The Law of Ukraine “On Amendments to the Tax Code of Ukraine and some other legislative acts of Ukraine on providing of budget revenues balance in 2016” of 24.12.2015 № 909-VIII (hereinafter - the Law № 909) brought radical changes in the reporting period for the income tax and settlement of advanced payments on the income tax.
Reporting periods
On 01.01.2016 the tax (reporting) period for the income tax was amended. The income tax payers for the tax period are required to file the declarations and accordingly to pay tax obligations declared there. The calendar quarter and year should be the following reporting periods for the income tax payers from the mentioned date.
Annual tax (reporting) period would apply:
1) new income tax payers;
2) producers of agricultural products determined by Art. 209 of TCU;
3) companies where annual income from any activity (excluding indirect taxes), defined by the rules of accounting for the previous annual tax (reporting) period, does not exceed UAH 20 million. The income (revenue) from sales of products (goods, works, services), other operating incomes, financial incomes and other incomes are to be included in the income.
It is clear from new requirements of Art. 137 of TCU, quarterly tax (reporting) period should be applied by the income tax payers, who have annual accounting income (excluding indirect taxes) for the previous annual reporting period, which exceeds UAH 20 million. Therefore, such business entities are required in 2016 to prepare declarations on the income tax for quarter, half-year period, three quarters and a year (accrued total).
It is not clear yet, what reporting periods should be applied by the unified tax payers that went on the income tax payment. It is possible that in the case when the transition to the payment of the income tax was compelled (for example, revenue for 2015 exceeded UAH 20 million), the fiscals would require quarterly reporting from such new income tax payers.
It should be noted, if the income tax payer is liquidated, the last tax (reporting) period is considered to be the period following the date of liquidation (sub-para. 137.4.3 of TCU). In this case everything is unchanged.
Advance payments
From 01.01.16 the income tax payers should no pay any more monthly advance payments of the income tax. It is not mentioned in Art.57 of TCU on the need for advance payments of this tax.
It is additionally noted in para.9 of sub-para.4 of sec. XX of the TCU: “In January - December 2015 taxpayers are required to pay monthly advance payments of company income tax in accordance with paragraph 57.1 of Article 57 of this Code in the version which was in force before 1 January 2015. Since 1 January 2016 monthly advance payments of company income tax should not be paid.”
It is clear that before 30.12.15 is the last time when advance payments of income tax should be paid for December 2015. But it is not so definitely. Thus, para.38 of sub-sec.4 of sec. XX of TCU provides for: “Company income tax payers should pay to 31 December 2016 the advance payment of this tax in the amount of 2/9 of income tax accrued in the tax accounting for three quarters of 2016.
Calculation of such advance payment should be submitted by the taxpayer in a tax declaration for three quarters of 2016. Defined amount of advanced payments in calculation is considered to be agreed amount of monetary obligations. In case if the taxpayer does not pay the agreed amount of advance payments of company income tax within the time limits prescribed by this Code, such a taxpayer is liable to a fine in the amounts determined by Article 123 of the Code”.
Thus, the mentioned above advance payment on income tax should be paid only by the income tax payers, who will report quarterly in 2016. The amount of the advance is 2/9 of the income tax accrued in the declaration for three quarters of 2016. The deadline for payment of such an advance is 30.12.16.
