Payment procedure (transfer) of the personal income tax to the budget is determined in Paragraph 168.4 Article 168 of the Tax Code of Ukraine. According to Paragraph 168.4 Article 168 of the Tax Code of Ukraine (hereinafter – the TCU), the specified tax is withheld from income of residents and non-residents and is credited to the budget according to the Budget Code of Ukraine (hereinafter – the BCU).
Article 64 of the BCU determines that the personal income tax which is paid (transferred) by a tax agent – legal entity (its branch, office, other separate unit) or a representative office of a non-resident – legal entity and is credited to the relevant budget at their location in the amount of tax accrued on income paid to employees of such economic entity.
According to Sub-paragraph 168.4.3 Paragraph 168.4 Article 168 of the Code, amounts of the income tax accrued by a separate unit in favor of individuals are transferred for the reporting period to appropriate budget at the location of such separate unit.
If a separate unit is not authorized to accrue (pay) the personal income tax for such separate unit – all tax agent’s duties are performed by a legal entity. Income tax accrued to employees of a separate unit is transferred to the local budget at location of such separate unit.
At the same time, according to Paragraph 64.7 Article 64 of the TCU, a large taxpayer is obliged to register at the main place of registration at controlling body that provides assistance (interregional directorates of the STS for work with large taxpayers) and at the non-main place of registration at such controlling body or its territorial divisions in relation to those available within settlement at the location of such interregional directorates of the STS that provide assistance to large taxpayers or its territorial subdivisions of taxable objects that are related to taxation or through which activity of such large taxpayer is carried out.
If a legal entity – large taxpayer creates units at the non-main place of registration which are not authorized by a legal entity to accrue (pay) personal income tax, this tax accrued to employees of separate unit is transferred by legal entity to the local budget at location of such unit.