Income declaration campaign received during 2023 continues. Obligation to submit property and income tax declaration is established by the Tax Code of Ukraine (hereinafter – Code).
Paragraph 177.11 Article 177 of the Code stipulates that individuals-entrepreneurs submit annual tax declaration within time limit specified by Sub-paragraph 49.18.4 Paragraph 49.18 Article 49 of the Code, in which, along with income from entrepreneurial activity, specify other income from sources of their origin in Ukraine and foreign income, as well as information on the amounts of single contribution accrued to income from entrepreneurial activity in amounts determined in according to the law.
Paragraph 178.4 Article 178 of the Code stipulates that individuals, in particular, who conduct independent professional activities, submit tax declaration based on results of reporting year within time limits provided for the income tax payers, in which, along with income from conducting independent professional activities, specify other income from sources of their origin from Ukraine and foreign income.
Property and income tax declaration form and Instruction for filling it out were approved by Order of the Ministry of Finance of Ukraine № 859 as of 02.10.2015, registered in the Ministry of Justice of Ukraine on 26.10.2015 under № 1298/27743, with changes (hereinafter – Instruction).
Paragraph 1 Section III of the Instruction stipulates that in line 8 the mark "x" indicates one of the payer’s categories, in particular:
- category "citizen" is chosen by a citizen who is not registered as a self-employed individual within the scope of entrepreneurial or independent professional activity;
- category "individual who declares right to tax discount" is chosen by individual who, reflects in declaration grounds for accruing tax discount according to Article 166 Section IV of the Code;
- category "individual involved in independent professional activity/farm member" is chosen by individual who is registered as a self-employed individual and involved in independent professional activity;
- category "entrepreneur" is chosen by individual who is registered as a self-employed individual and conducts entrepreneurial activity, except for individuals who chose simplified taxation system;
- category " individual, in respect of whom registration of termination of entrepreneurial or independent professional activity was carried out" is selected by:
- individual who was registered as individual-entrepreneur (except for individuals who chose simplified taxation system) and in respect of whom state registration of termination of entrepreneurial activity of individual-entrepreneur was carried out by own decision during reporting (tax) year;
- individual who was registered as individual involved in independent professional activity and who submitted application for deregistration to the controlling body during reporting (tax) year.
At the same time, according to Sub-paragraph 4 Paragraph 6.7 Section VI of the Payer’s accounting procedure of taxes and levies, approved by Order of the Ministry of Finance of Ukraine № 1588 as of 09.12.2011 with changes and Paragraph 7 Section III of Accounting of payers of single contribution to obligatory state social insurance, approved by Order of the Ministry of Finance of Ukraine № 1162 as of 24.11.2014 with changes stipulate that if individual is registered as entrepreneur and, at the same time, carries out independent professional activity, such individual is registered in the controlling bodies as individual-entrepreneur with indication of conducting independent professional activity.
Therefore, individual who is registered in the controlling body as individual-entrepreneur with a mark of conducting independent professional activity, in line 8 "Category of payer" of property and income tax declaration, the mark "x" indicates payer’s category "entrepreneur".