The full text of the letter of GNAU from 25.04.06 of No. 7720/7/17-0717 is provided.
About the TAXATION of MEMBERS of FARMS
The public tax administration of Ukraine considered <…> letter <…> relatively the oblozheyoniya a tax on the income of individuals of the income chlenov farms also reports.
According to a part of the second article 3 Labour Code of an osobenyonost of work of members of cooperatives and their associations, collective agricultural enterprises, farmer hoyozyaystvo, employees of the enterprises on foreign investments decide by the legislation and their charters. Thus guarantees relatively zanyatosti, labor protection, work of women, to youth and invalidov are provided to members of such farms in a poyoryadka, provided by the legislation on work.
By article 4 of the Law of Ukraine from 19.06.03 of No. 973-IV About a farm (further – the Law No. 973) it is defined that the chairman of a farm is his founder. At the same time the farmer hoyozyaystvo can be created by Ukyoraina’s one citizen or several citizens of Ukraine, koyotory are relatives or members semi, according to the law. Thus procedure of documentary registration of membership in a farm, and also registrations of labor vzaimootnoyosheniye of members with an economy the Law No. 973, other legislation of Ukraine isn’t defined.
According to part one of article 27 of the Law No. 973 labor relations in a farm baziruyutsya on work of his members. In a farm can work both his members, and the workers employed on the trudoyovy contract (contract). The person can’t be members of a feryomersky economy, rabotayuyoshchy in is mute according to employment contracts (contracts).
It agrees the approved order of Minagroprom of Ukraine from 02.07.01 of No. to 189 Methodical rekoyomendatsiya on the organization and maintaining buxgalterskogo the account in the country (farmer) farms, the income received by an economy is determined by kinds of activity and as a whole on an economy. It umenshaetsya for the sum of expenses at the expense of profit. The Opredelenyony income is distributed between members of an economy in proportion to a labor contribution of each of them and the meroyopriyatiya according to the current legislation is used for earnings definition, deduction and assignment on social.
According to the Law No. 973 a farm yavlyaetsya the subject of an entrepreneurial activity – the legal entity, and the main documents, regyolamentiruyushchy his activity and the relations of his members, are the Charter and the Foundation agreemtn about economy creation in which should be specified the full list of founders, an order a formirovayoniya and the size in compound property (capital) of a hoyozyaystvo of a share of each of founders.
According to developed by Minagroprompolitiki Ukrainy, Ukrgosfond of support of farmer hoyozyaystvo, the National union of agricultural cooperatives, Homestead Association and private zemleyovladelets of Ukraine on the basis of the Law No. 973 Tipoyovas a form of the charter of a farm, which yavlyaetsya recommended for the statement at creation of farms, members of a farm priznayutsya his founders; (compound kapitala) voluntary introduction of imushcheyostvenny and monetary deposits by members (uchreditelyami) farms is defined by sources of formation of property of a farm; labor relations between members of a hoyozyaystvo are regulated and defined by them.
Compensation of members of an economy is carried out by results of economic activity from pribyli after a covering of expenses, tax payment, collecting and other payments or otherwise according to the arrangement.
Considering given, the income which are received from a farm by his founders (the chairman and members), with a view of performance of standards of the Law of Ukraine from 22.05.03 of No. 889 About a tax on the income of individuals (further – the Law No. 889) should be considered as the income which are paid by the yuridichesyoky person in connection with distribution pure pribyli in favor of his founders (owners).
According to item 1.2 of Art. 1 of the Law No. 889 the income – is the sum of any means, cost of material and neyomaterialny property, other assets which have the cost, received by the taxpayer in a property or added in its advantage.v techeyony the corresponding reporting tax period. According to subitem 4.2.12 of item 4.2 of Art. 4 of the Law No. 889 in structure of the general monthly taxable doxoda the taxpayer join both listed in this point, and all other income, including of distribution of net profit, except specified in item 4.3 of this article.
The legal entity irrespective of his organizational legal status and a way of taxation by others nalogami which pays the income to the individual, is the tax agent who is obliged to charge, hold and uplachivat a tax on the income of individuals in the budget from a name and at the expense of the taxpayer according to item 1.15 of Art. 1 of the Law No. 889, to conduct tax accounting and to represent tax accounts to taxing authorities according to the law, and also to bear an otvetyostvennost for violation of standards of this Law.
Thus, the income of founders of farmer hoyozyaystvo (the chairman and members), received from a vyyopolneniye of labor function in these farms at the expense of distribution of the income (profit) of such farms, should join in the monthly taxable income of these taxpayers and be assessed naloyogy on a rate of item 7.1 of Art. 7 of the Law No. 889 (13 % for the period till 2007).
Vice-chairman S. doctor
"Balanc-agro" explains
TAXATION OF THE INCOME OF FARMERS
In the made comments letter of GNAU, referring to the Law about farmer xozyajstve* (Art. 3 item 1), confirms that members of a farm can’t work according to the employment contract.
Therefore the income of members of a farm for taxation of the personal income tax can’t be considered as a salary as it is paid according to the farm charter, instead of in connection with otnosheniyami labor hiring (Law No. 889 item 1.1 **).
The sum of the income of members of a farm is assessed with the personal income tax on a rate of 13 % (Law No. 889 subitem 4.2.12).
Unlike hired workers members of a farm have no right:
• on application of a tax social concession at personal income tax deduction, as for NSL sum umenshaetsya only the sum of the added salary (Law No. 889 item 6.1);
• on receiving the tax credit, for example for compensation of the paid means to educational institutions for training of the member of a farm or members of his family of the first degree of relationship (Law No. 889 subitem 5.3.3).
Council to farmers
For receiving the right to a tax social concession and the tax credit according to the personal income tax it is possible to leave as a part of members of a farm only the chairman, and other members to deduce from structure of a fermeryosky economy and to conclude with them the employment contract. For this purpose it is necessary to bring in constituent dokuyoment and to register in accordance with the established procedure corresponding changes.
* the Law of Ukraine from 08.09.05 of No. 2864-IV About a farm.
** The law of Ukraine from 22.05.03 of No. 889-IV About a tax on the income of individuals.