Collection and accrual of the environmental tax in 2020

For reference: Amendments were prescribed by the Law of Ukraine № 2628-VIIІ “On Amendments to the Tax Code of Ukraine and Certain Legislative Acts of Ukraine on Improving the Administration and Revision of Rates Regarding Separate Taxes and Fees” as of 23.11.2018.

Information note for the environmental taxpayer

Taxpayers

Business entities, legal entities that do not carry out business (entrepreneurial) activity, budgetary institutions, public and other enterprises, institutions and organizations, permanent representative offices of non-residents, including those who perform agency (representative) functions with respect to such non-residents or their founders during the activity of which in the territory of Ukraine and within its continental shelf and exclusive (maritime) economic zone there are ongoing:

-emissions of pollutants into the atmosphere by the stationary sources of pollution;

-discharges of pollutants directly into the water bodies;

-disposal of waste residues (except for the placement of separate types (classes) of waste residues as a secondary raw materials, which are disposed of in the own territories (objects) of business entities);

-generation of radioactive waste residues (including accumulated wastes);

-temporary storage of radioactive waste residues by its manufacturers beyond the specified terms of the license.

According to Paragraph. 240.1 Article. 240 of the TCU

Object and taxation base

Object and taxation base are:

-volumes and types of pollutants discharged into the air by the stationary sources;

-volumes and types of pollutants discharged directly into the water bodies;

- volumes and types (classes) of waste residues disposed in the own territories (objects) of business entities, except for volumes and types (classes) of waste residues as a secondary raw materials;

-volumes and category of radioactive waste residues generated as a result of activities of business entities and / or temporarily stored by their manufacturers beyond the specified terms of license;

- volumes of electricity produced by te operating organizations of nuclear installations (nuclear power plants).

Taxation base for carbon dioxide emissions from the tax (reporting) year is reduced by the amount of such emissions in the amount of 500 tons per year (Paragraph. 242.4 Article 242 of the TCU).

According to Paragraph.242.1 Article. 242 of the TCU

Tax rate

Environmental tax rates are determined by Article.  243, 245-248 of the TCU (is available on the official web portal of the STS by the link: http://tax.gov.ua/nk/rozdil-viii--ekologichniy-poda/):

- for emissions of pollutants into the atmosphere by the stationary sources of pollution (Article.  243 of the TCU);

-for discharges of pollutants directly into the water bodies (Article.  24 of the TCU 5);

-for disposal of waste residues in designated areas, sites or objects (Article.  246 of the TCU);

-for generation of radioactive waste residues (including accumulated waste) (Article.  247 of the TCU);

-for temporary storage of radioactive waste residues by its manufacturers beyond the specified terms of the license) (Article.  248 of the TCU).

According to Article. 243, 245-248 of the TCU

Submission of reporting

Taxpayers compile the tax declarations in the form established in the prescribed manner according to Article 46 of the Tax Code of Ukraine and must be submitted within 40 calendar days following the last calendar day of the tax (reporting) quarter.

Environmental tax declaration is approved by the Order of the Ministry of Finance of Ukraine №. 715 as of 17.08.2015 and registered by the Ministry of Justice of Ukraine №. 1052/27497as of 03.09.2015 is available on the official web portal of the STS by the link: https://tax.gov.ua/podatki-ta-zbori/zagalnoderjavni-podatki/ekologichniy-podatok/formi-zvitnosti/64218.html).

According to Paragraph. 250.2 Article. 250 of the TCU

Liability for failure or late submission of reporting

Failure or late submission of tax declarations (calculations) and other reporting required for submission to the supervisory authorities according to the TCU by the taxpayer or other individuals liable to charge and pay taxes and fees – entail imposition of a fine in the amount of 170 UAH for such failure or late submission.

The same actions made by the taxpayer who has already had a fine for such violation during the year – entail imposition of a fine in the amount of 1020 UAH for such failure or late submission.

According to Paragraph. 120.1 Article. 120 of the TCU

Tax payment procedure

Tax is paid within 10 calendar days after the last day for submission of tax declaration deadline:

-for emissions of pollutants discharged into the atmosphere by the stationary sources of pollution, discharges of pollutants directly into the water bodies, disposal of waste residues in designated areas, sites or objects  during the reporting quarter – at the location of stationary sources at specifically designated locations or sites;

-for generation of radioactive waste residues and temporary storage of radioactive waste residues beyond the specified terms of the license – at the taxpayer’s place of residence in the controlling authorities.

Environmental taxpayers transfer amount of paid tax for emissions, discharges of pollutants and disposal of waste residues which should be done by one payment to the accounts opened at bodies performing treasury servicing of budgetary funds, which ensure the distribution of these funds in the ratio prescribed by the law (Paragraph. 250.5 Article. 250 of the TCU).

Order of the Ministry of Finance of Ukraine №. 11 “On the Budget Classification” as of 14.01.2011 with amendments, approved the following Classification of the Environmental Tax Budget Revenues:

19010100  “Environmental tax for emissions of pollutants into the atmosphere by the stationary sources of pollution (excluding the carbon dioxide emissions)”;

19010200 “Revenues from discharges of pollutants directly into water bodies”;

19010300  “Revenues from placement of waste residues in designated areas or sites, except for the disposal of certain types of waste residues as a secondary raw materials”;

19010400  “Environmental tax for generation of radioactive waste residues (including accumulated wastes) and / or temporary storage of radioactive waste residues by its manufacturers beyond the specified terms of the license”;

19011000  “Environmental tax for the carbon dioxide emissions from the stationary sources of pollution”;

For reference: budgetary accounts, particularly for the environmental tax are posted on the official web portal of the STS by the link: tax.gov.ua/byudjetni-rahunki/

According to Paragraph. 250.2 Article. 250 of the TCU

Liability for late payment 

If the taxpayer does not pay the agreed amount of the monetary obligation within the terms determined by the TCU, such taxpayer will be liable with a fine in the following amounts:

- for a delay up to 30 calendar days inclusively, following the last day of the deadline for payment of the monetary obligation – the imposed fine will be in the amount of 10% of the repaid amount of the tax debt;

- for a delay more than 30 calendar days inclusively, following the last day of the deadline for payment of the monetary obligation – the imposed fine will be in the amount of 20% of the repaid amount of the tax debt;

At the same it is envisaged that starting from the first business day, following the last day of the deadline for payment of the monetary obligation (including the period of administrative and / or judicial appeal) – in such case will be accrual of penalties (Sub-paragraph. 129.1.2 Paragraph. 129.1 Article 129 of the TCU).

According to Paragraph. 126.1 Article. 126 of the TCU

More about the environmental tax

1.Official web portal of the STS – Home / Taxes, Fees, Payments / National Taxes / Environmental Tax - https://tax.gov.ua/podatki-ta-zbori/zagalnoderjavni-podatki/ekologichniy-podatok/;

2.Tax Code of Ukraine, Section VIII. Environmental tax – http://tax.gov.ua/nk/rozdil-viii--ekologichniy-poda/;

3.Public reference resource (ZIR) – http://zir.tax.gov.ua/main/bz/view/?src=ques (choose Category 117 - Environmental tax)

4. Contact center, tel. 0-800-501-007 (free of charge for landlines) from 8am to 8pm (except Saturday and Sunday). Citizens abroad can call to the Contact Center from a landline or cell phone by the tel. +380 44-454-16-13.

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Tax (reporting) quarter

The last day for submitting tax declaration

The last day for payment of the environmental tax

IV quarter of 2019

10^th of February 2020

19^th of February 2020

I quarter of 2020

12^th of May 2020

20^th of May 2020

II quarter of 2020

10^th of August 2020

19^th of August 2020

III quarter of 2020

9^th of November 2020

19^th of November 2020

IV quarter of 2020

9^th of February 2021

19^th of February 2021