Regarding the periods of storage of documents and limitation periods for determination of tax liabilities by controlling persons for transactions with non-residents
Effective July 1, 2024, the Law of Ukraine dated 21.05.2024 No. 3721-IX "On Amendments to the Tax Code of Ukraine and the Law of Ukraine "On Electronic Communications" regarding the Rent for the Use of the Radio Frequency Spectrum (Radio Frequency Resource) of Ukraine" (hereinafter - Law No. 3721-IX), in particular, amended the terms of document retention and the limitation period for determining tax liabilities for transactions with non-residents by controlling persons.
Pursuant to sub-clause 44.3.1 of the TCU, taxpayers are obliged to ensure the storage of documents and information specified in clause 44.1 of this article, as well as documents related to the fulfillment of the requirements of the legislation, the control over compliance with which is entrusted to the controlling authorities, within the periods specified by law, but not less than 2555 days (7 years) - for documents and information necessary for tax control, in accordance with Articles 39 and 392, clause 141.4 of the TCU.
In addition, according to clause 102.1 of the TCU, the controlling authority, except for the cases specified in clause 102.2 of this article, has the right to conduct an audit and independently determine the amount of the taxpayer's monetary liabilities in the cases specified by the TCU, not later than the end of 1095 days (2555 days - in case of an audit in accordance with Articles 39 and 392, application of the requirements of clause 141.4 of the TCU) following the last day of the deadline for filing a tax return, a report on the use of income (profits) of a non-profit organization as defined in clause 133.4 of the TCU, and/or the deadline for payment of monetary obligations accrued by the supervisory authority, and if such a tax return was submitted later, the day of its actual submission.
In accordance with paragraph 73 of subsection 10 of section XX "Transitional Provisions" of the TCU, these requirements apply to documents and information related to the application of the requirements of paragraph 141.4 of the TCU, the storage period of which has not expired on the day the Law of Ukraine "On Amendments to the Tax Code of Ukraine and the Law of Ukraine "On Electronic Communications" regarding the rent for the use of the radio frequency spectrum (radio frequency resource) of Ukraine" came into force, as well as to tax control over the determination of the taxpayer's monetary obligations on the basis of the following
In other words, taxpayers making payments of non-resident income and non-residents operating in Ukraine through separate subdivisions, including permanent establishments, are obliged to keep documents that have not expired as of July 1, 2024, for the new period of time (7 years).
For such taxpayers, monetary obligations will also be determined according to the new limitation periods (no later than the end of the 2555th day).
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