PAYMENT OF TAXES ON ACCOUNT OF OVERPAID FROM OTHER TAXES

 We have repeatedly covered the issue of paying taxes by businesses. This is an extremely important responsibility of the business, which should be treated with great care. Usually taxes are paid by transferring funds from a current account. In this article, we will look at a less common way to pay taxes.

 The norms of the TCU, namely clause 87.1 stipulate that the source of repayment of the taxpayer's tax debt or payment of monetary obligations of future periods are the amounts of overpaid payments to the relevant budgets.

 Prior to that, paragraph 43.4 also stipulates that the taxpayer submits an application for the return of erroneously or overpaid monetary obligations and penalties in any form, which indicates the direction of the transfer of funds. This direction, in particular, may be the repayment of tax debt on other payments or the usual payment of a monetary obligation.

 So let's imagine the situation that LLC "Tax" according to the electronic office of the taxpayer in the section "Status of settlements with the budget" has:

• Overpayment of personal income tax in the amount of UAH 12,345;
• Arrears of land tax from legal entities in the amount of UAH 12,345.

 In this case, in order not to pay the tax to the owners of the enterprise, you can offset the overpayment and arrears, albeit from different taxes.

 LLC "Tax" must apply. Such a statement is made in any form, but must be signed and include the addressee, the addressee and the date. Such a statement can be sent by mail to the address of the Main Department of the State Tax Service in your region or the city of Kyiv. The requesting part of such a statement, for example, may look like this:

• Overpayment of personal income tax in the amount of UAH 12,345. (code 11021000; budget account UA 88888888888888888) to transfer to repay the tax debt for the payment of land tax on legal entities (code 18010500; budget account UA 44444444444444444), indicating the purpose of such transfer "Payment of arrears of land tax on legal entities".
• As a result of consideration of this application to inform in addition.

 Thus, in a specific example, we considered the possibility of paying some taxes due to the existing overpayment from others.

 Along with this, we note that there is an exception to this rule. You will not be able to use this procedure to pay arrears of other taxes at the expense of the generated VAT tax credit. In this case, you first need to go through the budget refund of VAT, and then, after transferring such funds to the company's account, pay other obligations.

 If you have additional questions or need tax advice - contact the law firm "Prikhodko and Partners" - we will be happy to help you.