The State Tax Service proposes to increase from 10 to 180 days the period during which mobilized individual entrepreneurs must resolve issues related to tax exemption with the State Tax Service. This was reported by the head of the State Tax Service Ruslan Kravchenko, Kommersant Ukrainsky reports.
What is the current situation with taxation of mobilized individual entrepreneurs
Current legislation provides that mobilized individual entrepreneurs are exempt from paying and submitting personal income tax, single tax and military duty reports for the entire period of service. To do this, after demobilization, they must submit an application to the tax service and a copy of their military ID or other draft document. Only 10 days are given for this. Mobilized individual entrepreneurs who have not submitted an application to the tax service continue to receive tax assessments every month. And they often become debtors.
How the problem is proposed to be solved
According to Ruchlan Kravchenko, everyone understands perfectly well that it is extremely difficult to meet the 10-day deadline.
“The deadline for submitting an application for exemption from paying taxes by a self-employed person after demobilization should be increased. This is my principled position. I hope that it will be supported by everyone on whom the decision depends,” the head of the State Tax Service emphasized.
The State Tax Service proposes to increase from 10 to 180 days the period during which mobilized individual entrepreneurs must submit an appropriate application to the State Tax Service. According to the tax service, this time should be enough for Ukrainian servicemen after demobilization – especially if treatment is required – to be able to collect and submit all the necessary documents without undue stress and haste. If a mobilized individual entrepreneur did not have time to fulfill his tax obligations within the specified deadlines or did not submit an application – he may be exempted from liability if he does so within 180 days after the abolition of martial law.
At the same time, tax obligations for the period of service are accrued in full if the self-employed person did not submit an application and did not exercise the right to dismissal.
Another problem is advance payments from mobilized individual entrepreneurs
In early April, Ruslan Karavchenko told how, during a meeting with businesses in the Khmelnytskyi region, a veteran approached him, who raised another problem of mobilized individual entrepreneurs.
As is known, individual entrepreneurs of groups 1-2 must pay a single tax and military levy in advance every month. To avoid automatic assessments, an application should be filed for the impossibility of fulfilling tax obligations. However, during mobilization and service, the entrepreneur hardly thinks about this. Because of which a tax debt arises.
“Therefore, it is proposed to clearly stipulate that advance payments from the single tax and military levy are not accrued to a mobilized individual entrepreneur, starting from the month in which the tax office received information about mobilization. Taxes and fines accrued during this period should be canceled,” Ruslan Kravchenko emphasized.
He reported that all these proposals, which can significantly improve the conditions for mobilized individual entrepreneurs, are already being worked on together with the Ministry of Finance.
What about the existing tax debts of mobilized individual entrepreneurs
Today, more than 3 thousand mobilized individual entrepreneurs have a tax debt of almost 30 million hryvnias. The State Tax Service has identified specific measures to help such entrepreneurs. For example, in addition to the above-mentioned proposals for legislation, as Ruslan Kravchenko said, the tax service initiated the signing of a protocol with the Ministry of Defense in order to have accurate information about mobilized individual entrepreneurs and assistance to them.
Regional departments of the State Tax Service received lists of individual entrepreneurs who are charged a single tax and military levy, and who are likely to be unable to fulfill their tax obligations. Each story is being processed separately. An inventory of complaints and letters from individual entrepreneurs regarding the write-off of accrued tax liabilities from the date of their mobilization is also being conducted. Working groups and “hotlines” have been created in territorial departments to provide consultations to mobilized individual entrepreneurs who cannot fulfill their tax obligations, or to their family members.
During April, mobilized individual entrepreneurs and their family members should be informed about the existing mechanisms, defined by law, to avoid the negative consequences of tax non-payment.
