Business

the “area of high tax confidence” has slightly decreased. What is the reason

The list of taxpayers of the “Territory of high level of tax confidence” updated in April includes 8,199 thousand legal entities and individual entrepreneurs, which is 55 less than in the previous list. This was reported by the Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy Danylo Hetmantsev, according to [Kommersant].

The MP explained the reduction in the number of those who continue to enjoy the privileges of the “Territory of High Level of Tax Confidence” simply: not everyone was able to maintain the necessary indicators and requirements, so they were not included in the updated List.

By the way, many business representatives might disagree with this, emphasizing that the requirements for membership in the White Business Club are too strict. The results of a recent EBA Tax Index survey, for example, showed that 46% of the companies surveyed want to be included in the List, but have comments on the selection criteria.

In March, the EBA stated that a number of well-known companies with many years of experience in the Ukrainian market, representing various sectors of the economy, including agriculture and telecommunications, failed to be included in the List due to imperfect criteria, despite a high level of compliance with tax culture and fulfillment of obligations to pay taxes and fees.

MP Nina Yuzhanina also reported that Ukrainian agricultural companies had difficulties joining the White Business Club. The reason was legislative restrictions. [Kommersant]talked about this.

Who was able to get into the privileged tax club

In total, the updated list includes 8,199 thousand taxpayers, including:

– 4123 are legal entities under the general taxation system;

– 2149 – legal entities paying the single tax of the third group;

– 984 – legal entities paying the single tax of group IV;

– 211 – residents of Diia City;

– 732 – individual entrepreneurs.

MP Danylo Hetmantsev drew special attention to the fact that the largest number of taxpayers in the updated List was added by individual entrepreneurs: 581 additional individual entrepreneurs.

The full updated list is available here.

As reported by [Kommersant], the list of those included in the “White Business Club” was first published by the tax authorities at the end of December last year. Back then, it included 8255 taxpayers, including:

– 4488 legal entities under the general taxation system;

– 2359 legal entities – single tax payers of the third group;

– 1088 legal entities – single tax payers of group IV;

– 169 residents of Diia City;

– 151 individual entrepreneurs.

The members of the White Business Club were promised certain benefits, including a moratorium on documentary inspections, shorter inspection periods, individual tax advice and a personal compliance manager.

However, in order to join the White Business Club, you need to meet a large number of requirements and criteria. There are common requirements for all categories of taxpayers: no violations of reporting deadlines, no decision to include in the list of risky VAT payers, no tax and unified social contribution arrears, no violations of the deadlines for settlements for export-import transactions over the past 12 months, no sanctions against the taxpayer and/or its founders (participants), ultimate beneficial owners, no bankruptcy or winding-up procedures, etc. There are also special requirements for different categories of taxpayers.