We gave consideration to accounting peculiarities of receipt of a bank guarantee. Now we are going to talk about tax accounting.
Income tax
According to the provisions of para.134.1 of the Tax Code of Ukraine of 02.12.2010, № 2755-VІ (hereinafter - TCU) the subject to income tax is an income from a source of origin from Ukraine and foreign source income, which is determined by adjusting (increase or decrease) of financial result to taxation (profit or loss), defined in the financial statements according to the national regulations (standards) of accounting or International Financial Reporting Standards, under differences arising in accordance with this chapter.
If the income of the company does not exceed 20 million hryvnias during the reporting period, it is allowed not to adjust the financial result to taxation determined in accordance with Accounting Standards or IFRS.
There are no any restrictions or clarifications on the presence of the connection of expenses of cash management services of a bank with the business activities of the company in section III of the TCU today. Therefore, such a transaction should be reflected under accounting standards.
VAT
The provision of bank guarantees is not the subject to VAT according to sub-para.196.1.5 of the TCU. Thus, there is no input VAT.
