Newsletter
published 01 March 2022 at 11:32 Chapter: News
Amounts of funds and products transferred (handed) by taxpayers to the Armed Forces of Ukraine are included in expenses without restrictions.
Norms of the Tax Code of Ukraine stipulate that object of taxation of corporate income tax is the profit originating in Ukraine and abroad, which is determined by adjusting (increasing or decreasing) the pre-tax financial result (profit or loss) specified in financial reporting of the enterprise according to national accounting regulations (standards) or international financial reporting standards for differences that arise according to provisions of the Code.
Herewith, Sub-paragraph 134.1.1 Paragraph 134.1 Article 134 of the Code stipulates that for taxpayers whose annual income (net of indirect taxes), determined by accounting rules for the last annual reporting period does not exceed 40 million UAH, the object of taxation may be determined without adjusting the pre-tax financial result for all differences (except for the negative value of taxation object of the previous tax (reporting) years and adjustments specified in Sub-paragraph 140.4.8 Paragraph 140.4 and Sub-paragraph 140.5.16 Paragraph 140.5 Article 140 of the Code), determined according to provisions of Section III of the Code.
Paragraph 33 Sub-section 4 Section XX of the Tax Code of Ukraine stipulates that temporarily, for a period of the anti-terrorist operation, adjustments established by Sub-paragraph 140.5.9 Paragraph 140.5 Article 140 of this Code shall not be made starting from 01.01.2015 on the amount or cost of special personal protective equipment (helmets, bulletproof vests standards), technical means of surveillance, medicines and medical devices, personal hygiene products, food, supplies, as well as other products, performed work or services provided according to the list determined by the Cabinet of Ministers of Ukraine, which are voluntarily listed (transferred) to the Armed Forces of Ukraine, National Guard of Ukraine, Security Service of Ukraine, Foreign Intelligence Service of Ukraine, State Border Guard Service of Ukraine, Ministry of Internal Affairs of Ukraine, State Protection Department of Ukraine, State Service for Special Communications and Information Protection of Ukraine, other military formations, their units, military units, subdivisions, institutions or organizations formed according to the laws of Ukraine maintained at expense of the state budget for purposes of ensuring the anti-terrorist operation.
As follows, adjustment of the pre-tax financial result for amount of the above specified funds and products transferred (handed) by taxpayers to the Armed Forces of Ukraine and other military formations for the state defense needs in connection with military aggression of the Russian Federation against Ukraine is not carried out, that is, such amounts are included in the pre-tax financial result as an expense without restriction.
Glory to Ukraine!