Corporate income tax

Starting from January 01, 2012 it will be allowed to include expenses charged in relation with purchase of goods (works, services) sold/performed/provided by private-entrepreneur paying single tax.

P.139.1.12 of the Tax Code of Ukraine will be revoked.

Also profit tax-payers will be obliged to provide to tax authorities together with profit tax return with the list of incomes and expenses regarding contractors – single tax-payers.

Simplified taxation

Starting from January 01, 2012 the procedure of single tax collection and simplified system functioning according to p. 1 section XIV of the Tax Code of Ukraine will be changed.

They will be divided into four groups depending on the profit and number of hired employees. Note that the tax rate is established for each group.

1. Private-entrepreneurs who don’t use the work of hired employees and provide with retail trade or personal services and their profit doesn’t exceed 150,000 UAH during the calendar year. The fixed tax rate will be defined by the local state body from 1 till 10% of minimal salary as of January 01.

2. Private-entrepreneurs who provide with their services to single tax-payers and / or population, production and/or sale of goods, restaurant business in case they don’t use the work of hired employees or the number of employees doesn’t exceed 10 and profit may not exceed 1,000,000 UAH within a calendar year. The tax rate will be defined by local state body between 2 and 20% of minimal salary as of January 01.

3. Private-entrepreneurs who don’t use work of hired employees, or the number of employees doesn’t exceed 20 and profit may not exceed 3 mln UAH. Any type of activity is permitted for simplified system. The tax rate will be fixed: 3% in case VAT is payable and 5% in case VAT is not payable.

4. Legal entities with no more than 50 employees and with profit less than 5 mln UAH. The tax rate will be fixed: 3% in case VAT is payable and 5% in case VAT is not payable.

VAT

Starting from January 01, 2012 VAT returns should be registered in the Single Register if the amount of VAT is 10,000 UAH and in any case for realization of imported and excisable goods at any stage of realization. 

In case of questions of comments regarding the above mentioned changes, don’t hesitate to contact us. You can find contact information in the attached PDF-document.