You're reading: Regions Party proposes consideration of income tax overpayment as advance payment

A group of deputies from the Party of Regions has proposed establishing the right to use income tax overpayments as advance payments. 

A corresponding bill, No. 2225, was registered by ex-Vice Premier Sergiy Tigipko, along with Anatoliy Girshfeld and Serhiy Dunayev in the Verkhovna Rada on Feb. 7.

“The purpose of the bill is to regulate the mechanism for reducing advance contributions by the sum of overpayments for the previous tax periods,” reads an explanatory note to the bill.

The authors of the document stressed that law No. 5083-VI on amending the Tax Code of Ukraine regarding the State Tax Service in connection with the administrative reform in Ukraine dated July 5, 2012 changes the mechanism of income tax payment by taxpayers, whose income reviewed when determining the object of taxation for the last annual reporting tax period exceeds Hr 10 million, and introduces a monthly payment of advance contributions on income tax in the amount of not less than 1/12 of payable tax for the previous fiscal year without providing a tax return.

“These changes need to be improved, in particular, due to the fact that the mechanism of reducing advance payments by the sum of overpayment for the previous tax period remains unresolved. The controversial interpretation of the existing rules, which the State Tax Service gave, will lead to the continued growth, with an excess of the sums paid, and as a result a washout of enterprises’ working capital and further deterioration of the state of the economy,” reads the document.