LETTER OF THE STATE TAX SERVICE OF UKRAINE

of November 28, 2012 No. 9969/71-12/15-1417

The State Tax Service of Ukraine for the purpose of the proper organization of administration of the income tax reports about depreciation expenses of fixed assets.

With entry into force of the Tax code of Ukraine according to the item 6 of subsection 4 of the Section XX of Transitional provisions these inventory counts, carried out by condition for April 1, 2011 are applied to determination of the list of fixed asset objects, other non-current and intangible assets on groups according to item 145.1 of Art. 145 of this Code for the purpose of depreciation.

The cost which will be amortized, on each fixed asset object of other non-current and intangible assets is determined as primary (revaluated) taking into account the capitalized expenses on upgrade, modification, completion, additional equipment, reconstruction and so forth, and also cumulative depreciation amounts by accounting data on the effective date by the Section III of this Code.

However, the difference between residual cost according to accounting data and tax accounting develops, in particular, for the expenditure account on improvement of fixed assets which in tax accounting according to the Law of Ukraine "About the taxation of profit of the companies" of 28.12.94 No. 334/94-BP (further - the Law No. 334) in the amount of which does not exceed 10 percent of aggregate book value of all groups of fixed assets condition for the beginning of the accounting period, belonged in structure of gross expenses (subitem 5.2.10 of item 5.2 of century 5), and in financial accounting increased the cost of the corresponding group of fixed assets.

So, according to item 14 P (S)BO No. 7 "Fixed assets" approved by the order MFP of 27.04.2000 No. 92, registered in Ministry of Justice of Ukraine 18.05.2000 for No. 288/4509, expense amount increases their primary cost by improvement of fixed asset objects (upgrade, modification, completion, additional equipment, reconstruction and so forth).

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