Regarding the procedure for termination of legal entities

In connection with the military aggression of Russian Federation against Ukraine, on the basis of Decree of the President of Ukraine № 64/2022 as of 24.02.2022 "On introduction of the martial law in Ukraine" (which is currently extended by relevant Presidential Decrees), the martial law was introduced throughout Ukraine, as well as moratorium on conduction of document audits.

One of the negative consequences of the beginning of an armed invasion of Russian Federation into Ukraine is that many taxpayers found themselves in areas of active hostilities and were forced to relocate part of their enterprises to safer regions of the country in order to continue to carry out economic activities for further business development through the reorganization of enterprises (merger, affiliation).

Law of Ukraine № 2260-IX as of 12.05.2022 "On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding the tax administration specifics of taxes, levies and single contribution during the martial law, state of emergency" allows unscheduled documentary audits from 27.05.2022 on the grounds specified in Sub-paragraph 78.1.7 Paragraph 78.1 Article 78 of the TCU (during the liquidation, reorganization of business entities).

1921 legal entities were checked by unscheduled documentary audits on the termination (liquidation) of business entities during 2022. Violations of the tax legislation were established during the audits. A total of 1.464.5 million UAH was additionally accrued, amount of negative value of the income taxation object was reduced by 1.932.6 million UAH and amount of negative the VAT value was reduced by 16.5 million UAH.

State Tax Service and its bodies constantly conducts analysis of tax information available to the State Tax Service regarding the presence/absence of risks in the taxpayer’s activities regarding the concealment of  taxation objects, non-payment of tax obligations, non-fulfillment of requirements of other legislation. In the absence of risks, the State tax Service and its bodies do not conduct documentary audit. Therefore, decision to deregister 5382 legal entities without verification was made during January – October 2022.

State Tax Service of Ukraine is always open to dialogue with business entities to resolve urgent issues in activities of enterprises.