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Regarding the fulfillment of tax obligations by taxpayers - individuals (including self-employed) during the martial law

, published 03 August 2022 at 16:10

From the moment of entry into force (that is, from May 27, 2022) of the Law of Ukraine № 2260-IX as of 12.05.2022 "On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding the tax administration peculiarities of taxes, levies and single contribution during the martial law and state of emergency" (hereinafter – Law № 2260) for taxpayers - individuals, including self-employed (hereinafter – individuals) who have opportunity to fulfill their tax obligations in a timely manner, obligations and responsibilities regarding compliance with deadlines for submitting tax reporting, payment of taxes and levies, etc. are renewed (Sub-paragraph 69.1 Paragraph 69 Sub-section 10 Section XX "Transitional provisions" of the Tax Code of Ukraine).

Namely, taxpayers - individuals who have opportunity to fulfill their tax obligations in a timely manner in terms of compliance with deadlines for payment of taxes and levies, submitting reporting are exempted from responsibility for late fulfillment of such obligations deadline for fulfillment of which falls on a period starting from February 24, 2022 until the date of entry into force of the Law № 2260 (May 27, 2022) under condition of:

- submission of tax reporting by July 20, 2022;

and

- payment of taxes and levies not later than July 31, 2022.

In case that such taxpayers - individuals do not fulfill their tax obligations within the specified terms, they will be subject to fines determined by the Tax Code of Ukraine (hereinafter – TCU).

At the same time, if individual taxpayer is currently unable to fulfill tax obligations, but later such individual taxpayer will be able to do so again, the following rules will be applicable to such taxpayers.

Taxpayers - individuals who have regained ability to fulfill their tax obligations (deadline for fulfillment of which falls on a period starting from February 24, 2022 until the day when such opportunity is renewed) are released from liability for late fulfillment of such obligations, provided that they fulfill these tax obligations within 60 calendar days from the first day of a month following the month of renewal of such opportunities.

Taxpayers - individuals, who are unable to fulfill their tax obligations in a timely manner in terms of meeting deadlines for paying taxes and levies, submitting reporting, etc., are released from liability provided for by the TCU with mandatory fulfillment of such obligations within six months after termination or abolition of the martial law in Ukraine.  

Law № 2260 stipulates that procedure for confirming possibility or impossibility of the taxpayer's fulfillment of obligations (hereinafter – Procedure), specified in Sub-paragraph 69.2 Paragraph 69 Sub-section 10 Section XX of the TCU, and the list of supporting documents (hereinafter – List) must be approved by the Ministry of Finance of Ukraine.

After the Ministry of Finance approves these Procedures and the List, taxpayers - individuals will have opportunity (if there are certain grounds) to submit documents to the tax authorities that confirm possibility or impossibility of fulfilling their tax obligations in terms of meeting the deadlines for paying taxes and levies, submitting reporting, etc.

More specific explanations will be provided after the Ministry of Finance adopts the relevant order.

Please note that taxpayers - individuals will not be held liable, provided for by the TCU for late fulfillment of their tax obligations in terms of meeting the deadlines for paying taxes and levies, submitting reporting, etc., only if they confirm impossibility of fulfilling such tax obligations.

At the same time, if the taxpayer - individual does not confirm impossibility of fulfilling tax obligations, such taxpayer - individual will not be released from liability provided for by the TCU for late fulfillment of tax obligations in terms of meeting the deadlines for paying taxes and levies, submitting reporting, etc.

Summarizing the above specified, it should be taken into account that changes made by the Law № 2260 provide for all cases of fulfilling tax obligation without the application of financial sanctions, provided that requirements of this Law are met, in particular for:

- compliance with the established deadlines for submitting tax reporting and paying taxes and levies;

- in the absence of possibility of fulfilling tax obligations during the entire period of the martial law;

- in case of renewal of ability to fulfill tax obligations during the martial law.

Finally, please note that the specified peculiarities are established temporarily for a period until termination or abolition of the martial law on the territory of Ukraine, introduced by Decree of the President of Ukraine № 64/2022 as of 24.02.2022 "On introduction of the martial law in Ukraine", approved by the Law of Ukraine № 2102-IX as of 24.02.2022 "On approval of Decree of the President of Ukraine "On introduction of the martial law in Ukraine".