Law of Ukraine No. 466 “On Amendments to the Tax Code of Ukraine on Improving Tax Administration, Eliminating Technical and Logical Inconsistencies in Tax Legislation” re-established a special annual tax period for producers of agricultural products, which begins on July 1 of the previous year and ends on June 30 of the current reporting year (clause 137.4.1 of the Tax Code of Ukraine) (PC).

For the purposes of income tax, enterprises whose main activity is the production of agricultural products include enterprises whose income from the sale of agricultural products of their own production for the previous tax (reporting) year exceeds 50% of the total amount of income. 

Agricultural products (agricultural products) are products/goods that fall under the definition of groups 1-24 of the UCTZED, if at the same time such goods (products) are grown, fattened, caught, collected, manufactured, produced, processed directly by the manufacturer of these goods (products), as well as products of processing and processing of these goods (products), if they were purchased or produced at own or leased facilities (areas) for sale, processing or domestic consumption (clause 14.1.234 PC). 

Thanks to the changes made to PC by Law No. 466, from paragraphs 14.1.234, which contains the definition of agricultural products, the reference to Ch. 1 chapter XIV (this definition became general for all sections of the PC), and from paragraphs 137.4.1 PC – a reference to the currently non-existent Article 209.

 So now agricultural producers are once again entitled to a special income tax reporting period (from July 1 of the previous reporting year to June 30 of the current reporting year). 

So, this year, producers of agricultural products, who apply the general annual tax period, have the right to submit an income tax declaration for the tax (reporting) period – the half-year of 2020 and in the future to apply the annual period – from July 1, 2020 to June 30, 2021. 

This explanation was provided by the tax authorities in Information Letter No. 12 dated 06/12/2020.

As for quarterly income tax payers whose annual income exceeds UAH 20 million, they can also choose an annual tax period from July 1, 2020. After all, the annual period is established for all producers of agricultural products, regardless of the volume of their annual income.

Source: www.uteka.ua