The State Tax Service has taken care of mobilized individual entrepreneurs: tax debts should be reduced
14 April 08:49
The State Tax Service proposes to increase from 10 to 180 days the period within which mobilized individual entrepreneurs must settle with the State Tax Service issues related to tax exemption. This was announced by the head of the State Tax Service Ruslan Kravchenko, Komersant ukrainskyi reports.
What is the current situation with the taxation of mobilized individual entrepreneurs?
The current legislation provides that mobilized individual entrepreneurs are exempt from paying and reporting on personal income tax, single tax and military duty for the entire period of service. To do so, after demobilization, they must submit an application and a copy of their military ID or other document confirming their enlistment to the tax office. This is done within 10 days.
Mobilized sole proprietors who have not submitted an application to the tax office continue to receive tax charges on a monthly basis. And they often become debtors.
How to solve the problem
According to Ruchlan Kravchenko, everyone understands that it is extremely difficult to meet the 10-day deadline.
“The deadline for submitting an application for tax exemption after demobilization by a self-employed person should be extended. This is my principled position. I hope that it will be supported by everyone who is responsible for making the decision,” the Head of the State Tax Service emphasized.
The State Tax Service proposes to extend from 10 to 180 days the period within which mobilized individual entrepreneurs must submit a relevant application to the State Tax Service.
According to the tax authority, this time should be enough for Ukrainian soldiers to collect and submit all the necessary documents after demobilization, especially if they need medical treatment, without unnecessary stress and haste.
If a mobilized individual entrepreneur fails to fulfill his tax obligations within the specified timeframe or fails to file an application, he may be exempted from liability if he does so within 180 days after the martial law is lifted.
At the same time, tax liabilities for the period of service are accrued in full if the self-employed person has not filed an application and has not exercised the right to exemption.
Another problem is advance payments from mobilized individual entrepreneurs
In early April, Ruslan Karavchenko told us how, during a meeting with businesses in Khmelnytsky Oblast, he was approached by a veteran who raised another problem for mobilized sole proprietors.
As you know, sole proprietors of groups 1-2 have to pay a single tax and military fee in advance every month. In order to avoid automatic charges, a statement of inability to fulfill tax obligations should be submitted. However, during mobilization and service, entrepreneurs hardly think about this. This is why tax debt arises.
“Therefore, it is proposed to clearly stipulate that advance payments of the single tax and military fee are not charged to a mobilized sole proprietor starting from the month in which the tax office receives information about mobilization. Taxes and penalties accrued during this period should be canceled,” emphasized Ruslan Kravchenko.
He said that all these proposals, which can significantly improve the conditions for mobilized individual entrepreneurs, are already being worked out together with the Ministry of Finance.
What about the existing tax debts of mobilized individual entrepreneurs?
As of today, more than 3,000 mobilized individual entrepreneurs have a tax debt of almost UAH 30 million.
The State Tax Service has identified specific measures to help such entrepreneurs. For example, in addition to the above-mentioned legislative proposals, Ruslan Kravchenko said, the tax authority initiated the signing of a protocol with the Ministry of Defense to have accurate information about mobilized individual entrepreneurs and assistance to them.
The regional offices of the State Tax Service have received lists of individual entrepreneurs who are charged the single tax and military fee and who are likely to be unable to fulfill their tax obligations. Each case is being processed separately. An inventory of complaints and letters from individual entrepreneurs regarding the write-off of accrued tax liabilities from the date of their mobilization is also being conducted.
Working groups and hotlines have been set up in the territorial offices to provide consultations to mobilized individual entrepreneurs who cannot fulfill their tax obligations or to their family members.
During April, mobilized individual entrepreneurs and their family members should be informed about the existing mechanisms defined by law to avoid negative consequences of tax evasion.
