How to correctly calculate the amount of the single tax if the income is received in a foreign currency into the entrepreneur's settlement account?
The amount of the single tax (ST) for 3rd group entrepreneurs is determined as 5% of the entrepreneur's income (hereinafter - the individual entrepreneur or IE).
But how do you correctly determine the amount of income received in a foreign currency? After all, initially, the currency is credited to the bank's distribution account, then to the entrepreneur's currency account, and then the entrepreneur sells the currency to the bank at any time, and the amount in hryvnia equivalent is credited to the entrepreneur's hryvnia account. Different banks apply different exchange rates when selling currency to entrepreneurs. This can be the interbank exchange rate, the National Bank of Ukraine (NBU) exchange rate, and so on.
Let's consider an example:
- On 09/10/21, $3,270 was received into the entrepreneur's currency account, and according to the bank statement, the equivalent in hryvnias is 87,395.33 UAH.
- On 09/10/21, the IE sells $1,000 to the bank, and the equivalent is 26,726.40 UAH, and this amount is credited to the entrepreneur's hryvnia account.
- On 09/16/21, the IE sells $2,000 to the bank, and the equivalent is 53,290.00 UAH, and this amount is also credited to the entrepreneur's hryvnia account. According to the Tax Code of Ukraine, income expressed in foreign currency is converted into hryvnias at the official exchange rate of the hryvnia to foreign currency established by the National Bank of Ukraine (NBU) on the date of receiving such income.
Attention: amounts received from the sale of currency and credited to the IE's hryvnia account (26,726.40 UAH and 53,290.00 UAH) are not taken into account when determining the income subject to ST.
Thus, we calculate:
- 09/10/21 - income received in the amount of $3,270;
- NBU exchange rate on 09/10/21 - 26.7264;
- 3270 USD x 26.7264 = 87,395.33 UAH - income subject to ST;
- calculate and get the ST amount (5%) - 4,369.77 UAH (87,395.33 x 5%).
- Therefore, the income is 87,395.33 UAH, and the ST is 4,369.77 UAH.
Please remember: to determine the income received in foreign currency, the currency is converted into hryvnias at the NBU exchange rate!!!
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