A taxpayer had discovered after the reporting deadline an error in the real estate tax declaration, where the wrong area of non-residential premises was indicated. How to correct an inaccuracy without tax consequences for the entrepreneur read further.
Real estate tax reporting rules
According to paragraphs 266.7.5 of the Tax Code of Ukraine (hereinafter – the Tax Code), payers of real estate tax other than land – legal entities independently calculate the amount of tax as of January 1 of the reporting year and submit to the supervisory authority at the location of the object/objects of taxation no later than February 20 of the same year the Tax declaration for tax on real estate, other than a land plot (hereinafter – the Declaration), in the form established in accordance with the procedure provided for in Art. 46 of the Tax Code, with a breakdown of the annual amount into equal parts quarterly.
Clarification of tax obligations
In case of clarification of tax obligations during the year (after the deadline for submission of the Declaration), in the "clarifying" cell of line 1 of the header of the Declaration, the form of which is approved by Order of the Ministry of Finance No. 408 of April 10, 2015 (as amended by Order of the Ministry of Finance No. 371 of November 10, 2022), the mark "X" is placed.
In the case of simultaneous adjustment of the tax liability for real estate tax, other than land, if the code of the type of real estate object (total area, tax rate, or amount of benefits, etc.) is erroneously indicated, both for residential and non-residential real estate, the payer has to submit one clarifying Declaration with separate clarifying calculations for residential (appendix 1) and non-residential (appendix 2) real estate.
Practical advice
For example, to clarify the indicators of the Declaration on residential real estate:
- corrected (correct) information is filled in in section I "Calculation of tax liability" of Appendix 1 to the Declaration;
- in Chapter II "Clarification of tax liability" of Appendix 1 to the Declaration:
- line 4 indicates the amount of the tax liability from line 3 of Appendix 1 to the Declaration to be specified;
- line 5 is filled in if an underpayment has occurred as a result of error correction. Line 5 indicates the amount accrued before the increase in tax liabilities, which is calculated according to the formula: line 3 - line 4. The indicator of line 5 of Appendix 1 is transferred to line 5.2 of the table part of the Declaration;
- line 5.1 is filled out only in the Declarations, in which in lines 1.1, 1.2 and line 5 ch. II pf Appendix 1 indicates the current year (the amount of accrual before the increase of the tax liability due to changes in the object of taxation and/or the tax base (on the basis of data entered in the relevant state registers) is indicated when submitting the Declaration after the deadline for submission, but taking into account the norms of the second paragraph of item 266.7.5 of the Tax Code);
- line 5.2 indicates the amount accrued before the increase in tax liabilities, which is calculated according to the formula: line 5 – line 5.1;
- line 6 is filled in if an overpayment occurred as a result of error correction. In line 6, the amount accrued before the reduction of tax liabilities is indicated, which is calculated according to the formula: line 4 - line 3. The indicator of line 6 of Appendix 1 is transferred to line 5.3 of the table part of the Declaration;
- line 7 is filled in if line 5.2 is filled out. Line 7 indicates the amount of the fine (in UAH with kopecks), which is calculated according to the formula: (columns 4 to 7 of line 5.2) x 3 percent. or 5% (if the amount of underpayment is determined by the Declaration with the mark "reportable", "reportable new" - a fine of 5% is applied, if with the mark "clarifying" - in the amount of 3 percent). The indicator of line 7 of Appendix 1 is transferred to line 5.4 of the table part of the Declaration.
Clarifying Appendix 2 to the Declaration for non-residential real estate objects is filled out similarly. With:
- the indicator of line 5 of Appendix 2 is transferred to line 6.2 of the table part of the Declaration;
- the indicator of line 6 of Appendix 2 is transferred to line 6.3 of the table part of the Declaration;
- the indicator of line 7 of Appendix 2 is transferred to line 6.4 of the table part of the Declaration.
In the case of adjusting the tax liability for real property other than land, only from residential or non-residential real estate, one clarifying calculation/appendix is filled out, the indicators of which are transferred to the Declaration.
