General tax advice tax
Incomes Ministry has approved the General tax advice regarding the payment of advance payments on profit tax, recommended to pay attention to the following important questions:
- the value of trade patents does not reduce advance payments during the year and accounted for
in the reduction of the tax obligations under profits tax Declaration for the year. (Question 2).
- tax inspectors came to the conclusion that if the company were given by results of I quarter loss from all
activities (a negative value line 7 of the Declaration on the tax on profit), and from patenting activity – profit, the Declaration for the first quarter and continues not to blow
to pay advance payments.
We do not agree with these conclusions of the tax, as in paragraph 57.1 Tax code does not stipulate that the entity needs to determine profit/loss according to the results of the 1st quarter by types of activity: phentermineh or not. In our opinion, if the enterprise phentermineu activities received profit, but in the aggregate for all types of activities in the reporting period, not received profit or obtained loss, the company has the right to submit a Declaration on profit for the first quarter and not to pay further advance payments.
- enterprise does not have the right to voluntarily refuse from the payment of the advance payments and to submit quarterly statements, except in one case stipulated by the Tax code when the I quarter loss. (Question 3).
- if the results of the last reporting year was an income of over UAH 10 million, however, was the loss or no profit and a basis for calculating the advance payments, the and the following year the 1st quarter became profitable – no need to submit the Declaration for the first quarter, will need to file Declaration the half year, three quarters and year. (Question 8).
- the company, the payer of advance payments, which for the first quarter of the reporting year received loss exercise the right to submit a Declaration for the first quarter, entitled advance payments for January-March to include in the reduction of obligations already in the Declaration for the first quarter of this year. (Question 11).
- enterprise has no right to cease to pay advance payments in the II-IV quarters based on the loss-making financial results for the first quarter defined by a on accounting rules. So the company has the right only in case of loss, according to the Declaration on the profits. (Question 12).
- failure to pay the agreed amount of advance payments stipulates a penalty. So if you delay payment until 30 calendar days from the deadline of payment of the fine is 10 % of the debt, if the delay is longer than 30 days – 20 % . In addition, by the amount of tax debt, a penalty is charged for each day of delay. (Question 13).
- if the enterprise has stopped to pay advance payments from April, taking advantage of its right to file a losing Declaration for the first quarter, which turned out to be wrong, because the first quarter profitable, it is necessary to file qualifying calculation for the first quarter and to resume the payment of the advance payments. So for every month of the underpayment of advance payments required to pay the entire amount of such underpayment and a penalty of 3 % of such amount prior to the filing of clarifying calculation. (Question 14).
- if by results of check of the tax authorities were fixed indicators of the Declaration on profits, when calculating the size of advance contributions fixed indicators. (Question 15).
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