Influence of penalties for violation of the rules of economic activity on financial result before income tax
Income and expenses in the form of fines, penalties for violation of the rules of economic activity, failure to perform or undue performance of an economic obligation are included into calculation of the financial result before income tax in accordance with the financial accounting rules.
In addition, taxpayers who determine their taxable base by adjusting financial result before income tax on the tax differences provided by the Tax Code shall increase financial result before income tax by the amount of the acknowledged fines, penalties payable under the civil law and civil law contracts for the benefit of entities that do not qualify as income tax payer (other than individuals) and in favor of taxpayers taxable 0 per cent rate in accordance with paragraph 44 Sec. 4 Chapter XX "Transitional Provisions" of Tax Code.
SFSU noted the above in the ruling placed in section 102.02 of the public information source ZIR.
VAT taxable base (when rounding applied)
The TCU clearly defines the procedure for the formation of taxable base and VAT liabilities. At the same time, Tax code does not provide for any rounding to be taken into account in the receivables amounts and when defining the VAT taxable base.
SFS noted the above in its individual tax ruling of 23.08.2018 №3707/6/99-99-15-03-02-15/ІПК.
Restriction for cash settlements
In its individual tax ruling of 14.08.2018 №3531/ІПК/18-28-14-06-31 the SFSU noted that restrictions for cash settlements established by the National Bank of Ukraine apply to settlements in any transactions between entities where the subject matter is any tangible or intangible benefit that can be evaluated in monetary form, including for granting and returning the, financial assistance, labor related payments.