What income of the single tax payers of Group III is subject to military levy?

According to the Tax Code of Ukraine, single tax payers of Group III are the military levy payers.

Military levy taxation object is income defined by Article 292 of the Tax Code of Ukraine.

What is considered income:

for individuals-entrepreneurs – income received during the reporting year in monetary (cash/non-cash), tangible or intangible form, except for passive income (interest, dividends, insurance payments, grants), as well as income from the sale of one’s own movable or immovable property.

for legal entities – any income received during the reporting period, including branches and representative offices.

for e-residents – amount of funds received on such payer’s bank account.

Income also includes:

cost of goods/services received free of charge (provided under written contracts, including gifts, which do not provide for monetary or other compensation for the cost of such goods (works, services) or their return, as well as transferred to the single tax payer for safekeeping and used by such single tax payer).

written off accounts payable after expiration of the statute of limitations (for the VAT payers).

for legal entities, advance payment for goods/services received before transition to the simplified system.

remuneration amount received by attorney (agent) under agency, commission, freight forwarding or agency contracts.

Not considered as income:

VAT amounts;

amounts received through internal settlements between divisions of such payer;

refundable financial assistance received and returned within 12 months, and loans;

earmarked funds from budgets, Pension fund or social insurance funds;

returned advances/prepayments, if such return occurs due to the return of goods, termination of contract or by the letter of application for the return of funds;

payment for goods/services sold being on the general system;

funds and cost of property contributed by the founders or participants of the single tax payer to the authorized capital;

overpaid taxes and refunds of the single social contribution;

dividends taxed under the Tax Code of Ukraine;

provided (transferred) free of charge by the person authorized to make purchases in the healthcare, medicines, medical devices and auxiliary means for them, in favor of business entities that have license to conduct business activities in medical practice for implementation of programs and centralized healthcare measures, provided that:

- such goods on the date of the contract conclusion for their purchase were included in the List of medicines, medical devices and auxiliary means to them, which are purchased for the funds of the state budget for implementation of programs and centralized measures in healthcare, and/or in the List of medicines, which are purchased under managed access contracts, approved by the Cabinet of Ministers of Ukraine; 

- such goods were purchased by the person authorized to make purchases in the healthcare sector, at expense of the state budget funds provided for implementation of programs and centralized healthcare measures or at the expense of grants (sub-grants) for implementation of programs of the Global Fund to counteract AIDS, tuberculosis and malaria in Ukraine according to the law.