The Main Department of the State Tax Service in Kyiv draws attention to the fact that taxpayers’ errors when filling in the reports on rent for subsoil use, in particular Annex 1 “Calculation of rent for subsoil use for mining” to the tax return. Which ones – further.
Error 1
Application of a reduction factor of 0.95 when calculating tax liabilities without specifying a special subsoil use permit, number and date of the state examination performed at own expense.
Law of Ukraine “On Amendments to the Tax Code of Ukraine to improve tax administration, eliminate technical and logical inconsistencies in tax legislation” No. 466-ІV of January 16, 2020 amends item 252.22 of Art. 252 of the Tax Code of Ukraine (hereinafter – the Tax Code), indicating when during calculation of the tax liability from the rent coefficient of 0.95 is applied instead of 0.7 in the case of compliance with the subsoil user conditions for mining activities, which are established by law for mineral resources of the subsoil area, within which the extraction is carried out if a subsoil user complies with tax liabilities from rent, state geological and economic assessment of mineral reserves, not earlier than 5 years before the date of calculation.
Error 2
Apply non-existent rates. Current rent rates are provided by item 252.20 of Art. 252 of the Tax Code.
Error 3
Determining the object of taxation, estimated and/or actual value of traded products are necessary elements when calculating the tax liability for rent, but some taxpayers do not specify this indicator, which makes it impossible to verify the authenticity of the declared monetary obligations.
To avoid the penalties, you should be careful when filling out tax returns and follow the procedure for filling in the details in the return on rent for the use of subsoil.
The form of the Tax Return on Rent is approved by Order of the Ministry of Finance of Ukraine No. 719 of August 17, 2015 and registered in the Ministry of Justice of Ukraine on September 3, 2015 under No. 1051/27496.
