To the attention of single tax payers (legal entities)!
Law of Ukraine № 4015-IХ as of 10.10.2024 “On amendments to the Tax Code of Ukraine and other Laws of Ukraine regarding ensuring balanced budget revenues during the martial law” entered into force on December 1, 2024, with changes (hereinafter – Law № 4015).
Law № 4015 provides for changes in taxation of single tax payers (legal entities), namely: Sub-paragraph 298.2.3 o Paragraph 298.2 Article 298 of the Tax Code of Ukraine (hereinafter – Code) is added with Sub-paragraph 81of the following content:
"81) in case of single tax debt from the single tax payer who independently determined positive value of difference between amount of the total minimum tax liability and total amount of taxes, levies, payments and expenses paid for the land plots lease for the last tax (reporting) year, on each first day of month for two consecutive quarters – on the last day of the second of two consecutive quarters".
That is, the single tax payer who independently determined amount of the minimum tax liability to be paid and has any amount of tax debt for two consecutive quarters loses right to apply the simplified taxation system.
2. Sub-section 10 of Section XX "Transitional Provisions" of the Code is added with Paragraphs 671 and 74.
Paragraph 671 Subsection 10 Section XX "Transitional Provisions" of the Code provides that determining the minimum tax liability for 2025 and subsequent years, ending in year in which the martial law is terminated or cancelled, 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,
the coefficient "K" defined in Sub-paragraphs 381.1.1 and 381.1.2 of Paragraph 381.1 Article 381 of the Code is applied with a value of 0.057.
In accordance with Paragraph 74 of Sub-section 10 Section XX "Transitional provisions" of the Code from January 1, 2024 to December 31 of year in which the martial law, introduced by Decree of the President of Ukraine "On introduction of the martial law in Ukraine" № 64/2022 as of 24.02.2022, will be terminated or cancelled, approved by the Law of Ukraine “On approval of Decree of the President of Ukraine “On Introduction of the martial law in Ukraine” № 2102-IХ as of 24.02.2022, amount of the minimum tax liability, determined according to Sub-paragraphs 381.1.1and 381.1.2 of Paragraph 381.1 Article 381 of the Code, cannot be less than 700 UAH per 1 hectare, and for land plots in area of which share of arable land is at least 50 percent - 1400 UAH per 1 hectare.
This Paragraph does not apply to land plots, land shares (shares) located in territories of possible hostilities, which are included in the List of territories where hostilities are (were) ongoing or temporarily occupied by the russian federation.
Therefore, amount of the minimum tax liability cannot be less than 700 UAH per 1 hectare, and for land plots with a predominant share of arable land (at least 50%), the minimum tax liability is set at 1400 UAH.
3. According to changes made to the Code by the Law № 4015, the single tax payers of Group III are payers of military levy.
Simplified system of taxation, accounting and reporting is a special mechanism for collecting taxes and levies, which establishes replacement of payment of individual taxes and levies established by the single tax payment with simultaneous maintenance of simplified accounting and reporting.
Business entities that apply the simplified system of taxation, accounting and reporting are divided into Groups of the single tax payers.
Group III includes legal entities – business entities of any organizational and legal form, whose income during the calendar year does not exceed 1167 times the minimum wage established by the law as of January 1 of the tax (reporting) year.
Law of Ukraine as of 04.12.2024 № 4113-IХ “On amendments to the Tax Code of Ukraine and other Laws of Ukraine on stimulating development of digital economy in Ukraine” entered into force on 01.01.2025, with changes and additions (hereinafter – Law № 4113), except for changes to Paragraphs 161 and 25 of Sub-section 10 Section XX “Transitional Provisions” of the Code, which are applied from the date of entry into force of the Law № 4015 (01.12.2024).
Law № 4113 made changes to Paragraph 161 of Sub-section 10 Section XX "Transitional provisions" of the Code, which stipulates that the military levy, in particular for legal entities – single tax payers of Group III, is set at 1 percent of income determined according to Article 292 of the Code, from January 1, 2025 to December 31 of year in which the martial law is terminated or cancelled.
That is, the single tax payers of Group III (legal entities) will for the first time reflect amounts of military levy in the single tax payer’s declaration for the first quarter of 2025. Amounts of military levy are to be paid by the specified payers within 10 calendar days after deadline for submitting the single tax payer’s declaration for the first quarter of 2025.
The specified changes increase responsibility of the single tax payers regarding obligation to independently pay tax liabilities within the framework of using the simplified taxation system.
