Cooperative enterprises

In Year-end closing - Tax Information - Information - Additional Information - Cooperative Enterprises, cooperative enterprises can provide information about the proportion of taxable income derived from the company's transactions with its own members.

The area consists of both manual fields and pre-calculated fields from the accounting. You must calculate some values yourself based on whether they relate to Sales to or Purchase from members, Repayment to members in the same cooperative enterprise, and Carried forward deduction limit from previous years.

See Items, fields and topics in the new tax return for businesses for more information.

Field Descriptions

Dropdown menu containing the following enterprise types:

1. Consumer cooperative with a fixed point of sale, where more than half of the regular turnover is with the enterprise’s members (sales/turnover to members).
2. Purchasing cooperative that distributes pre-determined goods among its members (sales/turnover to members).
3. Enterprise that exclusively or primarily purchases raw materials or fixed assets for use in agriculture, forestry, or fishing (sales/turnover to members).
4. Enterprise that exclusively or primarily deals in products from members’ agricultural, forestry, or fishing operations (purchases from members).
5. Enterprise that exclusively or primarily processes products from members’ agricultural or fishery operations (purchases from members).

Area: Turnover

• This is controlled by the selected cooperative enterprise type above. Sales to members in own cooperative enterprise (excluding VAT) / Purchases from members in own cooperative enterprise (excluding VAT) Here, net sales/turnover to / purchases from members in the cooperative enterprise are entered (automatically selected based on the chosen cooperative enterprise type above).

• Sales to members in another cooperative enterprise (excluding VAT) / Purchases from members in another cooperative enterprise (excluding VAT) Here, net sales/turnover to / purchases from members in another cooperative enterprise are entered (automatically selected based on the chosen cooperative enterprise type above).

• Other turnover (excluding VAT) Calculated residual amount (Total sales/turnover minus sales/purchase activity related to members).

• Total turnover: Total sales/turnover/purchases retrieved from the trial balance (automatically calculated).

Area: Taxable Business Income

• Taxable business income for cooperative enterprises: This value is automatically retrieved from the tax calculation.

• Share of turnover derived from members of the cooperative enterprise: Automatically calculated value.

• Taxable business income from transactions with members of the cooperative enterprise:

• Are the conditions for deduction of back payments met? Yes/No

This selection indicates whether the cooperative enterprise meets the conditions outlined in Section 10-50 of the Tax Act and Section 4-27 of the Cooperative Societies Act.

• Deduction limit from this year’s business income with members of the cooperative enterprise: Automatically calculated value.

• Allocated profit to the member capital account: Manually enter any amount of this year’s “Taxable business income from transactions with members of the cooperative enterprise” that is to be allocated to the member capital account. (Option for automatic system posting by selecting this.)

• Available for distribution to members of the cooperative enterprise: Calculated from the two values provided above.

Area: Bonus payments to members

From this year’s profit: Enter the amount to be back-paid to members of the cooperative enterprise from this year’s available distribution. (Option for automatic system posting by selecting this.)

From the member capital account: Enter the amount to be paid from previous allocations to the member capital account (under the conditions specified in Section 10-50, subsection 5 of the Tax Act, and Section 4-29, subsection 2 of the Cooperative Societies Act).

Area: Carryforward Deduction Limit

Carry-forward deduction limit from previous years: Manual entry

• (-) Applied deduction limit from previous years: Automatically calculated value

• (+) Carry-forward deduction limit from this year’s business income: Automatically calculated value

• (-) Applied carried-forward deduction limit for bonus payments this year: Automatically calculated value:

• (=) Carry-forward deduction limit to future years: Automatically calculated value (Option for automatic system posting by selecting this.)