Income tax: all the innovations of the tax legislation

On April 1, 2011 shall come into force new rules for taxation of income tax set in Section III of the Tax Code of Ukraine. By this date, the Law of Ukraine "On Taxation of Profits of Enterprises", and all statements on income tax for the year 2010 and first quarter of 2011 will be made for "old" forms. The press office of the State Tax Service of Ukraine. The Code provides for a gradual reduction in the income tax rate to 16 per cent (from 01.04.2011 applied rate 23%, from 01.01.2012 - 21%, from 01.01.2013 - 19%, from 01.01.2014 - 16%). It emphasize that the profit for the activity in the first quarter of 2011 is taxed at a rate of 25%. In the Tax Code, a tax on business profits suffered a "revolutionary" changes associated with the need to eliminate unnecessary cost differences between tax accounting rules and regulations (standards) of accounting for recognition and measurement of income and expenses. The transition from the method of "first event" on the method of any charges and comparisons "with the recognition of revenues and expenses in tax accounting will significantly reduce the temporary differences between tax and accounting. Particular attention should be paid to the fact that the development of Small Business Code provides for the application of zero rate of income tax for 5 years for companies with annual turnover of up to 3 mln. and the number of workers up to 20 people. Section I of the Code of improved approaches to the definition of "normal price". So, specific methods for determining conventional prices, based on international practice, namely: a) comparative uncontrolled price (analogues of sales), and b) the resale price, and c) cost-plus ", d) distribution of profits, and d) net profit. The application of the above methods for determining the normal price will be established by the Cabinet of Ministers of Ukraine. novation of the Code is also the fact that in case of deviation of contract prices in the tax records of the taxpayer in the direction of increase or decrease the normal value of less than 20%, such deviation can not be the basis for determining (calculating) tax liability adjustments negative value of the object of taxation or other indicators of fiscal accountability. Unlike the current legislation the Code provides that a large taxpayer is entitled to apply to the Central Authority of the State Tax Service, a statement of contract pricing for tax purposes. It should be noted that the new order definition and application of conventional prices effective from January 1, 2013, and before that time is valid procedure for determining such prices established by paragraph 1.20 of the Law of Ukraine "On Profit Tax".