Will income such as sustainability benefits be recorded on the date of application? Do you record on the day of deposit?

Sustainable benefits and rent support benefits are included in the income tax return, which is a tax treatment. However, many people may be wondering whether to record this benefit on the day they apply for it or on the day they deposit it.

I tried to summarize how to deal with this “when to record as revenue”.

◆ There is no clear provision regarding the standard for recording revenue such as sustainable benefits !?
First, at this stage, even if there is a stipulation as to whether or not to include sustainability benefits and rent support benefits in the content of income tax and corporate tax returns, only the sustainability benefits and rent support benefits themselves are included. The handling of the target revenue recording standard is not clearly stated (information as of the time of writing in October 2020, and may be additionally announced in the future).

Therefore, it is necessary to apply similar provisions in the laws and regulations (including notifications) currently in force, but in the basic notification of the Income Tax Act (the same applies to the basic notification of corporate tax). (There are provisions) In the item of processing benefits, etc. to be delivered based on laws and regulations,

“Employment insurance law, comprehensive promotion of labor measures, stable employment of workers and enhancement of work life, etc., leave allowance, wages, etc. based on the provisions of laws and regulations such as the law on promotion of employment of persons with disabilities, etc. Regarding benefits, etc. to be delivered to cover expenses such as vocational training expenses, the amount is specific for the year to which the day when there was a fact such as leave, employment, vocational training, etc. that caused the benefit belongs. Even if it is not confirmed, the amount will be estimated and included in the total income amount in the calculation of the amount of business income for the relevant year. (Omitted below). “

There is a regulation.

◆ Is revenue recorded at the time of application? At the time of deposit?
Therefore, sustaining benefits and rent support benefits are also subject to this treatment, but in the case of sustaining benefits, if the examination passes after applying for payment, “Notice of transfer of sustaining benefits” Will be sent, so the time when the payment will be confirmed will be when the “Notice of Transfer of Sustainable Benefits” arrives.

Therefore, in the case of a sole proprietor, if the payment is confirmed in December 2020, even if the payment is delayed in January 2021, it will be included in the final tax return for 2020 as receivables.

◆ Advancement of tax return work is a factor in making decisions
However, the description of “Notice of transfer of sustainable benefits” does not specify the date when the payment was confirmed as the examination passed, and “Notice of transfer of sustainable benefits” itself was abandoned. There will be people.

Of course, because of the influence of the new coronavirus, sales have dropped sharply, or rent cannot be paid, so most people apply for benefits, so both application and payment have been completed. If so, it is clear that it will be included in this year’s declaration.

However, some of them may say that “even if the benefits are deposited, taxable income will not be generated due to business conditions and income deductions”, and “cash management is a higher priority than final tax return”. There will also be. If you are such a person who meets the requirements for benefits and grants but has not yet applied, you should apply as soon as possible.

Therefore, it can be said at this stage for sole proprietors who have not yet applied for benefits and subsidies that meet the eligibility requirements.

・ Proceed with application procedure so that application within the year and payment within the year will be made
・ Dare to apply for a part of various benefits and subsidies at the beginning of the year

There are two choices.

For both sustainability benefits and rent support benefits, it is essential to grasp monthly sales in 2020 and compare them with the status of filing last year.

・ Proceed with application procedure so that application within the year and payment within the year will be made
・ Dare to apply for a part of various benefits and subsidies at the beginning of the year

For those who are worried about tax returns, grasping the business situation, including monthly sales totals, will provide these judgment materials, so why not move the work of preparing tax returns a little ahead of schedule? Is it?

Sentence = Takuya Tanaka (Money Guide)