List of territories where hostilities are (were) conducted or temporarily occupied by armed forces of the russian federation, developed to implement Resolution of the Cabinet of Ministers № 1364 as of 06.12.2022

List of territories where hostilities are (were) conducted or temporarily occupied by armed forces of the russian federation, developed to implement Resolution of the Cabinet of Ministers № 1364 as of 06.12.2022 and approved by Order of the Ministry for Reintegration, cannot be used for taxation purposes

After introduction of the martial law on the territory of Ukraine, introduced by Decree of the President of Ukraine "On introduction of the martial law in Ukraine" № 64/2022 as of 24.02.2022, approved by the Law of Ukraine "On approval of Decree of the President of Ukraine "On introduction of the martial law in Ukraine" № 2102-IX as of 24.02.2022, Paragraph 69 Sub-section 10 "Transitional Provisions" of the Tax Code of Ukraine (hereinafter - Code) was amended with Sub-paragraphs 69.14, 69.16, 69.22 regarding calculation and payment of the land tax, environmental tax and real estate tax other than land, for taxation objects located within territories where hostilities are (were) conducted and territories temporarily occupied by armed forces of the russian federation, list of which is determined by the Cabinet of Ministers of Ukraine.

Key condition under which taxpayers have a right not to calculate and not pay taxes during the martial law in Ukraine is the list of territories determined by the Cabinet of Ministers of Ukraine.

On 06.12.2022, the Cabinet of Ministers of Ukraine adopted Resolution № 1364 "Some issues of forming the list of territories where hostilities are (were) conducted or temporarily occupied by the russian federation" (hereinafter – Resolution № 1364).

In the clarification provided by the Ministry of Finance of Ukraine at request of the State Tax Service, it is noted that Resolution № 1364 defines mechanism for forming the list of territories and does not approve a specific list of such territories.

Article 49 of the Law of Ukraine "On the Cabinet of Ministers of Ukraine" stipulates that the Cabinet of Ministers of Ukraine, on the basis of and according to the Constitution of Ukraine and laws of Ukraine, acts of the President of Ukraine, resolutions of the Supreme Council of Ukraine adopted in accordance with the Constitution and laws of Ukraine, issues binding acts – resolutions and orders.

Therefore, the list of territories developed in implementation of Resolution № 1364 and approved by the Ministry for Reintegration where hostilities are (were) conducted or temporarily occupied by the russian federation cannot be used for taxation purposes, since according to the Code, the key condition for the possibility of taxpayers applying tax peculiarities is the list of territories defined precisely by the Cabinet of Ministers of Ukraine.