INCOME TAX RETURN: HOW TO CONFIRM/DISPLAY EXPENSES WITHOUT A “PRIMARY”, TAX DIFFERENCES AND CHARITY AID

With the introduction of martial law, the issue of taxation again became relevant. Since there were many questions regarding the submission of income tax returns, how to show the company charitable assistance to the Armed Forces of Ukraine, etc.

Declaration

The declaration is filled out according to the form (taking into account the innovations introduced by Order № 58) taxpayers must submit starting from the reporting period, i.e. from the 2nd half of 2022.

What has changed?

A new line 06.2MPZ called "Income tax in the form of a minimum tax liability" was added to the Declaration, as well as a correspondingly updated supplement of the minimum tax liability, in which the tax payers are specified as owners, tenants, users on other terms of land, that are classified as agricultural lands, in accordance with Clause 141.9 of Article 141 of the Code of Ukraine, the calculation of the total MPZ and the difference between the amount of such an obligation and the total amount of paid taxes, fees, payments and expenses for the lease of land will be carried out. In the header of the Declaration, a separate special note such as "tax payer" is indicated, which determines the income tax, which is shown in the form of the minimum tax liability.

How to show charitable assistance?

In the accounting statements, free transfers of TMC should be shown in the expenses of the period in which they were made, and, of course, will affect the financial result before taxation. This means that if it were not for the war, only those taxpayers who have to use or voluntarily use the tax differences indicated in the third section of the PKU would have to worry about free transfers of TMC. First of all, these are taxpayers with a large income, whose annual income for the past year exceeds UAH 40 million (clause 134.1.1 of the PKU).

It is for such a category of payers of p.p. 140.5.9 of the PKU provides for an "increasing" tax difference on that amount of funds or the value of goods that are transferred free of charge (transferred) to non-profit organizations, which, in particular, include the Armed Forces of Ukraine as an organization supported by the state budget of Ukraine, in the amount of 4 % of taxable profit of the previous reporting period.

At the same time, during the period of martial law, according to para. 69.6 of the subsection of the tenth chapter XX "Transitional provisions" of the PKU of the adjustments established by p. 140.5.9 of the PKU, for sums of money and free transfers of goods for the needs of the Armed Forces are not carried out, what is more, even without limiting the size of such transfers. Controlling bodies in the information letter dated March 1, 2022 and in category 102.02 of the ZIR similarly confirmed that the sums of funds and goods transferred or transferred to the Armed Forces are included in the composition of expenses without any restrictions.

Therefore, if you need help or advice on accounting or taxation, you should immediately contact specialists.