Note that the distribution of General expenses to be included in the cost of production may be carried out in proportion to the amount of the direct costs of its production or in accordance with wages of workers employed in primary production.
However, keep in viewthat the implementation of the activities for which the rate of tax on profit differs from the rate established in the core activities, a special procedure for allocation of relevant overheads. In this case, General expenses should be allocated in proportion to the amount of revenue received from each activity, the total amount of revenues irrespective of the accounting policies adopted by the company. For correct calculation of income tax at different rates you need to keep separate records on these activities.
Thus, if your organization carries out these activities, but takes into account policy provides for different procedure for the distribution of General expenses, the accounts should reflect their distribution in accordance with the posted policy, and for tax purposes – to make internal special calculation. It costs are allocated in proportion to revenue received.
However, in this case, you have to double to generate the cost of production: one time for accounting purposes, one for tax purposes. Therefore the accounting policy is better to provide a procedure for the allocation of General costs is in proportion to the revenue, if not inconsistent with sectoral characteristics. But, on the other hand, if your organization will initially allocate General expenses in proportion to revenue, contrary to the requirements of the considered policy, it will not lead to the imposition of penalty fees and will not lead to other adverse effects.
In this case, note that to calculate the cost of goods in the allocation of General expenses in accordance with the accounting policy is still necessary. This will allow you to figure out whether the enterprise cases the sale of products at below cost. Based on this, decide the question of the necessity of submission to the tax office additional calculations of the amount of revenue, income tax and VAT, on the basis of market prices.