30% Financial Result Adjustment

When 30% Adjustment is Necessary:

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According to subparagraph 140.5.4, paragraph 140.5, Article 140 of the Tax Code, the financial result for the tax (reporting) period is increased by 30% of the cost of goods, including non-current assets (excluding lease assets), works, and services (excluding operations specified in paragraph 140.2 and subparagraph 140.5.6 of this article, as well as operations recognized as controlled under Article 39 of the Code) purchased from non-residents whose organizational and legal form is included in the list approved by the Cabinet of Ministers of Ukraine under subparagraph "g" of subparagraph 39.2.1.1 of subparagraph 39.2.1, paragraph 39.2, Article 39 of the Code. These non-residents do not pay corporate tax, including income tax from income earned outside the registration country, and/or are not tax residents of the countries in which they are registered as legal entities (list approved by CMU Resolution No. 480, dated July 4, 2017).

 

Purpose of the 30% Financial Result Adjustment:

This adjustment is applied to prevent the reduction of corporate income tax obligations by acquiring goods, works, or services from non-profit organizations or non-residents at undervalued prices.

 

Service Process:

- We will verify the existence of agreements with risky non-resident counterparties.
- We will provide consultations and recommendations.
- We will prepare a response to a State Tax Service inquiry regarding financial result adjustments for corporate income tax.
- We will prepare the necessary documentation according to the requirements of Article 39 of the Tax Code.
- We will accompany you throughout the entire process.
- We will ensure proper documentation with consideration of limitation periods.