Tax Compliance

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Tax Compliance

 

This service includes the preparation of the necessary tax records, as well as the preparation and filing tax returns as detailed below.
 

  • Issue of VAT invoices to customers and verification of VAT invoices received from suppliers;
  • Communication with suppliers for timely delivery of VAT invoices, as well as the correctness of their content;
  • Preparation of VAT invoices register and its submission to the tax office;
  • Preparation and filing of monthly VAT returns;
  • Preparation and filing of the corporate income tax return (as alternative – based on accounting data/primary documents received from the customer);
  • Provision of the detailed breakdown to the corporate income tax return, based on financial accounting data;
  • Analysis of expenses in the entity’s books for their deductibility;
  • Tax depreciation calculation;
  • Discussion with the customer of main amounts in the tax returns, as well as potential tax risks/exposures and ways of eliminate/minimize the exposures;
  • Periodic review of the correctness of tax filings prepared by the customer’s staff;
  • Preparation and filing of other tax returns;
  • Communication with the tax office on issues relating to the past tax returns;
  • Reconciliation between financial and tax accounting data including identification of permanent and temporary differences.
  • Control over the timeliness of filing the tax returns and payment of taxes and duties to the state;
  • Notifying the customer about the tax law changes that may significantly affect its business.

 

Key Contact

Viktor Nevmerzhitsky

Viktor Nevmerzhitsky

Tax & BSO Partner
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FAQ (Frequently Asked Questions)

  • What services are included in tax accounting?

When answering this question, it is important to note the inseparable link between accounting and tax accounting.

The list of required services and the terms of cooperation are agreed upon individually with each client, depending on their needs. Clients may order either a full package or selected services.

The accounting, tax accounting and reporting preparation services may include the following:

- Accounting and tax accounting for all business transactions of the client:  accounting for assets and liabilities, equity, as well as income and expenses, in accordance with the client’s accounting policy.

- Human resource accounting, military accounting and payroll calculation: calculating salaries, sick leave, vacation pay and other accruals, preparing related primary documents and tax, management and statistical reports.

- Management of primary documentation: processing, systematising and storing invoices, delivery notes, acts, bank statements, cash and HR documents, and other related documentation.

- Preparation of financial statements: preparing the Balance Sheet, the Income statement, the Statement of cash flows, the Statement of changes in equity, the Notes to the annual financial statements and the financial statements for Micro and Small enterprises.

- Preparation of tax reports: preparing tax returns for the taxes applicable to the client, including the Corporate Income Tax Return, VAT Return, Single Tax Payer’s Declaration, Rent Payment Declaration, Land Tax Return, consolidated reporting on Personal Income Tax (PIT), Military Levy and Unified Social Contribution (USC), as well as other tax returns.

- Preparation of statistical reports: preparing statistical reports according to the list of statistical observations required to be submitted to the statistical authorities.

- Preparation of management reports: preparing management reports according to the client’s internal forms and policies.

- Communication with regulatory authorities: interacting with tax authorities and other foundations and preparing response letters to inquiries.

- Advisory support: providing clarifications on accounting and taxation matters.

- Other services: additional accounting, tax accounting and reporting services may be provided upon agreement.

  • Does the service include preparation of tax returns?

Yes. Tax returns are prepared for all taxes applicable to the client, including the Corporate Income Tax Return, VAT Return, Single Tax Payer’s Declaration, Rent Payment Declaration, Land Tax Return, consolidated reporting on Personal Income Tax, Military Levy and Unified Social Contribution, as well as other tax returns.

  • Is reconciliation between accounting and tax accounting performed?

Yes. Reconciliation of accounting data with tax accounting data is performed to identify permanent and temporary differences.

  • Who communicates with the tax authorities?

The company’s specialists handle communication with the tax authorities on all matters regarding the submitted tax returns.

  • Is assistance provided in working with suppliers?

Yes. The received documents are verified and communication with suppliers is carried out to ensure their proper completion, upon the client’s agreement.

  • Is the timeliness of reporting monitored?

Yes. Control is exercised over the timely submission of tax returns and the payment of taxes to the budget.

  • Are changes in tax legislation monitored?

Yes. Continuous monitoring of changes in Ukrainian tax legislation is carried out, with subsequent notification of the client regarding their potential impact on the company’s activities.

  • Are expenses analysed in order to determine tax deductible expenses?

Yes. The expenses reflected in accounting are analysed to ensure their correct inclusion in tax deductible expenses.

Glossary

Depreciation — the gradual reduction in the value of property, plant and equipment in tax accounting due to their use.

Accounting — a system for collecting, summarising and presenting the financial information about a company’s activities.

VAT Return — a reporting document that contains information on the amounts of Value Added Tax accrued and paid by a company.

Corporate Income Tax Return — an official report that reflects income, expenses and the calculated corporate income tax.

State Tax Service of Ukraine — the government authority that receives tax reports and monitors compliance with tax legislation.

Tax Reporting — a set of documents submitted to regulatory authorities to account for tax liabilities.

Tax Invoice — a document that confirms the supply of goods or services, used for the purpose of VAT accounting.

Tax Accounting — a system for summarising information about business transactions to determine the tax liabilities of a company.

Tax Deductible Expenses — the expenses that are taken into account when determining the taxable item for corporate income tax.

Tax Authorities — the government institutions that are responsible for monitoring the accuracy of tax calculation and payment.

Permanent and Temporary Differences — the discrepancies between the financial accounting data and tax accounting data that have a bearing on the tax base.

Register of Tax Invoices — a list of all tax invoices submitted by a company to the regulatory authorities.

Financial Accounting — the accounting of business transactions with the objective of preparing the financial statements.