POSITIVE EXCHANGE DIFFERENCES FOR A SINGLE TAX PAYER

In accordance with p.292.5 of Tax Code of Ukraine Income denominated in foreign currency shall be converted into Ukrainian hryvnia at the official exchange rate of Ukrainian hryvnia to the foreign currency established by the National Bank of Ukraine on the date of receipt of such income.
According to the NBU Regulation No.410 as of 13.12.2016 there is established a mandatory sale of 65% of the proceeds in foreign currency transferred by non-residents to Ukrainian bank accounts.
There are two current accounts of a single tax payer: in UAH and in USD.
65% of income in USD is transferred on interim bank account, then this sum is converted to UAH at the interbank exchange rate of Ukrainian hryvnia to the foreign currency and afterwards a single tax payer receives income in UAH on his current bank account in UAH.
35% of income in USD is directly transferred on current account in USD of a single tax payer.
For the purpose of taxation only current bank accounts are considered.
So determining of income of a single payer will be following:
Income according to details of current bank account in UAH (65 % of total income) + Income according to details of current bank account in USD converted into Ukrainian hryvnia at the official exchange rate of Ukrainian hryvnia to the foreign currency established by the National Bank of Ukraine on the date of receipt of such income (35% of total income)
There is a question what to do in case when single tax payer would like to sale 35% of income in USD. Are exchange differences in this case included into income or not?!
In depends on the legal status of a single tax payer: a sole proprietor or a legal entity.
1) A sole proprietor
In accordance with pp.1 p. 292.1. of Tax Code of Ukraine income of a single tax payer for a sole proprietor — the income received during the tax (accounting) period in specie (cash and/or non-cash); tangible or intangible form, specified in clause 292.3 of this Article. In this case passive income received by such a person in the form of interests, dividends, royalties, insurance reimbursement and indemnity, as well as income received from the sale of movable and immovable property owned by a natural person under the ownership and used in economic activity are not included to the income.
So in case of sale of 35% of income in USD by single tax payer – sole proprietor exchange differences are not included to the income of sole proprietor because these exchange rates are passive income of sole proprietor. Tax authorities has a similar position: http://lv.sfs.gov.ua/media-ark/news-ark/220572.html;
2) A legal entity
According to pp.2 p.292.1. of Tax Code of Ukraine income of a single tax payer for legal entity — any income, including income of representative offices, branches, departments of such legal entity received during the tax (accounting) period in specie (cash and/or non-cash), tangible or intangible form, specified in the clause 292.3 of this Article.
So income of legal entity has not exceptions regarding passive incomes. That’s why in case of sale of 35% of income in USD by single tax payer – legal entity exchange differences are included to the income of legal entity (obligation regarding including of exchange rates to the income is also prescribed in bylaw – Regulations on accounting standards No.21). Tax authorities has a similar position: http://rv.sfs.gov.ua/media-ark/news-ark/199499.html