Since the beginning of the full-scale invasion, 11 214 taxpayers have received right to temporary exemption from fulfilling their tax obligations. This year, 2 292 taxpayers have used this support mechanism. This was informed by acting Head of the State Tax Service, Lesya Karnaukh.

“russian enemy’s target is not only military facilities. Almost every day, business come under targeted attacks. Everything that the Ukrainian economy relies on: shops, warehouses, production facilities, logistics centers. And it is at this moment that the state should not be additional test, but support. So that business is not left alone with a bunch of problems, including tax ones” – added acting Head of the State Tax Service.

Since the beginning of 2022, the biggest number of such decisions have been received by taxpayers in the following regions:

- Kyiv city – 3 191;

- Mykolaiv region – 971;

- Chernihiv region – 879;

- Zaporizhzhia region – 650;

- Kharkiv region – 283.

“Destroyed warehouses, lost equipment, destroyed primary documents or destroyed logistics chains are realities that can stop activities of any company. But we are always ready to support those in difficulty. So that business does not look for a bunch of explanations and regulations. If there are problems, contact our Tax Consultant Offices. We help entrepreneurs figure out what to do in a specific situation: with documents and reporting, destroyed or damaged property, tax obligations and other issues that arise due to the consequences of attacks” – Lesya Karnaukh emphasized.

Legislation provides: if enterprise or individual-entrepreneur has lost ability to fulfill their tax obligations due to the consequences of armed aggression, they have right to receive temporary exemption from their fulfillment.

Such right is determined by the Tax Code of Ukraine and Procedure approved by Order of the Ministry of Finance of Ukraine № 225 as of 29.07.2022.

When is it possible to exercise this right

Legal entities and individuals-entrepreneurs can submit application if consequences of russia’s armed aggression caused the inability to fulfill tax obligations.

Grounds may be:

- complete or partial destruction of production, warehouse or administrative premises where financial or accounting documentation was stored;

- destruction of computer equipment or other equipment;

- loss of production or other non-current assets.

What benefits does the payer receive

Payers have right to:

postponement of deadlines

- submission of tax reporting;

- postponement of deadlines for payment of taxes, levies and other obligatory payments;

exemption from penalties for:

- untimely registration of tax or excise invoices;

- submission of reporting or payment of tax liabilities.

How to get exemption

Submit to the controlling authority application of inability to fulfill tax obligations and documents confirming that it was impossible to fulfill tax obligations.

Supporting documents may be originals or duly certified copies of:

- acts of fire or destruction, compiled by authorized employees of the State Emergency Service/National Police;

- information from the State Register of Property Rights to Real Property and the State Register of Property Damaged or Destroyed as a Result of Hostilities, Terrorist Acts, and Sabotage Caused by Armed Aggression Against Ukraine;

- certificates from the Unified Register of the Pre-Trial Investigations on the registration of criminal offenses;

- other documents confirming destruction or damage to property or the inability to fulfill tax obligations.

It is possible to submit application at the tax registration place or to any service center of the State Tax Service:

- in person;

- by mail with a delivery notification;

- via the Electronic cabinet.

How the decision is made

Controlling authority considers application and supporting documents within 20 calendar days.

If documents are insufficient, the payer is sent a preliminary decision with a suggestion to provide additional materials. This is allowed for 10 calendar days. After receiving them, documents are considered for another 20 calendar days.

These are the maximum terms stipulated by Order of the Ministry of Finance of Ukraine № 225. At the same time, the State Tax Service understands difficult conditions in which business operates today and takes these realities into account in the process of processing applications and documents.

Every effort is made to process applications and make appropriate decisions as quickly as possible, without waiting for deadlines to expire, provided that all necessary documents and information are available.

In each case, the decision is made individually. Tax authority analyzes essence of the taxpayer’s activities, specific circumstances, causal relationship between the war consequences and the inability to fulfill tax obligations, as well as all provided documents.

If the taxpayer receives a positive decision – he/she can fulfill tax obligations after renewal of the opportunity or within six months after termination or abolition of the martial law.

If such opportunity has been renewed earlier, it is necessary to notify the controlling authority. Notification in any form must be submitted not later than within 60 calendar days, which are counted from the first day of month following the month of renewal of such opportunity.

The war creates circumstances for business that it cannot influence. That is why the state has provided mechanism that allows enterprises to go through this difficult period without additional financial burden. Use opportunities provided by the legislation!