Inside the more extensive system of staying with a’s books, Is It Mandatory To Maintain Fixed Asset Register? There are plenty of various bookkeeping techniques and record-keeping measures that must utilize. Some because there is a legal prerequisite, others by the excellence of good sound judgment.
DEFINITION of Maintain Fixed Asset Register
The Fixed Assets Registry is an auxiliary tax registry intended for tax control. All the information is recorded annually, coming from the entry and exit of fixed assets and the respective depreciation.
Into the principal class falls the FAR or ‘Fixed Asset Register,’ the Companies Act of 1956 implies that organizations must keep a Fixed Asset Register as a component of their overall business accounting.
The Fixed Asset Register is just a record of the piece of an organization’s resources that establish its ‘fixed’ resources;
fixed is the term used to depict resources that can only with significant effort be changed over into cash and are not held to sell them on; resources that claimed to empower a business to work, either to offer assistance or produce an item.
On account of makers, it is generally apparatus, land, property,
and so on. Likewise, it can incorporate less substantial resources like copyrights, licenses,
and brand names for specialist co-ops, gear, and premises.
FORMALITIES of Maintain Fixed Asset Register
a) Header Data: Since the Fixed Assets Register is a book linking to tax matters that tax debtors are obliging to keep,
it must have the following header data:
Registration name
- Period and/or year to which the registered information corresponds.
- RUC number of the tax debtor, Surname and Names, Denomination, and/or Company Name of the latter.
- All this information must be indicated on all the pages used. However, in the case of the Register of Fixed Assets carried out manually, it will be enough to include these data in the first folio of each period or fiscal year.
b) Registration of Operations: When registering the operations in the Fixed Assets Registry, the obliged subject must make said annotation:
Chronological order
Legibly, without spaces or blank lines, interpolations, amendments, or signs that altered.
Totaling their amounts for each folio
Using the terms “VAT” and “INCOME Tax” as appropriate at the end and the beginning of each page.
The provisions of this point are not requiring from the Fixed Assets Registry kept in single or continuous sheets
(only in a case which carried manually).
If no operations are carried out in a certain period or taxable year, the legend “NO OPERATIONS” will record on the corresponding folio.
The provisions of this point are not requiring from the Fixed Assets Registry kept in single or continuous sheets
(only in a case which carried manually).
1- In national currency and Saudi Arabia, except in the cases provided in number 4 of article 87 of the Tax Code ).
2- In original folios, not admitting the adhesion of sheets or folios.
In numeral 4 of article 87 of the Tax adviser Code,
it states the following: The books and records must be kept in Saudi Arabia and expressed in national currency;
Except in the case of taxpayers who receive and/or make foreign direct investment in foreign currency.
Following the requirements established by means of a Supreme Decree endorsed by the Minister of Economy and Finance,
and that for this purpose they contract with the State, in which If so, they may keep the accounts in dollars of the United States of America.
LEGALIZATION Fixed Asset Register
It must legalize, by a notary or, in their absence, by a lawyer or justice of the peace, when appropriate,
of the province in which the tax debtor’s tax reports domicile located, except in the case of the provinces of Lima and Callao,
in which case the legalization may carry out by the notaries or judges of any of said provinces.
MAXIMUM DELAY PERIOD Fixed Asset Register
It may not have a delay greater than three (3) months, counted from the business day following the end of the taxable year.
Format of Maintain Fixed Asset Register
1- Format 7.1 = Register of Fixed Assets – Detail of Fixed Asset inventory.
2- Format 7.2 = Register of Fixed Assets – Detail of Revalued Fixed Assets.
3- Format 7.3 = Register of Fixed Assets – Details of the Exchange Difference.
4- Format 7.4 = Register of Fixed Assets – Detail of Fixed Assets under the Financial planning Lease modality as 12.31.
THOSE OBLIGATED TO CARRY IT
According to Superintendency Resolution 226-2013 / SUNAT (which modified article 65 of the Income Tax Law) in article 12.5 it states the following:
The provisions of numerals 12.1 and 12.2 are without prejudice that third-category income recipients, in accordance with the rules of the Income Tax Law, that required to keep the book and/or the records referred to in numeral 12.4.
1- Numeral 12.1 refers to subjects with annual gross income from 150 UIT to 500 UIT.
2- Numeral 12.2 refers to subjects with annual gross income over 500UIT up to 1,700 UIT.
3- Numeral 12.4 refers to the books and records that will make up the complete accounting provided that the tax debtor is obliged to keep them in accordance with the rules of the Income Tax Law: 1) Item Withholding Book e) and f) of art. 34 of the Income Tax Law, 2)
Register of Fixed Assets 3) Register of Costs, 4) Register of Permanent Inventory in Physical Units, and 5) Register of Valuated Permanent Inventory.
But we must take into account what subsection f) of Article 22 of the Regulations of the Income Tax Law tells us,
which refers to depreciation for tax purposes, which is the following:
Tax debtors must keep permanent control of the fixed assets in the Fixed Asset management Registry. SUNAT, through a Resolution of the Superintendency,
will determine the requirements, characteristics, content, form, and conditions in which the aforementioned Registry must keep.
CONCLUSIONS
So we can say that regardless of the amount of your gross annual income, you must have a Registry of Fixed Assets,
as long as it is in the General Income Tax Regime. There is an asset that considers according to the corresponding rules to control depreciation for the year.
Otherwise, if you do not carry it, you will be incurring the offense typified in article 175 No. 1 of the Tax Code, the penalty of which is 0.6% of the annual Net Income of the previous year, which cannot be less than 10% of 1 UIT.
