Peculiarities of the corporate income tax during the martial law

Law of Ukraine as of 01.04.2022 №2173-IX "On Amendments to the Tax Code of Ukraine and other legislative acts of Ukraine on the administration of certain taxes during the martial law, state of emergency" provides for innovations in the corporate income tax.

In particular, for a period of the martial law, the non-profit organizations will be able to provide charitable assistance to third parties referred to in Paragraph 63 Sub-section 4 Section XX of the Code, even if such assistance is not provided by their statutory documents without a threat of losing the nonprofit status.

There are a number of peculiarities for corporate income tax payers who are temporarily switching to the single tax of Group III at 2% rate:

- overpaid amount of monetary liabilities from the corporate income tax, which exists on a date of transition to the single tax at 2% rate, may be credited to repay monetary liabilities from this tax, which will arise after resumption of the corporate income tax;

- advance payments of corporate income tax on dividends that remain unaccounted for in reducing the accrued amount of tax liability from this tax on the date of transition to the single tax at 2% rate, may be taken into account in reducing such amount after resumption of tax on profit of enterprises;

- if a taxpayer, who during the calendar year switched to payment of the single tax at 2%  rate, in the same year resumes the corporate income tax, such taxpayer prepares and submits the corporate income tax declaration cumulatively from the beginning of such calendar year;

- amount of annual income from any activity of the corporate income tax payer for purposes of determining the cost criterion of non-application of tax differences and possibility of applying only the annual reporting period (40 million UAH) and the cost criterion for determining controlled operatios for transfer pricing (150 million UAH) is calculated for an entire reporting year, including taking into account income received during a periods of such year in which such taxpayer was on the payment of the single tax at 2% rate.

More details in the presentation materials.