We continue to monitor the developments surrounding changes to the law on tax increases and the introduction of new taxes and fees (Bill №11416). Bill №11416 has sparked considerable interest and has forced the government to seek dialogue with businesses and the public.
As a result of seeking compromise, several amendments have been made to the initiative. Alina Potapovych, a member of the Legal Affairs Council of the “Fuel and Energy Business” Association, provides detailed explanations of these changes, which affect taxpayers in the fuel and energy sector.
Thus, lawmakers propose the following:
- Taxpayers engaged in retail fuel sales must pay advance payments of corporate income tax for each retail fuel outlet registered in the Unified Register of Licensees and Fuel Circulation Sites as of the first day of the current month. Advance payments and corporate income tax are determined by paragraph 141.14 of Article 141 of this Code.
As a result, Article 137 of the Tax Code of Ukraine (hereafter – TCU, the Code) is proposed to be supplemented with a new paragraph 137.12, and Article 141 of this Code – with paragraph 141.14 “Specifics of Taxation of Retail Fuel Sales.”
- Taxpayers engaged in retail fuel sales must pay, monthly and no later than the last business (banking) day of the current month, an advance payment of corporate income tax for each retail fuel outlet registered in the Unified Register of Licensees and Fuel Circulation Sites as of the first day of the current month (subparagraph 141.14.1 of paragraph 141.14 of Article 141 of the Code).
- The amounts of the advance payment for gas stations are determined by subparagraph 141.14.2 of paragraph 141.14 of Article 141 of the Code and depend on whether the gas station sells alcoholic beverages and tobacco products.
For gas stations that do not sell alcoholic and tobacco products, the following advance payments are established: a) 60,000 UAH per location, except for cases provided in subparagraphs “b” and “c” of this paragraph; b) for a retail fuel outlet that sells only liquefied gas – 30,000 UAH per location; c) for a retail fuel outlet that sells multiple types of fuel and where the share of liquefied gas sales accounts for 50% or more of the total fuel sales volume for the current month – 45,000 UAH per location.
For gas stations that sell alcoholic and tobacco products (regardless of the business entity to which the license is granted), slightly higher advance payments are provided: a) 80,000 UAH per location, except for cases provided in subparagraphs “b” and “c” of this paragraph; b) for a retail fuel outlet that sells only liquefied gas – 40,000 UAH per location; c) for a retail fuel outlet that sells multiple types of fuel and where the share of liquefied gas sales accounts for 50% or more of the total fuel sales volume for the current month – 60,000 UAH per location.
It is important to note that advance payments of corporate income tax made in accordance with paragraph 141.14 of the TCU are an integral part of corporate income tax, as specified in subparagraph 141.14.3 of paragraph 141.14 of Article 141 of this Code.
