Mobilized individual entrepreneurs are exempt from taxes and reporting: the tax service announced details

Changes to the Tax Code have come into force in Ukraine. From now on, self-employed individuals or individual entrepreneurs (IEs) who were mobilized during martial law or signed a contract for military service are exempt from paying taxes and submitting reports for the duration of their service. This was reported by UNN with reference to the State Tax Service of Ukraine.

Details

According to Law No. 4505-IX, in case of mobilization, an IE is exempt from paying the following taxes:

• personal income tax;
• single tax;
• military levy;
• Unified Social Contribution, if the IE has no hired employees.

The exemption is applied automatically based on data from the Unified State Register of Conscripts, Persons Liable for Military Service, and Reservists (dates of mobilization, contract signing, demobilization) from the first day of the month of mobilization or contract signing, but not earlier than February 24, 2022.

What an IE needs to do

• if information about mobilization, contract, or demobilization is already in the Register – no application needs to be submitted;
• if there is no data in the Register – an application and copies of supporting documents can be submitted independently to the tax office.

At the same time, the State Tax Service will not accrue advance payments of the single tax and military levy for the period of mobilization or contract validity. If such amounts have already been accrued, they must be canceled.

Recall

Earlier, UNN reported that from July 1, individual entrepreneurs (IEs) of group 3 with a 5% rate, without VAT and hired employees, can submit tax declarations for the second quarter through the "Diia" portal.