To the attention of income tax payers of enterprises involved in trading currency values in cash!

Press service of the State Tax Service of Ukraine, published 30 June 2023 at 11:43 Chapter: News

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 cash" (hereinafter –  Law No. 2720) and taking into account entry into force on 31.03.2023 of Order of the Ministry of Finance of Ukraine No. 101 as of 20.02.2023 "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 Corporate income tax declaration form, approved by Order of the Ministry of Finance of Ukraine No. 897 as of 20.10.2015 (hereinafter - Declaration), related to the corporate income taxation specifics, the State Tax Service informs.

Law No. 2720 made additions to Article 141 of the Tax Code of Ukraine (hereinafter - Code) with Paragraph 141.13, which defines the taxation specifics of activity of trading currency values in cash.

Taxpayers who trade currency values in cash pay monthly, not later than the last operating (banking) day of current month, the corporate income tax advance payment for each foreign currency exchange point, entered in Register of foreign currency exchange points as of on the first day of the current month.

Advance contribution from the corporate income tax is paid in the amount of:

a) three minimum salaries, 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 amount of existing population of Ukraine, posted on the website of specially authorized central executive body in the statistics sphere as of January 1 of 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.

Corporate income tax advance contributions are an integral part of the corporate income tax.

In connection with above specified, annex OV was added to the Declaration, in which the corporate income tax payers involved in trading currency values in cash calculate amount of such advance payments.

Line 26 of annex OV 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 formula provided for in note 1 of annex OV.

Herewith, indicator of line 26 of annex OV is transferred to line 26 of the OV to Declaration. For taxpayers whose basic reporting (tax) period is a calendar year, line 28 is equal to line 26 of the OV to Declaration.

In addition, in connection with changes introduced by the Law No. 2720, Declaration form and annex OV to the Declaration, the following were added:

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, previous reporting (tax) period based on results of the last reporting (tax) period;

section "Correction of errors regarding amount of advance payments from foreign currency exchange points", which reflects the increase (decrease) in tax liability, amount of a fine and interest (lines 38 - 41 of the Declaration form and lines 36 - 38 of Annex VP to the Declaration).

Sub-paragraph 141.13.3 Paragraph 141.13 Article 141 of the Code stipulates that amount of the corporate income tax advance contributions paid during the reporting (tax) period reduces the corporate income tax liability, calculated on the basis of results of such reporting (tax) period at the 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 above specified, line 16.5 was added to the ZP annex to the Declaration, 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 positive value: line 06 + line 06.1 of the Declaration of the Controlled Foreign Companies - 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 taxation rules, before determination of new forms of declarations (calculations) that enter into force for preparation of reporting for tax period that follows the tax period in which they were published, forms of declarations (calculations) valid before such determination are valid.

Taking into account the above specified, the corporate income tax payers involved in trading currency values in cash will be able to submit Declaration in the updated form, starting from the reporting (tax) period – first half of 2023, with a reflection of payments made during such reporting (tax) period of advance payments from foreign currency exchange points in the OV annex to the Declaration, and to take into account the corresponding amounts in the reduction of tax liabilities from the corporate income tax in the ZP annex to the Declaration according to provisions of Paragraph 141.13 Article 141 of the Code.