4DF: FEATURES OF FILLING IN AND CORRECTING ERRORS

Old and New Signs of Income

 

The new salary reporting, which includes the forms of reporting on the unified social contribution (USC), personal income tax, and military levy, is already in effect.

About some features of filling out Form No. 4DF – the “successor” of form No. 1DF:

In general, Appendix 4DF to the Calculation in terms of revenue attributes is almost identical to the “old one” — we use the same attributes to fill in. However, keep in mind that new signs have also appeared:

• “198”is the cost of medicines, medical devices and auxiliary equipment provided (transferred) free of charge, services in the healthcare system;
• “199”is the compensation of a part of the amount of punitive (financial) sanctions based on the results of an audit conducted at the request or complaint of the buyer (consumer);
• “200”is the cost of medicines and medical devices provided (transferred) by a person free of charge, purchased at the expense of the state budget and the implementation of programs according to the law.
• Other signs – from “101”to “197” – remained the same.

 

Non-monetary Income

 

As before, all amounts in the Calculation we specify as “dirty”.

In the case of in-kind payment in columns 3A “Amount of accrued income” and 3 “Amount of paid income” of line 06, Section I, Appendix 4DF to the Calculation, the amount of income in non-monetary form is reflected, calculated taking into account the coefficient provided for in clause 164.5 of the Tax Code of Ukraine (the TCU).

Please note that for the personal income tax rate of 18%, the specified coefficient is 1.21951.

 

If the Location has Changed

 

In case of a change in the location related to a change in an administrative district, the business entity shall pay personal income tax before the end of the current budget year and submit the Calculation at the previous location.

Since, before the end of the year, the taxpayer is registered with the controlling body at the previous location (secondary place of registration) with the sign that he/she is a taxpayer before the end of the year, and in the controlling body at the new location (primary place of registration) — with the sign that he/she is a taxpayer from the next year.

As for the “migration” of large taxpayers, after they are registered at a new location, they must pay taxes until the end of the calendar year at the place of previous registration, but they must report at the new place of registration.

 

If the Activity is Ceased

 

When the Calculation is submitted in case of state registration of termination of economic activity – until the completion of such procedures.

 

Filling in by Notaries

 

A notary, in transactions involving the sale and purchase of real estate between individuals in Appendix 4DF to the Calculation, shall reflect the amount of taxpayer’s income received from the sale of an object of the relevant property as determined based on the price specified in the sale and purchase agreement, but no lower than the estimated value of such object, calculated by the module for electronic determination of the estimated value of a single base, or no lower than the market value of such object.

 

In case of sale and purchase of an object of movable property (except for passenger cars, motorcycles, scooters), the notary in Appendix 4DF to the Calculation shall reflect income from such a sale based on the price specified in the sale and purchase agreement (barter), but no lower than the estimated value of this object determined by law.

If a taxpayer sells a passenger car, motorcycle, or scooter, the notary in Appendix 4DF to the Calculation shall reflect the amount of the payer’s income specified in the sale and purchase agreement, which must not be lower than the average market value of the relevant vehicle or no lower than its market value determined by law (at the taxpayer’s choice).

 

Adjusting Indicators

 

The procedure for filling out and submitting tax calculations by tax agents of the amounts of income accrued (paid) in favour of individual taxpayers, and the amounts of tax withheld from them, as well as the amounts of the accrued single contribution, was approved by Order No. 4 of the Ministry of Finance dated January 13, 2015, as amended (hereinafter referred to as Order No. 4). The procedure for making adjustments in case of self-detection of an error or upon notification of the tax authorities is defined in Section V of Order No. 4.

 

According to clause 2, Section V of Order No. 4, before making adjustments, make sure that the Calculation being amended is adopted by the controlling body and passed all controls, including when uploading to the Register of Insurers and the Register of Insured Persons.

 

The Calculation generated for error correction must contain only those appendices in which adjustments are made and information only on the lines with details or amounts of accrued personal income tax, military levy, which are specified (clause 6, Section V of Order No. 4).

 

Direct adjustments are made according to clause 10, Section V of Order No. 4:

1) in Section I:

to exclude one erroneous line from the previously submitted (received) information, repeat all the columns of such a line and indicate “1” in Column 9 — to exclude the line;

to enter a new or missing line, fill in all its columns completely and indicate “0” in Column 9 — to enter the line;

to replace one erroneous line with another, exclude erroneous information according to paragraph 2, subclause 1, clause 10, Section V of Order No. 4, and enter the correct information according to paragraph 3, subclause 1, clause 10, Section V of Order No. 4, that is, completely fill in two lines, one of which excludes previously entered information, and the second enters the correct information. In this case, in the first line in Column 9, indicate “1” — the line for exclusion, and in the second — “0” — the line for entering;

2) in Section II:

in the “Interest taxation” line, to exclude an erroneous line from the previously entered information, in the “Interest taxation – exclusion 2” line, repeat all the columns of the erroneous line, and in the “Interest taxation” line, reflect the correct information;

in the line “Taxation of lottery winnings (prizes)”, to exclude an erroneous line from the previously entered information in the line “Taxation of lottery winnings (prizes) — exclusion 3”, repeat all the columns of the erroneous line, and in the line “Taxation of lottery winnings (prizes)” reflect the correct information;

in the line “Military levy”, when making adjustments to indicators of Appendix 4DF to the Calculation for previous periods, indicate the period for which the adjusted financial statements were submitted, respectively. At the same time, adjusting indicators of the Calculation for periods up to January 1, 2021, columns 5A and 5 are not filled out in Section I.

 

To exclude an erroneous line from the previously entered information, repeat all the columns of the erroneous line in the “Military levy – exclusion 4” line, and reflect the correct information in the “Military levy” line.

 

Responsibility. In general, for submitting incorrect information in the 4DF, there is a fine of UAH 1,020 (UAH 2,040 — in case of repeated violation during the year). However, penalties stipulated in clause 119.1 of the TCU are not applied in cases where errors occurred in connection with the recalculation (clause 169.4 of the TCU) and were corrected according to the requirements of Article 50 of the TCU.