Income tax
1. If the Diia City resident does not meet criteria established by Article 5 of the Law of Ukraine № 1667-IX as of 15.07. 2021 "On stimulating development of the digital economy in Ukraine", is such resident entitled to status of the Diia City resident – income tax payer on special conditions?
Diia City resident can be a legal entity that meets certain requirements (Note 1) and has applied to the authorized body with an application (Note 2).
At the same time, regardless of the date of entry of a record into the Diia City register regarding the taxpayer's loss of the Diia City resident status, the taxpayer who was the Diia City resident – taxpayer on special conditions is obliged to switch to paying corporate income tax on a general basis, starting from the first day of year following the tax (reporting) year in which the Diia City resident did not comply with requirement that amount of the legal entity’s qualified income received in the first three calendar months following calendar month in which legal entity acquired status of the Diia City resident, is not less than 90 percent of the amount of its total revenue for such period and amount of the qualified income received for each calendar year of being the Diia City resident is at least 90 percent of amount of the legal entity’s total income for the same period (if there is total income) (Note 3).
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[1]. Article 5 of the Law of Ukraine № 1667-IX as of 15.07. 2021 "On stimulating development of the digital economy in Ukraine" (hereinafter – Law № 1667);
[2]. Article 4 of the Law № 1667;
[3]. Sub-paragraph 137.10.8 Paragraph 137.10 Article 137 of the Tax Code of Ukraine (hereinafter – Code).
2. What financial reporting is submitted by the Diia City residents – income taxpayers on special conditions in case of transition to peculiarities of such taxation in the middle of year?
If the Diia City resident used quarterly tax (reporting) period during a period of stay on the general taxation system, such taxpayer must submit financial reporting together with the income tax declaration for relevant reporting (tax) period before switching to the income taxation peculiarities.
If the Diia City resident used annual tax (reporting) period during a period of stay on the general taxation system, such taxpayer submits the annual financial reporting (taxpayer, at the same time, adds addendum with explanation regarding discrepancies in the indicators of financial reporting and income tax declaration) as a part of tax declaration for the reporting year in which transition to the special regime took place.
3. Under which identifier form do the income tax payers (including the Diia City residents – taxpayers on special conditions) submit the corporate income tax declaration for 2022 using form J0100123?
Corporate income tax declaration (hereinafter – Declaration) is submitted electronically with the identifier form J0100123.
4. What is the reporting procedure if the Diia City resident, who is the corporate income tax payer on a general basis, in the middle of year switches to taxation as the Diia City resident – taxpayer on special conditions? How to fill in lines 01 - 05 of the Declaration in case of transition in the middle of year?
Filling in the Declaration for 2022 by the Diia City resident – income tax payer on special conditions, line 01 indicates income from any activity (excluding indirect taxes), determined according to accounting rules received during the calendar year (from 01.01.2022 to 31.12.2022).
Herewith, lines 02, 03, 04, 05 of the Declaration reflect indicators exclusively for a period of stay on the general income taxation system (payer, at the same time, adds addendum with explanation regarding discrepancies in the indicators of financial reporting and income tax declaration) (Note 4).
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[4]. Order of the MFU as of 20.10.2015 № 897.
5. What is algorithm for filling in the Diia annex according to the updated declaration form? Is it necessary to fill in data on the volumes of all operations (informative) listed in this annex, even on those that are not subject to tax on the withdrawn capital?
Taxpayer notes indicators in those lines of the Diia annex to the Declaration, where there are objects and indicators for declaration during a period of stay of the Diia City resident – taxpayer on special conditions.
6. How to correctly reflect tax differences in the Declaration for 2022, if company is highly profitable and from the 3rd quarter of 2022 made a transition to tax on the withdrawn capital, but during a period of stay on the corporate income tax (first half of year) there were operations that are subject to adjustment?
In case of transition from 01.07.2022 to taxation peculiarities of the Diia City resident – taxpayer on special conditions in the Declaration for 2022 in the RI annex and, accordingly, line 03 of the Declaration must contain indicators for a period of such taxpayer's stay on the general income taxation system (i.e. from 01.01.2022 to 06.30.2022).
(RI annex is intended for calculating the total impact of tax differences, to which financial result before taxation is adjusted in the process of calculating income tax.)
7. Does the company have a right to use the 0.5% limit for charity in case of transition from 01.07.2022 to tax on the withdrawn capital, while the calculated limit for charity in the amount of 4% was used in the first half of 2022 during a period of stay on the general income taxation system?
Yes, the payer has a right (Note 5). At the same time, amount of such provided non-refundable financial assistance is reflected in line 20 of the Diia annex in amount that exceeds the limit.
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[5]. Sub-paragraph 135.2.1.8 of Sub-paragraph 135.2.1Paragraph 135.2 Article 135 of the Code.
8. How is the reinvestment of dividends by a non-resident to the authorized capital of the Diia City resident – income tax payer on special conditions taxed?
Reinvestment of dividends by a non-resident to the authorized capital of the Diia City resident – income tax payer on special conditions is taxed as follows:
non-resident's income tax (repatriation tax) – the corresponding percentage of amount of dividends accrued in the non-resident’s favor, according to which counterclaims regarding their investment are credited to the authorized capital of the resident's legal entity;
tax on operations of the Diia City resident – income tax payer on special conditions (tax on the withdrawn capital) – at the 9% rate of the amount of dividends accrued in the non-resident’s favor, according to which the counterclaims for their investment are credited to the authorized capital of the resident's legal entity without tax paid for repatriation.
9. Is it necessary to include in lines 14 and 14.1 of the Diia annex amount of funds that was paid to the counterparty-lessor of premises in the form of a fine for early termination of the lease agreement?
Line 14 of the Diia annex indicates the total amount of funds paid for the fulfillment of debt obligations, in the form of interest, commissions, other rewards, reimbursements, fines and penalties associated with attraction and/or use of funds, while lines 14.1 – 14.6 distinguish categories of recipients of such funds.
At the same time, the Diia annex contains other lines for reflecting amounts of fines: line 22.2 and line 35, which are chosen to be filled in depending on the counterparty’s category.
10. How is line 16.2 of the Diia annex filled in if the unit price of advertising products exceeds amount of two subsistence minimums?
If the unit price of advertising products exceeds amount of two subsistence minimums, then the cost amount of such distributed products during advertising (marketing) events is not indicated in line 16.2. At the same time, the cost amount of such advertising products is reflected in line 16 of the Diia annex.
11. Free provision of basic equipment, accommodation services, gifts to employees – should all this be included in line 16.3 (given that the personal income tax and military levy were calculated)?
Yes, such property and services provided free of charge are indicated in line 16.3 and in line 16 of the Diia annex.
12. Should the cost of coffee, tea, water, cookies, etc. be included in line 16.4 of the Diia annex? – there is no personification.
Yes, cost of such additional benefits provided to the Diia City resident specialists, which are not subject to the personal income tax due to the lack of personalization, are reflected in line 16.4 and in line 16 of the Diia annex.
13. Is it necessary to include amount of repayable financial assistance (repayment period up to 12 months) provided to employees in lines 18 and 18.5 of the Diia annex?
Yes, amount of repayable financial assistance provided to employees (specialists of the Diia City) (repayment term of which is up to 12 months) is included in lines 18 and 18.5 of the Diia annex.
14. In which line should the cost of improvements to the leased premises transferred free of charge be included (recipient is a legal entity – income taxpayer)?
If owner of leased premises is not the Diia City resident – income taxpayer on special conditions, the cost of improvements to the leased premises transferred free of charge is reflected in line 16 of the Diia annex.
15. Is it necessary to include the purchase of services of the Vchasno, Medok program in line 22.4.3 of the Diia annex?
Line 22.4.3 of the Diia annex reflects purchasing cost of electronic services (including IaaS, PaaS, SaaS cloud service models), which are paid in the form of fixed payment for provision of such services on the pre-payment basis (subscription) from the non-resident.
16. How to fill in lines 24, 40, 41 and 42 of the Diia annex?
Line 24 of the Diia annex reflects the total cost of property (works, services) provided by the Diia City residents – income taxpayers on special conditions to other persons. At the same time, detailing of cost of provided property (works, services) in terms of individual categories of persons is reflected in lines 24.1 - 24.4 of the Diia annex.
Lines 40 – 42 of the Diia annex, respectively, reflect amount of returned financial aid, cost of products paid (works, services), cost of delivered products (performed works, provided services) (with the sign "-") according to results of operation, according to which the Diia City resident – income taxpayer on special conditions determined amount of tax liabilities in the previous reporting periods and paid corresponding amount to the budget. Given that 2022 is the first reporting period in which special taxation conditions by the Diia City residents can be applied, lines 40-42 of the Diia annex to the Declaration for such year are not filled in.
17. What are the refusal specifics from status of taxpayer on the withdrawn capital, subject to continuing the Diia City residency: moment of transition and procedural aspects?
The Diia City resident – income taxpayer on special conditions has a right to waive special conditions of income taxation and return to the general taxation system from the 1st day of a quarter of the calendar year.
In order to refuse taxation of the Diia City resident – income taxpayer on special conditions, the taxpayer submits a corresponding Application to the controlling body at the taxpayer's tax address not later than 15 calendar days before the beginning of the next quarter (Note 6).
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[6]. Order of the Ministry of Finance of Ukraine № 99 as of 17.03.2022.
18. Does the Diia City resident – income taxpayer on special conditions have to adjust income for the reserve of doubtful debts?
The Diia City resident – income taxpayer on special conditions in the RI annex to the Declaration specifies indicators (including differences that arise during formation of reserve of doubtful debts) exclusively for a period of such payer's stay on the general corporate income taxation system.
19. What to do with tax differences? For example, reserve of doubtful debts was created in the 1st quarter of 2022 and, accordingly, financial result before taxation was increased. In case of transition in the middle of year to tax on the withdrawn capital, is it necessary to reduce financial result before taxation by the amount of this reserve submitting Declaration for 2022?
It should be noted that annual declaration consists of a cumulative total from the beginning of year, in which indicators are separately reflected both for a period of stay on the general income taxation system and with special status. At the same time, in such annual declaration, the Diia City resident does not reduce financial result before taxation of the previous reporting periods in connection with transition in the middle of reporting year to the income taxation peculiarities.
20. Should the Diia City resident – income taxpayer on special conditions take into account tax differences on depreciation of fixed assets according to Article 138 of the Code, if period of use in accounting is less than the minimum defined in the Code?
The Diia City resident – income taxpayer on special conditions must take into account tax differences only for a period of stay on the general income taxation system.
21. Whether provision of equipment to the gig specialists for performance of their obligations under the gig contract is considered a free supply operation which is equivalent to operations subject to the 9% tax for a period of use of such equipment and provided that such equipment is returned in case of termination of the gig contract?
Gig contract is a civil-law contract under which the gig specialist undertakes to perform work and/or provide services according to tasks of the Diia City resident – customer and the Diia City resident undertakes to pay for the performed work and/or provided services and provide gig specialist with proper conditions for performing work and/or providing services, as well as social guarantees. Herewith, the gig specialist is an individual who is a contractor and/or executor under the gig contract (Note 7).
The Diia City resident provides the gig specialist with equipment and other means necessary for performance of work (provision of services), unless otherwise is provided for in the gig contract (Note 8).
At the same time, amount of the property cost provided to the gig specialist without issuing claims for compensation for its cost must be taken into account during calculation of tax on operations of the Diia City resident – income taxpayer on special conditions and reflected in line 16 of the Diia annex of the reporting period when transfer of such property took place. In case of return of such property in subsequent tax periods, the Diia City resident – income taxpayer on special conditions notes cost of delivered products in line 42 of the Diia annex (with the sign "-").
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[7]. Article 1 of the Law № 1667;
[8]. Article 20 of the Law № 1667.
22. Is provision of additional benefit in the form of optional health insurance provided by the gig contract as a remuneration part for benefit of the gig specialist considered as operation equivalent to operations subject to the 9% tax?
Yes, amount of additional benefit provided in the form of optional medical insurance, which is provided for in the gig contract, is taken into account during calculation of tax on operations of the Diia City resident – income taxpayer on special conditions and is reflected in line 16 of the Diia annex.
23. If funds or property previously provided by the taxpayer as a result of operation for which the Diia City resident is fully or partially returned (including after the end of 12-month period or 365-day period) to the Diia City resident – income taxpayer on special conditions, according to which the Diia City resident – income taxpayer on special conditions determined amount of tax liabilities and paid corresponding amount to the budget, should the paid tax in the appropriate amount be reflected by the Diia City resident – income taxpayer on special conditions as a reduction of tax liabilities in tax declaration for the tax (reporting) period in which funds or property were returned to the Diia City resident – income taxpayer on special conditions?
In case that the Diia City resident – income taxpayer on special conditions receives returned all or part of funds or property for which payer determined amount of tax liabilities and paid corresponding amount to the budget, such payer reflects the specified amounts in line 39 of the Diia annex with a description of relevant categories in lines 40 - 43 of the Diia annex. At the same time, reduction of tax liabilities occurs in the tax (reporting) period when such return occurred, and is taken into account in the calculation of tax on operations of the Diia City resident – income taxpayer on special conditions of such reporting (tax) period within limits of previously determined amounts tax obligations for such operations.
24. Diia City resident is since February 2022. At the same time, in the 1st quarter this resident was subject to the single tax, in the 2nd quarter – to the general income taxation system, from the 3rd quarter this resident became the Diia City resident – income taxpayer on special conditions. Herewith, revenues for 2021 do not exceed 40 million UAH. For what period should financial reporting be submitted as the declaration part?
In this case, if the Diia City resident used the annual tax (reporting) period during a period of his/her stay on the general taxation system, such taxpayer will submit the annual declaration together with the annual financial reporting (also, the taxpayer adds addendum with explanation of discrepancies in the indicators of financial reporting and income tax declaration).
25. Do we take net income from sales from the financial reporting of year 2000?
Line 01 of the Declaration indicates income from any activity (excluding indirect taxes), determined according to accounting rules, received during the calendar year (that is, the total indicators of report on financial results (report on the total income), which are indicated in line 2000 "net income from the sale of products (goods, works, services)", in line 2120 "other operating income", in line 2200 "income from equity participation", in line 2220 "other financial income" and in line 2240 "other income").
26. The Diia City resident – income taxpayer on special conditions (payer of tax on the withdrawn capital): provides software development services, transfers intellectual property rights to the software to persons who are not the Diia City resident – income taxpayer on special conditions, namely: to a legal entity – resident of Ukraine (related person), legal entity – non-resident of Ukraine (related person) under contracts that provide for payment (crediting of funds to account of the Diia City resident – income taxpayer on special conditions opened in the Ukrainian bank) under the services/transferred intellectual property rights in terms not exceeding 365 calendar days from a moment of signing the corresponding act/invoice certifying provision of relevant services/transfer of intellectual property rights.
Are such operations subject to tax on the withdrawn capital and at what rate? If any of the above-specified operations is recognized as controlled according to Article 39 of the Code and its conditions do not correspond to the "arm's length" principle: will such operation be subject to taxation for the Diia City resident – income taxpayer on special conditions?
Since it is stipulated that payment of compensation for provided services will be made within a period not exceeding 365 calendar days, the specified operations are reflected in lines 24 and 24.3 of the Diia annex and are not taken into account in cost of provided services, which is subject to taxation during calculation of tax on operations of the Diia City resident – income taxpayer on special conditions.
However, in case that such operations are recognized as controlled, excess amount of cost determined on the basis of the "arm's length" principle over the agreed (contractual) cost of provided services is taken into account during determination of the income taxation base of such enterprise for such operations, is taxed at the 18% rate and is reflected in line 37 of the Diia annex.
27. Is it necessary in line 24.3 of the Diia annex to reflect the entire taxpayer’s sales, for which funds have already been received or will be received within 365 days? If this operation is not subject to tax on the withdrawn capital, then it is not necessary to fill it in?
Line 24 of the Diia annex indicates the total cost of property (works, services) provided by the Diia City resident – income taxpayer on special conditions, regardless of the category of persons and payment terms of compensation. At the same time, in line 24.3 cost of property (works, services) is singled out, which is not subject to taxation and by the amount of which taxation base will be reduced, which is reflected in line 25 of the Diia annex.
28. Diia City resident is since February 2022. Herewith, in the 1st quarter this resident was subject to the single tax, in the 2nd quarter - to the general income taxation system, from the 3rd quarter this resident became the Diia City resident – income taxpayer on special conditions. Is it necessary to increase financial result by the amount of income received as payment in the 3rd quarter (special regime of tax on the withdrawn capital) for services provided in the 1st quarter (single tax of 5%) according to Paragraph 4 - 1 Sub-section 4 Section XX of the Code?
No, the Diia City residents – income taxpayers on special conditions do not increase financial result before taxation of the tax (reporting) period by the amount of income received during a period of stay under special conditions of income taxation, as payment for products (works, services) shipped (provided) during a stay on the simplified taxation system.
Personal income tax
1. What is the personal income tax rate applied by a legal entity to income in the form of salaries (remuneration) accrued (paid) to employees and gig specialists in month of acquisition of the Diia City resident status?
Legal entity that received the Diia City resident status before the beginning of month is subject to the personal income tax at the 18 percent rate on amounts of salaries (remuneration) accrued (paid) to employees and gig specialists for such month.
Herewith, the personal income tax rate of 5 percent is applicable to the income taxpayer – Diia City resident specialist from the following calendar month in which legal entity acquired the Diia City resident status.
Simultaneously, if legal entity hires new employees during a stay in the Diia City resident status, then income taxation of such employees is carried out at the 5 percent tax rate, provided that such Diia City resident complies with requirements specified in Paragraphs 2, 3 of Part 1, Paragraph 10 of Part 2 Article 5 of the Law of Ukraine № 1667-IX as of 15.07.2021 "On stimulating development of the digital economy in Ukraine" (Notes 9-10).
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[9]. Paragraph 170.14¹ Article 170 of the Code;
[10]. Parts 1 and 2 Article 5 of the Law № 1667.
2. What rate of single contribution to obligatory state social insurance is applicable to a specialist who is active Diia City resident, who has not been admitted since the beginning of month?
Legal entity that meets requirements specified in Paragraphs 2, 3 of Part 1, Paragraph 10 of Part 2 Article 5 of the Law of Ukraine № 1667-IX as of 15.07.2021 "On stimulating development of the digital economy in Ukraine" and received the Diia City resident status not from the beginning of month, calculates and pays single contribution for such month on a general basis.
At the same time, payment of single contribution in amount of the minimum insurance payment is made by the Diia City resident from the following calendar month in which legal entity acquired the Diia City resident status.
Simultaneously, if legal entity hires new employees during a stay in the Diia City resident status, then payment of single contribution for such employees is made in amount of the minimum insurance payment, provided that such Diia City resident complies with requirements established by Paragraphs 2, 3 of Part 1, Paragraph 10 of Part 2 Article 5 of the Law of Ukraine № 1667-IX as of 15.07.2021 "On stimulating development of the digital economy in Ukraine" (Notes 11-12).
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[11]. Parts 14¹ Article 8 of the Law of Ukraine № 2464-VI as of 08.07.2010 "On collection and accounting of single contribution to obligatory state social insurance";
[12]. Parts 1 and 2 of Article 5 of Law № 1667.
3. How and at what rate is tax agent, who is the Diia City resident and who in the corresponding calendar month did not meet requirements specified in Paragraphs 2, 3 of Part 1, Paragraph 10 of Part 2 Article 5 of the Law of Ukraine № 1667-IX as of 15.07.2021 "On stimulating development of the digital economy in Ukraine", is obliged to remit/withhold personal income tax on income of the Diia City resident specialists that were paid during such a calendar month?
In case that tax agent – Diia City resident in relevant calendar month did not meet requirements specified in Paragraphs 2, 3 of Part 1, Paragraph 10 of Part 2 Article 5 of the Law of Ukraine № 1667-IX as of 15.07.2021 "On stimulating development of the digital economy in Ukraine", such tax agent is obliged, within limits of tax calculation of the amounts of income accrued (paid) for benefit of taxpayers-individuals and amounts of tax withheld from them, as well as amounts of accrued single contribution (hereinafter –Calculation) to independently calculate the personal income tax at the 18 percent rate regarding income of the Diia City resident specialists, which were paid during such calendar month in the form of:
salary;
remunerations under the gig contract concluded according to procedure provided for by the specified Law, including remunerations for creation and transfer of rights to works created to order;
author's remuneration for creation of official works and transfer of rights to official works.
At the same time, tax must be paid before submitting the Calculation.
In addition, amount of such tax paid by the tax agent is not included in the total monthly (annual) taxable income of the Diia City resident specialists (Notes 13-15).
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[13]. Sub-paragraph 170.14¹.5 Paragraph 170.14¹ Article 170 of the Code;
[14]. Paragraph 167.1 Article 167 of the Code;
[15]. Parts 1 and 2 Article 5 of the Law № 1667.
4. To which accounts is the personal income tax paid by the Diia City resident from income in the form of remuneration for gig contracts?
Payment of the personal income tax is made by the Diia City resident to the budget accounts opened by the State Treasury Service for crediting the specified income tax in the form of remuneration under the civil-law contracts at the main accounting place of the Diia City resident.
Information about requisites of accounts opened in bodies of the State Treasury Service in terms of administrative and territorial units of Ukraine is published on the official web portal of the State Tax Service in section "Accounts for payments" (https://tax.gov.ua/rahunki-dlya-splati-platejiv/) (Note 16).
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[16]. Article 168 of the Code.
5. If the gig specialist has several gig contracts with different Diia City residents, in this case, is a criterion of 240 thousand euros applicable to each individual contract or to the aggregate income received from all gig contracts?
Amount of 240 thousand euros per calendar year at the official exchange rate of the UAH against the euro, established by the National Bank of Ukraine as of January 1 of the reporting tax year is applicable to the aggregate income from all gig contracts, i.e. to the total annual taxable income (Note 17).
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[17]. Sub-paragraph 170.14¹.3 Paragraph 170.14¹ Article 170 of the Code.
6. Is there a reason to lose the Diia City resident status, if such resident voluntarily calculates and pays personal income tax at the 18 percent rate and single contribution to obligatory state social insurance from the entire amount of salaries (remuneration)?
Article 9 of the Law of Ukraine № 1667-IX as of 15.07.2021 "On stimulating development of the digital economy in Ukraine" defines grounds for the legal entity's loss of the Diia City resident status.
At the same time, decision to lose the Diia City resident status is made by the central executive body, which ensures formation and implementation of state policy in the digital economy (Note 18).
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[18]. Article 9 of the Law № 1667.
7. What are specifics of checking the Diia City residents for their compliance with a criteria specified in Paragraphs 2, 3 of Part 1, Paragraph 10 of Part 2 Article 5 of the Law of Ukraine № 1667-IX as of 15.07.2021 "On stimulating development of the digital economy in Ukraine" for a purpose of applying "preferential rates"? What is methodology for calculating the average number of employees and gig-specialists, namely, will specialists of the controlling body use provisions of the Instruction on statistics of the number of employees, approved by Order of the State Statistics Committee of Ukraine № 286 as of 28.09.2005?
Documentary check is considered to be a check, subject of which is the timeliness, reliability, completeness of calculation and payment of all taxes and levies provided for by this Code, as well as compliance with currency and other legislation, control over compliance with which is entrusted to the controlling bodies, employer’s compliance with legislation on the conclusion of employment contract, registration of labor relations with employees (employed persons) and which is carried out on the basis of tax declarations (calculations), financial, statistical and other reporting, tax and accounting registers, maintenance of which is provided for by the law, primary documents that are used in financial and tax accounting and are related to calculation and payment of taxes and levies, fulfillment of requirements of other legislation, control over compliance with which is entrusted to the controlling bodies, as well as documents and tax information received by the controlling body according to procedure established by the law, including the audit results of other taxpayers.
In order to determine indicator of the average accounting number of employees and gig specialists of the legal entity during documentary audits of the Diia City residents, the controlling bodies will use data of the taxpayer’s primary documents, taking into account relevant calculation methods, determined by the Instruction on statistics of the number of employees, approved by Order of the State Statistics Committee of Ukraine № 286 as of 28.09.2005, registered in the Ministry of Justice of Ukraine on 30.11.2005 under № 1442/11722 (hereinafter – Instruction).
As follows, forms of the state statistical observations at enterprises are filled in on the basis of standard forms of primary accounting documentation. Primary accounting documentation for determining the number of employees includes: order (command) on employment, transfer to another job, termination of employment contract; personal card; order (command) on granting leave; record of the use of working time and calculation of salaries; settlement and payment information, settlement information, payment information; personal accounts, employment contracts (agreements), civil-law contracts and other primary and accounting documents, approved in the prescribed manner, characterizing quantitative and qualitative composition of employees, their income in monetary and in-kind forms, as well as amounts of benefits and compensations (Notes 19-20).
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[19]. Sub-paragraph 75.1.2 Paragraph 75.1 Article 75 of the Code;
[20]. Paragraph 1.6 Section I of the Instruction on statistics of the number of employees, approved by Order of the State Statistics Committee № 286 as of 28.09.2005, registered in the Ministry of Justice of Ukraine on 30.11.2005 under № 1442/11722.
8. What is amount of single contribution to obligatory state social insurance for the vacation reserve?
Single contribution for a payer – Diia City resident, who in the calendar month met requirements specified in Paragraphs 2, 3 of Part 1, Paragraph 10 of Part 2 Article 5 of the Law of Ukraine № 1667-IX as of 15.07.2021 "On stimulating development of the digital economy in Ukraine", is established:
a) for the amount of salaries charged to each insured person for payment types, which include basic and additional salaries, other incentive and compensatory payments, including in kind, determined according to the Law of Ukraine "On salaries ", in the minimum insurance premium amount;
b) for the amount of remuneration to individuals for performance of works (provision of services) under the gig contracts concluded according to procedure provided for by the Law of Ukraine "On stimulating development of the digital economy in Ukraine ", in the minimum insurance premium amount.
As follows, vacation payment reserve is not basis for calculating single contribution to obligatory state social insurance (Note 21).
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[21]. Part 14¹ of Article 8 of the Law of Ukraine № 2464-VI as of 08.07.2010 "On collection and accounting of single contribution to obligatory state social insurance"
9. How to reflect amounts of single contribution to obligatory state social insurance, which were added due to the fact that the Diia City resident did not meet requirements defined by Paragraphs 2, 3 of Part 1, Paragraph 10 of Part 2 Article 5 of the Law of Ukraine № 1667-IX as of 15.07.2021 "On stimulating development of the digital economy in Ukraine"?
Procedure for reflecting amounts of additional accrued single contribution to obligatory state social insurance is defined in the Procedure for filling in and submitting by tax agents of Tax calculation of the amounts of income accrued (paid) for benefit of taxpayers-individuals and amounts of tax withheld from them, as well as amounts of accrued single contribution, in particular, tax agents use accrual types provided for this.
Simultaneously, provisions of the Law of Ukraine № 2464-VI as of 08.07.2010 "On collection and accounting of single contribution to obligatory state social insurance" stipulate that control over the reliability of information about persons subject to obligatory state social insurance, as well as providing consultations on information issues submitted to Register of insured individuals of the State register and maintenance of this Register belongs to competence of the Pension Fund of Ukraine (Notes 22-23).
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[22]. Procedure for filling in and submitting by tax agents of Tax calculation of the amounts of income accrued (paid) for benefit of taxpayers-individuals and amounts of tax withheld from them, as well as amounts of accrued single contribution, approved by Order of the Ministry of Finance of Ukraine № 4as of 13.01.2015 with changes;
[23]. Law of Ukraine № 2464-VI as of 08.07.2010 "On collection and accounting of single contribution to obligatory state social insurance"
10. Are lines 101 "Average accounting number of the full-time employees for the reporting period", 104 "Accounting number of the full-time employees" and 105 "Number of insured individuals in the reporting period who had accrued salaries (except for individuals who had accrued cash benefits in the reporting period)" of the Tax calculation of the amounts of income accrued (paid) in favor of taxpayers- individuals and the amounts of tax withheld from them, as well as amounts of accrued single contribution, include the gig-specialists who are in the Diia City resident status and to whom income is accrued in the form of salary?
If the gig specialists are in the staff of the Diia City resident and such specialists receive accrued income in the form of salary, then when filling in the Tax calculation of the amounts of income accrued (paid) in favor of taxpayers- individuals and the amounts of tax withheld from them, as well as amounts of accrued single contribution, the Diia City resident indicates the specified specialists in lines 101 "Average accounting number of the full-time employees for the reporting period", 104 "Accounting number of the full-time employees" and 105 "Number of insured individuals in the reporting period who had accrued salaries (except for individuals who had accrued cash benefits in the reporting period)" (except for individuals to whom financial support was accrued in the reporting period)" (Note 24).
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[24]. Procedure for filling in and submitting by tax agents of Tax calculation of the amounts of income accrued (paid) for benefit of taxpayers-individuals and amounts of tax withheld from them, as well as amounts of accrued single contribution, approved by Order of the Ministry of Finance of Ukraine № 4as of 13.01.2015 with changes
11. How are the income amounts of accrued (paid) for benefit of taxpayers-individuals and amounts of tax withheld from them, as well as amounts of accrued single contribution reflected by the gig specialists who are not in staff of such Diia City resident?
Information about the gig specialists who are not in staff of the Diia City resident and on the basis of concluded gig contracts receive income in the form of remuneration is indicated by such the Diia City resident in line 5 opposite the inscription "Worked under the civil-law contracts" of Annex 4DF of the Tax calculation of the amounts of income accrued (paid) in favor of taxpayers- individuals and the amounts of tax withheld from them, as well as amounts of accrued single contribution (Note 25).
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[25]. Procedure for filling in and submitting by tax agents of Tax calculation of the amounts of income accrued (paid) for benefit of taxpayers-individuals and amounts of tax withheld from them, as well as amounts of accrued single contribution, approved by Order of the Ministry of Finance of Ukraine № 4as of 13.01.2015 with changes
12. What is amount of single contribution to obligatory state social insurance applicable in case of accrual and payment of benefits for temporary disability?
Basis for calculating single contribution is, in particular, amount of salaries charged to each insured individual according to the payment types, which include basic and additional salaries, other incentive and compensatory payments, including in kind, determined according to the Law of Ukraine № 108/95-VR as of 24.03.1995 "On remuneration" (hereinafter – Law № 108) and amount of compensation to individuals for performance of work (provision of services) under the civil-law contracts.
Article 2 of the Law № 108 defines the salary structure, which includes: basic salary; additional salary; other incentive and compensation payments.
Determination of the payment types related to the basic salary, additional salary and other incentive and compensation payments is carried out taking into account Instruction on salary statistics, approved by Order of the State Statistics Committee of Ukraine № 5 as of 13.01.2004 (hereinafter – Instruction № 5).
Paragraph 3.2 Section III of Instruction № 5 stipulates that temporary disability allowance refers to other payments that do not belong to the salary fund.
Therefore, payments that do not belong to the labor remuneration fund, in particular, temporary disability benefits, which are accrued by the Diia City resident for benefit of employees, are basis for calculating single contribution on the general basis, namely at the 22 percent rate (Notes 26-28).
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[26]. Articles 4, 7 and 8 of the Law of Ukraine № 2464-VI as of 08.07.2010 "On collection and accounting of single contribution to obligatory state social insurance";
[27]. Paragraph 3.2 Section III of the Instruction on salary statistics, approved by Order of the State Statistics Committee of Ukraine № 5 as of 13.01.2004;
[28]. Article 2 of the Law of Ukraine № 108/95-VR "On salaries" as of 24.03.1995.