HOW TO INCLUDE VAT IN DETERMINING INCOME TAX
According to item 44.2 of Art. 42 of the Tax Code of Ukraine (hereinafter referred to as the CCU), for the purpose of calculating the object of taxation, the payer of income tax uses the data of accounting and financial statements on income, expenses and financial result before tax.
Subparagraph 134.1.1 of clause 134.1 of Art. 134 of the GCU established that the object of taxation of income tax is profit with source of origin from Ukraine and beyond, which is determined by adjusting (increase or decrease) the financial result before tax (profit or loss), determined in the financial statements of the enterprise in accordance with national accounting standards (standards) or international financial reporting standards, differences arising from the provisions of the GCC.
As noted, the GCC does not make any difference to adjust the financial result before tax to the amount of value added tax. Such amounts are reflected in the formation of the financial result according to accounting rules.
Regulation of issues of accounting methodology and financial reporting is carried out by the central executive body, which provides for the formation and implementation of state policy in the field of accounting, approves national accounting regulations (standards), national accounting regulations (standards) in the public sector, other normative acts on accounting and preparation of financial statements (item 2 of Article 6 of the Law of Ukraine of July 16, 1999 №996-XIV “On accounting and financial statements in Ukraine “).
Author: Kristina Vorozhbitova