Nuances of accounting of income and expenses by self-employed persons

The procedure for taxation of the income of natural persons engaged in independent professional activity is determined by Art. 178 of the TCU.

According to Clause 178.6 of the Code of Civil Procedure, natural persons engaged in independent professional activity are required to keep records of income and expenses from such activity. Accounting of income and expenses can be done in paper and/or electronic form, including through an electronic cabinet.

The standard form for recording income and expenses by individuals engaged in independent professional activity was approved by Order No. 261 of the Ministry of Finance dated May 13, 2021 (hereinafter – Order No. 261).

According to Clause 2 of Sec. According to Order No. 261, accounting of income and expenses is kept in paper and/or electronic form, including by means of an electronic office in the manner established by law.

At the same time, in the case of keeping records of income and expenses in electronic form, a self-employed person is obliged to provide a duly certified copy of such records in paper form at the request of the supervisory body in accordance with the procedure established by tax legislation (clause 5, Chapter II of Procedure No. 261).

On the basis of primary documents, based on the results of the working day, during which income was received/expenses were incurred, records of received income and documented expenses are made (Clause 1, Chapter I of Order No. 261).

Thus, natural persons engaged in independent professional activity keep records of income and expenses according to the Standard form approved by Order No. 261, which is not subject to registration with the regulatory body.