DOUBTFUL DEBT. ACCOUNTING FOR DOUBTFUL DEBT UNDER THE NEW TAX CODE OF UKRAINE | UBC

Article 159 of the Tax Code of Ukraine changed the tax-accounting rules for doubtful debt. The aim was to reduce budget risks while preserving the taxpayer's right to adjust tax liabilities when a buyer paid late for goods, work or services received.

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In particular, a simple payment delay of more than 90 calendar days after the contractual due date was removed from the list of grounds for adjusting the seller's accounting.

A seller that reduced reporting-period income by the amount of doubtful receivables also had to reduce the expenses of that period by the cost of goods, work or services giving rise to the debt.

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"previous" debt arising from delayed payment, where collection measures had started before 1 April 2011, continued to be reflected in the seller's and buyer's records until full repayment or recognition as bad debt under separate transitional rules.

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• Taxable object
• Income (gross income)
• Expenses (gross expenses)
• Operating expenses
• Other expenses
• Expenses not taken into account when determining taxable profit
• Fixed assets and depreciation
• Procedure for applying ordinary prices
• Tax differences
• Procedure for carrying forward losses
• Dividends
• Tax accounting during reorganisation
• Securities and securities transactions
• Foreign currency and foreign-currency transactions
• Leases and lease transactions
• Asset management transactions
• Accounting for doubtful debts
• Tax reliefs and exemptions
• Tax holidays
• Corporate profit tax rate