The Main Department of the State Tax Service in Kyiv has reminded that the Cabinet of Ministers of Ukraine Regulation “On Amendments to regulation of the Cabinet of Ministers of Ukraine No. 1233 of December 27, 2010” No. 891 of October 31, 2018, came into force on January 1, 2020. What influence will it have on business entities?
The new government regulation cancelled the “Report on tax benefit amount” and stipulated that business entities should reflect tax benefit information in their tax returns submitted to the supervisory authority.
In accordance with order of the Ministry of Finance of Ukraine “On Approval of Changes to the Form of the Corporate Income Tax Return” No. 481 dated November 14, 2019, the corporate income tax return was supplemented by a new tax benefit supplement “Information on the amounts of tax benefits”.
That is, as of January 1, 2020, business entities that do not pay corporate income tax in connection with receiving tax benefits, do not submit to the controlling bodies the "Report on the amount of tax benefits" and keep records of the amounts of such benefits that are displayed in the annex to the returns.
The tax benefits annex reflects information about:
- the code and name of the privileges for each type of tax benefits for the corporate income tax according to the benefits guideline approved by the State Tax Service of Ukraine;
- the amount of tax not paid to the budget in connection with the receipt of the tax benefit (tax exempt);
- the line of tax benefit in the reporting period;
- the amount of tax benefit used for the intended purpose.
Order of the Ministry of Finance of Ukraine No. 488 of November 20, 2019 also amended the form and Procedure for completing and submitting value added tax reporting (hereinafter – the Procedure), in particular the new version contains (Annex 6) to the declaration.
The name of Annex 6 is changed to “Calculation of the amounts of value added tax not paid by the entity to the budget in connection with the receipt of tax benefits and/or indicators according to which the enterprises (organizations) belong to the enterprise (organizations) of persons with disability (A6)”.
The peculiarities of determining the amounts of value added tax not paid by the payer to the budget in connection with the receipt of tax benefits are set out in the new chapter V of the Procedure.
