To the attention of the corporate income tax payers involved in trading of currency values in the cash form!
In connection with changes introduced by the Law of Ukraine No. 2720-IX as of 03.11.2022 "On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding the taxation specifics of activity of trading currency values in the cash form" (hereinafter - Law No. 2720) and taking into account entered into force on 31.03.2023 by Order of the Ministry of Finance of Ukraine No. 101 as of 20.022023 "On approval of changes to the corporate income tax declaration form", registered in the Ministry of Justice of Ukraine on 07.03.2023 under No. 412/39468 (with amendments), which approved changes to the form corporate income tax declaration form, approved by Order of the Ministry of Finance of Ukraine as of 20.10.2015 No. 897 (hereinafter - Declaration), related to peculiarities of the corporate income taxation, the State Tax Service reports the following.
By Law No. 2720, Article 141 of the Tax Code of Ukraine (hereinafter - Code), was added with Paragraph 141.13, which defines taxation specifics of activity of trading currency values in the cash form.
Taxpayers who trade in currency values in the cash pay monthly, not later than the last operating (banking) day of a current month, the advance payment of the corporate income tax for each foreign currency exchange point, entered in the Register of foreign currency exchange points as of on the first day of the current month.
Advance contribution of the corporate income tax is paid in the amount of:
- a) three minimum wages, established by the law as of January 1 of the reporting (tax) year, for each foreign currency exchange point located in a settlement with a population of more than 50 thousand, according to statistical data on the size of existing population of Ukraine, posted on the website of specially authorized central executive body in the statistics sphere as of January 1 of the year preceding the current year;
- b) one minimum salary established by the law as of January 1 of the reporting (tax) year for each foreign currency exchange point located in other settlements or outside settlements.
Advance contributions of the corporate income tax are an integral part of corporate income tax.
In connection with the above specified, Declaration was added with annex OV, in which corporate income tax payers involved in trading of currency values in the cash form calculate amount of such advance payments.
Line 26 of the OV annex specifies total amount of advance payment from foreign currency exchange points paid in the reporting (tax) period. Amount of advance payment is paid monthly and is determined in column 4, value of which is calculated according to the formula provided for in note 1 to the annex OV.
Herewith, the indicator of line 26 of the annex OV is transferred to line 26 of the OV Declaration. For taxpayers whose basic reporting (tax) period is a calendar year, line 28 is equal to line 26 of the OV Declaration.
In addition, in connection with changes introduced by the Law No. 2720, Declaration form and the VP annex to the Declaration have been amended with:
lines 26 - 28 of the OV, which are filled in by taxpayers who pay advance payments from foreign currency exchange points in the reporting (tax) period, the previous reporting (tax) period, based on the results of the last reporting (tax) period;
"Correction of errors regarding amount of advance payments from foreign currency exchange points" section, which reflects the increase (decrease) in tax liability, amount of fines and interest (lines 38 - 41 of the Declaration form and lines 36 - 38 of Annex VP to the Declaration).
Sub-paragraph 141.13.3 of Paragraph 141.13 Article 141 of the Code stipulates that amount of advance contributions of the corporate income tax paid during the reporting (tax) period reduces tax liability from the corporate income tax, calculated based on the results of such reporting (tax) period at a rate determined by Paragraph 136.1 Article 136 of the Code, in amount not exceeding amount of accrued tax liability for such tax (reporting) period.
In connection with the above specified, annex ZP to the Declaration is amended with line 16.5, which shows amount of accrued and paid advance payments from foreign currency exchange points, which reduces the corporate income tax liability (line 16).
Indicator of line 16.5 of the ZP annex is determined in amount that does not exceed a positive value: line 06 + line 06.1 of the Controlled Foreign Company’s Declaration - line 16.4.1 of the ZP annex to line 16 of the ZP Declaration.
Provisions of Paragraph 46.6 Article 46 of the Code provide that, if the tax reporting forms are changed as a result of a change in the taxation rules, before definition of new declarations forms (calculations) that enter into force for preparation of reports for the tax period that follows the tax period in which they were published, the declarations forms (calculations) valid before such determination are valid.
Taking into account the above specified, the corporate income tax payers involved in trading in currency values in cash form will be able to submit Declaration in an updated form, starting from the reporting (tax) period - the first half of 2023, with a reflection of payments made during such the reporting (tax) period amounts of advance payments from foreign currency exchange points in the OV annex to the Declaration, and to take into account the corresponding amounts in reduction of tax liabilities of the corporate income tax in annex ZP to the Declaration according to provisions of Paragraph 141.13 Article 141 of the Code.
