The Law of Ukraine №1797-VIII of 21.12.2016 (entered into force on 01/01/2017) has finally regulated the discrepancies in the Tax Code of Ukraine (Article 164 and Article 165) on tax on personal income of natural persons selling scrap metal.
Now, according to paragraph 165.1.25 of the Tax Code of Ukraine the total monthly (annual) taxable income of the taxpayer does not include:
"the amount of income received by a taxpayer for the handed over (sold) secondary raw materials, domestic wastes, scrap metal (7204 according to UKT VED – Ukrainian Classification of Commodities for Foreign Economic Activity), scrap of non-ferrous metals, including used (wasted) electric lead-acid batteries (code 8548 10 21 00 according to UKT VED), residues and scrap of electric accumulators with lead content (code 8548 10 91 00 according to UKT VED) and scrap of precious metals sold to the National Bank of Ukraine".
These changes were made possible, in particular, due to cooperation and appeals of UAVtormet and Ukrmetallurgprom on this issue.
We would like to remind you that income from the sale of ferrous scrap metal by individuals was not subject to personal income tax since 01.01.2013, but up to date the paragraph of the Tax Code of Ukraine regulating these changes has been very controversial.