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Requirements for Accounting of Economic Entities and Tax Exemptions
Requirements for Accounting of Economic Entities and Tax Exemptions
We would like to inform you that, according to the provisions of Article 33.2 of the Tax Code, if a taxpayer has a business entity (object), it must be registered for tax purposes at the address where that business entity (object) is located. Accordingly, the registration of the business entity (object) used in entrepreneurial activity with the tax authorities is a legal requirement.
The failure of a taxpayer to register the business entity (object) with the tax authorities does not constitute a restriction on the taxpayer's right to income tax exemption, as such limitation is not stipulated in the tax legislation.
However, in order for agricultural producers to benefit from the respective exemptions provided in the Tax Code, they must have documentation confirming that the sold agricultural products were cultivated on land owned or used by them (such as documentation proving ownership or use of land plots and assets involved in the process). Additionally, if agricultural products are produced by a family farm, a copy of the certificate issued by the relevant municipal authority confirming registration must be available, along with other required documents.
Furthermore, we inform you that, in accordance with Article 58.15 of the Tax Code, if persons benefiting from tax exemptions and reliefs provided by this Code fail to declare or underreport the tax-exempt income, a financial sanction of 6 percent of the undeclared or underreported income (before expense deductions) shall be applied.
We would like to inform you that, according to the provisions of Article 33.2 of the Tax Code, if a taxpayer has a business entity (object), it must be registered for tax purposes at the address where that business entity (object) is located. Accordingly, the registration of the business entity (object) used in entrepreneurial activity with the tax authorities is a legal requirement.
The failure of a taxpayer to register the business entity (object) with the tax authorities does not constitute a restriction on the taxpayer's right to income tax exemption, as such limitation is not stipulated in the tax legislation.
However, in order for agricultural producers to benefit from the respective exemptions provided in the Tax Code, they must have documentation confirming that the sold agricultural products were cultivated on land owned or used by them (such as documentation proving ownership or use of land plots and assets involved in the process). Additionally, if agricultural products are produced by a family farm, a copy of the certificate issued by the relevant municipal authority confirming registration must be available, along with other required documents.
Furthermore, we inform you that, in accordance with Article 58.15 of the Tax Code, if persons benefiting from tax exemptions and reliefs provided by this Code fail to declare or underreport the tax-exempt income, a financial sanction of 6 percent of the undeclared or underreported income (before expense deductions) shall be applied.