Tax Administration

Each taxpayer shall get registered with tax authorities. As a result of such registration a taxpayer receives an individual tax ID. Registration is conducted by local tax authority where the legal entity or individual entrepreneur is registered by the state registrar. Branches of the legal entities (including permanent establishments of the foreign entities) are liable to tax registration as well.
Deadlines for filing tax returns and payments of taxes are set out in the Tax Code as shown in the table below:

Tax authorities may perform scheduled and unscheduled audits which may also be conducted without actually visiting a taxpayer’s site i.e. desk audit.

Frequency of the scheduled audits depends on the level of risk assigned to the entity by tax authorities and varies from one audit per three years for low-risky entities to one audit per annum for high-risky ones.

Unscheduled tax audit may be conducted only in the cases envisaged in the Tax Code. Some of these are presented below:
a. Tax payer fails to submit a tax return in time.
b. Tax payer files an adjusted tax return for the period already audited by tax authorities.
c. Tax payer files an appeal to the decision of the tax authority referring to unexamined circumstances which require additional audit.
d. A procedure of reorganization or liquidation of a tax payer, a bankruptcy or deregistration procedure was initiated.
e. Tax payer files a VAT return claiming a refund exceeding UAH 100,000 (about EUR 9 k).
f. Tax agent avoids taxation of wages or passive income.

Duration of tax audit should not exceed the maximum duration as shown in the table below (in working days):

In cases of non-compliance, taxpayers may be charged penalties and fines set out in the table below. However, the taxpayer is entitled to objections to decisions by tax authorities through both administrative procedure and in court.