Actual questions from the taxpayers
What are the actions individual-entrepreneur – single tax payer of Groups I – III, who from 01.08.2023 is automatically considered to be the single tax payer of the corresponding Group, if such payer exceeds amount of income, calculated in proportion to the number of calendar months of 2023, during which special taxation peculiarities were not applied?
Law of Ukraine № 3219-ХХ 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" made changes from 01.08.2023, in particular, to Sub-section 8 Section XX "Transitional Provisions" of the Tax Code of Ukraine (hereinafter – TCU), to which was added new Paragraph 91 regarding the transition peculiarities of business entities that used taxation peculiarities, established by Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU, on taxation system on which such taxpayers were before choosing special taxation peculiarities provided for in Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU.
Taxpayers who, as of 31.07.2023, used special taxation peculiarities established by Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU, but did not abandon their use independently, and before transition to such peculiarities were the single tax payers, from 01.08.2023 are automatically considered to be the single tax payers of the single tax group in which they were until the transition moment to application of peculiarities of Group III, established by Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU (Sub-paragraph 91.4.1 of Sub-paragraph 91.4 Paragraph 91 Sub-section 8 Section ХХ "Transitional Provisions" of the TCU).
Sub-paragraph 91.4.3 of Sub-paragraph 91.4 Paragraph 91 Sub-section 8 Section ХХ "Transitional Provisions" of the TCU established that in the reporting year2023, amount of income for the corresponding Group of the single tax payers, established by Paragraph 291.4 Article 291 of the TCU, is determined in proportion to the number of calendar months of current calendar year, during which the single tax payer did not apply taxation peculiarities established by Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU.
Paragraph 293.8 Article 293 of the TCU stipulates that rates established by Sub-paragraphs 293.3 - 293.5 Article 293 of the TCU, are applied taking into account the following peculiarities:
1) single tax payers of Group I, who in the calendar quarter exceeded amount of income defined for such payers in Paragraph 291.4 Article 291 of the TCU, from the next calendar quarter, upon application, make a transition to application of the single tax rate determined for the single tax payers of Groups II – III, or refuse to apply the simplified taxation system.
Such payers are required to apply the single tax rate of 15 percent to the excess amount.
Application is submitted not later than the 20th day of a month following the calendar quarter in which income was exceeded;
2) single tax payers of Group II, who exceeded in tax (reporting) period amount of income determined for such payers in Paragraph 291.4 Article 291 of the TCU, in the next tax (reporting) quarter, upon application, they make a transition to application of the single tax rate determined for single tax payers of Group III, or refuse to apply the simplified taxation system.
Such payers are required to apply the single tax rate of 15 percent to the excess amount.
Application is submitted not later than the 20th day of a month following the calendar quarter in which income was exceeded;
3) single tax payers of Group III (individuals-entrepreneurs) who exceeded in tax (reporting) period amount of income determined for such payers in Paragraph 291.4 Article 291 of the TCU, apply the single tax rate of 15 percent to the excess amount, and they are also obliged, according to procedure established by Chapter 1 Section XIV of the TCU, to make a transition to payment of other taxes and levies established by the TCU.
Application is submitted not later than the 20th day of a month following the calendar quarter in which the excess amount of income was admitted.
Application form for application of the simplified taxation system was approved by Order of the Ministry of Finance of Ukraine № 308 as of 07.16.2019 (hereinafter – Application).
Therefore, individuals-entrepreneurs – single tax payers of Groups I – III, who are found to have exceeded maximum amount of income calculated according to Sub-paragraph 91.4.3 of Sub-paragraph 91.4 Paragraph 91 Sub-section 8 Section ХХ "Transitional Provisions" of the TCU, are obliged to:
apply the single tax rate of 15 percent to the excess amount;
make a transition to application of the single tax rate established for the single tax payers of Groups II or III or refuse to apply the simplified taxation system (single tax payers of Group I);
make a transition to application of the single tax rate established for Group III or refuse to apply the simplified taxation system (single tax payers of Group II);
make a transition to paying other taxes and levies established by the TCU (single tax payers of Group III).
Herewith, not later than 20.10.2023, it is necessary to submit Application, in lines 5.2 and 5.5 of which to indicate the date (period) of change (rejection) "from 01.10.2023".
