Taxation of transactions with foreign currency settlements 1.

Taxation of transactions with foreign currency settlements 1.

Income and expenses from barter (barter) transactions are determined by the taxpayer based on the contract price of such transaction, but not lower than normal prices.

The taxpayer submits a quarterly calculation of the financial results of barter transactions together with the income tax return to the tax authority at the location of such taxpayer.

Taxation of insurance activities. Gross income from insurance activities (except for life risk insurance) of resident insurers is taxed at the rate of three percent of the amount of gross income received from insurance activities and is not subject to taxation. For the purposes of taxation of insurance activity, gross income from insurance activity should be understood as the amount of insurance premiums, insurance payments or insurance premiums (hereinafter – the amount of gross premiums), except for the amount of gross premiums transferred to reinsurance received (accrued) by insurers during the reporting period insurance and reinsurance of risks on the territory of Ukraine or abroad.

Accounting for life insurance transactions of individuals is conducted by insurers separately. Income received by resident insurers in the form of insurance premiums, insurance premiums or insurance premiums accumulated during the reporting period under life insurance and reinsurance contracts in Ukraine or abroad does not belong to the gross income established by the previous subparagraph.

Insurance reserves (reserve funds) to cover risks (losses) from life insurance are formed separately from insurance reserves (reserve funds) to cover risks (losses) from other types of insurance and are used exclusively to cover risks from life insurance.

If the insurer receives income from sources other than those specified in the subparagraphs above, such income is taxed in the general order. In this case, the category of gross costs associated with the receipt of such income does not include costs incurred by the insurer in carrying out insurance operations (reinsurance).

Taxation of transactions with foreign currency settlements

1. Income received (accrued) by a taxpayer in foreign currency in connection with the sale of goods (works, services) during the reporting period shall be converted into hryvnia at the official exchange rate of the National Bank of Ukraine in force on the date of receipt (accrual)) of such income, and are not subject to transfer in connection with the change in the exchange rate of hryvnia during such a reporting period.

The book value of foreign currency received by the taxpayer in connection with such sale (revenue in foreign currency) is determined at the rate specified in the first paragraph of this subparagraph.

2. Expenses incurred (accrued) by a taxpayer in foreign currency during the reporting period in connection with the purchase of goods (works, services), the value of which relates to the gross costs of such taxpayer, are determined in an amount equal to the book value of such foreign currency.

3. Any debt of the taxpayer or to the taxpayer, the principal amount of which (excluding interest and commissions) is expressed in foreign currency, is reflected in the tax accounting of the debtor or creditor by converting the amount of such debt in hryvnia at the official exchange rate of the National Bank of Ukraine, which was in force on the date of its occurrence (hereinafter – the book value of the debt), and is not subject to transfer in connection with changes in the exchange rate of hryvnia during the reporting period.

If such debt is sold (repaid) during the reporting period, the value of such debt is determined by converting its amount in UAH at the official exchange rate of the National Bank of Ukraine, effective on the date of such sale (repayment).

4. In the case of purchase of foreign currency for hryvnia, the gross expenses or gross income of the taxpayer do not change. The amount of hryvnias paid by the taxpayer in connection with such purchase (excluding commissions or the cost of other services of persons carrying out conversion (exchange) operations on behalf of the taxpayer) is considered the book value of such foreign currency.

In the case of the purchase of one foreign currency for another foreign currency, the book value of the purchased foreign currency is determined at the level of the book value of the foreign currency that was sold.

5. In case of sale of foreign currency for hryvnias, the gross income of the taxpayer shall be increased by the amount of hryvnias received from the buyer in connection with such sale, and the gross expenses of such taxpayer shall be increased by the book value of such foreign currency.

6. For tax purposes, any foreign currency or debt in foreign currency that was registered with the taxpayer at the end of the reporting period shall be converted into hryvnia at the official exchange rate of the National Bank of Ukraine in force on the last business day of the reporting period. The positive or negative difference between the result of such recalculation and the book value of foreign currency or debt is included in accordance with the gross income or gross expenses of the taxpayer – creditor or the gross expenses or gross income of the taxpayer – debtor in the next tax period book value of foreign currency or debt in foreign currency is equated to their value determined at the end of the previous reporting period.

7. The gross expenses of taxpayers – subjects of the foreign exchange market also include any expenses related to the payment of services of other persons carrying out conversion (exchange) operations on behalf of such taxpayers.

8. Banks carry out different from other taxpayers tax accounting of the results of foreign currency transactions.

Accounting for transactions of sale or purchase of foreign currency, which are carried out on behalf of and at the expense of customers of such banks, is conducted separately from accounting for transactions of sale or purchase of foreign currency, carried out by the bank at the expense of other (own) sources.

When carrying out operations on sale or purchase of foreign currency on behalf of and at the expense of clients, the gross income of the bank includes the amount of commissions (brokerage) and other similar types of remuneration received (accrued) by the bank in connection with such operations during the reporting period. gross expenses – expenses of the bank incurred (accrued) in connection with the implementation of such operations during the reporting period.

When carrying out operations on purchase or sale of foreign currency by the decision of the bank, the final financial result of exchange (conversion) operations according to the results of the reporting period is included in the gross income or gross expenses of the bank.

The final financial result of exchange (conversion) operations based on the results of the reporting period is calculated as the sum of the financial results of exchange (conversion) operations based on the results of each banking day. The financial result of exchange (conversion) operations on the results of the banking day is the difference between the gross income received (accrued) by the bank due to the sale of foreign currency during such banking day and the gross expenses incurred (accrued) in connection with the purchase of foreign currency during such banking day.

The calculation of the financial result of exchange (conversion) operations does not take the amount of commissions (brokerage) or other similar fees paid or received (accrued) by the bank in connection with the implementation of such exchange (conversion) operations, which are part of gross income or gross expenses bank in the general order.

Taxation of transactions with related parties

For tax purposes:

1. The income received by the taxpayer from the sale of goods (works, services) to related parties shall be determined on the buy compare and contrast essay cheap basis of contractual prices, but not less than the usual prices for such goods (works, services) in force on the date of such sale.

2. The costs incurred by the taxpayer in connection with the purchase of goods (works, services) from a related party are determined on the basis of contract prices, but not higher than the usual prices in force on the date of such acquisition.

3. The taxpayer’s expenses incurred for the payment of interest on deposits, lease payments, civil law agreements related to the taxpayer to persons are determined on the basis of contractual prices (interest rates on the deposit), but not higher than normal prices (ordinary interest rates). deposit rates)

4. The gross income of the taxpayer includes income from the sale (exchange, other types of alienation) of fixed assets or intangible assets subject to amortization.

5.0taxation of transactions in securities and derivatives.

The term “trading in securities and derivatives” should be understood as:

any transactions for the purchase or sale of securities or stock derivatives by securities traders, the status of which is established by the relevant legislation on securities and the stock market; any transactions on purchase or sale of commodity derivatives by members of commodity exchanges, the status of which is established by the legislation on commodity exchanges; any transactions for the purchase and sale of securities to persons who do not have the status of securities traders.

The term “expenses” should be understood as the amount of funds or the value of property paid (accrued) by the taxpayer to the seller of securities and derivatives as compensation for their value.

Expenses also include the amount of any indebtedness of the buyer that arises in connection with such acquisition.

The term “income” should be understood as the amount of funds or value of property received by the taxpayer from the sale, exchange or other means of alienation of securities and derivatives, increased by the value of any tangible assets or intangible assets transferred to the taxpayer in connection with such sale, exchange or alienation.

Revenue also includes the amount of any taxpayer debt that is repaid in connection with such sale, exchange or disposal.

Taxation of joint activities on the territory of Ukraine without the creation of a legal entity

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