LETTER STATE TAX ADMINISTRATION OF UKRAINE

of April 29, 2011 No. 12261/7/16-1517-26

(Endurance)

GNAU considered the letter concerning application of separate regulations of the Tax code of Ukraine (further - the Code) and reports.

1. Concerning application of part three of subitem 196.1.2 of Art. 196 of the Code

By part three of subitem 196.1.2 of Art. 196 of the Code it is determined that are not the transaction taxation object on charge and interest payment or the commissions as a part of lease (leasing) payment in limits of the agreement of financial leasing; on object of the financial leasing estimated in foreign currency, interest payment for the purpose of the taxation is determined in hryvnias by the currency rate determined by the NBU at the time of payment.

This regulation of the Code in comparison with the similar provision of the law of Ukraine "About the value added tax", namely: subitem 3.2.2 of Art. 3 of the Law remained invariable except that in the current version (subitem 196.1.2 of Art. 196 of the Code) there is no restriction concerning the size of percent or the commissions as a part of lease (leasing) payment in limits of the agreement of financial leasing according to which such percent or the commissions did not join in the taxation object only in the amount which does not exceed the double discount rate of the NBU established on the date of charge of such percent (commissions) for the corresponding period, calculated from leasing project cost.

Thus, according to subitem 196.1.2 of Art. 196 of the Code are not the taxation object of the VAT of transaction on charge and interest payment or the commissions as a part of lease (leasing) payment in limits of the agreement of financial leasing irrespective of in what currency (national or foreign) object of financial leasing is estimated.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info