Is the single tax advance payment paid and when is tax declaration of the single tax payer – individual-entrepreneur submitted in case of transition in the middle of a month of the quarter of the single tax payer from Group I to II with special...

Is the single tax advance payment paid and when is tax declaration of the single tax payer – individual-entrepreneur submitted in case of transition in the middle of a month of the quarter of the single tax payer from Group I to II with special taxation peculiarities for a period of the martial law?

Clause 1 of Paragraph 295.1 Article 295 of the Tax Code of Ukraine № 2755-VI as of 02.12.2010 with changes and amendments (hereinafter – TCU) stipulates that the single tax payers of Group I and II pay single tax by making advance payment not later than the 20th (inclusively) of the current month.

Paragraph 296.2 Article 296 of the TCU stipulates that single tax payers of Group I and II submit the single tax payer's declaration to the supervisory body within the time limit established for the annual tax (reporting) period, in which amount of received income, monthly advance payments are reflected, defined in Paragraph 295.1 Article 295 of the TCU, as well as information on the amounts of single contribution to obligatory state social insurance, accrued, calculated and paid in manner determined by the law for this category of payers.

Such tax declaration is submitted if the single tax payer did not exceed during a year amount of income specified in Paragraph 291.4 Article 291 of the TCU, and/or did not independently switch to paying single tax at rates established for the single tax payers of Groups II and III.

Single tax payers of Groups I and II submit tax declaration to the supervisory body within the terms established for the quarterly tax (reporting) period, in the case, in particular, of an independent decision to switch to paying tax at rates established for the single tax payers of Groups II and III (individuals-entrepreneurs) (Clause 1 of Sub-paragraph 296.5.1 Paragraph 296.5 Article 296 of the TCU).

Sub-paragraphs 49.18.2 and 49.18.3 Paragraph 49.18 Article 49 of the TCU stipulates that tax declarations, except for cases provided for by the TCU, are submitted for the basic reporting (tax) period, which is equal to:

calendar quarter or calendar half-year (including in case of payment of quarterly or half-yearly advance payments) – within 40 calendar days following the last calendar day of the reporting (tax) quarter (half-year);

calendar year, except for cases provided for by Sub-paragraphs 49.18.4 and 49.18.5 Paragraph 49.18 Article 49 of the TCU (for individual income tax payers) – within 60 calendar days following the last calendar day of the reporting (tax) year.

Single tax payer’s declaration form – individual-entrepreneur was approved by Order of the Ministry of Finance of Ukraine № 578 as of 19.06.2015 (as amended by Order of the Ministry of Finance of Ukraine № 752 as of 09.12.2020) (hereinafter – Declaration according to the form № 752).

At the same time, temporarily, from April 1, 2022 until termination or abolition of the marital law or emergency in the territory of Ukraine, provisions of Section XIV of the TCU are applied taking into account the following features, defined in Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU.

Sub-paragraph 9.1 Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU stipulates that individuals-entrepreneurs - single tax payers of Groups I and II have a right not to pay the single tax.

Herewith, such persons do not fill in the single tax payer’s declaration – individual-entrepreneur for a period in which, according to Clause 1 of Sub-paragraph 9.1 Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU, the single tax was not paid.

Percentage rate of the single tax for payers of Group III, who use the special taxation peculiarities, established by Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU, set at 2% income rate is determined according to Article 292 of the TCU (Sub-paragraph 9.4 Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU).

To choose or switch to the simplified taxation system by payer with peculiarities established by Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU, the business entity submits an application to the supervisory body (Clause 1 of Sub-paragraph 9.8 Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU).

Tax (reporting) period for the single tax payers of Group III, who use special taxation peculiarities, established by Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU is equal to a calendar month (Sub-paragraph 9.6 Paragraph 9 Sub-section 8 Section ХХ "Transitional Provisions" of the TCU).

Single tax payers declaration form of Group III for a period of the martial law, state of emergency in Ukraine was approved by Order of the Ministry of Finance of Ukraine № 124 as of 26.04.2022.

It should be noted that the rules of the TCU do not define terms for submitting tax declaration in the case of transition from Group I – II to Group III based on an application for taxation peculiarities with 2% single tax rate (hereinafter – Application).

Taking into account above specified, the single tax payer of Groups I – II, who carries out economic activity and paid single tax in terms specified by the TCU, pays the single tax advance payment for the last time in a month in which the Application is submitted and indicates amount of monthly advance payments contributions paid by him / her in the respective quarters in the Declaration on form № 752.

At the same time, the single tax payer of Groups I – II, who exercised right not to pay the single contribution according to Sub-paragraph 9.1 Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU, in the Declaration form № 752 does not fill in the information regarding such periods in which the single tax advance contributions were not paid.

Taking into account term specified in Sub-paragraph 96.5.1 Paragraph 296.5 Article 296 of the TCU, in order to ensure the display of reliable information on the single tax advance payments in the payer’s integrated cards, an individual-entrepreneur in the case of transition in the middle of a month of the quarter from Group I – II to Group III with special taxation peculiarities for a period of the martial law shall submit Declaration in the form №752 within 40 calendar days following the last calendar day of the quarter in which the Application was submitted.

More information is in the “Knowledge Base” of public information and reference resource