Explanation from Minrevenue
No, it is not correct. One of the earlier versions of art. 169.4.2 of the Tax Code of Ukraine (hereinafter - TCU) provided the employer calculating the amount of income in the form of wages according to the third paragraph of art. 167.1 of the Tax Code. It provided for the use of the 17%tax rate of the average annual taxable income exceeding ten times the minimum wage provided by law as of January 1 of the tax (reporting) year.
At present art. 169.4.2 of TCU requires the employer to recalculate the income accrued to the taxpayer in the form of wages and the amount of tax deduction in some cases, subject to the second paragraph of Section 167.1 of the Tax Code. So the recalculation is provided on individual monthly income.
The amount of taxable income calculated for each month is compared with the limit amount of income which entitles the taxpayer to use the tax benefits, and the amount that is determined for tax at 15%.
A final taxation of calculated taxable income is followed by calculation of income tax expense, determined separately for each month.
