The State Tax Service (STS) is implementing a comprehensive set of measures to address tax issues concerning mobilized individual entrepreneurs (IEs) and veterans. The head of the STS, Ruslan Kravchenko, announced this, noting that proposals for legislative changes are being developed, and working groups will be formed in the regions to provide consultations.
This is reported by Finway
“Proposals for legislative changes are being developed, and working groups will be created in the regions to provide consultations,” said Kravchenko.
He also mentioned that during a recent meeting with businesses in Khmelnytskyi, a veteran raised the issue of mobilized IEs. In particular, entrepreneurs in categories 1-2 are required to pay a single tax and military levy monthly. To avoid automatic accruals, they need to submit an application stating their inability to fulfill tax obligations. However, under mobilization conditions, this is not easy to do, leading to the accumulation of tax debt.
Currently, over 3,000 mobilized IEs have tax debts exceeding 30 million hryvnias. They can be exempted from tax payments if they submit the appropriate application at their tax registration location within 10 days after demobilization. However, in practice, meeting this deadline is extremely difficult.
Kravchenko emphasized that the STS has already identified specific measures to support entrepreneurs who are defending the country:
“The STS is developing its proposals for legislation to extend the deadlines for submitting applications. We will soon submit them to the Ministry of Finance and have initiated the signing of a protocol with the Ministry of Defense to have accurate information regarding mobilized IEs and to assist them.”
STS Measures to Support Mobilized IEs
The following steps are being implemented at the STS level:
- Regions will receive lists of IEs who are being charged a single tax and military levy and who are likely unable to fulfill their tax obligations.
- An inventory of complaints and letters from IEs regarding the cancellation of accrued tax obligations from the date of their mobilization is being conducted, and the results of the review in the regions are being analyzed.
- Territorial offices are creating working groups and “hotlines” to provide consultations to mobilized IEs and their family members.
- Throughout April, mobilized IEs and their families will be informed about the mechanisms established by legislation to avoid negative consequences from non-payment of taxes.
- All relevant information will be posted in taxpayer service centers, and efforts will be made to inform community centers, local communities, military enlistment offices, and regional military administrations.
Updated Tax Declaration for IEs
We remind you that Ukrainian entrepreneurs will have to submit an updated tax declaration form for the first time, including calculations for the military levy. The new reporting rules for individual entrepreneurs (IEs) came into effect on April 1. In 2024, individual entrepreneurs in the 3rd group of the simplified taxation system earned an average of 95,040 hryvnias per month, with the highest profits reported by IEs registered in Kyiv — 111,980 hryvnias per month. Compared to the pre-war year of 2021, the incomes of Kyiv IEs increased by 20,000 hryvnias.