The Ministry of Finance of Ukraine has adopted updates to the form of the Corporate Income Tax
The Ministry of Finance of Ukraine has adopted updates to the form of the Corporate Income Tax (“CIT”) return to bring it in line with the current provisions of the Tax Code of Ukraine. Order No 481 “On Adoption of Changes to the Form of the Corporate Income Tax Return” dated 14 November 2019 was registered in the Ministry of Justice on 6 December 2019 under the registration No 1217/34188. The Order came into force from the date of its official publication on 20 December 2019 with exception of some provisions that shall come into effect starting from 1 January 2020.
Changes with effect from 20 December 2019:
• Updated wording of the name of line under the code 26 of the CIT return form. The line is assigned for reporting amendments to the tax calculation;
• The new lines under the codes 35, 36 and 37 are added to the form of CIT return. These lines are assigned for reporting of tax liabilities, fines and interest resulting from misuse of the tax-exempt funds;
• Updated form of Annex PN (ПН) “Calculation (Report) of Tax Liabilities of Non-Residents Receiving Income with the Source from Ukraine”;
• Updated form of Annex VP (ВП) “Calculation of Tax Liabilities for the Period when Mistakes were Identified”;
• Updated form of Annex RI (РІ) “Tax Differences”: updated wording of the names of lines under the codes 3.1.6, 18.104.22.168, 22.214.171.124 and 3.1.7. Also, the new line under the code 126.96.36.199 is added to the section “Other Differences” for reflecting the amount of positive difference between the payments (remuneration) to insurance intermediaries or other persons and the amount of the standard of such costs, as provided by para 141.1.3 of the Tax Code.
Changes with effect from 1 January 2020:
• Updates in section for indication of information about available Annexes include additional field for the new Annex PP (ПП) “Information on Amounts of Applied Tax Benefits”. Also, the field for indication of the filed Financial Statements (ФЗ12) is split into two columns to indicate the applied accounting standards, either Local GAAP or IFRS;
• The new Annex PP (ПП) “Information on Amounts of Applied Tax Benefits”. The tax-payers that are eligible to tax benefits shall submit this annex.
We recommend monitoring the tax authorities’ clarifications pertaining to the first period of applying the updated form.