For which reporting period, in what term and in what form (electronic or paper) individuals, in respect of whom a record on the termination of entrepreneurial activity of individual-entrepreneur was entered in the Unified State Register, submit...

Information and Reference Department, published 15 July 2022 at 15:51 Chapter: News

For which reporting period, in what term and in what form (electronic or paper) individuals, in respect of whom a record on the termination of entrepreneurial activity of individual-entrepreneur was entered in the Unified State Register, submit the last single tax payer’s declaration and Annex 1 to it?

Paragraph 49.1 Article 49 of the Tax Code of Ukraine № 2755-VI as of 02.12.2010 with changes and amendments (hereinafter – TCU) stipulates that tax declaration is submitted for the reporting period within time limits established by the TCU to the controlling body in which the taxpayer is registered.

Taxpayer is obliged to submit tax declarations for each separate tax of which he / she is a payer for each reporting period established by the TCU, in which taxation objects arise or in case of indicators that are subject to declaration according to requirements of the TCU (Paragraph 49.2 Article 49 of the TCU).

Sub-paragraph 49.18.8 Paragraph 49.18 Article 49 of the TCU stipulates that if the taxpayer is liquidated or reorganized (including before the end of tax (reporting) period), declaration particularly on local taxes and levies can be submitted for the tax (reporting) period, which includes date of liquidation or reorganization before the end of such reporting period.

Entry of record in the State register of individuals-taxpayers (hereinafter – State register) on the termination of entrepreneurial activity of individual-entrepreneur or independent professional activity of individual is made in case, in particular, of entry of record in the Unified state register of legal entities, individuals-entrepreneurs and public organizations (hereinafter – Unified state register) on the state registration of termination of entrepreneurial activity of individual-entrepreneur from the date of state registration of termination of entrepreneurial activity of individual-entrepreneur (Sub-paragraph 65.10.1 Paragraph 65.10 Article 65 of the TCU).

Clauses 2 – 3 of Sub-paragraph 65.10.4 Paragraph 65.10 Article 65 of the TCU stipulate that state registration (registration) of termination of entrepreneurial or independent professional activity of individual or entry of record in the State register on the termination of such activity by individual does not terminate his / her obligations arising in the course of entrepreneurial or independent professional activity and does not change terms, procedures for fulfillment of such obligations and application of financial sanctions and penalties for the non-fulfillment.

In case that individual continues to carry out such activity after entering record in the State register on the termination of entrepreneurial or independent professional activity, it is considered that he / she has started such activity without taking it into account as a self-employed person.

Sub-paragraph 2 Paragraph 299.10 Article 299 of the TCU stipulates that registration as the single tax payer is indefinite and can be canceled by exclusion from Register of single tax payers by decision of the supervisory authority in case of termination of legal entity (except for conversion) or termination of entrepreneurial activity by individual-entrepreneur according to the law – on the day of receipt of notification on the state registration of such termination from the State register by the relevant controlling body.

In case that the single tax payer ceases to conduct economic activity, tax obligations in terms of the single tax payment are accrued to such payer until the last day (inclusively) of the calendar month in which registration was canceled by the decision of controlling body on the basis of notification received from the State register about the state registration of termination of entrepreneurial activity (Clause 1 of Paragraph 295.8 Article 295 of the TCU).

In case of the state registration of termination, in particular, of entrepreneurial activity of individual-entrepreneur – single tax payer, the last tax (reporting) period is considered to be period in which relevant controlling body received notification on the state registration of such termination from the State register (Paragraph 294.6 Article 294 of the TCU).

It should be noted that from 01.04.2021 declaration of the single tax payer – individual-entrepreneur is submitted according to the form approved by Order of the Ministry of Finance of Ukraine № 578 as of 19.06.2015  (as amended by Order of the Ministry of Finance of Ukraine № 752 as of 09.12.2020) (hereinafter – Declaration), which includes submission of reporting on the calculation of single contribution to obligatory state social insurance (hereinafter – single contribution) to the STS’s body at the main registration place of the single contribution payer.

Thereby, individuals, in respect of whom record on the termination of entrepreneurial activity of individual-entrepreneur has been entered in the Unified state register, submit Declarations for the last tax (reporting) quarter in which the state registration of termination of entrepreneurial activity was carried out with a cumulative total from the beginning of year, within terms specified in Sub-paragraphs 49.18.2 and 49.18.8 Paragraph 49.18 Article 49 of the TCU, within 40 calendar days following the last calendar day of the reporting (tax) quarter or before end of the reporting period on which the liquidation date falls.

In field 8 "Special marks" of the Declaration in line 8.1 "of the taxpayer who submits declaration for the last tax (reporting) period on which the date of termination of state registration falls" a mark " " is placed.

Paragraph 42.6 Article 42 of the TCU stipulates that the electronic document flow between the taxpayer and the controlling body is terminated, in particular, in case of presence of information on the termination of entrepreneurial activity of individual-entrepreneur or independent professional activity of individual in the State register.

Therefore, the last Declaration is submitted in person (by a person authorized to do so) or sent by mail with a delivery notification and description of the attachment.

At the same time, individuals with the last Declaration submit Annex 1 "Information on the amount of accrued income of insured persons and amount of accrued single contribution" (except for individuals who are exempted from paying single contribution to obligatory state social insurance according to the Law of Ukraine № 1058-IV as of 09.07.2003 "On obligatory state pension insurance" with changes and amendments).

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