LETTER OF THE STATE TAX SERVICE OF UKRAINE

of September 26, 2012 No. 2592/0/61-12/15-1415

About consultation provision

The State Tax Service of Ukraine considered the letter concerning the taxation of transactions on attraction in free use for certain term according to the loan agreement of the office building and reports.

According to Article 827 of the Civil code of Ukraine according to the loan agreement one party (creditor) donates or shall transfer to the second party (user) thing for use during fixed term.

According to subitem 14.1.203 of Item 14.1 of article 14 of the Tax Code of Ukraine (further - NKU) sale of results of works (services) are any transactions of economic, civil nature on performance of works, provision of services, provision of the right to use or the order of goods, including intangible assets and other objects of property which are not goods, in case of compensation condition of their cost, and also transaction on free provision of results of works (services).

For the purpose of the taxation for the taxpayer - the user the specified transaction is considered as free receipt of services. So, according to subitem 135.5.4 of Item 135.5 of article 135 NKU the cost of the goods, works, services gratuitously received by the taxpayer in the accounting period is determined at the level not below the regular price, joins in other income which is considered in case of calculation of the taxation object.

Thus, the services gratuitously received are considered as the income for date of the actual receipt of such services by the taxpayer.

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