Regarding application of Paragraph 137.11 Article 137 of the Tax Code of Ukraine by business entities that carry out activities in trading currency values in the cash form

Press service of the State Tax Service of Ukraine, published 04 March 2024 at 09:31 Chapter: News

Starting from January 2023, for financial institutions that carry out trade of currency values in the cash form (currency exchange) obligation to pay fixed amount of advance contribution from the income tax for each foreign currency exchange point entered in Register of foreign currency exchange points has been established as of the 1st of current month, which is maintained by the National Bank of Ukraine.

Paragraph 137.11 Article 137 of the Tax Code of Ukraine (hereinafter – Code) stipulates that taxpayers who carry out activity of trading currency values in the cash form are obliged to pay advance contributions from the corporate income tax for each foreign currency exchange point entered in Register of foreign currency exchange points as of the 1 day of current month. Advance contributions and corporate income tax payable to the budget by taxpayers who trade currency values in the cash are determined according to Paragraph 141.13 Article 141 of the Code.

Sub-paragraph 141.13.1 Paragraph 141.13 Article 141 of the Code stipulates that taxpayers who carry out activity of trading foreign currency values in the cash form pay monthly, not later than the last operating (banking) day of current month, advance contribution from the corporate income tax for each foreign currency exchange point entered in Register of foreign currency exchange points currency as of the 1 day of current month, in the amount determined by Sub-paragraph 141.13.2 Paragraph 141.13 Article 141 of the Code.

For taxation purposes of trading currency values in the cash form, foreign currency exchange point is understood as a structural/separate unit opened by the taxpayer, which, according to the Law of Ukraine "On currency and currency operations", has right to trade currency values in the cash form for purpose of trading foreign currency in the cash form.

Sub-paragraph 141.13.2 Paragraph 141.13 Article 141 of the Code stipulates that it is established that advance contribution from the corporate income tax is paid in the amount of:

1. a) three minimum wages established by the law as of January 1 of reporting (tax) year for each foreign currency exchange point located in a settlement whose population exceeds 50 thousand according to statistical data on the amount of existing population of Ukraine posted on website of specially authorized central executive authority in statistics sphere as of January 1 of year preceding the current year;
2. b) one minimum wage established by the law as of January 1 of reporting (tax) year for each foreign currency exchange point located in other, except for those provided for in Sub-paragraph "a" of this Sub-paragraph, settlements or outside settlements.

Therefore, for calculation of monthly advance contribution from the corporate income tax in 2024, statistical data on the number of population in settlements where foreign currency exchange offices are located, as of January 1, 2023 should be used.

Such statistical data must be posted on website of specially authorized central executive authority in statistics sphere and used as of January 1 of year preceding the current year.

However, generation of statistical data on the number of population (estimated) starting from 01.01.2023 has been suspended.

In connection with above specified, the State Tax Service has addressed to the State Statistics Service of Ukraine with a request to provide information on the source of receipt by the corporate income tax payers and controlling bodies of statistical data on the number of population in populated areas as of 01.01.2023, which should be used to determine amount of advance contributions from the corporate income tax.

In a letter to the State Tax Service, State Statistics Service reported the following. According to the Law of Ukraine "On official statistics", state statistical bodies generate and distribute official state statistical information (hereinafter – statistical information) according to statistical methodology and according to list of works, periodicity, in section and within terms provided for by the plan of state statistical observations (hereinafter – plan) for the corresponding year.

According to the plan and Methodological provisions of state statistical observation "Number and natural movement of population", approved by Order of the State Statistics Service № 126 as of 31.05.2022 (available at the link: https://www.ukrstat.gov.ua/norm_doc/2022/126/126_2022 .pdf), statistical information on the number of population is formed, in particular, on the basis of administrative data of territorial bodies of the Ministry of Justice of Ukraine in the part of state registration of births and deaths, as well as registration authorities regarding change of residence.

Taking into account the situation that has developed in connection with military aggression of russian federation against Ukraine, according to provisions of the Law of Ukraine "On protection of interests of subjects that submit reports and other documents during the period of martial law or state of war" (hereinafter – Law) and Resolutions Cabinet of Ministers of Ukraine № 263 as of 12.03.2022  "Some matters of ensuring functioning of information and communication systems, electronic communication systems, public electronic registers during the martial law", receiving relevant administrative data in full by territorial bodies of the State Statistics Service is currently impossible.

Formation of statistical data on the number of population (estimated), starting with data as of January 1, 2023, has been suspended.

State statistics authorities will resume publication of statistical data on the number of population (estimated) after the end of term established by the Law for submission of statistical and financial reports. The corresponding announcement for users was published on the official website of the State Statistics Service (www.ukrstat.gov.ua) at the link: https://www.ukrstat.gov.ua/Noviny/new2022/zmist/news/koristuvachi.png

At the same time, please note that in electronic form the latest statistical data prepared by the State Statistics Service according to the plan regarding number of the existing population (estimated) in Ukraine in general, regions, districts, territory of territorial communities and settlements, in particular, as of 01.01.2022, is posted on the official website of the State Statistics Service in section "Statistical information"/"Open data format"/"Population and migration"/"Number of existing population (estimated) by regions, districts, territorial communities and settlements".