Tax preferences were extended until the end of quarantine

The Verkhovna Rada of Ukraine adopted the Law of Ukraine “ On amendments to the Tax Code of Ukraine and other laws of Ukraine on support taxpayers for the duration of measures aimed to prevent the occurrence and spread of coronavirus disease (COVID-19)” which extended the validity of tax preferences until the end of quarantine (the draft Law № 3329-d). Currently, the Law has been submitted to the President of Ukraine for a signature.

In accordance with the Law, the following was continued:

- the period of non-application of penalties for violation of the tax legislation from March 1 to the last calendar day of the month in which the Government announces the end of quarantine;

- a moratorium on documentary and factual audits on the last calendar day of the month (inclusively) in which the quarantine expires;

- the period of non-accrual of interest on the last calendar day of the month (inclusively) in which the quarantine expires;

- the date of publication of the updated plan – schedule of audits, namely within 10 calendar days from the date of termination of quarantine.

The Law also exempts individuals – entrepreneurs and individuals pursuing independent professional activity from paying single social contribution for themselves from 1 to 31 May 2020 and extended the period of non-application of penalties for violation of the single social contribution payment and late submission of SCS reports from March 1 to the last calendar day of the month (inclusively) in which the quarantine expires.

In addition, there is envisaged compensation for medical and other health care workers directly involved in the elimination of epidemic and the implementation of measures aimed at preventing the spread of acute respiratory disease COVID-19, treatment of patients with acute respiratory disease COVID-19 (according to the Ministry of Health), amount of the personal income tax deducted from income in the form of surcharges to wages. Amount of personal income tax accrued on surcharges to wages for the periods from 1 to 31 May and from 1 to 30 June 2020 are subject to compensation.

Income in the form of partial unemployment benefits paid by the employer in accordance with Article 47-1 of the Law of Ukraine “On employment” is exempted from the personal income tax and military levy. Exemption covers the period from 02.04.2020 until the end of quarantine.

More about the draft Law №3329-d is at the link: https://rada.gov.ua/news/Novyny/192589.html?fbclid=IwAR3203f-GyLVdZXuFUB4UnXSvQD8juMbT7YvjIZWm_MUutPHEMF