Procedure for collection and accrual of the environmental tax in 2020 has not changed and is still governed by Articles 240-250 Section VIII of the Tax Code of Ukraine (hereinafter referred to as the TCU).
Herewith, it should be reminded that in 2019, changes were made regarding the identification of taxpayers who pay environmental tax in respect of the carbon dioxide emissions from the stationary sources of pollution (hereinafter - carbon dioxide emissions) and amount of this tax rates, as well as the obligation to compile the separate Annex 1 to the Declaration, as part of the taxpayers’ obligations for carbon dioxide emissions under the code 19011000.
| 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. |
So, collection and accrual of the environmental tax obligations regarding the carbon dioxide emissions, the taxpayer should take into account suggestions outlined in the SFS letters:
- as of 16.01.2019 № 1422/7/99-99-12-03-04-17 “On administration of the environmental tax” (is posted on the official web portal of the STS by the link: https://tax.gov.ua/podatki-ta-zbori/zagalnoderjavni-podatki/ekologichniy-podatok/listi-dps/364954.html);
- as of 26.04.2019 № 13932/7/99-99-12-03-04-17 “On features of administration of the environmental tax for pollutant emissions by the stationary sources of air pollution in terms of the carbon dioxide emissions” (is posted on the official web portal of the STS by the link: https://tax.gov.ua/podatki-ta-zbori/zagalnoderjavni-podatki/ekologichniy-podatok/listi-dps/376987.html).
So, the main aspects that environmental taxpayers should know are the following:
| 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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Deadlines for submitting tax declarations and paying the environmental tax in 2020:
| Tax (reporting) quarter | The last day for submitting tax declaration | The last day for payment of the environmental tax |
| IV quarter of 2019 | 10th of February 2020 | 19th of February 2020 |
| I quarter of 2020 | 12th of May 2020 | 20th of May 2020 |
| II quarter of 2020 | 10th of August 2020 | 19th of August 2020 |
| III quarter of 2020 | 9th of November 2020 | 19th of November 2020 |
| IV quarter of 2020 | 9th of February 2021 | 19th of February 2021 |