How to include employee remuneration subsidies in financial statements?
The funding for the wage costs of workers and the social security contributions they owe fall within the definition of income from economic activities listed in Article 14(2)(2) Personal Income Tax Act; and Article 12(1)(1) Corporate Income Tax Act.
The support received is the revenue from the taxable activity.
Since the amount of the subsidy constitutes revenue, the expenditure financed by it may constitute revenue costs, provided that they meet the conditions laid down in Article 22 Personal Income Tax Act; and Article 15 Corporate Income Tax Act.
On the other hand, the accounting records of the co-financing received for staff salaries and social contributions from the employer are as follows:
WB - the impact of co-financing on part of the wage costs of employees and social security contributions due from these salaries:
- - Wn 13-0 ” Current account’
- - It does. 76-0 „Other operating revenue’