of May 11, 2011 No. 8735/6/15-0516
GNAU considered the letter concerning reflection in tax accounting of transaction for return of foreign investment to the foreign investor in the context of the Tax code of Ukraine (further - the Code) and reports.
The procedure for the taxation of transactions with payments in foreign currency is determined by Article 153 of the Section III of the Code which became effective since 01.04.2011.
According to subitem 153.1.3 of Art. 153 of the Section III of the Code determination of exchange differences from recalculation of the transactions expressed in foreign currency, debt and foreign currency is performed according to provisions (standards) of financial accounting.
At the same time the profit (positive value of exchange differences) is considered as a part of the income of the taxpayer, and the loss (negative value of exchange differences) is considered as a part of expenses of the taxpayer.
Item 8 of the Provision (standard) of financial accounting 21 "Influence of changes of the currency rates" which is approved by the order MFP of 10.08.2000 No. 193, No. 515/4736 registered in Ministry of Justice of Ukraine in 17.08.2000 (further - PBU-21), is provided that determination of exchange differences on monetary items in foreign currency is carried out for date of implementation of calculations and for date of balance.
Exchange differences from recalculation of foreign currency cash and other monetary items about operating activiies are displayed as a part of other operating incomes (expenses).
Exchange differences from recalculation of monetary items about investing and financial activities are displayed as a part of other income (expenses), except for exchange differences which are displayed according to the item 9 PBU-21.
According to the item 4 PBU-21 monetary items are balance sheet items about money, and also about such assets and liabilities which will be received or paid in fixed (or determined) to amount of money or their equivalents. The exchange difference is difference between estimates of identical quantity of units of foreign currency in case of the different currency rates.
In view of stated, the debt on return of foreign investment to the foreign investor is monetary item about investing and financial activities which exchange differences from recalculation are subject to transfer as a part of the income (expenses) of the taxpayer.
Vice-chairman of the commission on carrying out reorganization of GNAU, vice-chairman of GNAU O. Lyubchenko
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