We continue to monitor the developments surrounding the changes to the law on the increase and introduction of new taxes and fees (Bill No. 11416). Bill No. 11416 has caused quite a stir, prompting government officials to seek dialogue with businesses and society.

As a result of this search for compromise, a number of amendments have been introduced to the initiative. Alina Potapovych, a member of the legal advisory board of the “Fuel and Energy Business” Association, provides detailed explanations of these changes that affect taxpayers in the fuel and energy sector.

So, lawmakers propose:

1. Taxpayers engaged in retail fuel sales are required to pay advance payments of corporate income tax for each retail fuel sales location, the information on which is entered into the Unified Register of Licensees and Fuel Circulation Locations 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.

In connection with this, it is proposed to supplement Article 137 of the Tax Code of Ukraine (hereinafter also – TCU, the Code) with a new paragraph 137.12, and Article 141 of this Code with paragraph 141.14 “Peculiarities of Taxation for Retail Fuel Sales.”

2. Taxpayers engaged in retail fuel sales must pay, monthly and no later than the last operational (banking) day of the current month, an advance payment of corporate income tax for each retail fuel sales location, the information on which is entered into the Unified Register of Licensees and Fuel Circulation Locations as of the first day of the current month (subparagraph 141.14.1 of paragraph 141.14 of Article 141 of the Code).
3. The amounts of the advance payment for gas stations (GS) are defined in subparagraph 141.14.2 of paragraph 141.14 of Article 141 of this Code and depend on whether the gas station sells alcoholic beverages and tobacco products.

For gas stations that do not sell alcoholic beverages and tobacco products, the following advance payments are established: a) in the amount of 60,000 UAH per location, except in cases provided for by subparagraphs “b” and “c” of this paragraph; b) for a retail fuel sales location where only liquefied gas is sold – 30,000 UAH per location; c) for a retail fuel sales location where several types of fuel are sold, and the share of liquefied gas sales in the total volume of fuel sold during the current month is 50% or more – 45,000 UAH per location.

For gas stations that sell alcoholic beverages and tobacco products (regardless of the business entity that holds the license), the following higher advance payments are set: a) in the amount of 80,000 UAH per location, except in cases provided for by subparagraphs “b” and “c” of this paragraph; b) for a retail fuel sales location where only liquefied gas is sold – 40,000 UAH per location; c) for a retail fuel sales location where several types of fuel are sold, and the share of liquefied gas sales in the total volume of fuel sold during the current month is 50% or more – 60,000 UAH per location.

It is important to note that advance payments of corporate income tax paid in accordance with paragraph 141.14 of the TCU are an integral part of the corporate income tax, as indicated in subparagraph 141.14.3 of paragraph 141.14 of Article 141 of this Code.