Declaration of income of individuals

The declaration of property status and income is a document that is filled out by individuals specified in the current legislation in order to record their income and subsequently pay taxes. We suggest that you learn more about who should file such a declaration, what income is subject to declaration, and what precedents regarding requests from tax authorities some taxpayers who have not declared their income are currently facing.

Who files a tax return: the order and procedure for declaring?

Declaring income is usually associated in public perception with politicians and government officials. However, this is far from all who had to declare their income. A similar declaration is also filed by those individual entrepreneurs who were on the general taxation system all year, or individual entrepreneurs of groups I and II for part of 2023, if they switched to the simplified system not immediately after registration. The declaration had to be filed by April 30 of this year. Thus, the taxes should have already been paid.

In addition, any income that falls under one of the following categories is subject to declaration:

1. income on which personal income tax was not withheld;
2. income from a person who is not a tax agent (for example, this concerns the sale of one’s own agricultural products to other individuals or the rental of an apartment or room);
3. inheritance from a person who is not a close relative;
4. income that a person receives by selling investment assets;
5. additional benefit, canceled or forgiven debt or credit if its amount does not exceed 25% of the minimum annual salary, the amount of which is established as of the beginning of the reporting year;
6. foreign income.

Thus, the legislation quite clearly regulates all categories of income that must be declared.

Consequences of failure to file a declaration, penalties

If a person fails to file a declaration or delays the deadline for filing it, he or she faces a fine of 320 hryvnias. For a repeated violation, a fine of 1020 hryvnias is provided. It is worth noting that today the topic of declaring foreign income is gaining active discussion. In particular, this includes income from the OnlyFans platform. In September, many materials appeared on the Internet that tax authorities received information about people who earn on this platform. Incomes from $ 1.8 million to $ 4 million over several years were announced. This was reported by Danylo Getmantsev, who heads the Verkhovna Rada Committee on Finance, as well as Tax and Customs Policy.

In the case of receiving foreign income, a person is obliged to pay 18% personal income tax and 1.5% military duty on it. If these incomes are discovered, then, in addition to the taxes themselves, 25% of their amount will be charged as penalties. Today, when tax authorities received data from the OnlyFans platform, some receive requests from representatives of this controlling state structure. After the inspection, this threatens with the imposition of penalties. So if you are faced with such a situation, it would be advisable to contact lawyers specializing in the field of tax law. This will give you the opportunity to take timely measures or minimize the legal consequences by receiving competent legal support.

Prospects for tax control in Ukraine

Given the complex military-political situation in the country, it is quite natural to search for sources of financing for the defense industry. Therefore, the actions of authorized persons to implement tax legislation aimed at withdrawing funds from shadow circulation look quite logical. There is reason to assume that the OnlyFans case is just the beginning. Tax authorities of Ukraine and many other countries (in particular, in Europe) exchange data. Therefore, freelancers who do not pay taxes can also become an object of interest from tax authorities.

For those who seek to normalize their tax issues with both past, present and future income, it is worth paying attention to the services of tax lawyers.

Let’s take a closer look at what they are:

1. Consultation. During the consultation, a lawyer carefully analyzes your situation, outlines possible prospects in it and recommends an algorithm for further actions.
2. Legal support. This category of services may be appropriate for those who seek more comfortable interaction with tax authorities and the lawyer’s performance of a representative function in the client’s communication with officials of authorized state bodies.
3. Representation in court. If your rights and legitimate interests require judicial protection, we can also help you with this. As practice shows, this legal tool for influencing the situation is quite effective in many cases.

If you need help from a tax law specialist, leave a request on our website or contact us for contact details.