To the attention of taxpayers involved in the retail fuel sale and pay advance corporate income tax contributions

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” introduced changes to the Tax Code of Ukraine (hereinafter – Code), which particularly introduced payment of advance corporate income tax contributions by taxpayers involved in the retail trade in sale.

Paragraph 137.12 Article 137 of the Code stipulates that taxpayers involved in the retail fuel sale are obliged to pay advance corporate income tax contributions for each place of the retail fuel sale, information about which is entered in the Unified register of licensees and places of the fuel circulation as of the first day of current month. Advance contributions and corporate income tax payable to the budget by taxpayers involved in the retail fuel sale are determined according to procedure provided for in Paragraph 141.14 Article 141 of the Code.

Taxation specifics of the fuel retail activities are established by Paragraph 141.14 Article 141 of the Code.

Taxpayers involved in the retail fuel sale have to pay monthly advance corporate income tax contribution not later than the twentieth of the current month for each place of the retail fuel sale, information about which is entered in the Unified register of licensees and places of fuel circulation as of the first day of the current month:

for the fuel retail place that sells exclusively liquefied gas – in the amount of 30 thousand UAH for each location;

for the fuel retail place where several types of fuel are sold and share of the liquefied gas sales 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 location.

in the amount of 60 thousand UAH for each other place, except for cases specified above.

Provisions of Sub-paragraph 141.14.3 Paragraph 141.14 Article 141 of the Code stipulate that amount of advance corporate income tax contributions paid during the reporting (tax) period reduces corporate income tax liabilities calculated based on the results of such reporting (tax) period at the base (basic) rate determined by Article 136 of the Code, in the amount not exceeding amount of accrued tax liability for such tax (reporting) period.  

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 a calendar date established by Sub-paragraph 141.14.1 Paragraph 141.14 Article 141 of the Code for a deadline for payment of advance corporate income tax contribution to relevant budget (Sub-paragraph 141.14.4 Paragraph 141.14 Article 141 of the Code).

In order to bring the corporate income tax declaration, form of which was approved by Order of the Ministry of Finance of Ukraine № 897 as of 20.10.2015 (with changes made by Order of the Ministry of Finance of Ukraine № 101as of 20.02.2023) with changes and additions (hereinafter – Declaration) into line with provisions of the Code, the State Tax Service of Ukraine has developed a draft Order of the Ministry of Finance of Ukraine “On approval of changes to form of the Corporate income tax declaration” (hereinafter – draft order), which, particularly provides for annex to the Declaration for calculating advance contribution for each place of the retail fuel sale.

Draft order, approved by the Ministry of Finance of Ukraine on 10.01.2025, was published on the State Tax Service’s web portal (www.tax.gov.ua) in the "For the public" section, subsection "Interaction with the public" > "Consultations with the public" > "Drafts of the non-regulatory acts" "2025" for the public discussion.

Draft order is currently being prepared for submission to the Ministry of Justice of Ukraine for the state registration.

Paragraph 46.6 Article 46 of the Code stipulates that if as a result of changes in taxation rules, tax reporting forms change, until determination of new forms of declarations (calculations) that come into force for preparation of reports for the tax period following the tax period in which they were published, forms of declarations (calculations) that were in force before such determination are valid.

In addition, Paragraph 46.4 Article 46 of the Code stipulates that if the taxpayer believes that the tax declaration form determined by the central executive body that ensures formation and implementation of the state financial policy increases or decreases tax obligations, contrary to norms of the Code on such tax or levy, such taxpayer has a right to indicate this fact in a specially designated place in the tax declaration.

If necessary, the taxpayer may submit, together with such tax declaration, additions compiled in any form, which will be considered as integral part of the tax declaration. Such addition is submitted with explanation of reasons for its submission. Taxpayer who submits reporting in the electronic form has to submit such addition in the electronic form.

Taking into account above specified, based on the results of activities for 2024, the corporate income tax payers have to submit the Declaration using current Declaration form. In this case, taxpayers involved in the retail fuel sale have a right, according to Sub-paragraph 141.14.3 Paragraph 141.14 Article 141 of the Code, to reduce the corporate income tax liabilities for the reporting (tax) year 2024, taking into account advance contributions for the fuel retail places paid in December 2024.

In this regard, it is recommended that the payers involved in the retail fuel sale reflect in line 16.5 of tax reduction annex to line 16 of the Declaration amount of advance corporate income tax contribution paid for December 2024, calculated at the base (basic) rate determined by Article 136 of the Code, in the amount not exceeding amount of accrued tax liability for the reporting (tax) year 2024 and take into account such reduction in line 16 of the Tax Reduction of the Declaration.

Such payers may submit addition to the Declaration with relevant explanations regarding calculation of advance payment for each fuel retail place and inclusion of the paid advance contributions in reducing tax amount.

After еру state registration in the Ministry of Justice of Ukraine and entry into force of order, the taxpayers will be able to submit a clarifying Declaration in the updated form for the reporting (tax) period  2024, reflecting accruals of advance contributions in line 26 Monthly Advance Contribution of the Declaration and with appropriate completion of calculation of advance payment for each place of the retail fuel sale according to Sub-paragraph 141.14.2 Paragraph 141.14 Article 141 of the Code in annex Monthly Advance Contribution to such Declaration (line 26 Monthly Advance Contribution).

At the same time, it should be informed that in case of self-correction by the taxpayer, in compliance with procedure, requirements and restrictions specified in Article 50 of the Code, of errors that led to an underestimation of tax liability in the reporting (tax) periods that fall during the martial law, such taxpayers are exempted from accrual and payment of financial sanctions provided for in Paragraph 50.1 Article 50 of the Code, and fines (Sub-paragraph 69.1 Paragraph 69 Sub-section 10 Section XX of the Code).