Newsletter № 8/2024:
Regarding certain amendments to the Tax Code of Ukraine, introduced by the Law of Ukraine “On amendments to the Tax Code of Ukraine and other laws of Ukraine on ensuring balanced budget revenues during the martial law”, concerning introduction of advance corporate income tax contributions and personal income tax from locations of the retail fuel sale and income taxation of banks and other financial institutions
This Newsletter is devoted to certain changes in taxation introduced into the Tax Code of Ukraine by the Law of Ukraine № 4015-IX as of 10.10.2024 "On amendments to the Tax Code of Ukraine and other laws of Ukraine on ensuring balanced budget revenues during the martial law", which comes into force on December 1, 2024.
This letter is for informational purposes only and does not constitute individual tax consultation, as it is not based on the specifics of actual circumstances of operations of a particular taxpayer. Newsletter is based on provisions of current legislation of Ukraine and practice of its application, which may change in the future.
Each taxpayer, according to procedure specified in Article 52 of the Tax Code of Ukraine, may apply to the regulatory authority with a statement of actual circumstances of operations and provision of relevant materials to receive individual tax consultation.
Normative and legal acts used in this explanation:
1. Tax Code of Ukraine;
2. Law of Ukraine № 4015-IX as of 10.10.2024 “On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding ensuring balanced budget revenues during the martial law” (hereinafter – Law № 4015);
3. Law of Ukraine № 3817-ИХ as of 18.06.2024 “On state regulation of production and circulation of ethyl alcohol, alcohol distillates, bioethanol, alcoholic beverages, tobacco products, tobacco raw materials, liquids used in electronic cigarettes and fuel” (hereinafter – Law № 3817);
4. Corporate income tax declaration, approved by Order of the Ministry of Finance of Ukraine № 897 as of 20.10.2015 “On approval of form of the Corporate income tax declaration”, registered in the Ministry of Justice of Ukraine on 11.11.2015 under № 1415/27860 (as amended by Order of the Ministry of Finance of Ukraine № 101 as of 20.02.2023) with amendments (hereinafter – Declaration).
Law № 4015 changed approaches to taxation of profits of financial institutions (excepting insurance companies) and revised income tax rates.
Innovation of the Law № 4015 is:
determining income types of financial institutions (excepting insurance companies) to which, from 01.01.2025, the basic (general) income tax rate of 25 percent instead of 18 percent is applied;
establishing increased basic income tax rate of 50 percent for banks in 2024 (including for payment of advance contributions for paying dividends) (instead of current basic rate of 25 percent);
prohibition for banks from taking into account in 2024 outstanding tax losses from previous years as a reduction in taxable amount with a right to such allowance, starting from the reporting periods of 2025 until their full repayment;
payment of the corporate income tax advance contributions and personal income tax by payers of these taxes involved in the retail fuel sale has been introduced;
determination, from January 1, 2025 of the corporate income tax advance contributions for payers involved in sale of foreign exchange values in cash, in a fixed amount expressed in euros instead of the minimum wages and a separate rate for foreign currency exchange points located in the Kyiv city.
I. CORPORATE INCOME TAX
1. Corporate income taxation peculiarities of financial institutions
Rates
Regarding provisions that come into force on 01.01.2025.
Provisions of new version of Paragraph 136.1-1 Article 136 of the Tax Code of Ukraine, according to amendments made by the Law № 4015, define income types by categories of payers for whom basic (general) income tax rate of 25 percent is applied, in particular, for:
income taxation of financial institution (excepting insurers), according to procedure established by Sub-paragraph 134.1.1 Paragraph 134.1 Article 134 of the Tax Code of Ukraine;
taxation of adjusted income of the controlled foreign company of financial institution (excepting insurers), determined according to Article 39-2 of the Code;
application of provisions of Paragraph 57.1-1 Article 57 of the Tax Code of Ukraine to payment of dividends by financial institution (excepting insurers).
Regarding provisions that come into force on 01.12.2024.
According to results of tax (reporting) year 2024, basic (general) rate of the corporate income tax for taxation of bank incomes, as well as for application of provisions of Paragraph 57.1-1 Article 57 of the Code to banks, is 50 percent.
Amount of the corporate income tax for 2024 at the 50 percent rate is determined for reporting period 2024 in Declaration for such tax (reporting) year. Accrual and payment of the corporate income tax liability for the previous tax (reporting) periods of 2024 (quarter, half-year and three quarters) at the basic (general) rate that was in effect before entry into force of the Law № 4015, i.e. 25 percent, is not a violation of rules for accrual and payment of the corporate income tax liability[1].
After entry into force of the Law № 4015, banks must determine their income tax liabilities for the entire year 2024 at the 50 percent rate.
At the same time, dividends paid by banks during 2024 will be subject to recalculation at the increased corporate income tax rate (50 percent).
Reference: issuer of the corporate rights, that makes a decision to pay dividends to its shareholders (owners), calculates and pays income tax advance payment to the budget[2] (calculation of amounts of advance contributions is provided in Annex AB to the Declaration).
Losses
According to results of the tax (reporting) year 2024, the banks:
do not apply provisions stipulated in Sub-paragraph 140.4.4 Paragraph 140.4 Article 140 of the Tax Code of Ukraine and do not reduce financial result before taxation by the amount of negative value of taxation object of the previous tax (reporting) years.
In case of application for the previous tax (reporting) periods of 2024 of provisions provided for in Sub-paragraph 140.4.4 Paragraph 140.4 Article 140 of the Tax Code of Ukraine, and/or payment of the corporate income tax advance contributions provided for in Paragraph 57.1-1 Article 57 of the Tax Code of Ukraine at the 25 percent rate, banks have to reflect in Declaration for 2024 the specified indicators (amounts of negative value of taxation object of the previous reporting periods, including for period from January 1, 2024, amounts of the corporate income tax advance contributions upon payment of dividends at the 50 percent rate) contained in their previously submitted Declarations[3].
In case of reflection of revised indicators for the above specified reasons, sanctions provided for in Article 50 of the Tax Code of Ukraine are not applied. In case of additional monetary obligation arising as a result of revision of indicators, such monetary obligation is payable within payment terms established for the income tax liability based on results of 2024.
Reference: according to the general rules, income tax payers reduce taxable amount by the amount of accumulated tax losses from the previous tax (reporting) years until they are completely written off, but taking into account restrictions for large taxpayers[4].
Difference in the form of amount of negative value of taxation object of the past tax reporting periods, by which the income taxation object is reduced, is reflected in Section 3.2.4 of Annex PI to line 03 PI of Declaration.
Amount of negative value of taxation object of the previous tax (reporting) years, not taken into account in reduction of the corporate income taxation object, including that received from January 1, 2024 to December 31, 2024, reduces financial result before taxation of the future tax (reporting) periods, starting from January 1, 2025 in manner specified in Sub-paragraph 140.4.4 Paragraph 140.4 Article 140 of the Tax Code of Ukraine.
That is, if after recalculations amount of tax liability increases, the banks pay difference in such liability to the budget within 10 days after deadline for submitting annual Declaration.
Note: temporarily for a period from August 1, 2023 until termination or cancellation of the martial law on the territory of Ukraine, in case of the taxpayer independently correcting, in compliance with procedure, requirements and restrictions specified in Article 50 of the Tax Code, errors that led to understatement of tax liability, such taxpayer is exempted from accrual and payment of financial sanctions and penalties provided for in Paragraph 50.1 Article 50 of the Code [5].
Questions – answers
1. Should the bank determine the income tax liability at the 50 percent rate for the entire year 2024 on a cumulative basis or only based on results of the last reporting quarter of this year?
Basic (general) corporate income tax rate for taxing bank incomes of the 50 percent is used to determine the income tax liability based on results of the entire tax (reporting) year 2024.
For this purpose, line 06 of Declaration indicates amount of the income tax calculated by a cumulative total at the 50 percent rate for a period from January 1 to December 31, 2024, and value of line 18 of Declaration for 2024 is equal to value of line 17 of Declaration for the previous reporting (tax) period of this year (taking into account clarifications, if any, occurred in the reporting year).
2. Company is a non-bank financial institution operating under appropriate license. To determine the income tax liability and dividend payments in 2025, should apply the 25 percent rate?
Yes, for the income taxation of financial institution (excepting insurers), taxation of adjusted profit of the controlled foreign company of financial institution (excepting insurers), determined according to Article 39-2 of the Code, as well as application of provisions of Paragraph 57.1-1 Article 57 of the Tax Code of Ukraine for payment of dividends by financial institution (excepting insurers), the basic 25 percent rate is applied. At the same time, based on results of annual declaration for 2024, the 18 percent rate is applied.
3. At what corporate income tax rate are dividends paid by the banking institution taxed in 2024?
To determine amount of advance corporate income tax contributions from amounts of dividends paid before date of entry into force of the Law № 4015, the banks apply basic (base) tax rate of 25 percent in effect during the relevant period.
If dividends are paid in 2024 after entry into force of the Law № 4015, basic tax rate of 50 percent is applied to determine amount of advance contributions by the banks.
!!!! Herewith, in Declaration for 2024, the bank must recalculate amount of advance contributions for the entire year 2024 at the 50 percent rate.
Therefore, in line 6 of Annex AB to the annual Declaration, amount of advance contribution in connection with payment of dividends (equal payments) that must be paid in the reporting (tax) period and which is transferred to line 20 of the AB of Declaration is determined based on the value of line 5 of this Annex at the 50 percent rate. Amount of additional income tax liability in the form of advance contribution on dividends is calculated at the 50 percent rate and is indicated in line 22 of Declaration and is payable within 10 days after deadline for submitting the annual Declaration.
At the same time, amount of advance contributions from dividends, calculated at the 50 percent rate, is reflected in line 16.2 of the ZP Annex to line 16 of the ZP Declaration and reduces accrued amount of the bank profit tax for 2024.
4. If the bank, in reporting periods of quarter, half-year and three quarters of 2024, took into account tax losses for the previous periods in reducing the income taxation object (reflected them as a part of differences in the RI Annex to Declaration), then how should corrected indicators be reflected in Declaration for 2024?
Line 3.2.4 is not filled in in Annex RI to the bank Declaration for the reporting tax year 2024.
5. What amount of "tax losses" is subject to inclusion in reduction of the corporate income taxation object, starting from the reporting periods of 2025?
Starting from the reporting periods of 2025, reduction of the corporate income taxation object shall take into account the outstanding amount of negative value of taxable object of previous tax (reporting) years as of 01.01.2024, increased by the amount of negative value of taxable object that arose based on results of the reporting year2024. Such consideration is carried out taking into account restrictions specified in Sub-paragraph 140.4.4 Paragraph 140.4 Article 140 of the Tax Code for large taxpayers.
For reference: amounts of negative value of taxation object of the previous tax (reporting) years are considered repaid if two of the following conditions are simultaneously met:
a) these amounts were included in calculation of taxable object of the future tax (reporting) periods;
b) these amounts were used to reduce positive value of taxable object (profit) of relevant tax (reporting) years, calculated according to Sub-paragraph 134.1.1 Paragraph 134.1 Article 134 of the Tax Code of Ukraine, without taking into account the outstanding negative value of taxable object of the previous tax (reporting) years[6].
6. In November 2024, the bank discovered error that led to understatement of taxation object by the income tax in the second quarter of 2024. For which periods should revised calculations be submitted and at what rate should income tax be calculated? Are there financial sanctions for revisions?
In this case, general rules apply for correcting errors made in the process of determining tax liability. In this case, tax liability in the clarifying Declaration is determined at the income tax rate in effect prior to the date of entry into force of the Law № 4015 (25 percent).
In case of reflecting revised indicators, financial sanctions and penalties for amount of the understated tax liability are not accrued and not paid for reasons specified in Sub-paragraph 69.38 Paragraph 69 Sub-section 10 Section XX of the Tax Code of Ukraine.
At the same time, the bank, as a part of the income tax declaration for 2024, recalculates tax liabilities for the entire year 2024 without financial sanctions and penalties.
Line 06 of Declaration for 2024 indicates the income tax liability calculated as a cumulative total (taking into account clarification for the second quarter), determined at the 50 percent rate.
Value of line 18 of Declaration is equal to the value of line 17 of Declaration for the previous reporting (tax) period of the current year (taking into account clarification).
7. After submitting Declaration for 2024, the bank discovered error that led to understatement of the income taxation object for 2024. At what rate should the income tax be calculated in the adjusted calculation?
Tax liability in the adjusted calculation is determined at the basic income tax rate of 50 percent.
8. At what rate will the adjusted income of the controlled foreign company of the bank be taxed for 2024 and subsequent years?
Adjusted income of the controlled foreign company of the bank for 2024 is taxed at the 50 percent rate.
Starting in 2025, adjusted income of the controlled foreign company of a financial institution (except for insurance companies), including the banks, is subject to the basic (general) tax rate of 25 percent.
2. Taxation peculiarities of the income tax payers involved in the retail fuel sale
Law № 4015 introduced payment of advance corporate income tax contributions by payers of this tax involved in the retail fuel sale (hereinafter – advance contributions).
Taxpayers involved in the retail fuel sale are required to pay advance corporate income tax contributions for each location of the retail fuel sale, information about which is entered into the Unified register of licensees and fuel circulation locations as of the first day of current month.
Advance contributions and corporate income tax payable to the budget by the taxpayers involved in the retail fuel sale are determined according to procedure provided for in Sub-paragraph 141.14 of Article 141 of the Tax Code of Ukraine[7], which was added to Article 141 of the Tax Code of Ukraine.
Retail fuel sale should be understood as activity of purchasing or receiving and subsequent sale or distribution of fuel with or without changes in its physical and chemical characteristics from places of the retail fuel sale through fuel dispensers, gas dispensers and/or oil dispensers, as well as sale of liquefied hydrocarbon gas in cylinders for domestic needs of the population and other consumers, as well as refueling from oil tanker non-self-propelled sea/river bunkering vessel in the water space of sea and river vessels[8].
Attention!
Place of the retail fuel sale is a real estate object or single (integral) property complex on the territory of which technological equipment intended for reception, storage and retail fuel sale is located, which belongs to the business entity on the ownership or usage right; oil tanker non-self-propelled sea/river bunkering vessel; specialized vehicle for transporting cylinders with liquefied hydrocarbon gas, from which the retail sale of liquefied hydrocarbon gas in cylinders for household needs of the population and other consumers is carried out. Place of the retail fuel sale is considered the place of fuel storage if fuel storage is carried out at such place of retail fuel sale[9].
Deadlines for payment of advance contributions:
monthly not later than the 20th of current month for each place of retail fuel sale, information about which is entered into the Unified register of licensees and places of fuel circulation as of the first day of current month, in the amount determined by Sub-paragraph 141.14.2 Paragraph 141.14 Article 141 of the Tax Code of Ukraine[10].
It is established that provisions of the specified norms of the Tax Code of Ukraine are applied from the first day of month in which the Law № 4015 entered into force, that is, from 01.12.2024.
Considering that the Law № 4015 entered into force on 01.12.2024, the first advance contribution for the taxpayers involved in the retail fuel sale is paid for December 2024 not later than 20.12.2024.
Amounts of advance contributions [11]:
Advance contribution is paid for each location of the retail fuel sale, information about which is entered into the Unified register of licensees and fuel circulation locations as of the first day of current month:
in the amount of 60 thousand UAH for each place, except for cases provided for in Sub-paragraphs "b" and "c" of Sub-paragraph 141.14.2 Paragraph 141.14 Article 141 of the Tax Code of Ukraine (Sub-paragraph "a" of Sub-paragraph 141.14.2 Paragraph 141.14 Article 141 of the Tax Code of Ukraine);
for place of the retail fuel sale, where only liquefied gas is sold[12] – in the amount of 30 thousand UAH for each place (Sub-paragraph "b" of Sub-paragraph 141.14.2 Paragraph 141.14 Article 141 of the Tax Code of Ukraine);
for place of the retail fuel sale, where several fuel types are sold and share of sales of liquefied gas in liters brought to a temperature of 15 °C in the total volume of fuel sold during the previous month is 50 percent or more – in the amount of 45 thousand UAH for each place (Sub-paragraph "c" of Sub-paragraph 141.14.2 Paragraph 141.14 Article 141 of the Tax Code of Ukraine).
Advance payments are integral part of the income tax.
Amount of advance payments paid during the reporting (tax) period reduces the corporate income tax liabilities calculated based on results of such reporting (tax) period at the base (basic) rate determined by Article 136 of the Tax Code of Ukraine, in the amount not exceeding amount of accrued tax liability for such tax (reporting) period.
Important!
If amount of advance contribution previously paid during the reporting (tax) year exceeds amount of accrued tax liability for such tax (reporting) year, amount of such excess is not carried over to reduce tax liabilities in the subsequent tax (reporting) periods.
Amount of paid advance income tax contributions is not subject to refunding to the taxpayer as excessively and/or erroneously paid tax liabilities, cannot be credited against other taxes and levies (obligatory payments) and is not subject to provisions of Article 43 of the Tax Code of Ukraine regarding conditions for refunding erroneously and/or excessively paid monetary liabilities and penalties[13].
Liability for non-payment of advance contributions:
Sub-paragraph 141.14.4 Paragraph 141.14 Article 141 of the Tax Code of Ukraine stipulates that monetary obligation in the form of advance corporate income tax contribution is considered agreed upon at the time of occurrence of such obligation, which is determined by the calendar date established in Sub-paragraph 141.14.1 Paragraph 141.14 Article 141 of the Tax Code of Ukraine for deadline for payment of advance corporate income tax contribution to the relevant budget.
If the taxpayer fails to pay agreed amount of advance corporate income tax contribution within period specified in Sub-paragraph 141.14.1 Paragraph 141.14 Article 141 of the Tax Code of Ukraine, such taxpayer will be held liable in the form of a fine in the amount specified in Article 124 of the Tax Code of Ukraine.
In addition, failure by the business entity that received license for the retail fuel sale to pay advance corporate income tax contribution, specified in Paragraph 141.14 Article 141 of the Tax Code of Ukraine for the tax (reporting) period, is grounds for the licensing authority to make a decision to terminate license for a right to conduct relevant type of economic activity[14].
Questions – answers
1. Enterprise that is the income tax payer and involved in the retail fuel sale received negative value of taxation object at the end of 2024 (negative value is reflected in line 04 “Taxation object (line 02 + line 03RI) (+, -)” of the main part of Declaration). Can previously paid advance contributions for each retail fuel location be taken into account to reduce corporate income tax liabilities for subsequent tax (reporting) periods?
If amount of advance contribution previously paid in 2024 exceeds amount of accrued tax liability for such tax (reporting) year, amount of such excess is not carried over to reduce tax liabilities in subsequent tax (reporting) periods.
At the same time, amount of paid advance income tax contributions is not subject to refunding to the taxpayer as excessively and/or erroneously paid tax liabilities, cannot be credited against other taxes and levies (obligatory payments) and is not subject to provisions of Article 43 of the Tax Code of Ukraine regarding conditions for refunding erroneously and/or excessively paid monetary liabilities and penalties.
Therefore, if the taxpayer involved in the retail fuel sale has negative value of taxation object at the end of 2024, such taxpayer does not take into account previously paid advance contributions for each location of the retail fuel sale in reducing the corporate income tax liabilities for subsequent tax (reporting) periods.
2. Are there penalties for late payment of advance corporate income tax contributions by the corporate income tax payers involved in the retail fuel sale?
Yes, this is basis for applying financial liability in the form of a fine in amounts specified in Article 124 of the Tax Code of Ukraine[15] if the taxpayer does not pay agreed amount of advance corporate income tax contribution within period specified in Sub-paragraph 141.14.1 Paragraph 141.14 Article 141 of the Tax Code of Ukraine.
3. On the territory of motor transport enterprise there are fuel and gas dispensers, which are used exclusively for fueling its own vehicles. Does such enterprise have tax obligations to pay advance income tax contributions if enterprise does not have any locations of the retail fuel sale, information about which is subject to entry in the Unified register of licensees and fuel circulation locations?
In this case, enterprise does not have tax obligations to pay advance income tax contributions, since enterprise is not involved in the retail fuel sale and enterprise does not have any locations of the retail fuel sale, information about which is subject to entry in the Unified register of licensees and fuel circulation locations.
3. Regarding taxation of the income tax payers involved in trading of currency values in cash
For the corporate income tax payers involved in trading of currency values in cash, from January 1, 2025[16] advance corporate income tax contributions are set at the fixed amount determined in euros (instead of minimum wages) for each foreign currency exchange point, which are paid in the amount according to official UAH exchange rate established by the National Bank of Ukraine on the first day of the first month of calendar quarter in which advance contribution is made.
Starting from January 2025, advance income tax contribution for each foreign currency exchange point is paid in the amount of:
a) equivalent to six hundred euros according to the official UAH exchange rate established by the National Bank of Ukraine on the first day of the first month of calendar quarter in which advance contribution is made, for each foreign currency exchange point located in a settlement (except for Kyiv city) with a population exceeding 50 thousand, according to statistical data on the current 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) equivalent to seven hundred euros according to the official UAH exchange rate established by the National Bank of Ukraine on the first day of the first month of calendar quarter in which advance contribution is made, for each foreign currency exchange point located in the Kyiv city;
c) equivalent to two hundred euros according to the official UAH exchange rate established by the National Bank of Ukraine on the first day of the first month of calendar quarter in which advance contribution is made, for each foreign currency exchange point located in settlements other than those provided for in Sub-paragraphs "a" and "b" of this Sub-paragraph or outside settlements.
That is, foreign currency exchange points located in the Kyiv city are separately identified.
Mechanism for paying advance contribution for each foreign currency exchange point for the corporate income tax payers involved in trade of currency values in cash has remained unchanged.
II. PERSONAL INCOME TAX FOR INDIVIDUALS-ENTREPRENEURS INVOLVED IN THE RETAIL FUEL SALE
Law № 4015 introduced payment of advance personal income tax contributions by payers of this tax involved in the retail fuel sale (hereinafter – advance contributions).
Taxpayers involved in the retail fuel sale are required to pay advance contributions for each retail fuel location, information about which is entered into the Unified register of licensees and fuel circulation locations as of the first day of current month.
Advance contributions payable to the budget by taxpayers involved in the retail fuel sale are determined according to procedure provided for in Sub-paragraph 177.5.1-1 Paragraph 177.5 Article 177 of the Tax Code of Ukraine, which adds Paragraph 177.5 Article 177 of the Tax Code of Ukraine.
Retail fuel sale should be understood as activity of purchasing or receiving and further selling or dispensing fuel with or without changing its physical and chemical characteristics from places of the retail fuel sale through fuel dispensers, gas dispensers and/or oil dispensers, as well as sale of liquefied hydrocarbon gas in cylinders for household needs of the population and other consumers, as well as refueling from oil-filled non-self-propelled marine/river bunkering vessel in the water space of sea and river vessels[17].
Reminder!
Place of the retail fuel sale is a real estate object or single (integral) property complex on the territory of which technological equipment intended for reception, storage and retail fuel sale is located, which belongs to a business entity on the ownership or usage right; oil tanker non-self-propelled sea/river bunkering vessel; specialized vehicle for transporting cylinders with liquefied hydrocarbon gas, from which the retail sale of liquefied hydrocarbon gas in cylinders for household needs of the population and other consumers is carried out. Place of the retail fuel sale is considered the place of fuel storage if fuel storage is carried out at such place of retail fuel sale[18].
Deadlines for payment of advance payments: monthly, not later than the 20th of current month for each retail fuel sale location, information about which is entered into the Unified register of licensees and fuel circulation locations as of the first day of current month, in the amount determined by Sub-paragraph 177.5.1-1 Paragraph 177.5 Article 177 of the Tax Code of Ukraine[19].
It is established that provisions of the specified norms of the Tax Code of Ukraine are applied from the first day of month in which the Law № 4015 entered into force, that is, from 01.12.2024.
Considering that the Law № 4015 entered into force on December 1, 2024, the first advance contribution for the taxpayers involved in the retail fuel sale is paid for December 2024 not later than December 20, 2024.
Amounts of advance contributions[20]:
Advance contribution is paid for each location of the retail fuel sale, information about which is entered into the Unified register of licensees and fuel circulation locations as of the first day of current month:
in the amount of 60 thousand UAH for each place, except for cases provided for in Sub-paragraphs "b" and "c" of Sub-paragraph 177.5.1-1 Paragraph 177.5 Article 177 of the Tax Code of Ukraine (Sub-paragraph "a" of Sub-paragraph 177.5.1-1 Paragraph 177.5 Article 177 of the Tax Code of Ukraine);
for location of the retail fuel sale, where only liquefied gas is sold – in the amount of 30 thousand UAH for each place (Sub-paragraph "b" of Sub-paragraph 177.5.1-1 Paragraph 177.5 Article 177 of the Tax Code of Ukraine);
for location of the retail fuel sale, where several types of fuel are sold and share of sales of liquefied gas in liters, brought to a temperature of 15 °C, in the total volume of fuel sold during the previous month is 50 percent or more – in the amount of 45 thousand UAH for each place (Sub-paragraph "c" of Sub-paragraph 177.5.1-1 Paragraph 177.5 Article 177 of the Tax Code of Ukraine).
Important!
Advance contributions are paid under the budget classification code 11011500 "Advance personal income tax contribution paid by the taxpayers involved in the retail fuel sale".
Advance contributions are integral part of the personal income tax.
Personal income tax liability calculated based on results of final calculation for the reporting tax year is reduced by the amount of advance contributions paid according to Sub-paragraph 177.5.1-1 Paragraph 177.5 Article 177 of the Tax Code of Ukraine, while amount of such reduction must not exceed amount of calculated tax liability from this tax.
Important!
If amount of advance tax contribution previously paid during the reporting tax year according to Sub-paragraph 177.5.1-1 Paragraph 177.5 Article 177 of the Tax Code of Ukraine exceeds amount of accrued personal income tax liability for such reporting tax year, amount of such excess is not credited against future payments for this tax.
Amount of paid advance tax contributions according to Sub-paragraph 177.5.1-1 Paragraph 177.5 Article 177 of the Tax Code of Ukraine is not subject to refunding to the taxpayer as excessive and/or erroneously paid tax liabilities, cannot be credited against other taxes and levies (obligatory payments) and is not subject to provisions of Article 43 of the Tax Code of Ukraine[21].
Liability for non-payment of advance contributions:
Non-payment by the business entity that received license for the retail fuel sale of advance personal income tax contribution, specified in Sub-paragraph 177.5.1-1 Paragraph 177.5 Article 177 of the Tax Code of Ukraine for tax (reporting) period, is grounds, in particular, for application of financial liability in the form of a fine in amounts specified in Article 124 of the Tax Code of Ukraine[22] if the taxpayer does not pay agreed amount of advance personal income tax contribution within the established period.
_________________________________
[1] Paragraph 70 Sub-section 4 Section XX, of the Tax Code of Ukraine
[2] Paragraph 57.1-1 Article 57 of the Tax Code of Ukraine
[3] Paragraph 70 Sub-section 4 Section XX of the Tax Code of Ukraine
[4] Sub-paragraph 140.4.4 Paragraph 140.4 Article 140 of the Tax Code of Ukraine
[5] Paragraph 69.38 Sub-section 10 Section XX of the Tax Code of Ukraine
[6] Sub-paragraph 140.4.4 Paragraph 140.4 Article 140 of the Tax Code of Ukraine
[7] Paragraph 137.12 Article 137 of the Tax Code of Ukraine
[8] Paragraph 77 Part 1 Article 1 of the Law № 3817
[9] Paragraph 52 Part 1 Article 1 of the Law № 3817
[10] Sub-paragraph 141.14.1 Paragraph 141.14 Article 141 of the Tax Code of Ukraine
[11] Sub-paragraph 141.14.2 Paragraph 141.14 Article 141 of the Tax Code of Ukraine
[12] Definition of liquefied gas for purposes of applying Paragraph 141.14 Article 141 of the Tax Code of Ukraine is given in Sub-paragraph 141.14.5 Paragraph 141.14 Article 141 of the Tax Code of Ukraine
[13] Sub-paragraph 141.14.3 Paragraph 141.14 Article 141 of the Tax Code of Ukraine
[14] Paragraph 46 Part 2 Article 46 of the Law № 3817. Changes to Part 2 Article 46 of the Law № 3817 enter into force and have to be implemented from January 1, 2025
[15] Sub-paragraph 141.14.4 Paragraph 141.14 Article 141 of the Tax Code of Ukraine
[16] Paragraph 1 Section II “Final and Transitional Provisions” of the Law № 4015
[17] Paragraph 77 Part 1 Article 1 of the Law № 3817
[18] Paragraph 52 Part 1 Article 1 of the Law № 3817
[19] Sub-paragraph 177.5.1-1 Paragraph 177.5 Article 177 of the Tax Code of Ukraine
[20] Sub-paragraph 177.5.1-1 Paragraph 177.5 Article 177 of the Tax Code of Ukraine
[21] Sub-paragraph 177.5.3 Paragraph 177.5 Article 177 of the Tax Code of Ukraine
[22] Sub-paragraph 177.5.11 Paragraph 177.5 Article 177 of the Tax Code of Ukraine