Corporate income tax

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Тренажер-міостимулятор для пресу Тренажер-міостимулятор для пресу піддає м'язи впливу електричних мікроімпульсів, змушуючи їх скорочуватися. Завдяки цьому, мускулатура відчуває навантаження, як ....

There is no general provision that expenses must relate to the business. Therefore, any expenses deducted in the financial accounts must be deductible for tax purposes, unless there is a tax correction prescribed for such expenses in the Tax Code. However, there is no guarantee that tax authorities and administrative courts will cease to apply the “business purpose” doctrine to challenge expenses of the taxpayers.

Small enterprises (with income below UAH20 million per year) may choose not to apply tax corrections and pay CIT based on their financial accounting results.

CIT is levied on the profit before tax determined in accordance with financial accounting of the taxpayers subject to a limited number of corrections. Tax authorities may audit financial accounts of the company and check correctness of the financial accounting (either under Ukrainian GAAP or IFRS).

Corporate income tax has significant fiscal significance, which is different from similar taxes in economically developed countries. This is due, first of all, to the proportions in the distribution of GDP that have developed historically: in a centrally planned economy, the bulk of the budget's revenues were revenues from state-owned enterprises and taxes from the population were quite insignificant, as the consumption fund was artificially restrained and the accumulation fund increased.