To the attention of agricultural producers, who aim to acquire/confirm the single tax payers’ status of Group IV in 2023!

Clause 1 of Sub-paragraph 4 Paragraph 291.4 Article 291 of the Tax Code of Ukraine (hereinafter – Code) stipulates that  agricultural producers are legal entities, regardless of their organizational and legal form, in which share of the agricultural production for the previous tax (reporting) year is equal to or exceeds 75 percent.

Provisions of Sub-paragraph 298.8.1 Paragraph 298.8 Article 298 of the Code stipulate that agricultural commodity producers, in order to switch to the simplified taxation system or to annually confirm their the single tax payers’ status, together with tax reporting, submit a calculation of the share of agricultural commodity production (legal entities) to the controlling body at their location and/or at the location of their land parcels not later than February 20 of the current year.

Sub-paragraph 4 Paragraph 299.10 Article 299 of the Code stipulates that the single tax payer’s registration can be canceled by exclusion from Register of the single tax payers by decision of the controlling body, in particular, if in the tax (reporting) year share of agricultural production of legal entity of Group IV is less than 75 percent.

In addition, according to Clause 2 of Sub-paragraph 298.8.4 Paragraph 298.8 Article 298 of the Code, if the agricultural production share does not exceed 75 percent due to the occurrence of force majeure circumstances in the previous tax (reporting) year, the taxpayer is not required to pay taxes in the following tax (reporting) year on a general basis. To confirm the single tax payer’s status, such business entities submit tax declaration together with decision of the Verkhovna Rada of the Autonomous Republic of Crimea, regional councils on the presence of force majeure circumstances and a list of business entities affected by such circumstances.

Taking into account above specified, the agricultural producer who aims to confirm the single tax payer’s status of Group IV in 2023 and whose share of own agricultural production for 2022 is less than 75 percent must submit a copy of decision of the regional council about the existence of the force majeure circumstances in region in which such payer carries out activities and is listed as a victim as a result of hostilities on its land plots or their temporary occupation by the armed forces of the Russian Federation.