Novations of tax legislation in Ukraine 2023

Tax changes concerning almost all taxpayers take effect at the beginning of 2023.

In particular, these changes include:

1. Introduction of new forms of tax reporting:

• Corporate income tax declaration. New version of Order of the Ministry of Finance of Ukraine No.274 "On approval of changes to the corporate income tax declaration form" as of September 13, 2022;

• Tax return on real estate other than land plots. New version of Order of the Ministry of Finance of Ukraine No.371 "On changes to the form of tax declaration on real estate other than land plot" of November 10, 2022;

• Property and income tax declaration. New version of Order of the Ministry of Finance of Ukraine No.143 "On amendments to the property and income tax declaration form and instructions for filling in property tax declaration" of May 17, 2022. Annex F4 Calculation of the personal income tax liabilities and military levy, taxable income from the sale of movable and immovable property objects and Annex on minimum tax liability (minimum tax liability of an individual entrepreneur for a land plot) have been added;

• Land payment tax declaration. New version of Order of the Ministry of Finance of Ukraine No.83 "On amendments to land payment tax declaration form" of February 18, 2022.

2. Introduction of a new version of the Ukrainian classification of Good in Foreign Economic Activities (FEA). Built on the basis of the Harmonized System of Description and Coding of Products 2022 and the Combined Nomenclature of the European Union 2022. Changes will affect filling in tax invoices and adjustment calculations to tax invoices.

3. Single contribution to obligatory social insurance in 2023 will be as follows:

• minimum – UAH 1,474 per month (22% of the minimum wage);
• maximum – UAH 22,110 per month (22% of 15 minimum wages).

4. Reports on controlled foreign companies (CFC) have been introduced. The Report on controlled foreign companies over 2022 shall be submitted simultaneously with the submission of the corporate income tax return or the annual declaration on property status and income in the electronic form. Fines and penalties will not be applied to reporting of controlled foreign companies for 2022 and 2023.

If you have any questions regarding novations and perspectives of tax legislation in Ukraine, please contact Vitalii Savchuk, partner with Legal Alliance law firm and the head of tax practice, savchuk@l-a.com.ua.