LETTER STATE TAX ADMINISTRATION OF UKRAINE

of January 4, 2011 No. 12/7/15-0817

About features of administration of collection for special use of water in the conditions of operation of the Tax Code of Ukraine

The State Tax Administration of Ukraine reports that in connection with adoption of the Tax code of Ukraine (further - the Code) regulations concerning administration of collection for special use of water (the Section XVI "Collection for special use of water" of the Code) changed a little.

1. The name of collection changed. If earlier it was called "collection for special water use regarding use of surface and underground water", then since January 1, 2011 its name - "collection for special use of water".

2. Payers of collection for special use of water determine managing vodopolzovatelisubjekta irrespective of pattern of ownership: legal entities, their branches, departments, representations, other separate divisions without formation of legal entity (except budgetary institutions), permanent missions of nonresidents, and also physical persons - the entrepreneurs using the water received by way of intake of water from water objects (primary water users) and/or from primary or other water users (secondary water users), and using water for requirements of hydropower, water transport and fishlore (article 323 of the Code).

Before entry into force of the Code (on January 1, 2011) budgetary institutions which used water only for satisfaction of drinking and sanitary and hygienic requirements in the budget did not pay collection for special use of water resources. Together with it if budgetary institutions used water at the same time for satisfaction of own requirements: the drinking, sanitary and hygienic purposes, and also used water for implementation of activities in the sphere of public catering (cooking) for implementation of medical procedures, washings of linen and so forth, collection for special use of water resources was paid to the budget in accordance with general practice for all actually used water, taking into account amount of losses of water in water supply systems.

With entry into force of the Code budgetary institutions are not payers of collection for special use of water.

Together with it according to Item 326.13 of article 326 of the Code if water users who completely contain at the expense of means state and local budgets, use water amounts for the economic activity directed to income acquisition in cash, material or non-material forms, collection is estimated in accordance with general practice from all amount of the used water taking into account amount of losses of water in their systems of delivery. Economic activity (subitem 14.1.36 of Item 14.1 of article 14 of the Code) is the activities of person connected with production (production) and/or sales of goods, performance of works, provision of services, directed to income acquisition and is conducted by such person independently and/or through the separate divisions, and also through any other person which is acting for the benefit of the first person, in particular under commission agreements, orders and to agency agreements.

The concept of secondary water users is also expanded. If before entry into force of the Code only the water users using the water received by way of intake of water from water intaking constructions of primary water users treated secondary water users, then since January 1, 2011 the water users using the water received by way of intake of water from water objects of other water users also treat secondary water users.

According to article 42 of the Water code of Ukraine the subjects of managing having own water intaking constructions and the corresponding equipment for water intake concern primary water users.

3. The taxation objects collection remained invariable. It is first of all the actual amount of water which is used by water users, taking into account amount of losses of water in their water supply systems.

The taxation object collection for special use of water without its exception of water objects are:

- for requirements of hydropower - the actual amount of water which is passed via turbines of hydroelectric power stations for production of electricity;

- for requirements of water transport - usage time of surface water the cargo self-propelled and not self-propelled fleet which is operated (depending on tonnazhnost) and passenger fleet which is operated (depending on the number of places).

The taxation object collection for special use of water for requirements of fish breeding is the actual amount of the water necessary for replenishment of water objects during cultivation of fish and other water live resources (including for the replenishment connected with losses of water on filtering and evaporation).

4. Since January 1, 2011 collection for special use of water is not made for water which is used for satisfaction of drinking and sanitary and hygienic requirements of the population (set of the people who are in this territory during this or that period of time irrespective of nature and duration of accommodation, within their dwelling stock and personal plots) (subitem 324.4.1 of Item 324.4 of article 324 of the Code). That is, since January 1, 2011 water users are subjects of managing irrespective of pattern of ownership: legal entities, their branches, departments, representations, other separate divisions without formation of legal entity (except budgetary institutions), permanent missions of nonresidents, and also physical litsapredprinimatel for water which is used for satisfaction of drinking and sanitarnogigiyenichesky requirements shall make collection for special use of water in accordance with general practice.

Also on regulations of the Code collecting of collection for special use of water will begin during operation of waterways by the towing fleet (release of the towing fleet was stipulated in Item 16 Procedures for collecting of collection for special use of water resources and collection for use of waters for requirements of hydropower and the water transport approved by the resolution of the Cabinet of Ministers of Ukraine of August 16, 1999 No. 1494) (further - the Procedure for No. 1494).

5. The list of types of use of water for which collection is not made is expanded, namely:

- for water which is used for pylezaglusheniye in pits (subitem 324.4.4 of Item 324.4 of article 324 of the Code);

- for water which is lost in the main water rutting (subitem 324.4.6 of Item 324.4 of article 324 of the Code);

- for water which is used by gardeners and gardening societies (cooperatives) (subitem 324.4.10 of Item 324.4 of article 324 of the Code);

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