LETTER OF THE MINISTRY OF THE INCOME AND CHARGES OF UKRAINE

of September 12, 2013 No. 17802/7/99-99-19-03-02-17

Concerning charge and payment of advance installments in case of dividend payout

(Endurance)

The ministry of the income and charges of Ukraine in connection with numerous requests of payers and territorial authorities of the Ministry concerning charge and payment of advance installments in case of dividend payout reports.

According to subitem 153.3.2 of item 153.3 of Art. 153 of the Tax code of Ukraine (further - the Code), except the cases provided by subitem 153.3.5 of this Item, the issuer of corporate laws who makes the decision on dividend payout to the shareholders (owners) assesses and brings in the budget advance installment on tax in the amount of the rate established by item 151.1 of Art. 151 of this Code added on the amount of dividends which are actually paid without reduction of the amount of such payment by the amount of such tax. The specified advance installment is brought in the budget to / or along with dividend payout.

The taxpayer - the issuer of corporate laws reduces the amount of the accrued tax of the accounting period by the amount of advance installment, prepaid during such accounting period in connection with charge of dividends (subitem 153.3.3 of item 153.3 of Art. 153 of the Code).

If the amount of advance installment, prepaid during the accounting period, exceeds the amount of the tax liabilities of the company - the issuer of corporate laws on the income tax of such accounting period, the amount of such exceeding is transferred to reduction of the tax liabilities of the following tax period, and in case of receipt of negative value of the taxation object of such next period - on reduction of the tax liabilities of future tax periods (subitem 153.3.4 of item 153.3 of Art. 153 of the Code).

Thus, reduction of the added obligations on the income tax on the amount of advance installment in case of dividend payout happens only following the results of the accounting period.

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