We have prepared a detailed analysis of the latest tax legislation amendments for you:
• For the period from March 1, 2022, until December 31 of the year following the year when the martial law or emergency state is suspended or canceled, land payments shall not be accrued and effected.
• The general minimal tax liability for the land plots for tax (reporting) years 2022 and 2023 shall temporarily not be accrued and paid.
• Environmental tax for tax (reporting) year 2022 shall temporarily not be accrued and paid.
• Temporarily, from March 1, 2022, until the martial law is suspended or canceled, and in 12 months after the martial law is suspended or canceled, individual entrepreneurs, individuals carrying out independent professional activities, and members of the farm entities shall be entitled not to accrue, calculate, and pay single tax for themselves, including dividend payment by farm entities.
• The State Fiscal Service shall within its competences define the expiry of terms set by the State Fiscal Service and other Ukrainian legislation.
• Absence of fines or withdrawal of the accrued fines for the actions (or omissions) by the taxpayer as a result of the imposition of martial law or emergency state.
• Setting a moratorium for documentary checks of compliance with the procedure for accruing, calculating, and paying of single tax during the legal mode of the martial law or the emergency state, and three months after the martial law or emergency state is suspended or canceled.
• During the martial law and the emergency state, and three months after the martial law or emergency state is suspended or canceled, single taxpayers shall not be subject to fines, and the fines accrued during these periods shall be written-off.
• Exemption from individual income tax for combatants; for civil protection employees, companies, organizations, and forces which are (were) engaged and directly participate(d) in the activities for national security and protection, fighting and containment of the military aggression of the russian federation; and for individuals who incurred damages due to the aggression of the russian federation.
• Termination of budget compensation for value-added tax. The State Tax Service shall hold harmless for delaying the budget compensation for value-added tax.
• Exemption from VAT taxation for the goods destroyed in the course of hostilities in the territory of Ukraine.
• It shall be allowed to form a VAT tax credit without registering the tax bills based on primary (calculation) documents compiled according to the Law of Ukraine “On Accounting and Financial Reporting in Ukraine.”
• Introduction of a special simplified taxation model with the rate of 2 % from the turnover, exemption from the income tax, VAT, and other payments for individual entrepreneurs and legal entities with the turnover of up to UAH 10 billion. The relevant application shall be submitted by 3/31/2022.
• Discontinuation of the set terms for notifying on opening or closing of the legal entity taxpayer’s account.
• Operation of electronic services of the State Tax Service of Ukraine on weekdays, from 8:00 a.m. to 6:00 p.m.
• Discontinuation of the terms for taxpayer registration.
• Withdrawal of assets from tax lien as decided by the head of the military civil administration on asset withdrawal.
• Termination of the moratorium for documentary and actual checks for the period of quarantine.
• Holding a borrower harmless for any delays in fulfilling the monetary liabilities under the line of credit (loan) agreement.
• Termination of rights of mortgage holders for any actions regarding accrual of ownership right for the mortgage, implementation of the right of mortgage holders to sell the mortgage item, eviction of residents of residential premises and houses under the mortgage subject to the court decision on the withdrawal of such items, and mortgage item sales in the online tender.
• Exemption from taxation of the defense goods for the period of martial law, emergency state, or circumstances beyond control.
• Automatic renewal of licenses for production, storage, and turnover of the excise goods for the period of martial law, emergency state, or circumstances beyond control.
• For the period of martial law, emergency state, or circumstances beyond control, there shall be no responsibility for violating the rules of using the recorders of settlement operations.
• The employers who pay single tax and selected a simplified taxation system, individual entrepreneurs of the second and third single taxpayer group, as well as legal entities of the third single taxpayer group shall by their own decision be entitled to stop paying single tax for their employees drafted within the mobilization to the Ukrainian Armed Forces.
• Eliminating the liability of the banks to inquire the source of funds the individual clients credit in cash to their current account compliant with the financial operation threshold. At that, the banks shall be prohibited to carry out debit transactions in the individual clients’ accounts with the funds indicated above, except for transfer of these funds to special accounts open by the National Bank of Ukraine to support the Ukrainian Armed Forces and/or humanitarian aid for Ukrainians who incurred damages from the actions of the aggressor state, the russian federation.
• Vesting the banks with the right to arrest suspicious assets credited by an individual with cash (related to terrorism and terrorism financing, mass destruction weapons and their financing) up to the moment when the Security Service of Ukraine provides information that these assets are not related to terrorism or terrorism financing.
• Holding the State Tax Service harmless for damage due to omission of the control bodies and their officials within the context of the legal mode of the martial law and emergency state.
• Exemption from taxation of operations of entry of humanitarian aid and goods to the customs territory of Ukraine for the purpose of using for defense commodities production.
• Exemption from any taxation of operations with the goods forfeited or voluntarily transferred for the benefit of the Ukrainian Armed Forces as humanitarian aid.
• Increase of the tax credit for charity donations to NGOs to 16 %.
• Reduction of VAT to 7 % and exemption of fuel excise tax.