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Calculation presented


By Mykola Aleksyuk, lawyer, Ilyashev & Partners Law Firm
Source: «Yuryst»

Since January 1, 2013, amendments were introduced to the Tax Code of Ukraine, which fundamentally change the method of income tax collection. Firstly, the interest rate of income tax is reduced. It, apart from some exceptions, will comprise 19%.

Secondly, it is provided that the income tax payers, which income for the previous fiscal year exceeds 10 mln hryvnias, are required to pay a monthly advance payment from income tax in the amount of 1/12 of the tax accrued for the previous year. Income tax return shall be filed to the tax authorities once a year.
The new year was marked by enactment of Article 39 of the Tax Code of Ukraine, which defines the methods for determination and the procedure for application of the regular price (paragraph 1 of Section XIX of the Tax Code of Ukraine).

According to paragraph 39.2 of the Tax Code of Ukraine, the regular price is determined in the specified cases using one of the following methods.

1. Comparable uncontrolled price method (analogues of sale). In case this method is applied, as a rule, the price is used, which is determined according to the prices for identical (or similar) goods (works, services) sold to the person unrelated to the seller (are purchased from the person unrelated to the buyer) in the regular course of business. If the goods (works, services) have a stock price or a price set in the organized securities market, such a price is taken into account in determining the regular price according to this method.

2. Resale price method. According to this method, the contract price of goods (works, services) is used, which is defined during their resale by a taxpayer to a third party, net of margin and sales expenses.

3. Using the «cost-plus» method as a regular price they use the price, which consists of the cost of the finished product goods (works, services) determined by the seller, and the corresponding margin being common for a specific activity under the comparable conditions. The minimum amount of margin can be established by law.

4. In accordance with the profit distribution method, income from transaction is defined, which shall be distributed among its parties. Such profit is distributed according to the economically sound basis, which approximates such distribution to the distribution of profits that would be received by the parties to transactions – unrelated persons.

5. Using the net profit method it is necessary to compare profitability indices of the transactions, which are calculated according to the relevant basis (e.g. on the basis of expenses, sales volumes or assets), with the similar profitability indices of the transactions between the unrelated parties in the comparable economic conditions.

Under paragraph 9, clause 1 of Section XIX of the Tax Code of Ukraine, since January 1, 2013 Article 265 of the Tax Code of Ukraine becomes effective, which regulates the procedure for the calculation and payment of the tax on real property, other than land plot (real estate tax).

The Tax Code of Ukraine defines all objects of residential property as the objects of taxation, with certain exceptions. Thus, one garden cottage, or a holiday home, or a hostel is not subject to taxation.
The main criteria affecting the amount of tax to be paid are the area of real estate and the tax rate. The apartments of 120 sq. m. or less, and the residential buildings of 250 sq. m. or less are not subject to taxation. If the above figures are exceeded, the tax basis for the apartment and for the house is reduced by 120 sq. m. and 250 sq. m., respectively.

The tax rates on real estate are set by village, township or city council within the rates set forth by the Code.

In general, the public will be able to asses the consequences of the real estate tax according to the results of the next fiscal year.

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