The Ministry of Finance has revoked the letters of the State Fiscal Service (SFS) with explanations on application of advance payments of profit tax and simplified system of taxation in 2016, said the press-service of the Ministry of Finance, Interfax-Ukraine reports.
As per the data of the Ministry of Finance, certain complaints from entrepreneurs on biased interpretation of certain norms of Tax Code by the SFS, which regulated these issues, were addressed to the department. In order to prevent free interpretation of norms of the current legislation of Ukraine, in January 20, 2016, the Ministry of Finance jointly with SFS representatives had a working meeting, as per results of which the decision was taken to revoke SFS letter for their further correction.
The Ministry of Finance informed that SFS indicated in the letter of January 4 of this year № 102/7/99-99-19-02-01-17 that the most recent version of the Tax Code does not stipulate the carry-forward of balance of the amount of advance payment of profit tax to next reporting (tax) years during payment of dividends, which are not applied against reduction of tax obligation on profit tax, declared in tax declaration for reporting (tax) year. The Ministry of Finance does not agree with this statement and considers that balance of the amount of advance payments, which are not applied against reduction of tax obligations of previous years, can be applied against reduction of tax obligations of reporting (tax) years till full repayment of such balance.
The Ministry of Finance reported that by the letter of January 18, 2016, № 1527/7/99-99-17-02-02-17, SFS explained that as on January 1, 2016, amendments to Tax Code came into force, all single tax payers, which declared the volume of annual revenue of more than UAH 5 billion as per results of 2015, should transition to the general system of taxation.
The Ministry of Finance supposes that such interpretation is not correct. As per Par. 292.16, Article 292, Tax Code, single tax payers have the right to simplified system of taxation in the next calendar year if within the calendar year they have not exceeded the volume of revenue, fixed for the corresponding group of single tax payers. In 2015 the condition for presence of the single tax payer in III group was a requirement, as per which the volume of revenue, received by such taxpayer, should not exceed UAH 20 mln within the calendar year. The Ministry of Finance noted that SFS does not account norms of Subpar. 298.2.3, Par. 298.2, Article 298, Code, which establish the exclusive list of conditions, when the single tax payer should switch to payment of other taxes and charges. Thus, for single tax payer of III group such case is exceeding the fixed volume of revenue within the calendar year. “No other restrictions regarding presence of taxpayers on simplified system of taxation, than specified in this subparagraph are envisaged”, Ministry of Finance emphasizes.
The Ministry of Finance considers that single tax payers, whose volume of revenue did not exceed UAH 20 mln as per results of 2015, and if other requirements of the Code regarding simplified system of taxation are observed, have the right to be on simplified system of taxation in 2016.
The Ministry of Finance also notes that the Ministry is not vested with the authority to revoke consultation, provided by the SFS, if they have biased nature, but has the right to issue general tax consultations.
