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?
| Short answer: 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 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: Are penalties applicable for violations of the SSC legislation due to preventive measures against the occurrence and spread of coronavirus disease?
| Short answer: Temporarily, for the period from March 1 to March 31 and from April 1 to April 30, 2020 due to preventive measures against the occurrence and spread of coronavirus disease: - no penalties are applied for the late payment (untimely transfer) of the single social contribution to compulsory state social insurance (hereinafter referred to as the single contribution), incomplete payment or late payment of the single contribution at the same time as the issuance of amounts of payments (advanced payments), late submission of reports to the controlling bodies; - no penalty is accrued, but the penalty accrued during these periods will be written off. |
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.
Question №3: 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?
| Short answer: Temporarily, for the period from March 1 to March 31 and from April 1 to April 30, 2020 due to preventive measures against the occurrence and spread of coronavirus disease there is no accrued and payable land payments (land tax and rent for state and communal property land) and for land owned or used by them for business activity, including on lease, by individuals-entrepreneurs and legal entities Herewith, payers of the land payments (except 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 the respective months. Recalculation for individuals – payers of the land payments will be carried out by the controlling body. |
Full answer: The Law of Ukraine as of 17.03.2020 № 533-IX “On amendments to the Tax Code of Ukraine and other laws of Ukraine on support taxpayers for the duration of measures aimed to prevent the occurrence and spread of coronavirus disease (COVID-19)” which came into force on 18.03.2020, 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 amended particularly with Paragraph 52, copy 4.
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) 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 the respective months.
Recalculation for individuals – payers of the land payments will be carried out by the controlling body.
Question №4: During which term the non-residential property owned by individuals-entrepreneurs or legal entities is a non-taxation subject of the real estate tax other than land due to preventive measures against the occurrence and spread of coronavirus disease?
| Short answer: The non-residential property owned by individuals-entrepreneurs or legal entities is a non-taxation subject of the real estate tax other than land for the period from March 1 to April 30, 2020 due to preventive measures against the occurrence and spread of coronavirus disease |
Full answer: The Law of Ukraine № as of 17.03.2020 № 533-IX “On Amendments to the Tax Code of Ukraine and other laws of Ukraine on support taxpayers for the duration of measures aimed to prevent the occurrence and spread of coronavirus disease (COVID-19)” which came into force on 18.03.2020 amended the Tax Code of Ukraine dated 02.12.2010 № 2755-VI with amendments (hereinafter – the TCU), according to which the non-residential real estate objects owned by individuals-entrepreneurs or legal entities are not subject to tax real estate tax other than land, in accordance with Article 266 of the TCU for the period from March 1 to April 30, 2020.
Herewith, payers of the real estate tax other than land (except individuals) have the right to submit the tax declaration that reflects tax changes for the relevant months who according to Sub-paragraph. 266.7.5 Paragraph 266.7 Article 266 of the TCU have submitted the real estate tax other than land tax declaration.
Recalculation for individuals – payers of real estate tax other than land will be carried out by the controlling body (Paragraph 52, copy 5, Sub-section 10, Section XX of the TCU).
Question №5: Will fines and penalties be applied for the violation of the tax legislation (other than SC) during the period of measures against the occurrence and spread of coronavirus disease?
| Short answer: For the violation of the tax legislation committed during March 1 to May 31, 2020 penalties will not be applied, except of sanctions for: - violation of requirements for the long-term life insurance or non-state pension insurance contracts, in particular supplementary pension insurance; - alienation of property held in a tax lien without the consent of the controlling body; - violation of the accounting rules, production and turnover of fuel or ethyl alcohol in excise warehouses, which are applied on a general basis; - violation of accrual, declaration and payment of the value added tax, excise tax, rent. During March 1 to May 31, 2020 penalties will not be accrued to the taxpayers; previously accrued but nit paid penalty will be written off. |
Full answer: The Law of Ukraine № as of 17.03.2020 № 533-IX “On Amendments to the Tax Code of Ukraine and other laws of Ukraine on support taxpayers for the duration of measures aimed to prevent the occurrence and spread of coronavirus disease (COVID-19)” which came into force on 18.03.2020, Sub-section 10 Section XX “Transitional provisions” of the Tax Code of Ukraine dated 02.12.2010 № 2755-VI with amendments (hereinafter – the TCU) was amended with Paragraph 52, copy 1.
According to Paragraph 52, copy 1, Sub-section 10 Section XX “Transitional provisions” of the TCU, for the violation of the tax legislation committed during March 1 to May 31, 2020 penalties will not be applied, except of sanctions for:
- violation of requirements for the long-term life insurance or non-state pension insurance contracts, in particular supplementary pension insurance;
- alienation of property held in a tax lien without the consent of the controlling body;
- violation of the accounting rules, production and turnover of fuel or ethyl alcohol in excise warehouses, which are applied on a general basis;
- violation of accrual, declaration and payment of the value added tax, excise tax, rent.
During March 1 to May 31, 2020 penalties will not be accrued to the taxpayers; previously accrued but nit paid penalty will be written off.
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