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How are VAT amounts taken into account when determining the tax base for corporate income tax?

  • The Main Department of the State Tax Service in the Odessa region informs that for the calculation of the tax base for corporate income tax, data from accounting and financial reporting on income, expenses, and financial results before taxation are used.
  • According to the Tax Code of Ukraine, the tax base for corporate income tax is the income with the source of origin from Ukraine and abroad, which is determined by adjusting the financial result before taxation, determined in the financial statements of the enterprise, according to national accounting standards or international financial reporting standards, for the differences determined by the relevant provisions of the Tax Code.
  • The Tax Code does not provide for adjustments to the financial result before taxation for the amount of value-added tax. Such amounts are reflected in the formation of the financial result according to accounting rules.
  • The regulation of accounting methodology and financial reporting is carried out by the central executive body that ensures the formation and implementation of state policy in the field of accounting and auditing, approves national accounting standards, national accounting standards in the public sector, and other regulatory acts on accounting and financial reporting.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


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