In 2023, the State Tax Service of Ukraine conducted 20 on-site inspections of banks, during which an additional UAH 7.8 billion was assessed, and declared losses were reduced by UAH 4.1 billion. The director of the Department of Taxation of Legal Entities of the State Tax Service, Tatyana Grechana, informed the Ministry of Finance about this.
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“During 2023, 20 documentary on-site inspections of banking institutions were carried out. Based on the results of the audits, an additional total of UAH 7,785.6 million was accrued and the negative value of the taxable object was reduced by a total amount of UAH 4,117.3 million,” she said.
What the tax authorities fined banks for
Tatiana Grechanaya also named the main violations of banks identified during the inspections:
- Correct formation of insurance reserves. Banks create a reserve in the amount of 70-100% of the debt amount if the borrower has a positive credit history.
- Costs associated with finding clients. Banks enter into agreements with companies and individual entrepreneurs who search for and attract clients to enter into loan and deposit agreements, although clients made decisions to enter into agreements with the bank on their own, that is, without the involvement of intermediary companies.
- Messages about opening/closing accounts to clients. Banks do not provide timely messages about opening/closing accounts to clients.
- Registration of tax invoices. During the audit, facts of late registration of tax invoices are established.
- FATCA reports. Reporting Financial Institutions do not comply with the account reporting requirements of the UK-U.S. Government Agreement. In accordance with paragraph 118.4 of Art. 118 of the Tax Code, failure to submit a report entails a fine of 100 times the minimum wage established on January 1 of the reporting (tax) year.
Read: Top 5 profit tax payers in the banking sector
Tatyana Grechana also clarified that for one of the banks, which was in the NBU register on October 1, 2023 (63 structures in total), a tax debt was recorded in the amount of UAH 77,550 thousand. The name of the bank is not specified.
When financiers will pay income tax at the new rate
The State Tax Service recalled that after Law No. 3474 comes into force, banks must pay income tax for 2023 at general rate 50%.
“Tax returns, except in cases provided for by the Tax Code, are submitted for the base reporting (tax) period, which is equal to the calendar year for profit tax payers (including payers of a portion of net profit (income)), for a tax return (including calculation part of the net profit (income), dividends for the state part), which is calculated on an accrual basis for the year, within 60 calendar days after the last calendar day of the reporting (tax) year,” explained Greceana.
And also added the deadline for filing a corporate income tax return for 2023 – February 29, 2024. After which taxpayers have 10 days to actually pay the tax.
We would like to remind you that earlier the Chairman of the Verkhovna Rada Parliamentary Committee on Finance, Tax and Customs Policy Daniil Getmantsev stated that in 2023 Ukrainian banks increased payments 10 times on income tax (compared to 2022), and paid UAH 73.5 billion to the state budget.
- Taxes Banks
