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💰What are the latest changes in taxation, how do they affect businesses, and how should reporting be submitted now?

These questions were discussed during the webinar "New Tax Changes: What Builders Need to Know," organized by Crowe Mikhailenko on the platform of the Confederation of Builders of Ukraine.

👤Iryna Tretiak, Head of Internal Tax Practice at Crowe Mikhailenko, provided information about the key updates.

The Law of Ukraine dated 10.10.2024 No. 4015-IX "On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine Regarding Ensuring Budget Revenue Balance During Martial Law" (based on draft law No. 11416-d) was published on 30.11.2024, meaning that some changes came into force starting from 01.12.2024.

Thus, a military levy of 5% takes effect from 01.12.2024 (for individuals on salaries, remuneration under gig contracts, income from bank deposits, real estate rentals, dividends, winnings, and other incomes).

As explained by Ms. Tretiak, for incomes (or parts thereof) accrued (paid, provided) by tax agents to taxpayers in the form of salaries, including vacation pay and payments related to temporary incapacity to work (for the period the taxpayer is on sick leave), the military levy rate of 1.5% applies for tax periods up to December 1, 2024, regardless of the actual date of payment (provision).

👤Dmitriy Mikhailenko, Chairman of the Supervisory Board at Crowe Mikhailenko, an advisor to Danylo Hetmantsev, Head of the Financial and Tax Committee of the Ukrainian Chamber of Commerce and Industry, and a legal advisor to the European Business Association, explained how to properly prepare for a tax audit.

In particular, he clarified when tax debt arises, how the audit plan is formed, and how to respond in cases of illegal actions.

Changes to the audit plan can be made monthly, and the updated plan is published on the official website of the central executive authority responsible for state tax policy no later than the last day of the month in which the updated plan was approved.

A documentary audit of a taxpayer included in the updated plan cannot begin earlier than two months from the date of publication of the updated plan.

Mr. Mikhailenko noted that following the review of objections, a taxpayer may be subject to a repeat audit. Many businesses perceive the appointment of a repeat audit as a stressful situation. However, with proper preparation, such an audit can serve as confirmation that the taxpayer has no violations. The company has time to provide even more detailed explanations regarding its financial activities. 

The webinar also thoroughly examined the enhanced control over tax evasion through the "business splitting" method, facilitated by the interaction between banks and the tax service. Steps that banks and taxpayers should take in the near future were outlined. 

Thus, banks are advised to refine their methodology for identifying risky transactions and notify their clients, while taxpayers should conduct self-diagnosis, assess risks, and consider restructuring. The list of tax evasion indicators provided by the National Bank of Ukraine is not exhaustive, and financial institutions have the right to independently identify other indicators that may suggest relevant connections.

Dmitriy Mikhailenko highlighted several tax evasion criteria presented in an National Bank of Ukraine letter, as well as questions for self-assessment.  

👉 For more details on these and other topics, watch the webinar recording at the link (Ukrainian):  

https://www.facebook.com/kbuorgua/videos/1235337594188922 

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