Quarantine-related incentives:
what's new for taxpayers
On May 13, 2020 Ukrainian Parliament adopted the Law №3329-d regarding quarantine tax incentives and the Law №2166 on exemption of certain categories of payers from the unified social contribution (USC).

The final texts of the laws haven't been published yet, but the main changes are as follows:
1. Terms are extended: until the last day of the month in which the quarantine expires

► Penalties and fines for violation of tax legislation are abolished (except excisable goods, violation of accrual, declaration and payment of VAT, excise tax, rent payment);

► Penalties and fines for late payment or underpayment of USC, as well as for late reporting are abolished;

► Penalty is abolished;

► The moratorium on the majority of tax audits will be extended. Updated plan of tax audits shall be published within 10 days from the end of quarantine;

►Statute of limitations provіded by the Tax Code of Ukraine is suspended.
2. Up till June 30, 2020 the terms are suspended for:

► Claims against tax authorities` decisions (except claims regarding VAT refund), specifically claims submitted before June 30, 2020 and/or pending claims as of March 18, 2020;

► Provision of tax rulings by the tax authorities;

► Provision of responses to requests of the tax authorities (except requests regarding VAT refund) received up to June 30, 2020.

3. Up till May 31, 2020 USC is abolished for private entrepreneurs and self-employed individuals.

The Law №2166 releases the following taxpayers from USC:

► Self-employed individuals that receive pension or are disabled. They can become payers of USC voluntarily only;

► Self-employed individuals, provided they are registered as private entrepreneurs and lead the same type of activity as self-employed individuals and private entrepreneurs. In fact, this is the avoidance of double taxation of USC.
If you have questions related to tax law in the context of a coronavirus pandemic, please contact us.

Viktoriya Fomenko: +38 044 391 38 53, Viktoriya.Fomenko@integrites.com

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