision of the employer.
For its execution, an order is drawn up for a trip. A mandatory form for it is not provided, therefore, it can be developed independently or apply the unified form T-9 or T-9a.
The purpose is indicated in the order for a business trip, which is issued in personnel records management according to the above form, as well as in any form.
The number of copies has not been established by regulatory documents; therefore, at each enterprise such orders can multiply exactly in the quantity that will be necessary for personnel records management.
Memo
According to new legislation, a manager’s memorandum on sending him on a business trip is compiled instead of a travel certificate,. On the basis of a memo, an order is issued.
Consider how to properly draw up a memo:
- In the upper right corner of the document indicates the position, surname and initials of a senior manager.
- In the center is written the title of the document “Memo.”
- An appeal is written under the heading with the request to send the employee on a business trip. The purpose of the trip, the period of performance of official tasks is indicated.
- Under the text is the date and signature of the compiler of the memo. The text can reflect the expected financial costs, the specifics of the trip.
This is necessary for the correct calculation of the amount.
Example memo:
![](https://i2.wp.com/kadriruem.ru/wp-content/gallery/sroki2/%D0%9F%D1%80%D0%B8%D0%BC%D0%B5%D1%80-%D1%81%D0%BB%D1%83%D0%B6%D0%B5%D0%B1%D0%BD%D0%BE%D0%B9-%D0%B7%D0%B0%D0%BF%D0%B8%D1%81%D0%BA%D0%B8.jpg)
Payment and reimbursement
According to the labor legislation, the employee is reimbursed the costs of the trip:
- to travel;
- for rental housing;
- daily living expenses;
- other expenses as agreed with the employer.
The procedure and amount of their compensation is established in the local regulatory documents of the employer or.
Expense report
After returning from a trip, the head is obliged to draw up an advance report on expenses on a business trip within 3 business days with all supporting documents attached.
According to this document, the final settlement is made according to the advance payment issued for departure for travel expenses.
If less is spent than was issued, then it is necessary to return to the cash desk unspent reporting funds.
Otherwise, if there is an overrun on the expense report, the employee will be returned the personal money spent. This is possible after agreeing the expense report with the head.
The basis for the issuance of money is an expenditure cash warrant, the details of which are indicated in the expense report.
Meals and accommodation, per diem
The amount of per diem depends on the trip within the Russian Federation or.
The amount of daily allowances is the same for all employees, regardless of position, length of service, or age.
If travel was by car
When choosing the head of his or a company car for a business trip, he must draw up the following documents confirming the use of the vehicle:
- route sheet;
- paid bills, checks, receipts;
- documents confirming that he is following the route to the destination.
Nuances for the heads of budgetary institutions
When making business trips for heads of budgetary institutions, some difficulties may arise.
In budgetary institutions, it is required to establish sources of financing for payment of travel expenses, which may be budgetary and extra-budgetary funds (for example, grants, income from the provision of paid services, from the provision of services under commercial agreements and others). The order on the direction of the head on the trip indicates a specific source of cash, at the expense of which travel expenses are paid.