Depreciation policy of organizations, its impact on the regional economy
Abstract With the help of depreciation, the depreciation of fixed assets is covered, their value is transferred to costs and ultimately participates in the formation of the cost of production. The amount of depreciation is significant in capital-intensive industries. By accruing depreciation as part of revenue, the necessary funds are generated to replace used fixed assets due to their moral and physical wear and tear with new, more productive ones. By stimulating the fullest use of fixed assets, depreciation plays a large role in the reproduction of fixed assets and forms a source for innovation processes. In the context of unforeseen Western sanctions aimed at weakening the Russian economy, the country faces the task of not only surviving, but also achieving significant rates of economic growth through the efficient use of all resources, including fixed assets, through an active investment policy, including depreciation. With the introduction of the provisions of Chapter 25 of the Tax Code of the Russian Federation, as well as in connection with a significant reduction in the useful life of fixed assets in accordance with the accepted classifier, organizations have the opportunity to independently conduct an effective depreciation policy. Article 286.1 of the Tax Code of the Russian Federation granted the constituent entities of the Russian Federation the right to introduce an investment tax deduction, according to which taxpayers were able to purchase equipment taking into account the corresponding costs in expenses when determining the tax base for corporate income tax. The purpose of the article is to use the example of three industrial regions of the Volga Federal District to study the effectiveness of the depreciation policy and its impact on the level of socio-economic development of the regions. It was revealed that in the regions, the possibilities of tax regulation in terms of carrying out an effective depreciation policy are used extremely insufficiently, which negatively affects the efficiency of using fixed assets.
Keywords: depreciation methods, degree of depreciation of fixed assets, useful life, increasing coefficients to depreciation rates, investments, depreciation bonus, capital productivity, capital-labor ratio, labor productivity.
Highlights:
♦ with the introduction of Chapter 25 of the Tax Code of the Russian Federation, taxpayers have the opportunity to implement an effective tax (depreciation) policy, includingthe implementation of expenses with attribution to expenses taken into account when taxing profits (depreciation bonus, increasing coefficients to depreciation standards, etc.);
♦ the classifier of fixed assets has significantly reduced the useful life of fixed assets, setting it to the maximum 10th group of 30 years or more;
♦ about 30% of registered organizations provide zero reporting, about 1/3 of reporting enterprises are unprofitable, and therefore there are no sources for investment, in these conditions the need for an effective depreciation policy increases sharply;
♦ the situation in the regional economy is complicated by the fact that the degree of depreciation of fixed assets is more than 60%, the share of completely worn-out fixed assets is about 30%, and the renewal rate of fixed assets is low. Under these conditions, eliminating the gap with advanced countries in labor productivity becomes problematic;
♦ the study showed the inefficiency of the depreciation policy carried out in the regions; the laws on investment deductions adopted in the regions do not work, which really limits the technological improvement of enterprises and the economic development of the regions.
Nikolay Z. Zotikov - Chuvash State University named after I.N. Ulyanov, Cheboksary, Russia