In 2021, many changes are also introduced in the part of personal income tax (hereinafter – PIT) and military levy (hereinafter – ML). Thus, Law of Ukraine “On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Ensuring the Collection of Data and Information Necessary for Declaring Certain Objects of Taxation” No. 1117-IX of December 7, 2020 (hereinafter – Law No. 1117) amended some common aspects of working with this tax and levy. Detailed information is presented below.
Inspections
From January 1, 2021, a new statute of limitations extended to 2555 days was to come into force for inspections of withheld PIT and ML from salary. But Law No. 1117 did not allow this to happen. It removed the rule on the renewal of that term. Accordingly, in 2021 the general statute of limitations of 1095 days will be used.
Reporting
From January 1, 2021, the rules of reporting on personal income tax and personal income tax have changed. These taxes should now be reported together with the single social contribution (hereinafter – SSC).
Thus, from the beginning of 2021 paragraph “b” item 176.2 of the Tax Code of Ukraine (hereinafter – Tax Code) states that tax agents and payers of SSC are required to submit quarterly tax calculations of the amount of income accrued (paid) in favor of taxpayers – individuals, and the amounts withheld from tax, as well as the amount of the accrued single contribution (divided by months of the reporting quarter) to the controlling body at the main place of registration. That is, from the reporting periods of 2021 instead of form No. 1DF and the Report on SSC, one consolidated report with the information previously reflected in these reports must be submitted.
A new calculation should still be submitted only in the case of accrual of income to an individual during the reporting period. The introduction of other forms of reporting on these issues is not allowed.
If a separate division of a legal entity is not authorized to accrue, withhold and pay (transfer) tax to the budget, the tax calculation for such division must be submitted by the legal entity to the controlling body at the main place of registration.
Additional benefit
From December 23, 2020 it should also be borne in mind that the additional benefit of the taxpayer for the purposes of taxation of PIT and ML will not be considered the value of goods and services related to the participation of individuals in creating and displaying (conducting) cultural, events including touring, paid by the cultural institution. In this case, the cost of goods and services is clearly limited by the cost of travel, accommodation, meals, security, insurance, medical care, training of the taxpayer (paragraph “b” subitem 164.2.17 of the Tax Code).
In order for these payments not to be subject to PIT and ML, the payment of these amounts must be provided by the terms of the agreement between the relevant institution and the taxpayer.
