To pay or not to pay taxes? Or maybe pay, but not in full? It is safe to say that this question is asked by every manager of the business entity. At the same time, we can answer with confidence that it is not necessary to evade taxes, but it is necessary to keep the accounting records correctly and in full. Today we will talk about the form №1DF.
There are tax forms that have been introduced to control some taxpayers through others. That is, the report is submitted by one person, but the audit of financial activities is carried out not only by him but also by another entity.
The №1DF form described in this article is a quarterly report related to the payment of personal income tax and military duty. This form is submitted in the event that the accrual of income to individuals.
According to the order of the Ministry of Finance of Ukraine dated 13.01.2015 № 4, the tax calculation is a document that indicates the amount of income accrued (paid) in favor of taxpayers – individuals, the amount of withheld and / or paid tax.
So let’s define the main aspects of this tax reporting:
When should I file?
The №1DF form is submitted every quarter and during the forty-last day of the reporting quarter. That is, on the example of 2020, for the third quarter the form is submitted by November 9; for the fourth quarter – until February 9, 2021.
Where should the form be submitted?
The report is submitted by location. That is, natural persons-entrepreneurs and independents apply at the place of residence, and legal entities – at the address of location.
Who should apply?
The report must be submitted by business entities that accrue, withhold and pay personal income tax and personal income tax on behalf of individuals. That is, the report is submitted by tax agents.
In which case is the form submitted?
The tax calculation is submitted only in the case of accrual of income to individuals during the reporting period. Such filing does not depend on whether such income was paid during the reporting period. That is, in the case of arrears of payment – the form is still submitted.
However, it should be noted that the problematic aspect is the issue of submission of the №1DF form by business entities that make payments in favor of a natural person-entrepreneur.
In practice, taxpayers apply a fine of 510 to 1020 UAH, with reference to paragraphs 119.2, 176.2 of the Tax Code of Ukraine. Inspectors substantiate this with an appendix to the above-mentioned Order, which contains the Handbook of Signs of Income of Individuals (indicates “income” paid to a self-employed person).
At the same time, a natural person-entrepreneur is not a payer of personal income tax, and therefore, in our opinion, the application of a fine is illegal. This is the position of judicial practice.
If you have any questions – contact the law firm “Prikhodko and Partners”, we will be happy to help you and provide quality advice.