On 20 July 2015, the Ministry of Finance of Ukraine (MinFin) adopted the Order “On approval of amendments to the budget classification” №651 (Order No651). This legal act is aimed at simplifying tax administration and provides accounting of corporate profit tax and advance payment of this tax through one budget classification code.
At the time, experts of the European Business Association had repeatedly drawn the attention of state authorities to the fact that the advance payments of corporate profit tax should be accounted for on the same budget classification code as corporate profit tax, since by its nature it is the same tax. Ignoring this issue led to a significant accumulation of entities’ overpayments and an unwarranted additional burden on taxpayers.
The amendments proposed by Order No651 combine the budget classification codes of corporate profit tax, which will automatically merge all overpaid corporate profit tax on the personal cards of taxpayers and take them into account in respect to payment of current tax liabilities.
We will continue to work on resolving problematic issues with the aim of protecting the legitimate interests of the member-companies of our Association.
Order No651 amends MinFin Order “On budget classification” No11 dd. 14 January 2011. According to its suggestions, positions 11023100-11024600 are excluded from the Classification of budget income.
Also above-named legal act stipulates amendments to the software implementation of a common approach to accounting for corporate profit tax, including advance payments.
In turn, the State Treasury Service of Ukraine should provide an appropriate enrollment of advance payments of corporate profit tax on relevant codes of the budget classification.
Should you have any questions, please contact Inna Buriak, EBA Committee Manager or call 044-496-06-01.