Procedure for incorporation and registration of permanent representative offices of nonresidents in Ukraine as profit taxpayers

State Tax Administration of Ukraine

 

Order as of August 12, 1997, No.293

Registered at the Ministry of Justice of Ukraine on August 21, 1997, under the No. 331/2135

On Asserting the Provision on the procedure for incorporation and registration of permanent representative offices of non-residents in Ukraine as profit taxpayers

With changes and amendments introduced by the Order of the State Tax Administration of Ukraine as of January 16, 1998, No.23

According to articles 1 and 2 of the Law of Ukraine “On taxation of enterprise profits” following article 8 of the Law of Ukraine “On state tax service of Ukraine”, order to:

  1. Assert the Provision on the procedure for incorporation and registration of permanent representative offices of nonresidents in Ukraine as profit taxpayers that is attached.
  2. The deputy head of the head of the International Relations Department of the State Tax Administration of Ukraine Hladun Y.V. to submit the Order to the Ministry of Justice of Ukraine for the state registration.
  3. The head of the Affairs Management Department Kovalenko V.V. to provide replication and sending the Order to the state tax administrations in the Autonomous Republic of Crimea, in Kyiv and Sevastopol in 5 days term after it being registered.

Deputy of the Head F.O. Yaroshenko

Asserted by the order of the State Tax Administration of Ukraine as of August 12, 1997, No293

(in edition of the order of the State Tax Administration of Ukraine as of January 16, 1998, No23)

Registered at the Ministry of Justice of Ukraine on February 3, 1998 under the No.63/2503

Provision

On the procedure for incorporation and registration of permanent representative offices of nonresidents in Ukraine as profit taxpayers

  1. General provisions

    1. The provision on the procedure for incorporation and registration of permanent representative offices of nonresidents in Ukraine as profit taxpayers (further – the Provision) was drafted according to the Law of Ukraine “On taxation of enterprise profit”

    2. A permanent representative office of nonresident in Ukraine – is a permanent place of activity via which in full or partially the business activity of a nonresident is made on the territory of Ukraine. Permanent representative offices include: management place, affiliate, office, factory, fabric, workshop, pit, oil or gas well, quarry or another place of prospecting or excavating natural resources.

    3. The Provision defines the procedure for incorporation and registration of permanent representative offices of nonresidents in Ukraine as profit taxpayers. The Provision doesn’t spread on representative offices of foreign organizations and firms that are not engaged in business activity in Ukraine.

    4. A permanent representative office of a nonresident up to the beginning of its business activity shall to be registered in the tax body under the place of his location in the prder prescribed by the Provision.

    5. Location of a permanent representative office is the fixed place of carrying out business activity.

  2. Registration of a permanent representative office

    1. Registration of a permanent representative office as a profit tax payer is made on the basis of submitting such documents:

      2. application for registration of a permanent representative office of a nonresident as a profit taxpayer under the form that is enclosed (appendix 1);

      extract from trade (bank) register of the country under the location of officially registered chief management agency (office) of a nonresident;

      information from a bank establishment where officially an account of a nonresident was opened;

      letter of attorney allowing to accomplish representative functions in Ukraine drown up according to laws of the state where officially the office of a nonresident was registered.

    2. Pointed documents, except for the application, shall be attested notarially under the place of their issuing, legalized in a proper way at consular establishments that represent interests of Ukraine if the other is not stipulated by the international treaties, and shall be entailed by translation into Ukrainian language being authenticated with the seal of a qualified interpreter.

    3. A representative office of a non resident to business activity that in full or partially is engaged in business activity of a non resident in Ukraine and has the certification issued by the Ministry of Foreign Economic Relations and Trade of Ukraine shall submit to a tax body during 10 days since the date of the Provision taking effect in order to be registered as a profit taxpayer, such documents:

      4. Application for registration of a permanent representative office of a non-resident as a profit taxpayer under the form that is attached (appendix 1);

      Copy of registration certification of a permanent representative office at the Ministry of Foreign Economic Relations and Trade of Ukraine

    4. Pointed documents are submitted to a tax body with making a note of receiving on each of them (date, stamp of a tax body).

    5. The documents received by tax bodies within 5 days since the date of their receiving are to be checked for the purpose of meeting the requirements stipulated by the Provision.

    6. After checking the documents on the last page of the paper of the application one of the following marks shall to be made:

      7. “Up to the incorporation and getting registered”;

      “Up to returning documents”.

      At that if the note of “Up to returning documents” is made, the reason of returning documents shall to be pointed.

    7. A permanent representative office takes into account remarks made on the last page, and repeatedly submits documents for consideration and undertaking a decision on its registration.

    8. Not later than 20 days will pass since the date of undertaking the decision on a permanent representative office of a non resident’s incorporation and registration as a taxpayer a tax body at the place of its location shall give it a Registration number and enter it into the Register.

    9. Fact of registration of a permanent representative office of a non-resident in Ukraine as a profit taxpayer is documented by the certification issued by a tax body at the place of its location under the form that is enclosed (appendix 2).

    10. A Registration number of a permanent representative office as a taxpayer is the one for whole information space pending being engaged in business activity in Ukraine.

3. The procedure for filling in application

3.1. The application for registration of a permanent representative office of a non-resident in Ukraine (further - application) is filled in one copy. Effect of the application is pointed by “X” in the appropriate field.

3.2. In point 1 the name of a permanent representative office, and in case a non- resident’s

activity is made via a physical person, his/her name, first name and patronymic name is

indicated.

3.3. In point 2 the name of a tax body at which a permanent representative office being

registered as a profit taxpayer is indicated.

3.4. In point 3 kinds of business activity of a permanent representative office and other

authorities empowered by a non-resident to a permanent representative office are given.

3.5. In point 4 the name, code of inter affiliated societies turnovers (IAT) of the appropriate banks and numbers of accounts. The point is filled by a tax body after receiving information from banks where an account was opened to a permanent representative office, and those that defined by point 2.3 are to be filled pending submitting the application individually.

3.6. In point 5 all essential elements of the profit taxpayer’s location place: zip code, region, district, city or other settlement, city district, street (avenue, public square, lane etc.),

house, building, office/apartment.

3.7. In point 6 the information on leader (representative) and accountant: identification number from the State register of individuals in case a leader (representative) and an accountant are entered in the register; name, first name and patronymic name; contact telephone numbers. Sign of fax “F” is put in case the telephone is the fax also.

3.8. Point 7 is filled by a tax official. Here the following is stated: name, first name and patronymic name of an official that entered the data on a taxpayer in the automatic system, sign, date of entering data; name, first name and patronymic name of the person charged with the registration of a taxpayer, sign, date. The registration number of a permanent representative office as a profit taxpayer is also indicated.

3.9. In point 8 the name of a non resident in original language (with noting the language) and in Ukrainian language is indicated. All essential elements of a nonresident location place are written down: zip code, country, region (land, oblast, state), district, settlement, street (avenue, public square, etc.), house, building, office/apartment. Contact telephone numbers, fax numbers e-mail are indicated. A Legal address of a nonresident, his identification number in the country the firm is located ( if it is available) are put down. The name of the bank with pointing numbers of accounts. Sphere of his/her activity is also stated.

3.10. If changes or amendments are introduced the appropriate note is entered in the application into field “Action”, and indexes 1-3 and fields that have been changed and amended are to be filled without fail.

3.11. In the end of the application it is obligatory to date of submitting the application, sign of leaders and stamp.

4. Register of permanent representative offices.

4.1. Register of permanent representative offices (further – the Register) is kept to record permanent representative offices. Register is an automatic system of gathering, accumulation and processing data concerning permanent representative offices.

4.2. The Register is made in view of:

keeping the record of permanent representative offices engaged in business activity on the territory of Ukraine at tax bodies;

providing unified principles of permanent representative offices identification;

providing full recording taxpayers, accuracy of calculation and timely tax receipts;

interrelation of the National bank of Ukraine, the Ministry of Economy of Ukraine, the State customs service of Ukraine, the State Property Fund of Ukraine, the State Statistics committee of Ukraine, other ministries and establishments of Ukraine with the informative bases on unified grounds;

organizing total and sampling analysis;

providing comply with the obligations of tax and other state bodies of Ukraine.

4.3. Making and keeping the Register is performed by a central tax body of Ukraine, state tax service bodies of the Autonomous Republic of Ukraine, in oblasts, cities Kyiv and Sevastopol and by state tax service bodies in regions, cities and districts in cities.

4.4. The central tax service body of Ukraine performs:

working out organization and methodical principles of keeping the Register, providing organization of keeping records of permanent representative offices;

determining the structure of the Register number of a permanent representative office as a taxpayer;

conferring the mark of permanent representative office to a permanent representative office as a profit taxpayer ;

developing technologies and software and technical means for keeping the Register;

creating and keeping a central database of tax bodies, database information processing (accumulating, analysing data sent form regional tax service bodies, control over reliability and actualisation of information, its keeping, protection, access control, etc.);

automatic keeping the Register;

organization interrelation with the database of the National bank of Ukraine, the Ministry of Finance of Ukraine, the State customs service of Ukraine, the State committee of Ukraine and other ministries and institutions of Ukraine;

developing instructive, normative documents for making, keeping and using the Register data.

4.5. State tax service bodies in the Autonomous republic of Crimea, oblasts, cities Kyiv and Sevastopol are charged with:

keeping data base (accumulation, data analysis received from tax service bodies in regions, cities and districts in cities, control over data verification and its actualisation, protection, control over right of access, etc.);

registration of permanent representative offices located on their territories;

making profiles of profit taxpayers to be entered into the Register to the central tax body of Ukraine;

transferring changes and amendments to be entered into the Register to the Central tax body of Ukraine;

interaction with data bases of the relevant local state power authorities.

 

4.6. State tax bodies in districts, cities and city districts are responsible for:

reception of documents for registration, verification of their conformity to requirements established by the Provision;

data processing of registration applications and making profiles of profit taxpayers to be transferred to state tax service bodies in the Autonomous Republic of Crimea, regions, cities Kyiv and Sevastopol;

assignment of permanent representative offices features to a permanent representative office;

assignment of permanent representative office Registration number as a profit taxpayer to a permanent representative office;

making data base of permanent representative offices and data base keeping;

interaction with data bases of relevant local state power authorities.

 

  1. Introduction of changes and amendments

5.1. In view of changes or amendments of application data on registration of a permanent representative office of a non-residents in Ukraine as a profit tax payer it’s obliged within 10 days (after their appearing) to submit documents with the changes (amendments) pointed and additional registration application with the mark “changes” or “amendments” to the tax body at the place of their location.

6. Abandonment a permanent representative office from the Register

6.1. A non resident in case of adopting the decision concerning suspension of business activity through a permanent representative office shall in a written form to inform a tax body where his permanent representative office was registered as a tax payer with specifying the date of such suspension of such an activity and shall return the certification of such registration.

 

6.2. A tax body at the place of a permanent representative office’s location takes a decision on entering into the register such a permanent representative office within 10 days term after submitting the income return along with the computation of charged tax on profit and complete settling with the budget.

7. Final provisions

7.1. Being a non resident completely or partially engaged in business activity on the territory of Ukraine without registration of a permanent representative office as a tax payer on profit (in tax body at his location) is prohibited. Beginning business activity up to the registration of a permanent representative office in tax body is regarded as tax avoidance, and received profits considered to be hided from taxation.