To the attention of taxpayers who make payments to non-resident and conduct activities on the territory of Ukraine through separate divisions (representative offices)

Law of Ukraine № 3721-IX as of 21.05.2024 "On amendments to the Tax Code of Ukraine and Law of Ukraine "On electronic communications" regarding rent for use of radio frequency spectrum (radio frequency resource) of Ukraine" (hereinafter – Law № 3721 -IX) from 01.07.2024 particularly made changes regarding terms of document storage and statute of limitations for determination by controlling entities of tax liabilities for operations with non-residents.

Sub-paragraph 44.3.1 Paragraph 44.3 Article 44 of the Tax Code of Ukraine (hereinafter – Code) stipulates that taxpayers are obliged to ensure storage of documents and information specified in Paragraph 44.1 of this Article, as well as documents related to the fulfillment of legislative requirements, control of compliance with which is entrusted to controlling authorities, within terms defined by the law, but not less than 2555 days (7 years) for documents and information necessary for tax control, according to Articles 39 and 39², Paragraph 141.4 Article 141 of the Code.

Also, Paragraph 102.1 of Article 102 of the Code stipulates that except for cases specified in Paragraph 102.2 of this Article, the controlling authority has a right to conduct audit and independently determine amount of taxpayer's monetary obligations in cases specified by the Code, not later than the end of 1095 days (2555 days in case of audits according to Articles 39 and 39², application of requirements of Paragraph 141.4 Article 141 of the Code), which occurs after the last day of deadline for submitting tax declaration, report on the use of income (profits) of non-profit organization, defined in Paragraph 133.4 Article 133 of the Code, and/or payment deadline of monetary obligations calculated by the controlling authority, and if such tax declaration was submitted later, on the date of its actual submission.

These requirements are, according to Paragraph 73 Sub-section 10 Section XX "Transitional Provisions" of the Code, applied to documents and information related to the application of requirements of Paragraph 141.4 Article 141 of the Code, storage period of which has not expired on the date of entry into force of the Law of Ukraine "On amendments to the Tax Code of Ukraine and Law of Ukraine "On electronic communications" regarding rent for use radio frequency spectrum (radio frequency resource) of Ukraine", as well as to tax control for determination of taxpayer's monetary liabilities on the basis of such documents, requirements regarding the 2555 day minimum period of storage of documents and information by taxpayers, provided for in Paragraph 44.3 Article 44 of the Code, and rights of the controlling authority to determine amounts of monetary liabilities that apply to the taxpayer during the 2555 day period provided for by Article 102 of the Code.

That is, the taxpayers who make payments of income to non-residents and non-residents who conduct their activities on the territory of Ukraine through separate divisions, including permanent representative offices, are required to keep documents whose statute of limitations has not expired as of July 1, 2024, according to the new terms (7 years).

For such taxpayers, monetary obligations will also be determined according to the new statute of limitations (not later than the end of 2555 days).