Important tax changes

On March 17, the Verkhovna Rada adopted a law on taxpayer support during quarantine, which introduces the following provisions:

• Entrepreneurs (on general and simplified taxation systems) and self-employed individuals are exempt from paying the Unified Social Contribution (USC) from March 1 to April 30. This means that USC will not be charged for March and April. Therefore, USC payment for Q1 2020 will be UAH 2,078.12 (instead of UAH 3,117.18). The same USC amount will apply for Q2 2020. March and April will be counted toward the insurance record of such entrepreneurs.
• From March 1 to April 30, land tax for land used in business activities is not charged or paid, as well as property tax on non-residential real estate.
• The implementation of cash register laws for all groups of entrepreneurs on the simplified system is postponed by 3 months. The transitional period is also extended until April 1, 2021 for entrepreneurs on the simplified system with annual income up to UAH 1 million who work in retail.
• Fines and penalties for tax law violations during the period from March 1 to May 31, 2020 are cancelled (except for liability for violations related to charging, declaring, and paying VAT, excise tax, and rent payments).
• Fines for non-payment of USC or late submission of USC reports during the period from March 1 to April 30, 2020 are cancelled.
• A moratorium is established on documentary and factual inspections of businesses during the period from March 18 to May 31, 2020.

Temporary benefits introduced by the Law of Ukraine No. 533-IX

dated 17.03.2020

"On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine Regarding Support for Taxpayers During the Period of Implementation of Measures Aimed at Preventing the Occurrence and Spread of Coronavirus Disease (COVID-19)".