Tax holidays allow individual entrepreneurs (IE) to temporarily not pay certain taxes for one month. However, this opportunity is available only to specific categories of entrepreneurs who meet the established criteria.
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Conditions for Receiving Tax Holidays
IEs of the first and second groups who do not employ hired workers can take advantage of tax holidays. Exceptions regarding tax payments are granted during the annual vacation or in case of prolonged illness, confirmed by an extract from the Electronic Register of Sick Leave, if the illness lasts for at least 30 calendar days.
“IEs of groups 1 and 2 who do not use hired labor have the right to tax holidays.”
Which Taxes are Not Paid and How to Apply for the Benefit
During the tax holidays, entrepreneurs may not pay the single tax and military levy. At the same time, the single social contribution (SSC) remains mandatory to pay in full, even during this period.
To obtain an exemption from the single tax or military levy, it is necessary to submit separate applications in any form. If it concerns the annual vacation, the application must be submitted before it begins. In the case of temporary incapacity for work, the application must be submitted by the 20th of the month following the end of the sick leave, with the mandatory addition of an extract from the Electronic Register of Sick Leave.
Document submission is possible through the Electronic Cabinet in the “Correspondence with the State Tax Service” section or in paper form directly to the tax authority at the place of registration.
It is important to remember that during tax holidays, entrepreneurs are prohibited from receiving any income. Violation of this requirement is considered a breach of the conditions for remaining in the simplified taxation system and may lead to tax sanctions.