To the attention of individuals – single tax payers

Press service of the State Tax Service of Ukraine, published 17 February 2023 at 11:49 Chapter: News

Clause 1 of Paragraph 49.2 Article 49 of the Tax Code of Ukraine (hereinafter – Code) stipulates that the taxpayer is obliged to submit tax declarations for each particular tax for each reporting period established by the Code, in which taxation objects arise or in case of indicators that are subject to declaration according to requirements of the Code, of which he / she is a payer. Clause 1 of Paragraph 49.2 Article 49 of the Code is applicable to all taxpayers, including taxpayers who are on the simplified taxation system, accounting and reporting.

Legal grounds for application of the simplified taxation system, accounting and reporting, as well as the single tax payment are established by Chapter 1 Section XIV of the Code.

At the same time, Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the Code establishes that temporarily from 01.04.2022 until termination or abolition of the martial law or state of emergency on the territory of Ukraine provisions of Section XIV of the Code are applicable taking into account the following peculiarities:

single tax percentage rate for the single tax payers of Group III, who use special taxation peculiarities established by Paragraph 9 Sub-section 8 Section XX "Transitional provisions" of the Code, is set at the 2 percent rate of income determined according to Article 292 of the Code (Sub-paragraph 9.4 Paragraph 9 Sub-section 8 Section XX "Transitional provisions" of the Code);

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

Sub-paragraph 9.7 Paragraph 9 Sub-section 8 Section XX "Transitional provisions" of the Code determines that the single tax payers of Group III, who use special taxation peculiarities established by Paragraph 9 Sub-section 8 Section XX "Transitional provisions" of the Code, submit the single tax payer declaration to the controlling body within terms established for the monthly tax (reporting) period, except for cases provided for in Paragraph 9 Sub-section 8 Section XX "Transitional provisions" of the Code.

Single tax payers of Group III – individuals, who use special taxation peculiarities established by Sub-section 8 Section XX "Transitional Provisions" of the Code, in case of determination of single contribution to obligatory state social insurance (hereinafter – single contribution), submit reports for the reporting period December as the single tax payer declaration for the IV quarter of the tax (reporting) year, in which obligations of the single tax payer are calculated using the cumulative total and information about amounts of single contribution accrued, calculated and paid, in order determined by the Law of Ukraine № 2464-VI as of 08.07.2010 "On collection and accounting of single contribution to obligatory state social insurance" (hereinafter – Law № 2464) for this category of payers.

Single tax payer declaration form of Group III for a period of the martial law, state of emergency in Ukraine (hereinafter – Tax declaration) was approved by Order of the Ministry of Finance of Ukraine № 124 as of 26.04.2022, which was registered in the Ministry of Justice of Ukraine on 05.05.2022 under № 495/37831, in which amount of income and tax liabilities are reflected for the tax (reporting) month.

Herewith, Tax declaration contains Annex 2 "Information on the amount of accrued income of insured individuals and amount of accrued single contribution."

Note 4 to Tax declaration stipulates that Annex 2 is submitted and filled in by individuals-entrepreneurs – single tax payers of Group III at the 2 percent rate of income, taking into account peculiarities established by Sub-paragraph 9.7 Paragraph 9 Sub-section 8 Section XX "Transitional provisions" of the Code. At the same time, Annex 2 is not submitted and filled in by the specified payers, provided that they comply with requirements specified in Parts 4 and 6 of Article 4 of the Law № 2464, which give a right to exempt such individuals from paying single contribution for themselves. Such individuals may submit Annex 2 only under condition of their voluntary participation in obligatory state social insurance system.

Also, Paragraph 9¹⁹ Section VIII "Final and transitional provisions" of the Law № 2464 establishes that temporarily, from 01.03.2022 until termination or abolition of the martial law in Ukraine and within twelve months after termination or abolition of the martial law, individuals specified in Paragraphs 4, 5 and 5¹ of Part 1 Article 4 of the Law № 2464 have a right not to accrue, calculate or pay single contribution for themselves. Herewith, provision of Clause 2 of Paragraph 2 Part 1 Article 7 of the Law № 2464 regarding such periods is not applicable to such individuals.

Such individuals do not fill in calculation of single contribution as a part of tax declaration for a period in which single contribution was not accrued, calculated or paid, according to Clause 1 Paragraph 9¹⁹ Section VIII "Final and Transitional Provisions" of the Law № 2464.

At the same time, application or non-application of provisions of Paragraph 9¹⁹ Section VIII "Final and Transitional Provisions" of the Law №2464 is a right of the specified payers of single contribution and therefore does not deprive such individuals of an opportunity to pay single contribution for themselves within terms specified by legislation and specify amounts of such single contribution in declaration, which, in particular, is a prerequisite for crediting insurance experience.

As follows, if individuals-entrepreneurs – single tax payers of Group III at the 2 percent rate, during the tax (reporting) months, did not have income and taxable objects subject to declaration, the Tax declaration with zero indicators for such periods is not submitted.

In case of determination of single contribution, individual-entrepreneur – single tax payer of Group III at the 2 percent rate must submit a report for the reporting period December as a tax declaration of the single tax payer for the IV quarter of the tax (reporting) year, in which calculates obligations of single tax payer using the cumulative total and notes information on the amounts of single contribution accrued, calculated and paid according to order specified by the Law № 2464.