Procedure for levying a tax on subsoil use
Experts from the head-office of the Ministry of Revenue and Duties of Ukraine located in the Ukraine’s capital remind the procedure for use of subsoil is set forth in chapter XI Subsoil Use Tax of the Tax Code of Ukraine dd. 02.12.2010, № 2755-VI, as amended.
With adoption of Law of Ukraine dd. 27.03.2014, № 1166-VII on prevention of a financial catastrophe and preconditions for the economic growth in Ukraine (hereinafter - Law №1166), the changes to some provisions of the Tax Code of Ukraine as regards entering into force new rates for use of subsoil starting from 01.04.2014, which are charged to get the percentage by applying the value of a mining company’s marketable products– extracted mineral products (mineral raw materials) and, in general, a group of natural resources, namely the rates for use of subsoil.
In addition, a number of payers for subsoil use concerning extraction of natural resources has been extended: payers of tax on use of subsoil as regards extraction of natural resources cover landowners and land users involved into extraction of underground water with permits for special water use, as well as citizens of Ukraine, foreigners and stateless persons, if the size of land plots allotted for free to them exceeds that determined by the Land Code of Ukraine, who extract fresh underground water by employing electronic counters with capacity of over 13 cubic meters (meter reading) per month, per person (pursuant to pp.263.1.5, 263.1.6, 263.1 of article 263 of the Tax Code of Ukraine).
Please note, while calculating tax liabilities regarding payment for use of subsoil, more precisely - extraction of fresh water stored in underground, the rates for the taxpayers listed above, which are stipulated in pp.263.1.6, 263.1 of article 263 of the Tax Code of Ukraine in par.325.2 of article 325 of the Tax Code of Ukraine, are applied to charge for special use of underground water.
Besides, Law №1166 has enacted changes to par.264 of article 264 of the Tax Code of Ukraine as regards new rates for use of subsoil for the purpose other than use of natural resources.
