The company’s branches are located in different regions. For the safety of the workers, due to constant shelling, one of them was relocated to another area. What are the peculiarities of paying personal income tax (hereinafter – PIT) for employees in this case – read below.
Change of location
In accordance with item 66.3 of the Tax Code of Ukraine (hereinafter – the Tax Code) in the event of state registration of a change in the location or place of residence of the taxpayer, as a result of which the controlling body in which the taxpayer is registered (hereinafter – administrative district) changes, as well as in the event the tax payer's tax address changes, the controlling authorities at the previous and new location (place of residence) of the tax payer carry out procedures for deregistration/registration of such a tax payer, respectively.
The procedure for transferring a taxpayer for service from one control body to another (registration/deregistration) is regulated by the norms of Chapter Х of Procedure for accounting of taxpayers and fees, approved by Order of the Ministry of Finance No. 1588 of December 9, 2011 (hereinafter – Procedure No. 1588).
According to Chapter X of Procedure No. 1588, registration of taxpayers in the controlling body at the new location (main place of registration) is carried out within a month after receipt of information on the change of location for taxpayers whose information is contained in the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organizations (hereinafter –USR), or application form No. 1-ОПП (for legal entities and separate subdivisions) for taxpayers whose state registration specifics are established by law and information about which is not contained in USR.
If by the expiration of one month after receiving the documents on the change of location of the taxpayer, the controlling body at the new location has not registered such taxpayer (main place of registration), then the registration at the new location is carried out automatically on the expiration date of such period.
Payment of tax
In accordance with Part 8 of Art. 45 of Budget Code of Ukraine No. 2456-VI of August 7, 2010 (hereinafter – the Budget Code) in the event of a change in the location of the business entity and its registration as a taxpayer at the new location, the payment of national taxes and fees determined by the tax legislation, which are distributed between the state and local budgets, carried out at the place of prior registration of the taxpayer before the end of the current budget period.
In the controlling body at the non-main place of registration, the taxpayer pays all taxes and fees that, according to the law, must be paid in the territory of the administrative-territorial unit corresponding to the non-main place of registration, submits tax declarations (calculations, reports) regarding such taxes and performs other duties of the taxpayer, and the controlling body administers such taxes and fees in relation to the taxpayer (item 7.3 of Chapter VII of Order No. 1588).
Taxpayers who are not subject to the provisions of Art. 45 of the Budget Code and item 7.3 of Chapter VII of Order No. 1588, in particular, there are legal entities that are not business entities in accordance with the norms of Economic Code of Ukraine No. 436-IV of January 16, 2003, and separate subdivisions of a legal entity. For them, tax payment and reporting are carried out at the new location from the date of registration with the controlling body at the new location.
According to point 168.4.4 pf the Tax Code, the legal entity based on its location and the location of separate subdivisions not authorized to pay tax, a separate subdivision that is authorized to calculate, withhold and pay (transfer) tax to the budget, based on its location simultaneously with the submission of documents to receive funds for payment of dues to income tax payers, pays (transfers) the amounts of withheld tax to the relevant accounts opened in the bodies that carry out the treasury service of budget funds, according to the location of separate subdivisions, and in the cases provided for by the Tax Code – at to the location of land plots, land shares (shares), allocated or not allocated in kind (in the area).
At the same time, in accordance with paragraph ‘b’ of item176.2 of the Tax Code, persons who according to the Tax Code have the status of tax agents and payers of a single contribution are obliged to submit, within the terms established by the Tax Code for the tax quarter, the tax calculation of the amounts of income accrued (paid) for the benefit of taxpayers – individuals, and the amounts of tax withheld from them, as well as the amounts of the accrued single contribution (hereinafter – Calculation), to the controlling body at the main place of registration. Such a Calculation is submitted only in the case of accrual of the specified income to the taxpayer – individual by the tax agent, the payer of the single contribution during the reporting period. The introduction of other forms of reporting on the specified issues is not allowed.
In the event that a separate subdivision of a legal entity is not authorized to calculate, withhold and pay (transfer) tax to the budget, the Calculation for such a subdivision is submitted by the legal entity to the controlling body at the main place of registration.
Therefore, in the event that an unauthorized separate subdivision of a legal entity changes its location during the budget year, which is connected with the change of administrative district, the payment of personal income tax deducted from the wages of employees of such subdivision is made from the date of registration with the controlling body at the new location to the budget at the new location.
