Changes in tax legislation during the quarantineChapter: New about taxes (news)

Changes in tax legislation during the quarantine

№ п/п

Changes

Characteristics

Term

Changes envisaged by the Law № 530-IX

Changes to the Tax Code of Ukraine, namely:

1.

Import operations to the customs territory of Ukraine of medicines, medical devices and / or medical equipment for preventive measures against the occurrence and spread, localization and elimination of outbreaks, epidemics and pandemics of coronavirus disease (COVID-19) are temporarily exempted from the VAT.

List of medicines, medical devices and / or medical equipment is determined by the Cabinet of Ministers of Ukraine.

This provision will be effective within three months from the date of publication of the Law № 530-IX.

Reference: the Law of Ukraine № 530-IX was published in the newspaper “Holos Ukrayiny” № 51.

Changes envisaged by the Law № 533-IX

Changes to the Tax Code of Ukraine, namely:

2.

Penalties are not applied for violation of the tax legislation.

Excepting sanctions for:

- violation of requirements for the long-term life insurance or the non-state pension insurance contracts, in particular supplementary pension insurance;

- alienation of property in a tax lien without the consent of the controlling body;

- violations of accounting rules, production and turnover  of fuel or ethyl alcohol in excise warehouses, applicable on a general basis;

- violation of accrual, declaration and payment of the value added tax, excise tax, rent.

During March 1 to May 31, 2020 penalties will not be accrued to the taxpayers; previously accrued but not paid penalty will be written off.

It includes violations committed from March 1 to May 31, 2020.

3.

Moratorium on documentary and factual audits was established. 

Excepting documentary unscheduled audits on the grounds determined by Sub-paragraph 78.1.8 Paragraph 78.1 Article 78 of the Code.

Information about the postponement of documentary scheduled audits which, according to the plan-schedule of scheduled documentary audits had to start between March 18 and May 31, 2020 and were not started on the date of entry into force of the Law № 533-IX will be included in the updated plan-schedule published on the official website of the central executive body implementing state tax policy by March 30, 2020.

Documentary and factual audits which were started before 18 March 2020 and have not been completed will be suspended until 31 May 2020. Such suspension interrupts the audit period and does not require any further decision by the controlling body. For the period from March 18 to May 31, 2020, current limitation period prescribed by Article 102 of the Code is stopped.

For the period from March 18 to May 31, 2020.

4.

Annual property and income declaration (hereinafter referred to as the “Declaration”) for 2019 prescribed by Article 179 of the Code is submitted by 01 July 2020.

Excepting cases envisaged by Section IV of the Code when such Declaration can be submitted later this term.

Individual is obliged to pay independently the amount of the tax liability specified in Declaration for 2019 before October 1, 2020.

-

5.

There is no accrual and payment for land (land tax and rent for the state and communal property), land plots owned or used, including on lease, by individuals or legal entities, and used by them in commercial activities.

Herewith, payers of the land payment (excepting individuals) who according to Paragraph 286.2 Article 286 of the Code submitted a tax declaration have the right to submit the tax declaration that reflects changes in the tax liability for payment of land for the respective months.

Recalculation for individuals – payers of the land payments will be carried out by the controlling body.

For the period from March 1 to April 30, 2020.

6.

Non-residential property owned by individuals-entrepreneurs or legal entities is a non-taxation subject of the real estate tax other than land 

Herewith, real estate tax payers (except for individuals) who, in accordance with Sub-paragraph 266.7.5 Paragraph 266.7 Article 266 of the Code have submitted the tax declaration have the right to submit a clarifying tax declaration which reflects changes in the tax liability for land payment over the respective months.

Recalculation for individuals – payers of real estate tax other than land will be carried out by the controlling body 

For the period from March 1 to April 30, 2020. 

Changes to the  Law of Ukraine as of 08.07.2010 № 2464-VI “On collection and accounting of the single social contribution to compulsory state social insurance” with amendments (hereinafter – the Law №2464), namely:

7.

 Individuals-entrepreneurs, individuals involved in independent professional activity and farm members are temporarily exempted from accrual and payment of the single social contribution to compulsory state social insurance (hereinafter the single contribution).

In terms of amounts accrued, calculated and payable by such individuals for themselves.

For periods:

-from March 01 to March 31, 2020;

- from 01 April to 30 April 2020.

8.

 Temporary penalties defined in Part 11 Article 25 of the Law №  2464 are not applied to the following violations:

- late payment (untimely transfer) of the single contribution;

- incomplete or late payment of the SC, at the same time as the issuance of the payments to which the single contribution (advanced payments);

- untimely submission of reporting prescribed by the Law № 2464 to the controlling bodies.

-

It includes violations committed during:

 - March 01 to March 31, 2020;

- 01 April to 30 April 2020.

9.

Taxpayers of the single contribution will not be charged with payable penalty; penalty accrued during these periods will be written off.

-

During periods:

- March 01 to March 31, 2020;

- 01 April to 30 April 2020.

10.

Moratorium on documentary audits regarding the correctness of accrual, calculation and payment of the single contribution was established.

Documentary audits which were started by March 18, 2020 and have not been completed will be suspended until May 18, 2020.

For the period from March 18 to May 18, 2020.

Changes to the Laws of Ukraine as of 20.09.2019 № 128 “On amendments to the Law of Ukraine “On the use of registrars of calculated operations in the sphere of trade, catering and services” and other the Laws of Ukraine on the un-shadowing of transactions in sphere of trade, catering and services” and № 129-IX “On amendments to the Tax Code of Ukraine on the un-shadowing of transactions in sphere of trade, catering and services”, namely:

11.

Use of registrars of calculated operations and / or software RCO for individuals - entrepreneurs - single tax payers of Group II - IV is postponed.

Postponed:

- application of software RCO to 01 August 2020;

- application of RCO and / or software RCO for individual types of activity to 01 January 2021;

- mandatory use of RCO and / or software RCO for all single tax payers of Group II – IV to 01 April 2021.

-

12.

Application of sanctions specified in Paragraph 1 Article 17 of the Law of Ukraine as of 06.07.1995 № 265/95-BP “On the use of registrars of calculated operations in sphere of trade, catering and services” is postponed for individuals - entrepreneurs - single tax payers of Group II - IV.

-

To 01 January 2021