From 1 January 2015,the travel expenses for the taxation purposes of the income tax should be calculated according to the rules of accounting records (currently there are no any stated restrictions on them in the Section III of the Tax Code of Ukraine of 02.12.2010, № 2755-VІ (hereinafter - TCU).
The standards (actually restrictions), before 01.01.15 were stated in paragraphs 140.1.7 of the TCU (which regulated the travel issues), moved after that date into items “a” of the pp. 170.9.1 of the TCU.
Therefore, now the p. 170.9 of the TCU after the amendments provides a list of those expenses that are not the subject to the taxable income of the business traveler. In accordance with items “a” of the pp. 170.9.1 TCU of the TCU, the amount of reimbursed travel expenses within the limits of actual expenses according to the legislation, is not the income of the taxpayer-individual, who has an employment relationship with his/her employer or is a member of the governing bodies enterprises, institutions and organizations. Namely: for travel (including the baggage transportation, transport tickets booking) as to the place of the travel and back as well as the place of the business trip (including the rented vehicle), payment for the hotel accommodation (motels) and also included in such accounts expenditure on food or household services (laundry, cleaning, mending and ironing of clothes, shoes or linen), for rent of other residential premises, payment of telephone conversations, registration of foreign passports, entry permits (visas), mandatory insurance, other documented expenses related to the rules of entry and stay in the place of the business trip including any charges and taxes, which are to be paid due to such expenses. Certainly, all such expenses should be documented.
In addition, the daily subsistence allowances are not included in the taxable income of the individual. If the travel was on the territory of Ukraine, the daily allowance currently is not the subject to the income tax in the amount not more than UAH 243.60 (0.2 minimum wage established by the law as of January 1 of the tax (reporting) year). In the case of business trips abroad, the tax-free daily allowance is UAH 913.50 (0.75 of the minimum wage at the beginning of the year).
The list of documents, based on which you have the right not to tax the daily subsistence allowances, is not changed.
If for some reason the travel expenses are not documented or the travel expenses are not exempted from the income tax in accordance with items “a” of the pp. 170.9.1 of the TCU, or the daily allowances are paid in larger amount than the specified limit amounts, or there are no any documents certifying the daily allowances, but the company has paid them, the amount of travel expenses and the daily subsistence allowances should be taxed by the income tax at the rate of 15% (20%) – pp. 164.2.11 of the Art. 167.1 of the TCU and p. 170.9 of the TCU. The rules of paragraph 164.5 of the TCU should be used and the natural coefficient should be applied when determining the income tax. The company maintains the amount of accrued income tax at the expense of any taxable income (after tax) of the taxpayer for the month, and if it is not enough money, at the expense of taxable incomes following the reporting months. And it is to the full payment of appropriate tax (pp. 170.9.1 of the TCU).
The travel expenses that are the subject to the income tax should be additionally taxed by the war tax. The subjects to the war tax are the incomes stated in the Art.163 of the TCU according to pp. 1.2 of p. 161 of subsection 10 of sec. XX of the TCU.
Let us recall, the war tax rate is 1.5%, and the calculation, maintenance and payment (transfer to the budget) is in the manner prescribed in the Art. 168 of the TCU. The company, as a tax agent, is responsible for the war tax payment.
