The government, in accordance with the recommendations of the Accounting Chamber, approved a draft law on taxation of remuneration for the work of prisoners of war
The Cabinet of Ministers of Ukraine approved the draft law “On Amendments to the Tax Code of Ukraine Regarding the Reflection in Tax Calculation of the Amounts of Personal Income Tax and Military Fees Accrued for the Remuneration for the Labor of Prisoners of War”.
As stated in the explanatory note to the document, the draft law was developed in response to one of the recommendations of the Accounting Chamber, provided based on the results of the compliance audit on the topic of «Implementation of Measures for the Detention of Prisoners of War».
Let us recall that the auditors, among other things, established that the procedure for compiling and submitting tax reports on taxes and fees accrued for the remuneration for the labor of prisoners of war was not regulated. Therefore, the Ministry of Finance of Ukraine and the Ministry of Justice of Ukraine were recommended to eliminate these gaps.
The proposed amendments to the Tax Code provide that prisoners of war (persons entitled to this status in accordance with the Geneva Convention relative to the Treatment of Prisoners of War and the Additional Protocol to the Geneva Conventions) will be defined as a separate category of individuals - non-residents of Ukraine. And tax agents (prisoner camps, penal institutions and pre-trial detention centers) will be obliged to reflect in the tax calculation the total amount of income accrued to prisoners of war and the total amount of tax withheld.
«Proper accounting of costs for ensuring the system of detention of prisoners of war is important in view of the responsibility and accountability of the Government to Ukrainian taxpayers. In addition, the costs of maintaining this category of persons may become part of Ukraine's financial claims to the aggressor state in the future. We must be sure that they are documented and substantiated. So I hope that this bill will be supported by the Verkhovna Rada of Ukraine», – notes the member of the Accounting Chamber responsible for the audit Kyrylo Klymenko.
The member of the Accounting Chamber also reported that the Accounting Chamber generally notes significant progress in the Government's implementation of its recommendations under this audit.
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