INTERCONSULT

 

FIDUCIA • STABILITAS • FELICITAS

PC Intercosult

PC Intercosult
b. 104, Bazarnaya Str.
Odessa, Ukraine, 65020
Tel.:+380 48 798 7495

 

PC Intercosult

The president of the company
Dr. Gennadiy Trachuk
Tel: +38 068 259 01 44
E-mail: interconsult.ua@gmail.com
Skype: intreconsult_ua

The director of the company
Antonina Haliapina
Tel: +38 068 259 02 39
E-mail: haliapina@mail.ru

The leading expert
Vitaly Serbulenko
Tel: +38 093 6 444 777
E-mail: serbulenko@i.ua

Tax registration place 

Legal entities (and their separate subdivisions) are considered residents of Ukraine if such legal entities (and their separate subdivisions) are established and perform their activity according to legislation of Ukraine with location both on its territory and beyond its boundaries. (sub-clause 14.1.213 clause 14.1 art. 14 the Tax Code of Ukraine – hereinafter TCU). In its turn, non-residents are considered foreign companies, organizations, established according to the legislation of other countries, their branches, representation offices and other separate subdivisions registered (accredited or legalized) according to legislation of Ukraine, with location on the territory of Ukraine (sub-clause14.1.122 clause 14.1 art. 14 TCU). 

Tax assessment base 

Particular value, physical or other characteristics of the particular object of taxation are recognized to be the tax assessment base. Tax assessment base is physical, value or other notion of the object of taxation to which a tax rate shall be applied and which is used to determine the size of tax liability. Tax assessment base and the procedure of its determination shall be defined by the Tax Code of Ukraine for each tax separately (art. 23 TCU). 

Enterprise profits tax 

Tax payers from the residents are:

  • entrepreneurs are legal entities which perform business activity both on the territory of Ukraine and beyond its boundaries;
  • railway administration which receives profit from main activity of railway transport. The list of works and services which belong to main activity of railway transport is determined by the Cabinet of Ministers of Ukraine. Railway income received from the main activity of railway transport shall be determined in the limits of income flow redistributed among railways according to the procedure determined by the Cabinet of Ministers of Ukraine;
  • railway transport enterprises and their structural subdivisions which receive profit from minor activity of railway transport;
  • nonprofit institutions and organizations, in case of receiving profit from minor activity and/or income subjected to taxation according to the section;
  • separate subdivisions of tax payers excluding representation.

According to TCU the representation of tax payer shall be determined as a separate subdivision of the legal entity placed beyond its location and which performs representation and protection of legal entity interests, is financed by such a legal entity and does not receive other income, except passive income. 

Tax payers from the non-residents are:

  • legal entities established in any organizational and legal form and receive the income with source of origin in Ukraine, except institutions and organizations which have diplomatic privileges or immunity according to international contracts of Ukraine;
  • permanent representation of non-residents which receive income with source of origin in Ukraine or perform the agency (representative) and other functions regarding such non-residents or their founders.

Object of taxation

  • profit with the source of origin in Ukraine and beyond its boundaries, which is determined by decreasing the income amount of accounting period by cost of production of realized goods, executed work, rendered services and the sum of other expenses of accounting accounting tax period.
  • income (profit) of non-resident with the source of origin in Ukraine.

Enterprise profit tax rate:

  • from the 1st of January 2013 till the 31st of December 2013 inclusively - 19 per cent, for software products industry subject - 5 per cent;
  • from the 1st of January 2014 - 16 per cent, for software products industry subject - 5 per cent.


Value added tax 

For taxation purpose a tax payer is:

  • any individual which performs business activity and is registered at his free will as a tax payer;
  • any individual which is registered or is subjected to registration as a tax payer;
  • any individual which imports goods into the customs territory of Ukraine, in the volumes which are subjected to taxation, and which bears responsibility for tax payment in case of goods transfer through the customs of Ukraine according to the Customs Code of Ukraine, as well as: an individual which bears responsibility for meeting requirements of customs regulations which foresee the full or partial conditional exemption from taxation in case of such customs regulations violation, determined by customs legislation; an individual which uses, also while goods importing into the customs territory of Ukraine, tax allowance not on the intended purpose and/or against conditions or purpose of its rendering according to TCU as well as any other individuals which use a tax allowance not assigned to them. The norms of this clause are not applied to the import operations in the customs territory of Ukraine by natural entities (citizens) or subjects of entrepreneurial activity which are not tax payers, cultural values;
  • an individual which maintains accounting of activity results on the cooperation contract without legal entity establishing;
  • an individual – asset manager which maintains a separate tax accounting on value added tax referring to business transactions connected with property use received according to the contract for asset management. For taxation purposes business relationship between asset manager of own business activity and his activity on asset management is equal to the relationship on the basis of separate civil law contracts. The regulations of this sub-clause do not cover asset managers who perform the management of collective investment schemes, bank management fund, construction financing funds and real estate operations fund, established according to the law;
  • an individual which performs operations on delivery of forfeit, findings, treasure, property recognized abandoned, property which was not requested by the owner till the expiry date, as well as property which becomes the property of the State according to the right of inheritance or on other legal basis.
  • an individual authorized to bring in a tax from objects of taxation which appear as a result of rendering services to enterprises of railway transport from their primary activity, that are under administration of a tax payer determined by the Cabinet of Ministers of Ukraine.

Object of taxation are tax payer operations on:

  • goods delivery, place of delivery of which is located on the customs territory of Ukraine, according to TCU, including the operations on title transfer for subjects to mortgage to the borrower (loan holder), for goods, which are handed over on condition of commodity loan, as well as from financial leasing object for use by lessee/leaseholder;
  • service rendering, the place of rendering of which is located on the territory of Ukraine, according to the TCU.
  • goods import into the customs territory of Ukraine;
  • goods export beyond the customs territory of Ukraine;
  • service rendering on international passengers, luggage and loads transportation by railway, motor, sea, river und air transport.

In order to perform taxation with this tax the placing of goods under any custom procedure, stipulated by Customs Code of Ukraine, is equated to operations on goods import into the customs territory of Ukraine and goods export outside the customs territory of Ukraine. 

Value added tax rate:

  • from the 1st of January 2011 till the 31st of December 2013 inclusively, tax rate makes 20 per cent;
  • from the 1st of January 2014 - 17 per cent.


Excise tax 
Excise tax payers are:

  • an individual which produces excise goods (products) on the customs territory of Ukraine, including raw material supplied by customer.
  • an individual – a subject of entrepreneurial activity which imports excise goods (products) to the customs territory of Ukraine.
  • an individual which realizes or gives possession, use or disposal over excise goods (products) which was imported into the territory of Ukraine with the exemption from taxation till the period end, according to TCU.
  • an individual which takes responsibility for keeping customs requirements which stipulate tax exemption in case of such requirements violation.
  • an individual which takes responsibility for fulfilling the conditions as to the intended use of excise goods (products) for which the rate of 0 hryvnya for 1 litre of 100% alcohol, 0 euro for 1000kg of oil products is established in case of such conditions violation.
  • an individual which takes responsibility for fulfilling the conditions as to the intended use of excise goods (products), while performing operations with excise goods (products), which are not imposed to taxation, in case of such conditions violation.

Object of taxation are operations on:

  • realization of excise goods (products) made in Ukraine;
  • realization (handing over) of excise goods (products) with the purpose of self-consumption, industrial processing, contribution to the charter capital as well as their employees;
  • import of excise goods (products) into the customs territory of Ukraine;
  • realization of forfeited excise goods (products), excise goods (products) which was not requested by the owner till the expiry date, as well as excise goods (products) which becomes the property of the State according to the right of inheritance or on other legal;
  • realization or handing over in possession, use or disposal of excise goods (products) which were imported into the customs territory of Ukraine with tax exemption till the period end, determined by legislation.
  • volumes and value of lost excise goods (products) which exceed the set rate of loss.

Tax rates:

  • Ad valorem;
  • Specific;
  • Ad valorem and specific simultaneously.

Tax rates are determined according to art.215 of the TCU. 

Ecological tax 
Tax payers are:

  • subjects of entrepreneurial activity, legal entities which do not perform business activity, legal entities which do not perform business (entrepreneurial) activity, state financed organizations, socially-owned enterprises and other enterprises, institutions and organizations, permanent representations of non-residents, including those which perform agency (representative) functions in relation to such non-residents or their founders, while implementing the activity of which on the territory of Ukraine and within the boundaries of its continental shelf and exclusive (sea) economic zone are being performed:
  • pollutant emissions into the open air by stationary pollution source;
  • discharge of pollutants directly into the water sources;
  • wastes disposal at specially allotted places or onsite, except disposal of certain types of wastes as recyclable materials;
  • nuclear wastes formation (including those accumulated);
  • temporary storage of nuclear wastes by their producers in excess of the term stipulated by specific license conditions.
  • business activity subjects, legal entities, which do not perform business (entrepreneurial) activity, state financed organizations, socially-owned enterprises and other enterprises, institutions and organizations, permanent representations of non-residents, including those which perform agency (representative) functions in relation to such non-residents or their founders, as well as citizens of Ukraine, foreign citizens and stateless people/individuals which execute pollutant emissions into the air by mobile pollution sources in case of their use of fuel material.

Object and basis of taxation are:

  • volumes and types of pollutants which are emitted into the open air by stationary sources;
  • volumes and types of pollutants which are discharged directly into the water sources;
  • volumes and types (classes) of wastes which are disposed in specially allotted places or onsite during the financial quarter, except volumes and types (classes) of specific/certain wastes as recyclable materials, which are disposed at own territories (property) of of subjects of business activity which possess license for collection and preparing of certain wastes types as recyclable materials and perform statutory activity on collection and preparing of such wastes;
  • volumes and types of fuel, including that produced from customer-supplied raw materials, realized or imported into the customs territory of Ukraine by tax agents.

Tax rates 
According to section VIII of TCU tax rates are determined for:

  • for pollutant emissions into the open air by the stationary pollution sources;
  • pollutant emissions into the open air by the mobile pollution sources;
  • discharge of pollutants into the water sources;
  • wastes disposal at specially allotted places or onsite;
  • nuclear wastes formation (including those accumulated);
  • temporary storage of nuclear wastes by their producers in excess of the term stipulated by specific license conditions.

Real estate tax 
Tax payers are:

  • owners of land plots, land shares;
  • land users.

Objects of taxation are:

  • land plots which are hold or used;
  • land shares which are hold.

Taxation basis is:

  • regulatory monetary assessment of land lots inclusive of indexation rate determined according to the order stipulated by this section;
  • land plot area, which regulatory monetary assessment is not performed.

The decision of local government bodies as to regulatory monetary assessment of land plots is declared officially by the relevant local government body before the 15th of July preceding fiscal period in which the application of regulatory monetary assessment of land or changes (scheduling period) is planned. Otherwise the regulations of relevant decisions are applied not earlier than the beginning of the fiscal period which follows the scheduling period. 

Single tax.

Simplified system of taxation, accounting and reporting is a specific mechanism of tax and fees administration, that determines the replacement of certain taxes and fees payment for single tax payment in order and under conditions, stipulated by TCU with simultaneous simplified accounting and reporting. 

Tax payers are:

  • The first group - natural entities –entrepreneurs which do not use the work of employees, perform only retail sales of the goods at the trade places at the markets and/or perform business activity on consumer services to people and whose income during a calendar year does not exceed 150000 hryvnya;
  • The second group - natural entities –entrepreneurs which perform business activity on services rendering, including consumer, to single tax payer and/or to public, production and/or selling of the goods, under condition that during a calendar meet a number of the following criteria: do not use the work of employees or the quantity of people who are involved into the employer-employee relationship does not simultaneously exceed 10 individuals; income does not exceed 1000000 hryvnya.
  • The third group – natural entities –entrepreneurs which during a calendar year meet a number of the following criteria: do not use the work of employees or the quantity of people who are involved into the employer-employee relationship does not simultaneously exceed 20 individuals; income does not exceed 3000000 hryvnya;
  • The fourth group – legal entities - business activity subjects of any business legal structure, which during a calendar year meet a number of the following criteria: average quantity of employees does not exceed 50 individuals; income does not exceed 5000000 hryvnya;
  • The fifth group – natural entities –entrepreneurs which during a calendar year meet a number of the following criteria: do not use the work of employees or the quantity of people who are involved into the employer-employee relationship does not simultaneously exceed 20 individuals; income does not exceed 20000000 hryvnya;
  • The sixth group – legal entities – business activity subjects of any business legal structure, which during a calendar year meet a number of the following criteria: average quantity of employees does not exceed 50 individuals; income does not exceed 20000000 hryvnya.

Single tax rates:

  • For the first group of single tax payers - from 1 to 10 per cent of minimum wages;
  • For the second group of single tax payers - from 2 to 20 per cent of minimum wages;
  • For the third and fourth groups of single tax payers:

o    3 per cent of income – in case of value added tax;

o    5 per cent of income – in case of including value added tax into the single tax.

  • For the fifth and sixth groups of single tax payers:

o    7 per cent of income - in case of value added tax;

o    10 per cent of income - in case of including value added tax into the single tax.

Fixed agricultural tax

Tax payers: 
Tax payers can be agricultural commodity producers, whose share of agricultural production for the previous fiscal (reporting) year is equal or exceed 75 per cent. 

Object of taxation 
The object of taxation for agricultural commodity producers is agricultural area (cultivated land, hayland, pasture and perennial plantings) and/or water fund lands (inland water bodies, lakes, ponds, water-storage reservoir), which are owned by agricultural commodity producer or provided for use to him, including lease rights. 

Tax rates 
Tax rates from one hectare of agricultural land and/or water fund lands for agricultural commodity producers depend on category (type) of land, its location and makes (percentage of tax assessment base):

  • for cultivated land, hayland and pasture located in mountain areas and forest areas, as well as cultivated land, hayland and pasture, which are owned by agricultural commodity producers which specialize in the manufacture (cultivation) and processing of crop products grown under cover or provided for use to him, including lease rights) - 0,15;
  • for cultivated land, hayland and pasture located in mountain areas and forest areas, - 0,09;
  • for perennial plantings (except those perennial plantings located in mountain areas and forest areas) - 0,09;
  • for perennial plantings, located in mountain areas and forest areas, - 0,03;
  • for water fund lands - 0,45;
  • for cultivated land, hayland and pasture, which are owned by agricultural commodity producers which specialize in the manufacture (cultivation) and processing of crop products grown under cover or provided for use to them, including lease rights) - 1,0.

Real property tax separated from land plot

Tax payers
Tax payers are natural or legal entities, including non-residents, which own the residential real estate property. 

Object of taxation 
Object of taxation is the residential real estate property. 

Tax rate 
Tax rates are determined by rural council, settlement council or city council by the following sizes for 1 m2 of dwelling space of the residential real estate property:

  • for apartments with dwelling space not exceeding 240 m2 and dwelling houses with dwelling space not exceeding 500 m2, the tax rates cannot exceed 1 per cent of minimum wages, determined by the law on the 1st of January of reporting (fiscal) year;
  • for apartments with dwelling space exceeding 240 m2 and dwelling houses with dwelling space exceeding 500 m2, the tax rate makes 2,7 per cent of minimum wages, determined by the law on the 1st of January of reporting (fiscal) year.

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