The Law of Ukraine dated 24 December 2015 № 909-VIII “On Amendments to the Tax Code of Ukraine and some other legislative acts of Ukraine concerning the ensuring of the balance of budget revenues in 2016” (hereinafter - the Law № 909) added a lot of innovations for the transport tax payers.
Now, in accordance with paragraph 267.2.1 of the Tax Code of Ukraine (hereinafter - TCU), the subject to the taxations is passenger cars from the year of manufacture of which passed no more than five years (inclusive) and the average market price of which is more than 750 minimum wages established by law as of January 1 of the tax year (from 01.01.2016 – UAH 1 033 500).
It should be recalled that in 2015 this tax should be paid for passenger cars, which were used up to five years and had a volume of cylinder over 3000 cc. cm.
At present, the average market value of the vehicle is determined by the central executive body that implements the state policy of economic development, in a manner approved by the Cabinet of Ministers of Ukraine based on vehicle brand and models, year of manufacture, engine type, engine volume, type of gearbox, passenger car mileage, and posted on its official website.
As in previous year, the transport tax payers are individuals and legal entities including non-residents. The rate is not changed - 25 000 hryvnia per year for each vehicle.
The law № 909 made amendments to the Tax Code of Ukraine (hereinafter - TCU), which regulated particularities of the tax payment due to completion of five years of age and car theft.
Thus, in the case of the expiration of three years of age during the reporting year, the tax to be paid for the period from January 1 of this year before the start of the month following that one in which the age of the vehicle has reached (reaches) five years (paras.267.6.7 of TCU).
In the case of misappropriation of vehicle that is subject to the tax by the third party, the transportation tax for the vehicle should not be paid from the month following that one in which there was misappropriation of mentioned vehicle. This fact is confirmed by the corresponding document on introduction of information about committing a criminal offense in the Unified Register of pre-trial investigations, issued by the authorized government agency. When recovery of the vehicle to its owner (legal owner), the tax should be paid from the month in which the passenger car was recovered in accordance with the decision of the investigator, prosecutor or court decision.
The owners - legal entities in case of misappropriation of a passenger car by a third party should submit a clarifying declaration within 30 calendar days from the date of entering information about committing a criminal offense in the Unified Register of pre-trial investigations; and in case of recovering - within 30 calendar days from the date of preparation of order of investigator, prosecutor or court decision.
In 2016 the tax return for the transportation tax is provided in the form approved by the order of the Ministry of Finance of Ukraine dated 10.04.2015, № 415.
Base tax period is a calendar year.
Taxpayers - legal entities should independently calculate the amount of tax as of January 1 of the reporting year and before 20 February of the same year and submit the tax return with divided annual amount in equal shares quarterly to the controlling authority at the place of registration of the subject of taxation.
The legal entities should pay the tax with advance payments on a quarterly basis before the 30th day of the month following the reporting quarter.
The tax assessment from the subject/subjects of taxation of individuals should be implemented by the tax authority at the place of registration of the taxpayer. The tax assessment notice on the payment of the tax amount/amounts and the corresponding payment details are to be sent (delivered) to the payer before 1 July. The transportation tax should be paid by the individuals within 60 days from the date of delivery of the tax assessment notice.
