The Verkhovna Rada of Ukraine ordered the taxpayers with annual incomes of more than 10 million UAH to pay profit tax upfront every month starting on January 1, 2013.

The Verkhovna Rada adopted appropriate changes to the Tax Code of Ukraine on July 5, 2012 (Bill 10224 on amendments to the Tax Code with respect to the State Tax Service and in connection with the administrative reform in Ukraine).

The size of the advance payment for such enterprises must be at least 1/12 of the gross amount of tax payable for the previous fiscal (tax) year. Meanwhile, the twelve-month period of payment of advance fees is calculated from the beginning of the month following the month determining the deadline for submitting annual tax returns for the previous fiscal (tax) year, up to the month of providing tax returns for the current reporting (tax) year.

The document states that, if in the first quarter of the reporting (tax) year the taxpayer that made an advance payment did not get profit or sustained a loss, it has the right to file tax returns and financial statements for the first quarter.

Such a taxpayer shall not make advance payments in the second - fourth quarters of the reporting (tax) year, and its tax liabilities are determined on the basis of tax returns for the first half of the year, three quarters and for the year.

The taxpayer that based on the results of the past reporting (tax) year did not receive profit, did not charge taxes, had no baseline to determine upfront fees in the next year, and got profit in the first quarter shall file a tax return for the first half of the year, three quarters of the reporting (tax) year and the reporting (tax) year for the calculation and payment of taxes.

As part of the annual tax returns, the taxpayer shall send calculations of monthly advance contributions to be paid in the next twelve months. The declared amount of advance payments is considered an agreed sum of money obligations.

Ukrinform