The entrepreneur is on the simplified taxation system and honestly conducts business in compliance with the law. However, in the first quarter, due to demand for its products, it exceeded the maximum allowed income set for its group. What may be the consequences from the tax authorities and how to avoid fines read below.
Single tax rates and rules for their application
In accordance with item 293.8 of the Tax Code of Ukraine No. 2755-VI of December 2, 2010 as amended (hereinafter – the Tax Code), the rates established by items 293.3 - 293.5 of the Tax Code are applied taking into account the following features:
1) single tax payers the first group, who in the calendar quarter exceeded the amount of income determined for such payers by item 291.4 of the Tax Code, from the next calendar quarter, upon application, switch to the application of the single tax rate determined for single tax payers of the second or third group, or refuse to apply the simplified taxation system.
Such payers are required to apply a single tax rate of 15% to the excess amount.
The application is submitted no later than the 20th day of the month following the calendar quarter in which the income was exceeded;
2) single tax payers of the second group, who exceeded in the tax (reporting) period the amount of income determined for such payers by item 291.4 of Art. 291 of the Tax Code, in the next tax (reporting) quarter, upon application, switch to the application of the single tax rate determined for single tax payers of the third group, or refuse to apply the simplified taxation system.
Such payers are required to apply a single tax rate of 15% to the excess amount. The application is submitted no later than the 20th day of the month following the calendar quarter in which the income was exceeded;
3) single tax payers of the third group (individual entrepreneurs) who exceeded in the tax (reporting) period the amount of income determined for such payers by item 291.4 of the Tax Code, apply a single tax rate of 15% to the amount of the excess, and are also obliged in the order established by section 1 chapter XIV of the Tax Code, switch to payment of other taxes and fees established by the Tax Code.
The application is submitted no later than the 20th day of the month following the calendar quarter in which the excess of income was allowed.
