Expense Report: Deadlines, Documents and Taxes
How to account for cash advances and business trips, and what happens to taxes if there are no documents
Go to the Accounting Services pageChecked against the official source:
An expense report (in Uzbekistan, the «advance report») is the document by which an employee accounts for money advanced to them: for purchases, entertainment expenses or a business trip. For business trips within Uzbekistan the deadline is set expressly: the report is submitted within three working days of returning, together with the travel certificate and documents confirming actual expenses (paragraph 22 of the Regulation on Business Trips approved by Cabinet of Ministers Resolution No. 424).
For other advances, the company sets the procedure and deadlines in its accounting policy or an order.
What to attach
- cash register receipts and invoices for purchases;
- for a business trip — the travel certificate, tickets, accommodation documents and meal receipts for each day (paragraphs 16 and 22 of Regulation No. 424);
- for entertainment expenses — documents confirming that the expenses relate to the business.
Tax consequences
- Business trip reimbursements — travel and accommodation supported by documents, and per diems within the limits — are not included in the employee's income and are not subject to personal income tax (PIT) (Article 369 of the Tax Code).
- Per diems above the limits are income in the form of remuneration for work (Article 373), and 12% PIT is withheld from them.
- For profit tax purposes, expenses must be supported by documents — including the order on the business trip and travel documents (Article 305).
- Input VAT on entertainment expenses is not creditable (Article 267).
If the report is not submitted or there are no documents
- An advance that is neither returned nor supported is recorded as a receivable from the employee.
- Expenses without supporting documents do not reduce profit tax (Article 305).
- Set out in the accounting policy the reporting deadlines and the procedure for withholding unreturned amounts.
Accountant's checklist
- an order or instruction to issue the advance;
- deadline control — 3 working days for business trips;
- matching receipts to the purpose of the advance;
- calculating per diems within and above the limit;
- closing the balance: return to the cash desk or additional payment to the employee.
Let us put your advances in order
We will set up accounting for cash advances and business trips and write the rules into your accounting policy.
Go to the Accounting Services pageFrequently asked questions
What is the deadline for a business trip expense report?
Within three working days of returning (paragraph 22 of Regulation No. 424).
Are per diems subject to PIT?
Within the limits — no (Article 369 of the Tax Code); above the limits — yes (Article 373).
See also
- Financial Statement Analysis: Reading the Statements Together
- Events After the Reporting Period: Which to Reflect in Annual Financial Statements
- Financial and Tax Reporting: What Is the Difference
- Employment Contract in Uzbekistan: Mandatory Terms, Form and Registration
- Water Use Tax in Uzbekistan: Payers, Base and Rates
- VAT Refund on an Apartment Purchase: What Is Possible and What Is a Myth
Sources
- Положение о служебных командировках в пределах Республики Узбекистан, утв. постановлением КМ № 424 — пп. 16, 22
- Налоговый кодекс Республики Узбекистан — ст. 267, 305, 369, 373
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