In what form is the clarifying Calculation submitted and what is the procedure for clarifying indicators of Annex 4DF to the Calculation?

Sub-paragraph “b” of Paragraph 176.2 Article 176 of the Tax Code of Ukraine as of 02.12.2010 № 2755-VI with changes and amendments (hereinafter – TCU) stipulates that individuals who, according to the TCU, have the tax agent’s status are obliged to submit Tax calculation of income accrued (paid) in favor of individual taxpayers and amount of tax withheld from them within deadlines set by the TCU for the tax quarter, as well as amount of accrued single contribution to obligatory state social insurance (by months of reporting quarter) to the controlling body at the main registration place. Such Calculation is submitted only in case of accrual of sums of the specified incomes to taxpayer – individual by the tax agent, single contribution’s payer during the reporting period. Introduction of other reporting forms on the specified issues is not allowed.

Form of Tax calculation of the amounts of income accrued (paid) in favor of taxpayers – individuals and amounts of tax withheld from them, as well as amounts of accrued single contribution (hereinafter – Calculation) and Procedure for filling in and submitting by tax agents the Tax calculation of amounts of income accrued (paid) in favor of taxpayers – individuals and amounts of tax withheld from them, as well as amount of accrued single contribution (hereinafter – Procedure) are approved by Order of the Ministry of Finance of Ukraine № 4 as of 13.01.2015 (as amended by Order of the Ministry of Finance of Ukraine № 773as of 15.12.2020).

If in future tax periods (taking into account statute of limitations specified in Article 102 of the TCU) the taxpayer independently discovers errors contained in previously submitted tax declaration (except for restrictions specified in this Article), such taxpayer must send the Clarifying calculation to such tax declaration in the form in force at the time of submission of the Clarifying calculation (Paragraph 50.1 Article 50 of the TCU).

Procedure for clarifications to the Calculation is defined in Section V of the Procedure.

Clarifications to submitted and accepted Calculations are made on the basis of errors identified by the payer, as well as on the basis of reports of errors identified by the controlling body (Paragraph 1 Section V of the Procedure).

Paragraph 2 Section V of the Procedure stipulates that submitted and accepted before the deadline is the Calculation accepted by the controlling body and passed all controls, including when uploaded to the Register of Insurers and Register of Insured Individuals, remains valid when the controlling body accepts the next Calculation for such reporting (tax) period.

On the basis of such Calculation, the necessary requisites and indicators are clarified both within the reporting (tax) period and beyond.

Calculation formed to correct errors for the reporting (tax) and previous periods must not contain other annexes than those in which clarifications are made.

Procedure for filling in the “Reporting new” and “Clarifying” Calculations adjusting amount of the personal income tax and military levy is the same.

Calculations “Reporting new” and “Clarifying” are submitted on the basis of information from previously submitted Calculations and contain information only in the lines with requisites or amounts of accrued personal income tax / military levy, which are being clarified. Information from reports regarding revealed errors which are sent by controlling bodies to the payer is also used for filling in (Paragraph 6 Section V of the Procedure).

Paragraph 10 Section V of the Procedure stipulates that clarification of indicators of Annex 4 “Information on the amounts of accrued income, withheld and paid personal income tax and military levy” (hereinafter – Annex 4DF) to the Calculation is as follows:

1) in Section I:

to exclude one erroneous line from the previously submitted (received) information, it is needed to repeat all the columns of such line and indicate “1” in column 10 to exclude the line;

to enter new or omitted line it is needed to fill in all its columns and specify “0” in column 10  to enter the line;

to replace one erroneous line with another it is needed to exclude erroneous information according to the Second clause of Sub-paragraph 1 Paragraph 10 of the Procedure and enter correct information according to the Third clause of Sub-paragraph 1 Paragraph 10 of the Procedure, that is, completely fill in two lines, one of which excludes previously entered information and the other enters correct information. In this case, it is needed to indicate “1” in the first line in column 10 to exclude the line and “0” in the second to input the line;

2) in Section II:

in the line “Interest taxation” to exclude erroneous line from the previously entered information in the line “Interest taxation – exclusion” it is needed to repeat all the columns of erroneous line and reflect correct information in the line “Interest taxation”;

in the line “Taxation of winnings (prizes) in the lottery” to exclude erroneous line from the previously entered information in the line “Taxation of winnings (prizes) in the lottery – exclusion” it is needed to repeat all columns of the erroneous line and reflect correct information in the line “Taxation of winnings (prizes) in the lottery”;

in the line “Military levy” during the clarification of indicators of Annex 4DF to the Calculation for previous periods it is needed to indicate period for which the clarified reporting was submitted.

Herewith, adjustment of indicators to the Calculation for periods up to January 1, 2021 in columns 5a, 5 of Section I are not filled in. To exclude erroneous line from the previously entered information in the line “Military levy – exclusion” it is needed to repeat all columns of the erroneous line and reflect correct information in the line “Military levy”.

More information is in the “Knowledge Base” of public information and reference resource