Payers of single contribution, attention!

Regarding application of fines and penalties by the controlling bodies from 01.08.2023 for violation of obligations by payers of single contribution, determined by Part 2 of Article 6 of the Law of Ukraine № 2464-VI as of 08.07.2010 "On collection and accounting of single contribution to obligatory state social insurance" committed during the martial law on the territory of Ukraine and spread of the acute respiratory disease COVID-19 caused by the SARS-CoV-2 coronavirus

Paragraph 1 of Resolution № 651 of the Cabinet of Ministers of Ukraine as of 27.06.2023 "On the cancellation of quarantine established in the entire territory of Ukraine to prevent spread of the acute respiratory disease COVID-19 caused by the SARS-CoV-2 coronavirus on the territory of Ukraine" abolished quarantine established in order to prevent spread of this disease from 24 hours 00 minutes on 30.06.2023 throughout the territory of Ukraine.

Law of Ukraine № 3219-IX as of 30.06.2023 "On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding taxation peculiarities during the martial law" amended the Law of Ukraine № 2464-VI as of 08.07.2010 "On collection and accounting of single contribution to obligatory state social insurance" (hereinafter – Law № 2464), in particular, new edition of Paragraphs 9²¹ – 9²² of Section VIII "Final and Transitional Provisions" is set forth.

Therefore, taking into account Decree № 64/2022 of the President of Ukraine "On the introduction of martial law in Ukraine" as of 24.02.2022, approved by the Law of Ukraine № 2102-I "On the approval of Decree of the President of Ukraine "On the introduction of martial law in Ukraine" as of 24.02.2022, which determined that the martial law was introduced in Ukraine from 05:30 on 24.02.2022 and, taking into account provisions of Paragraphs 9²¹ – 9²² of Section VIII "Final and Transitional Provisions" of the Law № 2464, which set the final date of non-application of fines by the controlling body, namely 01.08.2023, the controlling bodies shall not apply fines for legislative violation in terms of the single contribution to obligatory state social insurance (hereinafter – single contribution) committed in a period from 24.02.2022 to 31.07. 2023 on basis of the specified Paragraphs and accrual of penalties is suspended.

At the same time, provisions of Paragraph  9¹⁹ of Section VIII "Final and Transitional Provisions" of the Law № 2464 remained unchanged, according to which payers of single contribution specified in Paragraphs 4, 5 and 5¹ of Part 1 of Article 4 of the Law № 2464 have a right not to charge, calculate and pay single contribution for themselves from 01.03.2022 until termination or cancellation of the martial law in Ukraine and within twelve months after termination or cancellation of the martial law and not to submit calculation of single contribution as a part of tax declaration for a period in which, in accordance with Clause 1 of Paragraph 9¹⁹of Section VIII "Final and Transitional Provisions" of the Law № 2464, the single contribution was not accrued, calculated and paid.

However, to payers of single contribution specified in Paragraph s 4, 5 and 5¹ of Part 1 of Article 4 of the Law № 2464, who will calculate and accrue single contribution and submit to the controlling body a report containing information on the amounts of calculated single contribution and at the same time will not pay independently defined obligations, from 01.08.2023 the controlling body will apply influence measures and penalties specified in Part 11 of Article 25 of the Law № 2464.

Summarizing above specified, the controlling bodies will apply fines specified in Part 11 of Article 25 of the Law № 2464 and penalties for violations committed from 01.03.2020 to 01.08.2023.

For legislative violations by payers of single contribution in a period from 01.03.2020 to 31.07.2023, fines determined in Part 11 of Article 25 of the Law № 2464are not applied by the controlling body; penalty accrued during this period will be written off.