State Tax Service of Ukraine reminds that submission of property and income tax declaration (hereinafter – tax declaration) is provided for by the Constitution of Ukraine and Section IV of the Tax Code of Ukraine (hereinafter – Code).
Section IV of the Code establishes cases in which taxpayers – individuals are required to independently calculate amounts of the personal income tax (hereinafter – tax) and military levy payable to the budget based on results of the reporting tax year by submission tax declaration to the tax authority, which includes:
- receipt of certain types of income from tax agents that are not subject to taxation upon payment, but are not exempted from taxation (Sub-paragraph 168.1.3 Paragraph 168.1 Article 168 of the Code);
- receipt of income from individual who is not tax agent (from other individuals) (Sub-paragraph 168.2.1 Paragraph 168.2 Article 168 of the Code);
- receipt of foreign income (Sub-paragraph 170.11.1 Paragraph 170.11 Article 170 of the Code).
Please note that procedure for declaring income by individuals based on results of 2022 has some differences from the previous year.
Sub-paragraph “b” of Sub-paragraph 165.1.54 Paragraph 165.1 Article 165 of the Code stipulates that total monthly (annual) taxable income of the taxpayer does not include amount (value) of charitable assistance received by benefactors – individuals who are entered in Register of volunteers of the anti-terrorist operation and/or implementation of measures to ensure national security and defense, repel and deter armed aggression of Russian federation (hereinafter – Register of volunteers) in order, established by the Law of Ukraine № 5073-VI as of 05.07.2012 "On charitable activities and charitable organizations" with changes and amendments, for provision of charitable assistance for benefit of individuals specified in Sub-paragraphs "a" and "c" of Sub-paragraph 165.1.54 Paragraph 165.1 Article 165 of the Code*, in amount actually used for such purposes and for the reimbursement of documented expenses of such benefactors, related to provision of the specified charitable assistance.
Paragraph 31 Sub-section 1 Section XX "Transitional provisions" of the Code establishes that provisions of Sub-paragraph "b" of Sub-paragraph 165.1.54 Paragraph 165.1 Article 165 of the Code are also applied to charitable assistance received by benefactors – individuals who were included in Register of volunteers before 01.01.2023, in a period from 24.02.2022 to date of their inclusion in the specified Register of volunteers.
Therefore, individuals who did not comply with requirements of Paragraph 31 Sub-section 1 Section XX "Transitional provisions" of the Code regarding inclusion in Register of volunteers by 01.01.2023, in cases provided for by the Code, are required to independently calculate amount of tax liabilities, which are payable to the budget based on results of the reporting tax year by submitting tax declaration to the tax authority.
Paragraph 177.14 Article 177 of the Code stipulates that individuals registered by entrepreneurs – owners, tenants, users under other conditions (including emphyteusis conditions) of land plots classified as agricultural lands, who produce their own agricultural products, are required to submit annex with calculation of the total minimum tax liability as a part of the annual tax declaration.
Herewith, positive value of difference between amount of the total minimum tax liability and total amount of paid taxes, levies, payments and expenses for lease of land plots is payable to the budget (Paragraph 177.18 Article 177 of the Code).
Amount of the personal income tax in part of the positive value of difference between amount of the total minimum tax liability and total amount of paid taxes, levies, payments and expenses for renting land plots is paid (recalculated) to local budgets according to location of land plots in proportion to the specific weight of area of each of the land plots classified as agricultural land (Paragraph 177.19 Article 177 of the Code).
Reminder! According to results of 2022, taking into account requirements of the Law of Ukraine № 2136-IX as of 15.03.2022 "On the organization of labor relations under martial law", tax declaration by both citizens and individuals – entrepreneurs (except for individuals who are on the simplified taxation system) is submitted until 01.05.2023 (inclusively).
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* Directly to such individuals or through the Ministry of Defense of Ukraine, Main Directorate of the National Guard of Ukraine, Security Service of Ukraine, Foreign Intelligence Service of Ukraine, Administration of the State Border Service of Ukraine, Ministry of Internal Affairs of Ukraine, National Police of Ukraine, State Security Office of Ukraine, Administration of the State Service of Special Communications and Information Protection of Ukraine, through management bodies of other military formations formed according to the laws of Ukraine, their units, military units, units, institutions or organizations maintained under account of state budget funds