Special tax rules under the draft law 7137-d are established for the period of martial law in Ukraine.
- For the period of martial law legal entities and individuals have the right to move to the 3rd group of the single tax. The maximum amount of income is up to UAH 10 billion. Single tax rate is 2% of income (by a cash method).
- Such a special procedure may not apply to non-residents and permanent establishments, financial and insurance institutions, gambling, production and sale of alcohol and tobacco products, mining. Other existing restrictions on the single tax are not applied, and the number of employees is also unlimited.
- Taxpayers of group 3 are exempt from the obligation to accrue, pay and submit VAT tax returns. The issue of revoking the status of a VAT payer in the transition to a single tax and the obligation to accrue contingent VAT liabilities on balances and the accumulated negative value of VAT is currently not regulated by the law. In our opinion, the existing provisions of the legislation still give grounds to believe that the revocation of the status of a VAT payer will be carried out. We are waiting for the position of the regulatory authority.
- Taxpayers of the group 3 pay an advance payment by the 15th of each month based on the results of the previous calendar month.
- To choose or switch to the group 3 of the single tax with the above features, you must apply by the last day of the month preceding the period of transition to the simplified taxation system.
- After the cancellation of a martial law, a taxpayer is automatically considered to be applying the tax system on which such a taxpayer was before the election of the features of taxation for the group 3 of the single tax.
- Private individuals of groups 1 and 2 may not pay a single tax during a martial law.
- It is not taxed the amount (value) of charitable assistance paid by philanthropists, including individuals, in favor of participants in hostilities, employees of enterprises, institutions, organizations, civil defense forces or in favor of members of their families involved in national security measures and defense, being directly in the areas of hostilities, natural persons living in the settlements where hostilities are taking place and/or forcibly left the place of residence in connection with the conduct of hostilities in such settlements.
- It is not taxed the amount (value) of charitable assistance paid (provided) by international charitable organizations (their branches, representative offices) for the benefit of individuals living in the settlements where hostilities are taking place and/or forcibly left the place of residence due to the force majeure, in particular, the imposition of martial law, state of emergency.
- Excluded from taxable income is targeted or non-targeted charitable assistance provided to a taxpayer who has suffered as a result of armed aggression by the Russian Federation.
- According to the results of 2022, the tax rebate includes the amount of funds or the value of the property transferred in the form of charitable contributions or donations to non-profit organizations in the amount not exceeding 16% of the total taxable income of an individual.
- As part of the costs of private individuals in the general system and persons engaged in independent professional activities, the documented costs in the form of the value of property and funds transferred to the needs of defense and medicine in 2022 are taken into account.
- The tax credit includes the number of VAT paid (accrued) as a part of the purchased goods (services) based on available primary documents without registration of tax invoices in the Unified registry of tax invoices. Registration of such invoices will be carried out within 6 months after the termination or cancellation of martial law. Tax liabilities cannot be reduced without a registered adjustment calculation (based on the original document).
- Transactions for the supply and import of gasoline, heavy distillates, liquefied gas, oil and petroleum products are taxed at a rate of 7%. Such transactions are not included in the calculation of budget reimbursement except in cases where the payer exports goods.
- Exemption from VAT is the import into the customs territory of Ukraine and the supply of special personal protective equipment, bulletproof vests, threads and fabrics (materials) for the manufacture of bulletproof vests and helmets, medicines and medical devices, including without state registration and permits on the possibility of importation into the customs territory of Ukraine, intended for use by health care institutions, participants in the anti-terrorist operation, persons involved in national security and defense measures to provide medical assistance to injured individuals, contusions or other damage to health.
- Not considered to be used in non-taxable or non-economic operations, goods destroyed as a result of force majeure during a martial law, state of emergency, transferred to state or communal ownership, other persons to ensure the defense of Ukraine.
- Not considered to be supplies of goods and services the cases when goods and services are transferred / provided by the Armed Forces, voluntary formation of territorial communities, the National Guard of Ukraine, the Security Service of Ukraine, the Ministry of Internal Affairs, the Department of State Protection of Ukraine, the State Service for Special Communications and Information Protection of Ukraine, other military entities units, local self-government bodies, executive bodies providing state policy in the field of civil protection, health care institutions of state or communal property, structural subdivisions on health care of local state administrations, except in cases when such operations are taxed at the rate of 0.
- VAT-exempt charitable assistance transactions carried out by public associations or charitable organizations during 2022 are not included in the calculation of the limit for registration as a VAT payer.
Single social tax (SST)
- From March 1, 2022 until the end of a martial law, as well as for 12 months after its termination, self-employed persons may not pay SST for themselves.
- Employers – single taxpayers may not pay SST for workers who are mobilized.
- For the period of a martial law, state of emergency, as well as within 3 months after the termination or cancellation, no penalties are applied, no documentary checks are carried out, no penalty is charged for violations in the field of accrual and payment of SST.
For the period from March 1, 2022 to December 31 of the year following the year in which the martial law was terminated or abolished, no fee for land and minimum tax liability is accrued and paid for land located in the territories where hostilities are (were) conducted or in the temporarily occupied territories, as well as land plots that are identified as contaminated with explosives or on which there are fortifications.
For 2022, no environmental tax will be paid on facilities located in the territories where hostilities are (were) conducted or in the temporarily occupied territories.
It is not considered a sale of fuel and there is no tax liability in case:
- transfer of fuel without compensation in connection with the forced alienation or seizure for the needs of the state;
- transfer of fuel without prior or subsequent reimbursement of the Armed Forces, voluntary formation of territorial communities, the National Guard of Ukraine, the Security Service of Ukraine, the Ministry of Internal Affairs, Department of State Protection of Ukraine, State Service for Special Communications and Information Protection of Ukraine, other military entities, military units, local governments, bodies executive power, which provides state policy in the field of civil protection, health care institutions of state or communal property, structural units for health care of local state administrations;
- transfer of fuel as humanitarian aid.
- Rates of excise tax on certain types of gasoline, distillates, liquefied gas, butane, isobutane and other petroleum products are set at 0 per 1000 liters.
- If there is information on the website of the controlling body about the inability to ensure the sale of excise stamps, importers of tobacco products may import into the customs territory of Ukraine tobacco products with excise stamps, which are not strict accounting documents and printed outside Ukraine.
Carrying out inspections and applying penalties:
- The basis for the actual verification – obtaining information about the failure to provide settlements for goods (services) using electronic means of payment (payment cards).
- Paragraph 522 of subsection 10 of section XX of the TCU, which imposed a moratorium on quarantine inspections, is suspended for the period of a martial law.
- Tax audits do not start, and ongoing audits are stopped, except for in-house audits to obtain the amount of budget reimbursement, and actual audits.
- In case of violations as a result of such inspections, liability is applied in accordance with the TCU, and the moratorium on the application of penalties does not apply. The fine is not accrued, but is subject to cancellation in case of commission of an act (action or omission) by a person due to the imposition of martial law, state of emergency.
- Expiration of the statute of limitations set by the TCU is suspended.
Non-profit organizations may use the income to finance non-profit expenditures, provided that such services, property are voluntarily transferred to the Armed Forces, voluntary formation of territorial communities, the National Guard of Ukraine, the Security Service of Ukraine, the Ministry of Internal Affairs, Department of State Protection of Ukraine, State Service for Special Communications and Information Protection of Ukraine, other military formations, military units, local self-government bodies, executive bodies providing state policy in the field of civil protection, health care institutions of state or communal property, structural subdivisions on health care of local state administrations and/or funds transferred to special accounts of the NBU for fundraising.
Acceptance of electronic documents from payers by the controlling bodies is carried out on working days from 8 am to 6 pm.