{"id":773845,"date":"2020-08-19T11:54:54","date_gmt":"2020-08-19T08:54:54","guid":{"rendered":""},"modified":"2020-08-19T12:03:08","modified_gmt":"2020-08-19T09:03:08","slug":"zminy-v-zakoni-466-v-chastyni-podatku-na-prybutok","status":"publish","type":"post","link":"https:\/\/new.eba.com.ua\/en\/zminy-v-zakoni-466-v-chastyni-podatku-na-prybutok\/","title":{"rendered":"The amendment to the Law \u2116466 on Income Tax"},"content":{"rendered":"\t<div class=\"img-with-caption img-with-caption--speaker img-left animate-block animate-block--before\">\n\t\t<div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/new.eba.com.ua\/wp-content\/uploads\/2020\/06\/DSC39061.jpg\">\n\n\t\t\t\t\t\t\t<h4>Tetiana Sheremet<\/h4>\n\t\t\t\n\t\t\t\t\t\t\t<span>Tax Expert of Accountor Ukraine<\/span>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\n<p>The law \u2116466 on \u201cThe amendment to the Tax Code of Ukraine concerning the enhancement of tax administrating, eliminating the technical and logical inconsistencies in the Tax legislation\u201d, which came into force on May 23, 2020, became the most discussed bit of news and the most important change in a field of Tax legislation during the first half of 2020. Accountor Ukraine would like to emphasize several of the main changes in Tax legislation, specifically, income tax, since part of the changes is already to be used in reporting on the first half 2020.<\/p>\n<p><strong>The annual income cost criteria is increased for applying in financial differences.\u00a0 <\/strong><\/p>\n<p>The income tax payer has the right not to apply financial differences during identifying the object of taxation of income tax for the tax payers whose income of the last accounting period does not exceed 40,0 million UAH (before tax reform \u2013 20 million UAH) (\u00a7 134.1.1 TCU).<\/p>\n<p>Please, pay attention that changing the decision on applying financial differences annually is not allowed and <a href=\"https:\/\/tax.gov.ua\/zakonodavstvo\/podatkove-zakonodavstvo\/listi-dps\/print-74588.html\" target=\"_blank\" rel=\"noopener\">in the letter, tax authorities explained<\/a>, that applying the new 40,0 million UAH limit can be permitted\u00a0 only concerning the income for 2020. It means, that based on 2020 income results only, it is possible to make a decision on applying or not applying financial differences considering the obtained income.<\/p>\n<p>Additionally, the annual tax period is set for the tax payers whose income for the last accounting period does not exceed 40,0 million UAH, but this regulation comes into force on January 1, 2021 (\u00a7 137.5 TCU).<em>\u00a0<\/em><\/p>\n<p><strong>The income taxpayers\u2019 list is supplemented: <\/strong><\/p>\n<ul>\n<li>at the time of income payment to the non-resident with the origin (source of origin) from Ukraine: business entities \u2013 legal entities, who chose the simplified taxation system; as well as individual entrepreneurs including those, who preferred the simplified taxation system and individuals, who lead an independentprofessional activity (\u00a7 133.1 TCU);<\/li>\n<li>at the time of receiving the income from the controlled foreign company, business entities \u2013 legal entities, who chose the simplified taxation system are identified (\u00a7 133.1 TCU);<\/li>\n<li>legal entities, which are created according to legislation of other countries (foreign companies) and have theplace of effective management on the premises of Ukraine (starting from January 1, 2021) (\u00a7 133.1.5 TCU).<\/li>\n<\/ul>\n<p><strong>The new objects of income tax taxation are included:\u00a0 <\/strong><\/p>\n<ul>\n<li>income received from gambling with the use of slot machines (\u00a7 134.1.6 TCU);<\/li>\n<li>the adjusted income of controlled foreign company \u2013 the given regulation will come into force on January 1, 2021 (\u00a7 134.1.7. TCU).<\/li>\n<\/ul>\n<p><strong>The changes in the fixed assets of tax accounting: <\/strong><\/p>\n<ul>\n<li>the object of the fixed assets at a cost of more than 20,0 thousand UAH, which will be put into the exploitation on May 23, 2020 is meant to be for the tax accounting targets (\u00a7 14.1.138 TCU);<\/li>\n<li>the depreciation for the period of non-usage (exploitation) of the fixed assets in economic activity in relation to their modernization, reconstruction, completion, additional equipment and conservation, is not incurred (\u00a7 138.3.1 TCU);<\/li>\n<li>the accelerated depreciation of the fixed assets on the period of 2020-2030, but with the bunch of criteria for applying, is additionally introduced (\u00a7 43[1] TCU).<\/li>\n<\/ul>\n<p><strong>The list of tax differences is extended.<\/strong><em>\u00a0<\/em><\/p>\n<p>The tax differences, which increase the financial result before taxation:<\/p>\n<ul>\n<li>on the amount of 30 % of the products\u2019 cost including non-negotiable assets and services, implemented innon-residents\u2019 favor, organizational legal form of which is added to the list approved by the UkrainianCabinet of the Ministers (\u00a7 140.5.4. TCU);<\/li>\n<li>on the amount of fines, penalties, charged by the controlling authorities and other state government bodiesfor violating the legal requirements Ministers (\u00a7 140.5.11. TCU);<\/li>\n<li>on the amount of expenses incurred by the taxpayer during implementing the operations with non-residents, if such kind of operations do not have a business purpose (the \u2018business purpose\u2019 term is described in more details in <a href=\"https:\/\/new.eba.com.ua\/en\/rozshyrennya-ponyattya-dilova-meta-vidteper-dovodymo-dotsilnist-provedennya-operatsiyi\/\">the previous article<\/a>\u00a0(\u00a7 140.5.15 TCU);<\/li>\n<li>on the sum of accrual of the expected credit loss reserve (\u00a7 139.2.1 TCU).<\/li>\n<\/ul>\n<p>The financial result before the taxation is decreasing:<\/p>\n<ul>\n<li>by the taxpayer \u2013 assignee on the sum of negative value of the taxpayer\u2019s object of taxation, which is re-organized by: joining, merging, transformation, division, allocating, if such payers were bonded for morethan 18 sequent months up to the date of completion of joining (merging) (\u00a7 140.4.5. TCU);<\/li>\n<li>on the sum of incurred income in a form of dividends in payer\u2019s favor from the controlled foreign company(\u00a7 140.4.2. TCU);<\/li>\n<li>on the amount of incurred income in payer\u2019s favor in a form of dividends as well as of the non-residents\u2019 ownership participation (no less that 10%), which are not included into the list of low-tax jurisdictionsstates (\u00a7 140.4.3. TCU).<\/li>\n<\/ul>\n<p><strong>The amendment to the \u2018tax on repatriation\u2019: <\/strong><\/p>\n<p>It is added, that at the time of income payment to the non-resident in any form, different from the monetary one, such tax is a subject to accrual and payment by the separate formula (\u00a7 141.4.2. TCU).<\/p>\n<p>Drastic changes in income tax taxation, which are mentioned in the Law \u2116466, require a serious revision by each of the companies and apply not only those, who are direct payers of this particular tax. \u00a0Accountor recommends analyzing each of the changes, which apply to enterprises and make amendment into accounting policy to comply with the current law.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The law \u2116466 on \u201cThe amendment to the Tax Code of Ukraine concerning the enhancement of tax administrating, eliminating the technical and logical inconsistencies in the Tax legislation\u201d, which came into force on May 23, 2020, became the most discussed bit of news and the most important change in a field of Tax legislation during [&hellip;]<\/p>\n","protected":false},"author":4489,"featured_media":273100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[15576,15575],"tags":[],"class_list":["post-773845","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-articles-en","category-news-and-articles-from-companies-en","company-17168"],"_links":{"self":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/773845","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/users\/4489"}],"replies":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/comments?post=773845"}],"version-history":[{"count":0,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/773845\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media\/273100"}],"wp:attachment":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media?parent=773845"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/categories?post=773845"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/tags?post=773845"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}