The Tax Code of Ukraine # 2755-VI dated December 02 2010 (hereinafter TCU) in the part of corporate income tax (CIT) in the Chapter III of TCU and comes into force in April 01, 2011.
The following changes relating to the CIT shall be pointed out:
01 New rules of incomes determining
Income from sales of goods is recognized at the date the buyer receives the ownership rights for goods (p. 137.1).
Income from sales of services is recognized at the date of acceptance act or other document drawn up due to the current legislation (p. 137.1).
Advances received will not continue to be included in taxable income.
Special rules for separate types of income are stated in art.137 and art.159.
02 New rules of expenses determining
Expenses forming the cost price of sold goods, services are recognized as expenses of the accounting period in which the incomes from sales of such goods and services are recognized (p. 138.4).
Cost price of sold goods is determined in accordance with the Accounting Regulations (Standards).
Other expenses are recognized in the reporting period in which they were realized (p. 138.5), except some separate operations foreseen by the Tax Code.
Expenses are recognized on the basis of the primary documents, obligatory bookkeeping and saving of which are foreseen by the Chapter III (p. 138.2).
Expenses can be also accounted on the basis of confirming documents received from non-residents in accordance with the rules of other countries (p. 138.2).
Advances paid will not continue to be included in deductible expenses.
Also it’s prohibited to include into gross expenditures expenses incurred in connection with purchase of goods (works, services) and other tangible or intangible assets from private entrepreneurs-unified tax payers (except for the IT services) (p. 139.1.12).
Restrictions on including into gross expenditures services purchased from non-residents:
- Consulting, marketing, or advertising expenses
- Expenses on engineering services
- Expenses on royalties payments
03 Corporate tax rates
- starting from April 1, 2011 till December 31, 2011 - 23%,
- in 2012 - 21%
- in 2013 - 19%
- starting from 2014 - 16%.
04 Tax privilege – 0%
From April 1, 2011 under certain conditions some taxpayers (p. 154.6) will be entitled to apply a 0% tax rate.
In the same article there are the conditions and spheres of activities for which a 0% tax rate is not entitled.
There are even more changes - please read the full version of Newsletter in the PDF-file below.
Should you be interested in the details connected with the important provisions of the Tax Code of Ukraine in its part on CIT, or accace services, please, contact us at:
Accace TOV, Tel.: + 38 044 569 3310, e-mail: email@example.com
Your accace team.