Advance payments on CPT: The State Tax Service of Ukraine has confirmed the possibility of making advance payments by means of set-off against the overpayment of this tax
In view of the approaching deadline of making advance payments on CPT, we deem it necessary to draw your attention to the possibility of its payment by means of set-off against the overpayment in case of submission of the respective application.
As it has been mentioned before, paragraph 87.1 of Article 87 the Tax Code of Ukraine directly stipulates that the amount of monetary liabilities on certain tax may be paid at the expense of the overpayment on such tax. Moreover, the Article clear stipulates that such payment shall be done without any applications of the taxpayer, i.e. automatically.
Such order of set-off of overpayments was confirmed by the administrative courts of Ukraine, in particular, by Kyiv District Administrative Court in its Resolution No. 810/424/13-a as of April 02,2013, by Kharkiv District Administrative Court in its Resolution No. 820/1266/13а as of March 05, 2013 and by Donetsk Administrative Court of Appeal in its Decision in the case No. 812/973/13-а as of March 27, 2013.
At present the State Tax Service of Ukraine in its Letter No. 4420/6/15-14-15-13 as of April 01, 2013 has confirmed the possibility of making advance payments of CPT by means of set-off against the overpayment on this tax but on the basis of the submitted by the taxpayer application on such set-off. That is, the State Tax Service principally recognized the set-off, yet requires submission of the respective application by the taxpayer.
We draw your attention that such procedure of payment of the tax liabilities does not require obtaining of the agreement of the tax authorities. The taxpayers have the right to take the decision themselves on the usage of the overpayments of CPT in the advance payments.
Therefore, in case of the overpayment of CPT the taxpayer shall file the application on its set-off to the advance payments. In this case in the respective application it is necessary to draw attention of the local tax authorities to the position of the State Tax Service of Ukraine, set forth in the Letter No.
The above commentary presents the general statement for information purposes only and as such may not be practically used in specific cases without professional advice.