Citizens’ income declaration in 2024

Citizens’ income declaration campaign received during 2023 has started since the beginning of 2024.

Taxpayer can choose convenient method of submitting property and income tax declaration (hereinafter – declaration):

- personally or by authorized person;

- by mail with delivery notification and description of the attachment not later than 5 days before the end of submission deadline;

- by the electronic communication means in the  electronic form in compliance with requirements of the Laws of Ukraine "On electronic documents and electronic document management" and "On electronic trust services".

In order to increase level of voluntariness of citizens' income declaration and for convenience during submission of declaration, electronic service "Property and income tax declaration" has been created in the payer’s Electronic cabinet, which provides possibility of partial automatic pre-filling of the declaration.

Electronic service "Property and income tax declaration" allows to create declaration and submit it to the controlling body with copies of primary documents, including for using right to tax discount.

Partial automatic pre-filling of the declaration is carried out on the basis of payer's account data, information on received income available in the State register of individuals – taxpayers and information on objects of immovable or movable property.

Use of this electronic service:

- reduces time and costs for submission of tax declaration;

- minimizes errors filling out the declaration;

- provides opportunity to submit copies of primary documents as attachment to the tax declaration online.

It should be noted that 55.6 percent submitted declarations in the electronic form through the electronic service "Property and income tax declaration" from the total number of citizens who declared income during 2023.

Deadlines for submitting declaration:

individuals – entrepreneurs (except for individuals who chose simplified taxation system), individuals involved in independent professional activity and citizens – by May 1 of year following the reporting year;

If the last day of deadline for submitting tax declaration falls on a weekend or holiday, then the last day of deadline is considered to be the operating (banking) day that follows weekend or holiday (Paragraph 49.20 Article 49 of the Code).

Importantly! Provided that the taxpayer does not have supporting documents regarding amount of income received from foreign sources and amount of tax paid by such taxpayer in a foreign jurisdiction, issued according to Article 13 of the Code, then in accordance with Sub-paragraph 170.11.2 Paragraph 170.11 Article 170 of the Code, such payer is obliged to submit to the controlling body at tax address application for the postponement of deadline for submitting tax declaration until December 31 of year following the reporting year.

individuals – entrepreneurs (except for individuals who chosen simplified taxation system) in case of termination of entrepreneurial activity – within 20 calendar days of month following calendar month in which state registration of termination of business entrepreneurial of individual – entrepreneur was carried out by personal decision.

Importantly! In case of state registration of termination of entrepreneurial activity of individual – entrepreneur by personal decision, the last basic tax (reporting) period is period from the day following end of previous basic tax (reporting) period to the last day of calendar month in which state registration of termination of entrepreneurial activity was carried out.

residents who leave for permanent residence abroad – not later than 60 calendar days before departure;

individuals who have a right to tax discount – until December 31 (inclusively) of year following the reporting year.

Cases when taxpayers are obliged to independently calculate amount of tax (levy) payable to the budget based on results of the reporting tax year by submitting declaration to the tax authority are established by Section IV of the Tax Code of Ukraine (hereinafter – Code). Such cases include:

- receiving certain types of income that are not subject to taxation upon payment, but are not exempted from taxation (Sub-paragraph 168.1.3 Paragraph 168.1 Article 168 of the Code);

- receiving income from individual who is not tax agent (from other individuals (residents or non-residents)) (Sub-paragraph 168.2.1 Paragraph 168.2 Article 168 of the Code);

- foreign income (Sub-paragraph 170.11.1 Paragraph 170.11 Article 170 of the Code).

Tax declaration must also be submitted by:

- individuals who receive income from entrepreneurial activities, except for individuals who chose  simplified taxation system (Article 177 of the Code);

- individuals involved in independent professional activity (Article 178 of the Code);

- foreigners who, based on results of the reporting year, have acquired status of a resident of Ukraine, must reflect income with source of their origin in Ukraine and foreign income (Sub-paragraph 170.10.4 Paragraph 170.10 Article 170 of the Code);

- taxpayers – residents who move abroad to a permanent residence place not later than 60 calendar days prior to departure (Paragraph 179.3 Article 179 of the Code).

Cases when submission of tax declaration is considered completed and tax declaration is not submitted, according to Paragraph 179.2 Article 179 of the Code.

This applies to payers who received:

- income, including foreign income, which, according to the Code, is not included in the total monthly (annual) taxable income;

- income exclusively from tax agents, regardless of the type and amount of accrued (paid, provided) income;

- income from the sale (exchange) of property, donations, income from which according to the Code was not taxed, is taxed at a zero rate and/or from which, upon notarization of contracts, on which tax was paid according to this Section;

- income in the form of heritage objects, which according to this Section are taxed at zero tax rate and/or from which tax has been paid according to Paragraph 174.3 Article 174 of the Code.

Also, tax declaration is not submitted in cases directly provided for by the Code.

If the taxpayer is required to submit tax declaration according to other provisions of the Code, then along with other income, incomes provided for in clause Paragraph 179.2 Article 179 of the Code are indicated.