Self-employed individuals who were mobilized or signed a contract for military service are exempt from paying taxes and submitting reports for the period of service. This is reported by Delo.ua with reference to the press service of the State Tax Service of Ukraine.
The department notes that the relevant amendments to the Tax Code (Law No. 4505-ИХ) have come into force.
Taxes that will not be paid:
personal income tax,
single tax,
military levy,
ESV, if the individual entrepreneur does not have employees.
The State Tax Service explains that the exemption is applied automatically based on data from the Unified State Register of Conscripts, Military Conscripts and Reservists (dates of mobilization, conclusion of a contract, demobilization) from the first day of the month of mobilization or conclusion of a contract, but not earlier than February 24, 2022.
What should an individual entrepreneur do:
if information about mobilization, contract or demobilization is already in the Register – you do not need to submit an application;
if there is no data in the Register – you can submit an application and copies of supporting documents to the tax office yourself.
How will the exemption work:
The State Tax Service will not charge advance payments from the single tax and military levy for the period of mobilization or contract. If such amounts have already been charged, they are subject to cancellation.
If an individual entrepreneur was excluded from the register of single tax payers due to non-payment of tax obligations during mobilization or service under a contract – it will be automatically renewed.
Also, mobilized individuals – entrepreneurs/individuals engaged in independent professional activities/members of a farm, if they do not belong to persons subject to insurance on other grounds, information about which is available in the Register, have the right not to accrue, calculate and pay the SSC for the entire period of their military service, including military service under a contract.
In addition, during the period of mobilization of the single contribution payer or the validity of the contract concluded with such a person, the accrued amounts of penalties and fines are subject to cancellation (cancellation) for reporting periods up to and including the first day of the month following the month in which the supervisory authority received information about the mobilization of the single contribution payer.
If the individual entrepreneur has employees, he may authorize another person to pay salaries to employees. In this case, the SSC is calculated by an authorized person, and the individual entrepreneur can pay it within 180 days after demobilization – without penalties.
Reporting on the SSC is submitted by the individual entrepreneur within 150 days after demobilization, also without penalties and fines.
If violations occur before the start of service or during it (untimely payment or reporting) – the individual entrepreneur is exempted from liability if he fulfills his duties within the established deadlines after demobilization:
reporting – up to 150 days,
payment – up to 180 days.
In total, 3,145 entrepreneurs in the ranks of the Armed Forces of Ukraine as of April of this year had a tax debt for the payment of the single tax and military levy. Analysts emphasize that it is currently impossible to calculate the real number of mobilized entrepreneurs with tax debt.
