A number of positive laws for business owners have recently been adopted to counteract the coronavirus pandemic in Ukraine, aimed at mitigation of business implications and support of citizens.
Below is a brief summary of key developments:
- Land payment (land tax and lease fee for the land plots in state and communal ownership) for the land plots of household use is neither accrued nor paid in March 2020. The taxpayers may submit adjusted tax return to decrease tax liabilities, if needed. The deadline for repayment of tax liabilities for April falls on 30 June 2020.
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Non-residential properties, other than land plot, are not subject to non-residential property tax for March 2020. The taxpayers may submit adjusted tax return to decrease tax liabilities, if needed. The deadline for repayment of tax liabilities for April falls on 30 June 2020.
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Granting assistance or free-of-charge goods to medical institutions or non-profit organizations to combat coronavirus disease shall not increase the financial result for profit tax purposes.
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Financial statements together with audit report, when required by law, may be made public within 90 days since the quarantine expiry date.
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Penalties for untimely payment of the USC and/or submission of USC reporting over the period from 1 March through 31 May 2020 are not applied.
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No penalties shall be applied for violations of tax legislation for the period from 1 March 2020 to 31 May 2020, except for, in particular, violations related to the alienation of property in pledge, violations of the rules of accounting, production and circulation of fuel or ethanol in excise warehouses as well as accrual, declaring and payment of indirect taxes and lease payment.
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Moratorium on documentary and factual reviews and the USC-related reviews is declared for the period from 18 March 2020 through 31 May 2020, except for unscheduled documentary inspections of those taxpayers who have declared the VAT reimbursement (refunding) from the state budget, namely inspections regarding the legality of such declaration, as well as factual reviews in excise warehouses. The limitation periods are suspended.
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Prohibition of planned arrangements in the sphere of state surveillance until 30 June 2020, except for high-level-risk business entities, in the sphere of state-regulated prices as well as in the sphere of sanitary and epidemiological well-being of population.
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The maximum income threshold for taxation purposes has been increased for taxpayers at the simplified taxation system: for the first group taxpayers – up to UAH 1 Mio, for the second group taxpayers – up to UAH 5 Mio, for the third group taxpayers – up to UAH 7 Mio.
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The city councils have been empowered to make adjustments into the earlier made decisions on decrease of the single tax rates.
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The use of cash registers for Individual Entrepreneurs-single taxpayers is postponed.
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The term for submission of annual property return is prolonged until 1 July 2020; whereas the deadline for repayment of tax liabilities – up until 1 October 2020.
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Additional social benefits are ensured in the form of partial unemployment allowance of 2/3 of official salary, but no more than minimum wage rate, due to reduction of working hours and quarantine measures. Financial aid is paid against the employer’s application out of the funds from the Unemployment Insurance Fund.