Declaration of property statusand income of individuals in 2024

Tax declaration on the property status and income of an individual taxpayer

To estimate the cost and prepare a personal income statement, we need the following information from you:

1. Certificates of income from all places of work for the reporting year, broken down:

• accrued salaries, bonuses and other payments,
• income tax
• military gathering.

2. Information about movable and immovable property that was owned in the reporting year (land, house, apartment, garden plot, cottage, garage, car, water and air transport, motorcycle and other real estate/movable property):

• location of real estate or make/model of movable property,
• year of acquisition of real estate or year of issue of movable property,
• total area of real estate (sq. m.),
• part of the property in the total area of real estate,
• if something was rented out, information is needed about which objects were rented out in the reporting year.

3. Information about all additional income of an individual (dividends, inheritance, sale of movable/immovable property, etc.)

4. availability of income from sources located outside of Ukraine.
We will try to answer the most popular questions that arose in your mind during the process of preparing and submitting your declaration.

Who needs to submit a Declaration of Income

Let’s look at this very carefully. In Ukraine, most citizens do not need to submit a Declaration. This is due to the fact that it is the employer who submits the Income Declaration and transfers taxes centrally. Taking into account the norms of the Tax Code of Ukraine, the Declaration should be submitted to all individual entrepreneurs (except for persons who have chosen a simplified taxation system). But not everyone knows that the Declaration of Property Status and Income is required to be submitted by individuals (not registered as individual entrepreneurs) who have received income:

1. Abroad for the purpose of legalizing capital in Ukraine.
2. From leasing movable or immovable property to other individuals.
3. From inheriting property from persons who are not members of the first and second degrees of kinship.
4. From tax agents who are not subject to tax upon payment, but are not exempt from payment (transactions with investment assets and foreign income).
5. From charity or support.
6. Citizens who have had their loan amount simplified.

The taxpayer, at his discretion, may submit a Declaration:

1. Personally or through an authorized person.
2. Send by mail with acknowledgment of delivery.
3. By electronic communication in electronic form.

We recommend using the Taxpayer Electronic Account service. To do this, you should go to the official web portal of the State Tax Service of Ukraine and select the section “Electronic account for citizens” – “Declaration of property status and income”. This service allows you not only to make adjustments, but also to promptly send the form to the regulatory authorities with copies of the document in order to receive a tax discount. All current information can be obtained on official portal. The electronic account operates 24 hours on the date of each calendar day.

Important to know. In order to use the services of an electronic account, you must have a personal electronic signature. It can be issued at any accredited key certification center or bank.

From January 1, 2024, individual entrepreneurs are required to submit a tax declaration on their property status and income in a new form approved by Order of the Ministry of Finance dated December 17, 2020 No. 783 “On amendments to the order of MFIs dated October 2, 2015 No. 859.” The form of the declaration has not changed much, since the key positions have largely remained the same. The main change is that the ESV appeared in it – applications approved by Order No. 783, replacing form No. D5:

• Appendix ESV 1 – calculation of the amounts of accrued income of insured persons and the amount of accrued single contribution.
• Appendix 2USB – calculation of the amounts of voluntary contributions stipulated by the agreement on voluntary participation, subject to payment.
• USB Appendix 3 – calculation of an increase or decrease in the amounts of obligations for a single contribution based on the results of a documentary check.
• CFC Application – calculation of tax liabilities for personal income tax and military duty determined from part of the profit of a controlled foreign company in accordance with paragraph 170.13 of Art. 170 Tax Code. In this case, one should take into account clause 54 X of the Transitional Provision of the Tax Code, in particular the specifics of the application of the provisions on taxation of CFC profits for the period of the transitional provision – the first reporting year for the report is 2024.

The declaration includes the main form, annex: F1, F2, F3, ESV, CFC and a Free Format Document.

Deadlines for submitting the declaration for 2024

1. Individual entrepreneur on the general taxation system – no later than February 09, 2024 (inclusive).
2. Individual entrepreneur of group 3 single tax payer – no later than February 09, 2024 (inclusive).
3. Individual entrepreneurs of groups 1 and 2, single tax payer – no later than March 1, 2024 (inclusive).

As for payers working both on the general system and single taxpayers who did not receive income from business activities, they may not formally submit a declaration, and the tax authorities do not dispute this. But you need to take into account the following nuance:

• if as of December 31, 2023, the individual entrepreneur had property on the general system that was registered or received as an individual, for example, salary, rental income, car, apartment, investment income, then the declaration should still be submitted.
• Individual sole proprietors of any group are required to pay the unified social tax, even if there is no income, so a declaration will have to be submitted, since it contains the unified social tax annex.

4. Persons carrying out independent professional activities – until May 1, 2024.
5. Taxpayers*residents traveling abroad for permanent residence – no later than 60 calendar days preceding departure.
6. Persons entitled to a tax discount in accordance with Art. 166 of the Tax Code of Ukraine (part of the interest payment for a mortgage loan, charitable contributions within 4% of annual income, payment for one’s own education or for first-degree relatives, costs of purchasing affordable housing and loan payments for its purchase, payment of housing to internally displaced persons , contributions for long-term pension non-state insurance, re-equipment of cars to use biofuel or gas) – until December 31, 2024 (the last day is considered December 31, 2024).

The electronic tax declaration looks the same for both groups 1 and 2, and for group 3, but the report identifiers are different:

• tax return for group 1,2 – identifier F0102405.
• tax return for group 3 – identifier F0103307.

Procedure for filing a declaration

Filing a declaration can be considered as follows:

• fill out independently and submit to the territorial tax authorities at the place of registration,
• submit through a trusted person
• send by registered mail with notification,
• via an electronic account using an electronic digital signature,
• from January 22, 2022, individual entrepreneurs of groups 1,2,3 can submit a report in the Diya application.

Filling out the Declaration for a private entrepreneur

Appendix F2

When drawing up the declaration, the indicators of the standard form of accounting for income and expenses are taken into account, which is maintained in accordance with Order of the Ministry of Finance No. 261.

Appendix F2 “Calculation of tax liabilities for personal income tax and military duty on income received by a self-employed person” displays all income from the business activities of a private entrepreneur on the general system. In the header of Form 2, you should indicate the tax registration number with the type “reporting”, year – 2024.

Section 1 displays all income received based on a standard form for recording income and fees. Income and expenses should be displayed separately for each type of economic activity in accordance with KVED.

Column 2 – indicate the name of the actual type of economic activity. If the individual entrepreneur is engaged in several types, then they should be entered in several lines.

Count 3 – KVED.

Column 4 – indicates the annual amount of income received for each type of activity.

Column 5,6,7 – indicates the documented amount of expenses that are directly related to the conduct of activities. Their list is given in paragraphs. 177.4.2 and 177.4.4 NKU.

Column 5 – the amount of sold inventory items that are directly related to the income received during the reporting year.

Column 6 – wages for hired workers ty employees: direct salary, payment for services in accordance with a civil contract with individuals and unified social contributions accrued on such payments.

Column 7 – other expenses: advertising, communications, cash management services, rent, transportation costs.

To avoid any questions from the tax authorities, all income and expenses for the year must be distributed in such a way that there is a profit for each type of activity.

If during the year there were expenses that simultaneously belong to different types of activities, then they are distributed proportionally to the income received.

Column 8 – Depreciation expenses. It is taken into account at the end of the year and only on the condition that the entrepreneur kept records of it in a special application of the Standard Form for Accounting for Income and Expenses and thus reduces income by this amount when calculating net profit. The Standard Form of UDR and the Depreciation Supplement itself have been put into effect.

In Section 2 “Information on the calculation of depreciation” of Appendix F2, you need to fill out columns 3,4,5 separately for each object based on the data of the Standard Form of UDR.

The types of fixed assets themselves must be entered into the table below, using the minimum terms of use (clause 177.4.9 of the Tax Code).

Column 9 – net income, which is calculated as the difference between annual income and annual expenses. If there are times during the year when some months or quarters were unprofitable, this does not in any way affect the net income, since they will collapse within.

Section 3 of Appendix F2 contains the amounts of personal income tax and military duty, which are subject to transfer to the budget by the entrepreneur for the last year according to the established rates.

Individual entrepreneurs who ceased their business activities and submitted a liquidation declaration, and in the same year the individual entrepreneurs registered again when filling out this section, you should pay attention to the following points:

Row 1.2 displays the amount of personal income tax liabilities that was accrued in the liquidation declaration.

Row 2.2 displays military duty obligations from the liquidation declaration.

Filling out the main part of the declaration

The form itself has remained virtually unchanged. The declaration, as usual, is submitted with the “reporting” type, the “specified” type is filled out only in the event of an entrepreneur’s retirement, receipt of sick leave or maternity leave from the Social Insurance Fund, with voluntary payment of the unified social contribution or additional payment based on the results of an audit. The changes affected the title page.

A new field 8 has appeared. It can only be filled in by private entrepreneurs who have decided to withdraw from state registration or switch to a common system. When deregistering, the date of termination of activity should be indicated in Appendix 1.

A new field 8 has appeared. It can only be filled in by private entrepreneurs who have decided to withdraw from state registration or switch to a common system. When deregistering, the date of termination of activity should be indicated in Appendix 1.

The new field 21 displays the annual amount of URU, which is transferred from the application URU form.

If during the year the individual entrepreneur has exceeded the annual income, then a single tax at a rate of 15% must be paid on the excess amount. Income within the limit is reflected in Section II, III, IV “Indicators of economic activity for single tax taxpayers” on line 01,03,05,06, and the excess amount in line 02,04,07 of the declaration.

Filling out the Application for Unified Tax 1

This application is required to be submitted for all types of private entrepreneurs, both single-payer and those working under the general system.

In field 4 you should indicate the type of declaration – “annual” 2024.

In field 6 not the actual type of activity is entered, but the main KVED according to the state register, in contrast to Form 2, which reflects the types of activities that the entrepreneur was engaged in in 2024.

Field 7 “calculation number in the period” is filled in if the entrepreneur was deregistered from state registration in 2023 and filed a liquidation declaration, and then registered again and filed a declaration for 2023.

Field 8 “payer type and period of stay” is filled in from 01/01/2024 to the last day of work using the general or simplified system, for example 12/04/2024.

Field 9 is filled in only by those entrepreneurs who have been assigned a pension, sick leave, maternity leave from the Social Insurance Fund, or who are deregistered from state registration in December.

In column 2 of the table we put the number 5 if the entrepreneur works on a common system and the number 6 if he is a single-payer.

In column 3 we put the number 0 or a dash for those months in which the entrepreneur’s net income is 0 or a loss was received and the actual amount of net income from the book of income and expenses for profitable months.

Amounts from column 3 are transferred to column 4, but not less than the minimum wage.

How to fill out the ECB application if the individual entrepreneur had losses in some months?

If in column 3 of the unprofitable month you put – 0, and in the terms of profitable months – net income, then in the end the net income in column 3 will be more more than the annual net income indicated in line 10.8 of the declaration. And this is contrary to accounting standards. The law on the calculation of the Unified Contributions clearly states that the individual entrepreneur pays the Unified Contributions from profits subject to personal income tax, in other words, from the net income indicated in the declaration in line 10.8.

In such cases, you need to indicate the average net income for all profitable months, calculated using the formula:

annual net income (line 10.8 of the declaration): number of profitable months = column 3

In the event that a loss is incurred throughout the entire business activity for 2024, the number 0 or a dash must be indicated in all columns of the ESC in the application, and when submitting electronically, the field is left blank, and the ESC itself is not paid.

For private entrepreneurs on a simplified system, the tabular part of field 9 is filled out as follows:

• in column 2 for each month the amount of the minimum salary is entered, even if the entrepreneur did not work and there was no income, the amount of the unified social contribution must be transferred to the budget,
• column 3 indicates the unified social contribution rate (22%),
• in column 4 – the amount of the accrued unified social contribution according to the formula.

Filling out the Unified Tax Application for a private entrepreneur working under an employment contract

This application should be provided if the individual entrepreneur did not work under an employment contract for the entire year of 2024 or his employer did not pay the minimum unified social contribution for him.

In this case, the FOP on the general system fills it out as follows:

• Column 3 indicates the amount of net income according to the book of income and expenses; if the month was unprofitable, set it to 0.
• In column 4 “amount of income” is entered,
• “0” for those months for which the employer paid the unified social tax,
• minimum wage, if the employer has not paid the unified social contribution or paid less than the minimum contribution.

Column 3 indicates the amount of net income according to the book of income and expenses; if the month was unprofitable, set it to 0.

The FOP single-payer fills out as follows:

For those months in which the employer paid the unified social contribution, a dash is entered in column 2 or the field remains blank in the electronic version.

In the months for which the employer did not pay the unified social tax or paid less than the minimum, the minimum wage is indicated.

Applications for Unified Tax 1 are not submitted

• pensioners,
• disabled people
• employed individuals for whom the unified social contribution has been paid in the amount of at least 1,320 UAH. in January-November and 1430 UAH. in December
• individual entrepreneur on a common system without income,
• mobilized individual entrepreneur,
• Individual entrepreneur registered in the occupied territory.