Tax
Is it required to pay land tax for March 2020?
No, there is a land tax exemption for March 2020. It is required to file an adjustment to the land tax return for 2020 where to reduce tax liability for March 2020.
Is it required to pay Unified Social Contribution (the USC) for March 1 – May 31, 2020?
Private entrepreneurs, farm enterprises and self-employed individuals are released from the USC. Businesses must charge and pay the USC on a regular basis.

Fines and penalties for late, incomplete or non-payment of the USC do not apply for March 1 – May 31, 2020.
Is the term of appeal against the decisions of the tax authorities extended for the duration of the quarantine?
Calculation of the timeframes for filing complaints is suspended during March 18 – May 31, 2020, For example, if the payer receives a decision of the tax authority during this period, then the 10-day deadline to file the appeal starts from June 1, 2020.
Does the tax audit moratorium apply to VAT refund audits?
The moratorium on VAT refund audits does not apply if the company claims VAT refund that exceeds UAH 100 k (approximately EUR 3,400).
Are VAT and excise duty payers exempt from fines and penalties?
Tax authorities clarified that starting from March 1 to May 31, 2020, no fines and penalties apply for:

  • non-registration or late registration of tax invoices or adjustments to tax invoices in the Unified Register of tax invoices (in terms of VAT);
  • non-registration or late registration of excise invoices or adjustments to excise invoices in the Unified Register of excise invoices.
At the same time, the penalties for violations related to calculation, declaration and payment of VAT and excise duty are applied on a regular basis.

Will the company enjoy any tax benefits if it engages in charity activities related to fighting COVID-19 pandemic?
If the company engages in such charity, it is released from the requirement to increase the financial result subject to corporate profit tax for the amount equal to charity assistance provided to charitable organizations.

The full list of goods considered to be charity assistance is provided by Law No.540 and includes financial support, means of individual protection, medical equipment, etc.
The tax audit started before the quarantine but has not finished yet. What to expect?
If the tax audit started before the quarantine, it will be postponed until 31 May 2020. This rule does not apply to documentary unscheduled audits if an enterprise claims a VAT refund that exceeds UAH 100 k (approximately EUR 3,400).
Non-residential property tax: to pay or not to pay?
Non-residential real estate is released from tax for March 2020. It is required to file an adjustment to real estate tax return where to reduce tax liability for March 2020.
Suspension of timeframes and moratorium: do they apply to desk tax audits?
No, there is no moratorium for desk tax audits. The quarantine legislation provides for the timeframe's extension to perform desk tax audits.

Thus, audits of declarations or adjustments thereto for the period from March till May 2020 may be conducted within 60 days.

This rule does not apply to VAT declarations and respective adjustments.
What VAT incentives are stipulated by the quarantine legislation?
Supply of medicines, medical devices and other goods aimed at elimination and prevention of COVID-19 are VAT exempt. This tax incentive will be effective until the last day of the last month of the quarantine established by the Cabinet of Ministers.

The full list of VAT-exempt goods is provided by the Resolution of the Cabinet of Ministers No.224 dated March 20, 2020.
If you have questions related to tax law in the context of a coronavirus pandemic, please contact us.

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

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