Law of Ukraine № 4015-ШХ 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 payment of advance personal income tax contributions by taxpayers – individuals-entrepreneurs involved in the retail fuel sale.
Amounts and payment terms of advance personal income tax contributions are determined by Sub-paragraph 177.5.11 Paragraph 177.5 Article 177 of the Tax Code of Ukraine (hereinafter – Code).
Advance contributions paid according to with Sub-paragraph 177.5.11 Paragraph 177.5 Article 177 of the Code are integral part of the personal income tax.
Sub-paragraph 177.5.3 Paragraph 177.5 Article 177 of the Code stipulates that final calculation of the personal income tax for the reporting tax year is carried out by the payer independently according to data specified in the annual tax declaration, taking into account the personal income tax paid by such payer during a year on the basis of documentary confirmation of its payment.
For taxpayers – individuals-entrepreneurs who carry out retail fuel sale, the personal income tax liability calculated based on the results of such final calculation for the reporting tax year is reduced by the amount of advance contributions paid according to Sub-paragraph 177.5.11 Paragraph 177.5 Article 177 of the Code, while amount of such reduction must not exceed amount of calculated tax liability from this tax.
Individuals-entrepreneurs submit annual tax declaration within period specified in Sub-paragraph 49.18.4 Paragraph 49.18 Article 49 of the Code, which, along with income from entrepreneurial activity, must indicate other income from sources originating in Ukraine and foreign income, as well as information on the amounts of single contribution accrued on income from entrepreneurial activity in the amounts determined according to the law (Clause 1 Paragraph 177.11 Article 177 of the Code).
Property status and income tax declaration form (hereinafter – declaration) and procedure for its completion are approved by Order of the Ministry of Finance of Ukraine № 859 as of 02.10.2015 “On approval of the Property status and income tax declaration form and Instructions for its completing” (with changes).
Individuals-entrepreneurs calculate personal income tax liabilities and military levy on income received from conducting entrepreneurial activities and fill out sections I - III of Annex F2 "Calculation of the personal income tax liabilities and military levy on income received by a self-employed individual" (hereinafter – Annex F2) to the declaration.
At the same time, in order to make final calculation of the personal income tax liabilities, taking into account norms of Clause 2 of Sub-paragraph 177.5.3 Paragraph 177.5 Article 177 of the Code, submitting property status and income tax declaration for 2024, individuals-entrepreneurs involved in the retail fuel sale may use norms of Paragraph 46.4 Article 46 of the Code and submit, together with the declaration, additions to it, which are compiled in an arbitrary form, which will be considered as integral part of the tax declaration (form identifier F1360102). Such addition is submitted with explanation of reasons for its submission. Taxpayer who submits electronic declaration has to submit such addition electronically. Information regarding such addition is indicated in relevant section of the declaration.
At the same time, to reduce the personal income tax liability by the amount of such advance contribution, it is advisable to indicate in cell 6 of line 10.11 Section II of the declaration amount of personal income tax payable independently, taking into account reduction by the amount of advance contributions paid according to Sub-paragraph 177.5.11 Paragraph 177.5 Article 177 of the Code and calculated in the free-form annex.
It should be noted that the free-form application must contain information sufficient to calculate advance personal income tax contribution, amount of advance contribution paid during the reporting year, and calculation itself.
Please note that amount of such calculated advance contribution, which is not paid during the reporting year, does not entitle to a reduction in the personal income tax liability determined based on the results of final calculation for the reporting tax year.