To attention to private executors individual tax consultation


from 07.02.2018 N 509 / A / 99-99-13-01-02-14 / IPC

The State Fiscal Service of Ukraine received a court order to provide an individual tax advice.

Taking into account the conclusions of the court, UKRINFORM provides a new individual tax advice regarding the reflection in tax accounting and taxation of amounts of advance payments of payers credited to the accounts of private performers and within the limits of competence reports.

The Law of Ukraine of June 2, 2016 N 1403 "On the bodies and persons who execute the enforcement of court decisions and decisions of other bodies", as amended and supplemented (hereinafter - Law No. 1403), establishes that a private executor is a subject of independent professional activity.

According to Part I of Art. 31 ЗУ N 1403 for the execution of executive actions a private artist is paid remuneration.

The remuneration of a private performer consists of the main and additional (Part 2 of Article 31 of the Law N 1403).

The basic remuneration of a private executor is levied from the debtor together with the amount to be collected according to the executive document (Part 4 of Article 31 of the Law N 1403).

According to Part I of Art. 42 of the Law of Ukraine dated 02.06.2016 N 1404-VIII "On Enforcement Proceedings", as amended and supplemented (hereinafter referred to as Law No. 1404-VIII), of executive proceeding consist of:

1) an executive fee levied from the debtor in the manner prescribed by art. 27 ЗУ N 1404-VIII, or the basic remuneration of a private executor;

2) the down payment of the payer;

3) cash drawn from the debtor to the costs of enforcement proceedings.

According to Part 3 of Art. 44 ЗУ N 1404-VIII funds received on the accounts for the enrollment of the proceeding, for the account of deposit amounts and the enrollment of debts drawn from the debtors in national and foreign currencies and their payment to payers, is not the income of a private executor.

The control and accounting of the use of means of enforcement proceedings is carried out by the Ministry of Justice of Ukraine in accordance with the legislation (Clause 4 of the Procedure for using the funds of executive proceedings approved by the Resolution of the Cabinet of Ministers of Ukraine dated April 29, 2004 No. 554 with amendments and additions).

At the same time, we note that according to Clause 7.3 of Art. 7 PKU stipulates that any taxation issues are regulated by the PKU and can not be established or amended by other laws of Ukraine, except for laws that contain exclusively provisions for amending the PKU and / or provisions that establish liability for violations of tax laws.

Article 178 of the Tax Code defines the procedure for taxation of income received by an individual who carries out an independent professional activity.

The taxable income of an individual who carries out an independent professional activity is the aggregate net income, that is, the difference between income and the documented expenses necessary for carrying out a certain type of independent professional activity (paragraph 178.3 of Article 178 of the Tax Code).

However, private executives in accordance with clause 178.6 of Art. 178 PKU are required to keep a record of income and expenses and have supporting documents.

The form of the Book and the Procedure for its maintenance was approved by the Order of the Ministry of the Inland Revenue of 16.09.2013 N 481 "On Approval of the Form of the Book of Income and Expense Accounting, which is conducted by natural persons - entrepreneurs, except for persons who have chosen a simplified taxation system, and individuals who conduct an independent professional activity, and Procedure for its conduct "(hereinafter - the Procedure).

The order stipulates that in the Book of Income and Expenditure Accounting, the actual amount of income received from the activities carried out with the total sum for the month, quarter, year is shown daily. In particular, the amount of income derived from the implementation of activities, including funds received on the current account, the cash register of the taxpayer and / or received in cash, the amount of debt, on which the expiry of the limitation period, the cost of goods received gratis (works, services).

Thus, all funds received on the current accounts of a private executor within the scope of independent professional activities are included in the income of such a private executor and are reflected in the Book of Income and Expense Accounting. At the same time, the amount of money actually used to enforce enforcement proceedings may be included in the expenses of such a private executor provided that they are documented and reflected in the Income and Expense Accounting Book.

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