A swathe of new rules and regulations is being brought into force to help the country face the challenges of the pandemic.
To prevent the onset and spread of the coronavirus outbreak, the Ukrainian Parliament (Verkhovna Rada) amended a number of laws, including those relating to tax, on 17 March.
Any quarantine established by changing the laws covering Chambers of Commerce and Industry in Ukraine is considered to be a force majeure.
During any quarantine established by the Cabinet of Ministers of Ukraine, any unpaid vacations granted to employees, at their request, won’t affect their existing right to a 15-day-long unpaid vacation.
An employer can instruct an employee to work from home during the quarantine or imposition of restrictive measures to prevent the spread of the disease.
Owners of businesses can change the way they work if dealing with people – in particular, the reception and servicing of individuals and legal entities. Information on such changes should be indicated on websites.
Any scheduled state inspections have been temporarily suspended.
Exemptions for medical products
Following the introduction of simplified customs procedures, any medical preparations, supplies and products are temporarily exempt from VAT and import duties. The list of exempt medical materials has been determined by the Cabinet of Ministers of Ukraine.
A moratorium on scheduled documentary and on-site tax inspections has been introduced, running from 18 March to 31 May 2020, except for inspections related to VAT refund and negative VAT result. Any scheduled inspections that have not begun are postponed, and those started before 18 March 2020 but not completed are temporarily stopped (the verification period is interrupted) until 31 May 2020.
The general statute of limitations for tax purposes as defined by the Tax Code of Ukraine is suspended during the period between 18 March and 31 May 2020.
Taxes and deadlines
The deadline for submitting an annual tax return for individuals for FY2019 has been extended until 1 July 2020. Personal income tax liability under such tax returns shall be payable by 1 October 2020.
Land tax and rent for land plots of state and communal property used for business, and also non-residential property tax, are not payable in respect of the period from 1 March until 30 April 2020.
At the same time, any taxpayers (except for individuals), for example private entrepreneurs and legal entities who filed a tax return have the right to file the adjusted tax return to reflect changes in land tax liability for the relevant months. For individual payers of land tax relevant adjustments shall be made by the Tax Office.
Between 1 March and 1 May 2020 private enterprises paying single tax, individuals carrying out independent professional activities, and members of farms, are exempt from payment of single social insurance contribution and submitting a relevant tax return.
In addition, penalties shall not be applied for the following tax violations made between 1 March and 30 April 2020:
- Untimely payment (untimely transfer) of a single social insurance contribution.
- Incomplete payment or untimely payment of the amount of a single social insurance contribution.
- Untimely reporting to the tax authorities.
From 1 March to 30 April 2020, single social insurance contribution payers will not be charged a late fee and accrued interest is written off.
The implementation of new requirements for the use of cash registers is being postponed – the law on cash registers now comes into force on 1 August 2020.
In addition, as of 1 January 2021 cash registers shall not apply to single-tax payers of the second to fourth groups (individual entrepreneurs) whose income during the calendar year does not exceed UAH1m, except for those who carry out certain specific activities defined by the law.
Residence permits for non-nationals
Foreigners and stateless people who cannot leave Ukraine or cannot contact the State Migration Service of Ukraine to apply to renew their temporary or permanent residence permit due to the quarantine, won’t be held to administrative liability. Ukrainian legislation define liability for:
- Living in country without documents for the right to reside in Ukraine(temporary/permanent residence permit)
- Breach of obligation to leave Ukraine on the 7-th day after temporary/permanent residence permit is canceled/expired.
So, foreigners will not be held liable for these violations.
Time periods relating to the request for and the timing of administrative services for example, registration of the citizen of Ukraine, registration of birth of an individual and his/her origin, state registration of death, granting subsidies and benefits, residence registration and issuing of work permits for foreigners are suspended. However, when quarantine ends, the course of these periods continues, taking into account the time elapsed before its termination.
Violation of quarantine
The administrative and criminal penalties for violating quarantine rules have been strengthened.
Any violation of the quarantine rules or the decisions of local authorities relating to infectious diseases, will result in fines in the amount from UAH17,000 to UAH34,000 imposed on citizens and from UAH34,000 to UAH170,000 on officials of legal entities.
In addition, people who violate sanitary rules and standards for preventing infectious diseases and mass poisoning face up to three years’ imprisonment.
For more information, contact:
Date: March 2020