Is 15% rate applied to the amount of excess income received by individuals-entrepreneurs – single tax payers of Groups I and II, who during the martial law were on the simplified system with taxation peculiarities, after an automatic return to taxation sy

Information and Reference Department, published 18 May 2022 at 11:26 Chapter: News

Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the Tax Code of Ukraine (hereinafter – TCU) stipulates that temporarily from  01.04.2022 until termination or abolition of the martial law, state of emergency in Ukraine provisions of Section XIV of the TCU are applied taking into account the following features:

single tax payers of Group III may be individuals-entrepreneurs to whom no restrictions are applicable, particularly in terms of income.

Interest rate of the single tax for the single tax payers of Group III, who use taxation peculiarities, determined in Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU, is set at 2% of income determined according to Article 292 of the TCU.

Herewith, after termination or abolition of the martial law, state of emergency in Ukraine, the single tax payers of Group III, who on the day of termination or abolition of the martial law in Ukraine used taxation peculiarities, determined in Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU, from the first day of a month following the month of termination or abolition of the martial law, state of emergency in Ukraine, lose right to use taxation peculiarities determined in Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU and are automatically considered as those, who use taxation system on which such taxpayers were before the choice of taxation peculiarities determined in Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU.

As follows, income received by individual-entrepreneur – single tax payer of Group III during usage of taxation peculiarities, determined in Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU, is taxed exclusively at the 2% single tax rate of income determined according to Article 292 of the TCU. That is 15% rate, which is defined in Paragraph 293.8 Article 293 of the TCU, is not applicable to the specified income.

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