For what period individual-entrepreneur – single tax payer, who in a middle of month switched to Group III at 2 percent rate, for the first time submits Single tax payer’s declaration of Group III ...?

Information and Reference Department, published 23 January 2023 at 14:47 Chapter: News

For what period individual-entrepreneur – single tax payer, who in a middle of month switched to Group III at 2 percent rate, for the first time submits Single tax payer’s declaration of Group III during the martial law, state of emergency in Ukraine, approved by Order of the MFU №124 as of 26.04.2022?

Sub-paragraph 9.2 Paragraph 9 Sub-section 8 Section ХХ "Transitional Provisions" of the Tax Code of Ukraine №2755-VI as of 02.12.2010 with changes and amendments (hereinafter – TCU) stipulates that the single tax payers of Group III can be, in particular, individuals-entrepreneurs.

Clause 1 of Sub-paragraph 9.6 Paragraph 9 Sub-section 8 Section ХХ "Transitional Provisions" of the TCU stipulates that the tax (reporting) period for single tax payers of Group III, who use special taxation peculiarities, established by Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU, is equal to a calendar month.

Order №124 of the Ministry of Finance of Ukraine as of 26.04.2022 (hereinafter – Order №124), which entered into force on 06.05.2022, approved form of the Single tax payer’s declaration of Group III for a period of the martial law and state of emergency in Ukraine.

Clause 1 of Sub-paragraph 9.7 Paragraph 9 Sub-section 8 Section ХХ "Transitional Provisions" of the TCU stipulates that the single tax payers of Group III, who use special taxation peculiarities, established by Paragraph 9 Sub-section 8 Section ХХ "Transitional Provisions" of the TCU, submit to the controlling body the Single tax payer’s declaration within terms established for the monthly tax (reporting) period, except for cases provided for in Paragraph 9 Sub-section 8 Section ХХ "Transitional Provisions" of the TCU.

At the same time, it should be noted that according to Sub-paragraph 9.8 Paragraph 9 Sub-section 8 Section ХХ "Transitional Provisions" of the TCU, the business entity is considered to be the single tax payer of Group III with peculiarities established by Paragraph 9 Sub-section 8 Section ХХ "Transitional Provisions" of the TCU:

from April 1, 2022 in case of submitting application before April 1, 2022;

from the next working day after submission of application in case of submission of application starting from April 1, 2022.

Business entities (newly created) registered according to procedure established by law, which within 10 days from the day of state registration submitted application for election of the simplified taxation system taking into account taxation peculiarities established by Paragraph 9 Sub-section 8 Section ХХ "Transitional Provisions" of the TCU, are considered to be the single tax payers of Group III from the day of their state registration.

As follows, the first reporting (tax) period for individual-entrepreneur who chose the simplified taxation system with peculiarities established by Paragraph 9 Sub-section 8 Section ХХ "Transitional Provisions" of the TCU in a middle of the tax (reporting) month, will be month in which it was registered as the single tax payer of Group III with peculiarities established by Paragraph 9 Sub-section 8 Section ХХ "Transitional Provisions" of the TCU.