How can a group II single tax payer switch to another group, if in the middle of the third quarter he or she exceeded the maximum permissible amount of income for this group?

The State Tax Inspectorate in Uzhgorod notes that in accordance with paragraph 291.4 of Article 291 of the Tax Code of Ukraine, the maximum amount of income for businesses that are in the second group of the simplified taxation system is set at UAH 1,000,000. If this amount of income is exceeded, a single tax payer shall not later than on the 20th day of the month following the calendar quarter, in which such exceeding occured, (in this case not later than 20 October), submit to the tax office an application to amend the Certificate of single tax payer (select either group III or V), or abandon the simplified taxation system.

The third or the fifth group will be applied by such single tax payer starting from the fourth quarter of 2013.

When filing a tax return, please note the following. For single taxpayers of the second group the accounting (tax) period is set as a calendar year. However, if the limit of income is exceeded, a taxpayer must report before the deadline set for the quarterly period, ie within 40 calendar days following the quarter in which such exceeding occurred. In the tax return for 9 months of the current year such tax payer shall indicate separately the amount of:

the income that does not exceed 1,000,000 UAH, and charge the tax at the rate set for the second group of the single tax;

the income in excess of 1,000,000 UAH – at the rate of 15%.

 Source – STI in Uzhgorod.