Question. Is reorganization by transformation basis for a documentary unscheduled audit of the taxpayer?
Answer. Articles 104, 108 of the Civil Code of Ukraine stipulate that legal entity is terminated as a result of reorganization (merger, acquisition, division, transformation) or liquidation. Legal entity’s transformation is a change in its organizational and legal form. In case of transformation, all property, rights and obligations of the previous legal entity are transferred to the new legal entity (successor).
Documentary unscheduled audits according to Sub-paragraph 78.1.7 Paragraph 78.1 Article 78 of the Tax Code of Ukraine (hereinafter – Code) are carried out regarding the taxpayers in respect of whom:
- decision has been made to terminate the legal entity;
- reorganization procedure of the legal entity (except for transformation) has been initiated;
- permanent representative office or a separate division of the legal entity, including foreign company or organization, has been closed;
- proceedings have been initiated in case to declare the taxpayer a bankrupt;
- application for deregistration of the taxpayer has been submitted.
Decision to conduct such audits is made by head of relevant territorial body of the State Tax Service on the basis of a report from the structural unit, whose competence includes conduction of documentary audits of the taxpayers – legal entities, based on a thorough analysis results of all tax information available to the State Tax Service’s bodies regarding the taxpayer and in case of identifying risks in the taxpayer’s activities, likelihood of failure to pay tax obligations, concealment of taxation objects, non-compliance with requirements of other legislation, control over which is entrusted to the State Tax Service’s bodies.
Taking into account above specified, reorganization of the legal entity, which corresponds to the "transformation" concept defined in the Civil Code of Ukraine, is not basis for organizing unscheduled documentary audit on the basis of Sub-paragraph 78.1.7 Paragraph 78.1 Article 78 of the Code.
Question. Is reorganization basis for including the taxpayer in a plan-schedule of documentary scheduled audits?
Answer. Procedure for forming a plan-schedule for conducting documentary scheduled audits of the taxpayers (hereinafter – plan-schedule) is provided for in Article 77 of the Code.
Taxpayers who are at the risk of non-payment of taxes and levies, non-compliance with other legislation, control over which is entrusted to controlling authorities, are chosen for the plan-schedule.
Frequency of documentary scheduled audits of the taxpayers is determined depending on the risk degree in activities of such taxpayers, which is divided into high, medium and low. Taxpayers with a low risk degree are included in the plan-schedule not more often than once every three calendar years, medium – not more often than once every two calendar years, high – not more often than once per calendar year.
Also, choosing the taxpayer for the plan-schedule, it is particularly necessary to take into account requirements of Paragraph 102.1 Article 102 of the Code regarding deadlines for conducting audit and determining the taxpayer’s tax liability.
Procedure for forming the plan-schedule and making changes to it, as well as the list of risks and their division into levels, are established by the central executive body that ensures formation and implementation of the state financial policy.
Procedure for forming the plan-schedule for conducting documentary scheduled audits of the taxpayers was approved by Order of the Ministry of Finance of Ukraine № 524 as of 02.06.2015, registered in the Ministry of Justice of Ukraine on 24.06.2015 under № 751/27196, with changes (hereinafter – Procedure № 524).
Paragraph 1 Section ІІІ of Procedure № 524 stipulates that Sections I and II of the plan-schedule include taxpayers of the real sector of economy who carry out financial and economic activities, pay taxes and are registered by the controlling authorities as the taxpayers at their main registration place or for whom bankruptcy proceedings have been initiated, or who are in the process of changing their location.
Paragraph 2 Section ІІІ of Procedure № 524 stipulates that formation of the list of taxpayers for Sections I, II of the plan-schedule is carried out according to the risk criteria according to requirements of this Section, including data from information and telecommunication systems of the controlling authorities.
Detailed list of criteria for choosing taxpayers – legal entities for Section I of the plan-schedule is given in Paragraph 5 Section III of Procedure № 524.
However, it should be noted that priority for including the taxpayers in the plan-schedule is presence of the greatest risks in their activities.
Question. What are the tax obligations of the taxpayer who has made the reorganization decision?
Answer. Sub-paragraph 16.1.10 Paragraph 16.1 Article 16 of the Code stipulates that the taxpayer is obliged to notify the controlling authorities at the registration place of its liquidation or reorganization within three working days from the date of relevant decision (except for cases where obligation to provide such notification is imposed by the law on the state registration authority).
State registration of legal entities and other registration actions are carried out according to the Law of Ukraine № 755-IV as of 15.05.2003 “On the state registration of legal entities, individuals-entrepreneurs and public organizations” (hereinafter – Law № 755) on the basis of documents, in particular, submitted by the applicant.
Part 6 Article 4 of the Law № 755 stipulates that in case of the legal entities’ transformation, state registration of the legal entity’s termination that is terminated as the transformation result and state registration of newly formed legal entity must be carried out. Transformation is considered completed from the date of state registration of newly formed legal entity.
Registration of the taxpayers in the controlling authorities is a derivative procedure from the state registration and is carried out according to the norms of Articles 63 – 70 of the Code.
Information contained in the Unified state register of legal entities, individuals-entrepreneurs and public organizations (hereinafter – Unified state register) is received by the controlling authorities through information interaction between the Unified state register and information systems of the State Tax Service.
Paragraph 63.6 Article 63 of the Code stipulates that the legal entity’s tax number is the identification code of the legal entity in the Unified state register of enterprises and organizations of Ukraine.
Therefore, the primary source of data regarding information on legal entities is the Unified state register.
In case of decision to reorganize the legal entity through transformation, the taxpayer must apply to the Unified state register to carry out relevant registration actions. Information about adoption of such decision by the legal entity will be received by the State Tax Service in order of information interaction. It is not necessary to additionally submit notification of such decision to the controlling authorities.
In essence, the legal entityєі transformation is exclusively a change in еру organizational and legal form and does not involve changing code of the Unified state register of enterprises and organizations of Ukraine of the legal entity (tax number), as well as procedures for deregistration from controlling authorities as the taxpayer of the legal entity that is terminated as a transformation result and registration of the newly formed legal entity.
Question. Does the taxpayer who is reorganizing need to change the VAT registration?
Answer. Procedure for registration, re-registration and registration cancellation of the value added tax payers (hereinafter – VAT) is regulated by Articles 183 – 184 of the Code and is regulated by Sections III – V of Regulation on registration of the value added tax payers, approved by Order of the Ministry of Finance of Ukraine № 1130 as of 14.11.2014, registered in the Ministry of Justice of Ukraine on 17.11.2014 under № 1456/26233, with changes (hereinafter – Regulation № 1130).
The Law of Ukraine № 657-VII as of 24.10.2013 “On amendments to the Tax Code of Ukraine regarding accounting and registration of the taxpayers” stipulates that since 2014, the VAT registration certificates have been canceled and right of the VAT payers to receive certificate from the VAT register has been ensured.
Clause 2 of Paragraph 183.15 Article 183 of the Code determines that in transformation case of the legal entity – taxpayer or changes in data about the taxpayer that relate to the tax number and/or name (surname, first name and patronymic) of the taxpayer and are not related to liquidation or reorganization of the taxpayer, as well as establishment of discrepancies or errors in the entries in the Taxpayer register, the taxpayer will be re-registered.
The taxpayer’s re-registration is carried out in compliance with rules and within time limits specified in Article 183 of the Code for the taxpayers’ registration, by making a corresponding entry in Register of taxpayers (Clause 3 Paragraph 183.15 Article 183 of the Code).
For re-registration, the taxpayer has to submit application according to Paragraph 183.7 Article 183 of the Code within 10 working days following the day on which the taxpayer’s data changed or other grounds for re-registration arose (Clause 4 Paragraph 183.15 Article 183 of the Code).
At the same time, according to Sub-paragraph 4.2 Paragraph 4 of Regulation № 1130, in the re-registration case, registration date as the VAT payer does not change.
If entity formed through transformation fails to submit application for re-registration within the established period, its registration as the taxpayer will be cancelled according to Article 184 of the Code (Clause 6 Paragraph 183.15 Article 183 of the Code).
Taking into account above specified, regardless of the date of state registration of entity formed through transformation, if such entity wishes to re-register, it must, within 10 working days following the completion date of transformation, submit to the controlling authority the VAT payer’s registration application Form № 1-VAT with a mark "Re-registration" (Annex 1 to Regulation № 1130). In the re-registration case, registration date of the VAT payer does not change, individual tax number of the VAT payer remains unchanged.
If entity formed by transformation does not wish to undergo re-registration according to Paragraph 183.15 Article 183 of the Code, but wishes to register as the VAT payer as a newly formed entity (with a new registration date and individual VAT payer tax number), such entity may submit two applications: application in Form № 3-VAT on registration cancellation as the VAT payer of entity terminated by transformation (in connection with termination) (Annex 3 to Regulation № 1130) and application Form Annex 1-VAT on registration as the VAT payer of a newly formed entity (Annex 1 to Regulation № 1130).
Question. Is the taxpayer created as a transformation result considered newly created enterprise, and is it only required to submit annual corporate income tax declaration?
Answer. Paragraph 137.4 Article 137 of the Code stipulates that tax the corporate income tax (reporting) periods, except for cases provided for in Paragraph 137.5 Article 137 of the Code, are calendar periods: quarter, half-year, three quarters, year. In this case, tax declaration is calculated on a cumulative basis. Tax (reporting) period begins on the first calendar day of the tax (reporting) period and ends on the last calendar day of the tax (reporting) period, except for peculiarities established by Sub-paragraphs 137.4.1 – 137.4.3 Paragraph 137.4 Article 137 of the Code.
For the taxpayers registered during the reporting (tax) year (newly established), who pay income tax on the basis of annual tax declaration for a period of activity in the reporting (tax) year, annual tax (reporting) period is established (Sub-paragraph "a" Paragraph 137.5 Article 137 of the Code).
The first tax (reporting) period begins on the date on which such accounting begins and ends on the last calendar day of such tax (reporting) period (Sub-paragraph 137.4.2 Paragraph 137.4 Article 137 of the Code).
Deadlines for submitting the Corporate income tax declaration, approved by Order of the Ministry of Finance of Ukraine № 897 as of 20.10.2015, 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 changes, (hereinafter – Declaration), for payers who use base reporting period of a quarter or a year, are established by Paragraph 49.18 Article 49 of the Code.
Sub-paragraph 49.18.6 Paragraph 49.18 Article 49 of the Code stipulates that tax declarations for the basic reporting (tax) period, which is equal to a calendar year for income tax payers, for tax declaration calculated on a cumulative basis for a year, are submitted within 60 calendar days following the last calendar day of the reporting (tax) year.
Paragraph 46.2 of Article 46 of the Code determines that financial reporting or reporting of financial position (balance sheet) and reporting of profit and loss and other comprehensive income (reporting of financial results), submitted according to Clauses 1 and 2 Paragraph 46.2 Article 46 of the Code, are annexes to the Declaration and its integral part.
Herewith, Clause 1 Paragraph 46.2 Article 46 of the Code determines that the income tax payer (except for the income payers tax who, according to the Law of Ukraine 996-XIV as of 16.07.1999 № “On accounting and financial reporting in Ukraine” are obliged to publish annual financial reporting and annual consolidated financial reporting together with the audit report) submits, together with relevant Declaration, quarterly or annual financial reporting in manner prescribed for submitting tax declaration, taking into account requirements of Article 137 of the Code.
Therefore, the taxpayer created as a transformation result will be considered a newly created corporate income tax payer, and the first tax (reporting) period for such taxpayer is the reporting period year, which begins on the transformation date and ends on the last day of relevant reporting (tax) year.
Question. Can the enterprise created as a transformation result be classified as "risky"?
Answer. Paragraph 201.1 Article 201 of the Code stipulates that on the occurrence date of tax liabilities, the taxpayer is obliged to compile tax invoice in the electronic form using qualified electronic signature or advanced electronic signature based on the qualified electronic signature certificate of a person authorized by the payer according to requirements of the Law of Ukraine “On electronic identification and electronic trust services”, and register it in the Unified register of tax invoices (hereinafter – Register) within period established by the Code.
Paragraph 201.16 Article 201 of the Code stipulates that registration of tax invoice/adjustment calculation in Register may be suspended according to procedure and on the grounds determined by the Cabinet of Ministers of Ukraine.
Resolution of the Cabinet of Ministers of Ukraine № 1165 as of 11.12.2019 “On approval of procedures on registration suspension of tax invoice / adjustment calculation in the Unified register of tax invoices”, with changes, particularly approved Procedure on registration suspension of tax invoice / adjustment calculation in the Unified register of tax invoices (hereinafter – Suspension procedure).
Paragraph 3 of the Suspension procedure stipulates that tax invoices / adjustment calculations (except for tax invoices / adjustment calculations compiled according to Paragraph 97 Sub-section 2 Section XX "Transitional provisions" of the Code, which reflect a transaction to which export guarantee regime is applied according to requirements of Article 192 of the Law of Ukraine "On foreign economic activity", adjustment calculations compiled a supplier of products / services to tax invoice compiled for a recipient – taxpayer, which provide for a reduction in the compensation amount for the cost of at least one of the products / services to their supplier, and adjustment calculations compiled for the non-tax payer, with exception of adjustment calculation specified in Sub-paragraph 7 of this Paragraph) submitted for registration in Register are checked for compliance with signs of unconditional registration of tax invoice / adjustment calculation (hereinafter – signs of unconditional registration).
Paragraph 4 of the Suspension procedure stipulates that if, based on the verification results of tax invoice / adjustment calculation, it is determined that tax invoice / adjustment calculation meets one of the signs of unconditional registration specified in Paragraphs 3 or 31 of the Suspension procedure, registration of such tax invoice / adjustment calculation is not suspended in Register.
Paragraph 5 of the Suspension procedure stipulates that the taxpayer who compiled and/or submitted for registration in Register tax invoice/adjustment calculation that does not meet any of the criteria for unconditional registration is checked for compliance with the taxpayer’s risk criteria (Annex 1 to the Suspension procedure), indicators by which the taxpayer’s positive tax history is determined (Annex 2 to the Suspension procedure).
Tax invoices/adjustment calculations that do not meet any of the criteria for unconditional registration are checked for compliance of transactions reflected in them with the risk criteria for transactions (Annex 3 to the Suspension procedure).
Paragraph 6 of the Suspension procedure stipulates that if, according to the automated monitoring results, the taxpayer who compiled and/or submitted tax invoice/adjustment calculation for registration in Register meets at least one of the taxpayer’s risk criteria, registration of such tax invoice/adjustment calculation is suspended (except for adjustment calculation compiled according to requirements of Sub-paragraphs "b" and "c" of Sub-paragraph 97.4 Paragraph 97 Sub-section 2 Section XX "Transitional provisions" of the Code).
Paragraph 7 of the Suspension proceduredetermines that if, based on the automated monitoring results of tax invoice / adjustment calculation (except for tax invoice / adjustment calculation that reflects product export outside the customs territory of Ukraine to which export guarantee regime is applied according to requirements of Article 192 of the Law of Ukraine "On foreign economic activity"), it is established that transaction reflected in them meets at least one risk criterion for transaction conduction, except for tax invoice / adjustment calculation compiled by the taxpayer that meets at least one indicator by which positive tax history is determined, registration of such tax invoice / adjustment calculation is suspended.
Annex 1 to the Suspension procedure defines risk criteria of the value added tax payer (hereinafter – Risk criteria).
Paragraph 8 of the Risk criteria provides, in particular, for the Directory of tax information codes, which became basis for considering the taxpayer’s compliance with the Risk criteria, which is determined by the State Tax Service and approved by the relevant order.
In order to fulfill requirements of Paragraph 8 of the Risk criteria, the Tax information codes directory was approved by the State Tax Service’s Order № 17 as of 11.01.2023 “On approval of the Tax information codes directory”, which became basis for considering the VAT payer’s compliance with the Risk criteria (hereinafter – Codes directory).
Paragraph 6 of the Suspension procedure stipulates that the taxpayer’s compliance / non-compliance with the Risk criteria is considered by the regional commission.
Taking into account above specified, regional commission may consider the taxpayer’s compliance with the Risk criteria, in particular, on the basis of information that corresponds to codes from the Codes directory.
Question. What tax consequences of reorganization through transformation should the taxpayer pay attention to?
Answer. Regarding the corporate income tax.
Sub-paragraph 134.1.1 Paragraph 134.1 Article 134 of the Code stipulates that the corporate income taxation object is profit originating from Ukraine and abroad, which is determined by adjusting (increasing or decreasing) financial result before taxation (profit or loss) determined in the financial reporting of enterprise according to national accounting regulations (standards) or international financial reporting standards, by differences determined by relevant provisions of this Code.
Sub-paragraph 140.4.4 Paragraph 140.4 Article 140 of the Code stipulates that financial result before taxation is reduced, in particular, by the amount of negative value of the taxpayer’s taxation object (except for large taxpayers) of the previous tax (reporting) years.
Large taxpayers reduce financial result before taxation by a part of the amount of negative value of the taxation object of previous tax (reporting) years until its full repayment in the following order.
Large taxpayers have a right to reduce financial result before taxation of the tax (reporting) period (profit, loss or zero value) by not more than 50 percent of the outstanding amount of negative value of the taxation object of previous tax (reporting) years.
Amount of negative value of the taxation object of previous tax (reporting) years, not repaid by the positive value of taxation object of the tax (reporting) year, reduces financial result before taxation (profit, loss or zero value) of future tax (reporting) periods in the amount of not more than 50 percent of such outstanding amount until its full repayment.
If the outstanding amount of negative value of the taxation object of previous tax (reporting) years is not more than 10 percent of the positive value of taxation object of the tax (reporting) period, calculated according to Sub-paragraph 134.1.1 Paragraph 134.1 Article 134 of the Code without taking into account the outstanding negative value of the taxation object of previous tax (reporting) years, such amount of negative value reduces financial result before taxation of this tax (reporting) period in full.
Provisions of Sub-paragraph 140.4.4 Paragraph 140.4 Article 140 of the Code are applied taking into account Paragraphs 3 and 42 Sub-section 4 Section XX “Transitional Provisions” of the Code.
For purposes of Sub-paragraph 140.4.4 paragraph 140.4 Article 140 of the Code, amounts of negative value of the taxation object of the previous tax (reporting) years for which two of the following conditions are simultaneously met are considered to be repaid:
а) these amounts were included in the calculation of taxable amount of future tax (reporting) periods;
b) these amounts were used to reduce positive value of the taxable amount (profit) of relevant tax (reporting) years, calculated according to Sub-paragraph 134.1.1 Paragraph 134.1 Article 134 of the Code, without taking into account the outstanding negative value of taxable amount of the previous tax (reporting) years.
Large taxpayer according to Sub-paragraph 14.1.24 Paragraph 14.1 Article 14 of the Code is the legal entity or a permanent establishment of a non-resident in the territory of Ukraine, volume of income from all types of activities for the last four consecutive tax (reporting) quarters exceeds equivalent of 50 million Euros, determined at the weighted average official exchange rate of the National Bank of Ukraine for the same period, or the total amount of taxes, levies, payments paid to the State Budget of Ukraine, control over collection of which is entrusted to the controlling authorities, except for customs payments, for the same period exceeds equivalent of 1.5 million Euros, determined at the weighted average official exchange rate of the National Bank of Ukraine for the same period.
Paragraph 64.7 Article 64 of the Code stipulates that central executive body that ensures formation and implementation of the state financial policy determines procedure for recording taxpayers in controlling authorities and procedure for forming Register of large taxpayers for relevant year, taking into account criteria specified by the Code for the large taxpayers.
If the taxpayer is included in Register of large taxpayers, peculiarities defined by the Code for large taxpayers apply to such taxpayer.
Sub-paragraph 140.4.5 Paragraph 140.4 Article 140 of the Code stipulates that financial result before taxation is reduced, in particular, by the taxpayer – legal successor by the amount of negative value of the taxation object of the taxpayer, which is reorganized, in particular, by means of accession, merger, transformation – during the approval period of the transfer act.
Carrying out reorganization, negative value of the taxation object of the tax (reporting) period, which was recorded by the taxpayer being terminated, on the approval date of the transfer act or distribution balance sheet, reduces financial result before taxation of the taxpayer – successor in amount that does not exceed equity amount of the taxpayer being terminated, as of the end of the previous tax (reporting) year and provided that the taxpayer being terminated and the taxpayer – successor were related parties for more than eighteen consecutive months before the completion date of the accession (merger).
Income tax payer – legal successor has a right to include in line 3.2.4.1 of the PI annex to line 03 PI of Declaration indicator of negative value of the taxation object of the tax (reporting) period, which was recorded by the taxpayer being terminated in Declaration on the approval date of the transfer act.
Therefore, enterprise that is legal successor as a reorganization result by transformation has a right in the first tax (reporting) period to reduce financial result before taxation by the amount of negative value of the taxation object of the tax (reporting) period, which was recorded according to Declaration of the taxpayer being terminated, on the approval date of the transfer act, but in amount not exceeding equity amount of the taxpayer being terminated, as of the end of previous tax (reporting) year. At the same time, to reduce financial result before taxation by the amount of negative value of the taxation object in subsequent tax (reporting) periods, requirements of Sub-paragraph 140.4.4 Paragraph 140.4 Article 140 of the Code should be taken into account.
Herewith, it should be noted that the successor enterprise will not take into account other indicators of the reorganized enterprise’s activity that is being terminated for a period from the beginning of year to the transformation date in Declaration of the successor enterprise.
Regarding the value added tax
If products/services, non-current assets, amounts of the value added tax which were included in the tax credit, were not used in taxable transactions within framework of economic activity, such taxpayer in the last reporting (tax) period not later than the cancellation date of registration as the taxpayer is obliged to determine tax liabilities for such products/services, non-current assets based on the usual price of relevant products/services or non-current assets, except for cases of registration cancellation as the taxpayer as a reorganization result of the taxpayer by means of accession, merger, transformation, division and separation according to the law (Paragraph 184.7 Article 184 of the Code).
Sub-paragraph 196.1.7 Paragraph 196.1 Article 196 of the Code stipulates that reorganization transactions (mergers, acquisitions, divisions, separations and transformations) of legal entities are not subject to taxation.
Paragraph 198.7 Article 197 of the Code stipulates that amount of negative value to be included in the tax credit of the next reporting (tax) period of the payer, which is reorganized particularly for:
transformation – is subject to transfer to the successor’s tax credit in the next period after signing the transfer act according to legislation.
Such transfer is carried out if amount of negative value to be included in the tax credit of the next reporting (tax) period of the reorganized payer is confirmed by documentary audit by the controlling authority.
Paragraph 13 Section ІІІ Order of the Ministry of Finance of Ukraine № 21 as of 28.01.2026 “On approval of Forms and procedure for filling out and submitting the value added tax reporting”, registered in the Ministry of Justice of Ukraine on 29.01.2016 under № 159/28289, with changes, stipulates that if thetaxpayer undergoing reorganization has negative amount that is subject to inclusion in the tax credit of the next reporting (tax) period, the specified taxpayer has a right to submit application for transferring such negative amount to the successor’s tax credit (Table 2 (D2) (Annex 2)). Such application is submitted as a part of tax declaration for the last (reporting) period of the taxpayer’s registration.
In case of confirmation by the controlling authority of negative value of the amounts based on the documentary audit results, legal successor of the reorganized taxpayer has to submit, as a part of tax declaration for the reporting (tax) periods after such confirmation, application for inclusion of negative value of the reorganized taxpayer in the tax credit for the reporting (tax) period (Table 3 (D2) (Annex 2)).
Procedure for determining amount of tax payable (transferred) to the State Budget of Ukraine or reimbursed from the State Budget of Ukraine (budgetary reimbursement), and settlement terms are determined by Article 200 of the Code.
Paragraph 200.1 Article 200 of the Code stipulates that amount of the value added tax payable (transferred) to the State Budget of Ukraine or budget reimbursement is determined as a difference between the amount of tax liability for the reporting (tax) period and the tax credit amount for such reporting (tax) period.
Paragraph 200.4 Article 200 of the Code stipulates that if amount calculated according to Paragraph 200.1 Article 200 of the Code is negative, such amount:
а) is credited in reducing the tax debt amount arising from previous reporting (tax) periods (including installments or deferred according to the Code) in a part that does not exceed amount calculated according to Paragraph 2001.3 Article 2001 of the Code at the receipt time of tax declaration by the controlling authority, and in the absence of tax debt -
b) or is subject to budget reimbursement at the taxpayer’s request in the tax amount actually paid by the recipient of products/services in the previous and reporting tax periods to the suppliers of such products/services or to the State Budget of Ukraine, in a part that does not exceed amount calculated according to Paragraph 2001.3 Article 2001 of the Code at the receipt time of tax declaration by the controlling authority to the taxpayer’s current account and/or to pay off monetary obligations or repay the tax debt of such taxpayer from other payments paid to the state budget,
c) and/or is included in the tax credit of the next reporting (tax) period.
Budgetary reimbursement is reimbursement of negative VAT value based on legality confirmation of the amounts of budgetary VAT reimbursement based on the payer’s audit results (Sub-paragraph 14.1.18 Paragraph 14.1 Article 14 of the Code).
Paragraph 200.4 Article 200 of the Code stipulates that budgetary reimbursement is subject to a part of negative value equal to the amount of tax actually paid by the recipient of products/services in the previous and reporting tax periods to the suppliers of such products/services or to the State Budget of Ukraine, in a part not exceeding amount calculated according to Paragraph 2001.3 Article 2001 of the Code at the time of receipt of tax declaration by the controlling authority.
Taxpayers who are entitled to budgetary reimbursement and submitted application for the return of budgetary reimbursement amount will receive budgetary reimbursement if the controlling authority approves declared amount of budgetary reimbursement based on the in-place audit results conducted within 20 calendar days following deadline for submitting tax declaration or clarifying calculation (if submitted), and if such documents were submitted later – on the day of their actual submission, and according to requirements specified in Article 76 of the Code, and in cases specified in Paragraph 200.11 Article 200 of the Code - based on the audit results specified in such Paragraph, according to the Code (Clause 2 Paragraph 200.10 of Article 200 of the Code).
Controlling authority has a right, within 40 calendar days following deadline for submitting tax declaration, and if such tax declaration is submitted after the deadline, on the day of its actual submission, to conduct documentary audit of the taxpayer according to Sub-paragraph 78.1.8 Paragraph 78.1 Article 78 of the Code (Paragraph 200.11 Article 200 of the Code).).
Sub-paragraph «b» of Sub-paragraph 69.41.3 Sub-paragraph 69.41 Paragraph 69 Sub-section 10 розділу ХХ "Transitional provisions" of the Code stipulates that terms for conducting in-place and documentary audits specified in Sub-paragraphs 200.10 and 200.11 Article 200 of the Code, established for the taxpayer during a period of the taxpayer’s inclusion in the List of taxpayers with a high level of voluntary compliance with tax legislation, are 5 and 10 working days, respectively.
Question. Is it necessary for the taxpayer who made a decision to reorganize through transformation to submit the corporate income tax declaration for the reporting period in which its transformation takes place?
Answer. If the taxpayer is liquidated (including before the end of the first tax (reporting) period), the last tax (reporting) period is considered to be period to which the liquidation date falls (Sub-paragraph 137.4.3 Paragraph 137.4 Article 137 of the Code).
Therefore, the corporate income tax payer who decided to reorganize through transformation submits the last Declaration by the transformation date.
In field 10 "Special marks" of the Declaration, the taxpayer submitting the last Declaration has to put mark "taxpayer submitting declaration for the last tax (reporting) year in a period to which the date of its liquidation falls".
Together with the Declaration, the taxpayer submits financial reporting or reporting of financial position (balance sheet) and reporting of profit and loss and other comprehensive income (reporting of financial results), which are annexes to the Declaration and integral part of it.