Entry into force from July 1, 2024 of the Law of Ukraine № 3721-ХХ as of 21.05.2024 "On amendments to the Tax Code of Ukraine and the Law of Ukraine "On electronic communications" regarding rent for use of the radio frequency spectrum (radio frequency resource) of Ukraine" (hereinafter – Law) had a significant impact on the procedure for paying rent for use of the radio frequency spectrum (radio frequency resource) of Ukraine (hereinafter – Rent) during the budget year.
The Law, particularly introduced the following changes:
basis for using the radio frequency spectrum (radio frequency resource) of Ukraine, in addition to relevant licenses and permits, is defined as assignment of the radio frequency (according to certificates from register of assignments) for broadcasting needs, received by the provider of electronic communication networks and/or services for provision of services to the holder of broadcasting license, and also for general users;
recognized as non-payers of Rent payment users of ship stations installed on the ship board, which exempts such users from obligation to accrue and pay the Rent tax obligations;
amount of the Rent rates has been revised;
procedure for applying increasing and decreasing coefficients to the Rent rates has been changed;
procedure for exchanging information with the National Commission, which carries out state regulation in the electronic communications, radio frequency spectrum and provision of postal services, has been improved;
term of taking measures by the controlling authority according to legislation against the Rent payers who have not paid or partially paid the Rent tax obligations has been shortened from six to three months.
Change in the Rent rates and termination of application of coefficients to them will not occur at once, but in a sequence shown in the table:
| Reporting tax periods of 2024 | April | May | June | July | August | September | October | November | termination of the martial law |
| Reporting deadline | 20.05.2024 | 20.06.2024 | 22.07.2024 | 20.08.2024 | 20.09.2024 | 21.10.2024 | 20.11.2024 | 20.12.2024 | … |
| Peculiarities of determining the Rent tax liabilities for use of the radio frequency resources of Ukraine | rates provided for in Article 254 of the Tax Code of Ukraine are applied, taking into account decreasing and increasing coefficients | rates determined by Sub-section 93, Section XX "Transitional provisions" of the Tax Code of Ukraine are applied, taking into account decreasing and increasing coefficients | rates determined by Sub-section 93, Section XX "Transitional provisions" of the Tax Code of Ukraine are applied, taking into account increasing coefficients |
The specified changes will contribute to:
increasing contribution of industry enterprises to the budget,
increasing awareness of the controlling authority regarding list of the Rent payers,
increasing discipline in terms of fulfilling obligations by the Rent payers,
exemption (in addition to existing ones) from the Rent payment of entities that use the radio frequencies to ensure safety on river transport.
Please note that in case of mistakes in tax reporting (which is quite possible in conditions of legislative changes) according to Sub-paragraph 69.38, Paragraph 69, Sub-section 10, Section XX of the Code, the Rent payers have a right to clarify such tax obligations by submitting detailed Rent tax declaration without accrual and payment of fines and penalty provided for in Paragraph 50.1 Article50 of the Code.
If there are questions that may arise from payers in connection with changes in regulations, in particular tax legislation, the State Tax Service can always provide clarification on such questions.
