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18 March 2020

Amendments to the Tax Code of Ukraine in support of taxpayers during the coronavirus (COVID-19) pandemic

On 17 March 2020, the Parliament of Ukraine adopted a law on temporary tax measures aimed at support of taxpayers during the quarantine period caused by the spread of coronavirus (COVID-19).

In particular, the Parliament of Ukraine adopted the Law of Ukraine on amendments to the Tax Code of Ukraine and other laws of Ukraine related to the support of taxpayers for the period of the implementation of measures aimed at the prevention and spread of the coronavirus (COVID-19) No. 533-IX dated 17 March 2020 (the “COVID-19 Law”). The COVID-19 Law introduces the following tax incentives for Ukrainian taxpayers during the quarantine:

1. Penalties

  • penalties (fines) for violation of tax legislation, committed during the period from 1 March 2020 till 30 April 2020 are not applied. The exceptions are:
  • disposal of property in the tax lien, without approval from the tax authorities;
  • violation of requirements for long-term life insurance and insurance agreements regarding non-state pension provision, in particular, additional pension insurance;
  • violation of rules regarding accounting, production and turnover of fuel or alcohol in excise warehouses used on a common basis;
  • violation of reporting and payment VAT, excise tax and rent;
  • during the period from 1 March 2020 till 31 May 2020, late payment interest is not applied and amounts of late payment interest accrued, but not paid, within this period should be written off.

2. Tax audits

  • documentary and factual audits during the period from 18 March till 31 May 2020 are not carried out, except for audits regarding VAT refunds exceeding UAH 100,000.00. Documentary and actual audits initiated and not completed before 18 March 2020 are temporarily suspended until 31 May 2020;
  • by 30 March 2020, the tax authorities shall publish an updated schedule of audits, appointed within the period from 18 March 2020 till 31 May 2020.

3. Limitation period

  • during 18 March 2020 till 31 May 2020, the limitation periods set by the Tax Code of Ukraine are suspended.

4. Terms for filing annual property and income returns

  • deadline for submission of annual property and income returns for 2019 has been prolonged until 1 July 2020 (previous deadline was 1 May 2020). Tax liabilities shall be paid by 1 October 2020 (previous deadline was 1 August 2020).

5. Land and property tax

  • land tax liabilities for land used for a taxpayer’s business activities during the period from 1 March 2020 till 30 April 2020 is not assessed and paid;
  • non-residential real estate owned by individuals and legal entities is not subject to property tax during the period from 1 March 2020 till 30 April 2020.

6. Single Social Contribution

  • temporarily for the period from 1 March 2020 till 30 April 2020, private entrepreneurs and self-employed individuals are exempt from assessing and paying single social contribution;
  • temporarily for the period from 1 March 2020 till 30 April 2020, penalties (fines) for untimely or incomplete payment of the single social contribution and non-submitting the respective returns are not applied. Additionally, late payment interest accrued but not paid within this period should be written off;
  • documentary audits during the period from 18 March 2020 till 18 May 2020 are prohibited. Those documentary audits, which have been initiated and not completed before 18 March 2020, are temporarily suspended until 18 May 2020.

7. other tax and non-tax measures.

The COVID-19 Law has already entered into force from today, 18 March 2020,

In case you have any questions or need more details regarding these new amendments, we will be pleased to provide additional information.

 

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