Contact center of the STS answers top-5 questions received in March 2020

Question № 1: Are individuals-entrepreneurs, individuals involved in independent professional activity and farm members exempted from the accrual and payment of the single social contribution due to preventive measures against the occurrence and spread of coronavirus disease?

Full answer: According to Paragraph 9 Copy 10 Section VIII “Final and Transitional Provisions” of the Law of Ukraine as of 08.07.2010 № 2464-VI “On collection and accounting of the single social contribution to compulsory state social insurance” with amendments (hereinafter – the Law № 2464), individuals-entrepreneurs, individuals involved in independent professional activity and farm members are temporarily exempted from accrual and payment of the single social contribution to compulsory state social insurance in terms of accrued amounts, calculated and paid by such individuals for the period from March 1 to March 31 and from April 1 to April 30, 2020 for themselves specified in Sub-paragraph 4, 5 and copy 5of the first part of Article 4 of the Law № 2464. Herewith, provisions of the second paragraph of Paragraph 2 Part 1 Article 7 of the Law № 2464 on such periods are not applied to such individuals.

Such individuals can make a decision on the accrual, calculation and payment of the SSC for the periods from March 1 to March 31 and from April 1 to April 30, 2020 in the amount and manner specified by the Law № 2464. In this case, information on the paid amounts is indicated in the reporting on accruals of the SSC, for the reporting period defined for such individuals by the Law № 2464.

Question № 2: For which reporting months there is no accrued and payable land payments (land tax and rent for state and communal property land) and for land owned or used, including on lease, by individuals-entrepreneurs and legal entities due to preventive measures against the occurrence and spread of coronavirus disease?

Full answer: The Law of Ukraine as of 30.03.2020 № 540-IX “On amendments to some legislative acts of Ukraine aimed at providing additional social and economic guarantees in relation to the spread of coronavirus disease (COVID-19)” which came into force on 02.04.2020, specifically Paragraph 52, copy 4, Sub-section 10 Section XX “Transitional Provisions” of the Tax Code of Ukraine dated 02.12.2010 № 2755-VI with amendments (hereinafter referred to as “the TCU”) was published in new edition.

According to Paragraph 52, copy 4, Sub-section 10 Section XX “Transitional Provisions” of the TCU, there is no accrued and payable land payments (land tax and rent for state and communal property land plots) and for land owned or used for business activity, including on lease, by individuals-entrepreneurs and legal entities.

Herewith, payers of the land payments (except for individuals) who, in accordance with Paragraph 286.2 Article 286 of the Tax Code of Ukraine have submitted a tax declaration have the right to submit a clarifying tax declaration, which reflects changes in the tax liability for land payment over March 2020.

If in March or April 2020, the land tax payers have submitted a tax declaration to reduce the land tax liability for the tax period of April 2020 for reasons other than the self-disclosure of errors contained in their previously filed tax declaration, such land tax payers are required to submit, not later than April 30, 2020 clarifying land tax declarations (land tax and / or rent for state or communal land property) for 2020 to reflect changes in the land tax liability for tax periods of March and April 2020 in accordance with the provisions of Paragraph 52, copy 4, Sub-section 10 Section XX “Transitional Provisions” of the TCU.

Herewith, in case of submitting such tax declarations on the grounds specified in Paragraph 52, copy 4, Sub-section 10, Section XX “Transitional Provisions” of the TCU, there are no applicable sanctions specified in Article 50 of the TCU and penalties in accordance with the requirements of Paragraph 120.2 Article 120 of the TCU for amendments to tax reporting in part of increase in the land tax liabilities for tax period of April 2020.

Determine that the land tax payers (land tax and rent for state and communal property land plots) who determine land tax liabilities on the basis of tax declarations are obliged to conduct the land tax payments for tax period of April 2020 in full amount at location of the land plot by June 30, 2020 without accrual of sanctions and penalties prescribed by the Tax Code for violation of payable terms of general tax obligations for such period.

Question № 3: Where can be found the available information about the schedule of work, location of service points (separate registration points) for users of the Qualified electronic trust services provider of Accredited Key Certification Center of the STS and list of documents required for obtaining electronic trust services?

Short and full answers are identical:

Detailed information about the schedule of work, location of service points (separate registration points) for users of the Qualified electronic trust services provider of Accredited Key Certification Center of the STS can be obtained from official information resource of www.acskidd.gov.ua under the heading: “Main / Contacts / Service Points” or “Main / Electronic Confidential Services / Service Points”.

List of documents required for obtaining electronic trust services is available in section “Obtaining Electronic Trust Services” of the official information resource of the Qualified electronic trust services provider of Accredited Key Certification Center of the STS (Main / “Receiving Electronic Trust Services”) in the section “Preparation of documents and registration”.

Question № 4: Can an individual entrepreneur submit an application for simplified taxation system through the E-Cabinet and what date will be considered as the date of submission of the specified application?

Full answer:

According to Paragraph 298.1 Article 298 of the Tax Code of Ukraine as of 02.12.2010 № 2755-VI with amendments (hereinafter referred to as the TCU) the procedure for election or transition of the single tax payers of Group I – III to the simplified taxation system is carried out in accordance with Sub-paragraphs 298.1.1 – 298.1.4 of Paragraph 298.1 Article 298 of the TCU.

Sub-paragraph 298.1.1 Paragraph 298.1 Article 298 of the TCU determines that for election or transition to the simplified taxation system the business entity should submit an application for simplified taxation system to the controlling body (hereinafter – the application).

Application should be submitted at the taxpayer’s decision, unless otherwise is not provided by the Tax Code in one of the following ways:

1) personally by the taxpayer or authorized individual;

2) sent by mail with the notification of delivery and with description of the attachment;

3) by means of electronic communication in electronic form, following the condition regarding registration of qualified electronic signature of the accountable individuals in the manner prescribed by law;

4) to the state registrer in addition to the application for state registration, submitted for state registration, particularly, registration of individual – entrepreneur, taking into account requirements of Paragraph 291.5 Article 291 of the TCU. Electronic copy of application made by scanning should be transmitted by the state registrar to the controlling body at the same time as information on the registration card for the state registration, particularly, registration of individual – entrepreneur according to the Law of Ukraine as of 15.05.2003 № 755-IV “On the state registration of legal entities, entrepreneurs and community formations” with changes and additions.

The application form was approved by the Order of the Ministry of Finance of Ukraine dated 16.07.2019 № 308 (hereinafter – the Order № 308).

According to Sub-paragraph 298.1.4 Paragraph 298.1 Article 298 of the TCU the specified application should contain calculation of income for the previous calendar year preceding the year of transition to the simplified taxation system in the form approved by the Order № 308.

According to Paragraph 42, copy 1.2, Article 42 copy 1 of the TCU – the Electronic cabinet provides the possibility for taxpayers to exercise the rights and obligations defined by the TCU and the legal acts adopted on the basis and implementation of the TCU.

Access to the Electronic cabinet is made at the following address: http://cabinet.tax.gov.ua, as well as through the official web portal of the STS.

Work in the private part of the E-cabinet is carried out using the qualified electronic signature obtained from any Qualified provider of electronic trust services.

It should be noted that the possibility for submission and calculation of income for the previous calendar year, preceding the year of transition to the simplified taxation system, by electronic means in electronic form, following the requirement to register a qualified electronic signature of accountable individuals in the manner prescribed by the law, has not yet been implemented.

However, with the help of menu “Correspondence with the STS” of private part of the Electronic cabinet an individual – entrepreneur has the opportunity to send application for simplified taxation system to the STS body together with a cover letter and the calculation of income for the previous calendar year preceding the year of transition to the simplified taxation system in determined pdf format (2 MB limit).

Date of submission of the specified application for simplified taxation system together with a cover letter is the date of registration of the cover letter at the STS body. Within one working day after sending such letter to the STS body, the email’s author will be informed about the incoming registration number and the date of registration. Information on receiving and registering letter at the STS body can be viewed in the Incoming documents tab of the Incoming / Outgoing Documents menu of private part of the E-cabinet, sent letters – in the Sent documents tab of the Incoming / Outgoing Documents menu.

Question № 5: Are there penalties applicable for violations of the SSC legislation due to preventive measures against the occurrence and spread of coronavirus disease?

Full answer:

According to Paragraph 9 Copy 11.1 Section VIII “Final and Transitional Provisions” of the Law of Ukraine as of 08.07.2010 № 2464-VI “On collection and accounting of the single social contribution to compulsory state social insurance” with amendments (hereinafter – the Law № 2464) it is determined that the temporary penalties defined in Part 11 Article 25 of the Law №  2464 are not applied to the following violations committed for the periods from March 1 to March 31 and from April 1 to April 30, 2020, namely:

- late payment (untimely transfer) of the single social contribution to state social insurance (hereinafter referred to as a SC);

- incomplete or late payment of the SC, at the same time as the issuance of the payments to which the SC (advanced payments) is charged;

- untimely submission of reporting prescribed by the Law № 2464 to the controlling bodies. Second and third paragraphs of Paragraph 7 Part 11.1 Article 25 of the Law № 2464 on such violations committed for the period from March 1 to March 31 and from April 1 to April 30, 2020 are not applied.

As follows, according to second and third paragraphs of Paragraph 7 Part 11.1 Article 25 of the Law № 2464, failure to submit, untimely submission of reporting by the SC taxpayer to whom the penalty of 10 non-taxable minimum incomes of citizens for each such failure or late submission was imposed during the year, entails a penalty of 60 non-taxable minimum incomes of citizens for each such failure or untimely submission.

According to Paragraph 9 copy 11.2 Section VIII “Final and Transitional Provisions” of the Law № 2464, taxpayers of SC will not be charged with payable penalty; penalty accrued during these periods will be written off.