U-Tax Blog

This is to continue the series of publications on tax changes provided by the Bill № 1210.

This time here is the publication № 2 on changes in the field of personal income tax (limited to internal taxation only):

- The extension of the preferential taxation of real estate items to items of unfinished construction (paragraph 172.1 of the Tax Code of Ukraine);

- The application of the 18% rate to the sale of third and subsequent vehicles by the taxpayer within the same year (paragraph 173.2 of the Tax Code of Ukraine);

- On releasing a mortgage debt, the only mortgage principal will fall under taxation (paragraph 164.2.17 of the Tax Code of Ukraine);

- Fourfold increase in fines for failure to submit or submitting an improperly filled form № 1 DF (Article 119 of the Tax Code of Ukraine);

- The introduction of depreciation of trucks (impossibility of depreciation of cars still remains in place) for individual entrepreneurs liable to the general system of taxation; the only costs of repair but not those of overhaul as before can be directly (without depreciation) attributed to the costs of the taxable period (paragraph 177.4.6 of the Tax Code of Ukraine);

- The elimination of the need to file a tax return in cases of sale / gift / exchange of property that has not triggered any tax liabilities to be remitted to the state revenues (paragraph 179.2 of the Tax Code of Ukraine).