The Presidential Decree No.УП-6098 "On organizational measures to reduce the shadow economy and improve the efficiency of tax authorities" dated October 30, 2020 (the "Decree No.УП-6098") provides for measures to reduce the share of the shadow economy in the country. In particular, the following measures has been taken by the Decree No.УП-6098:
- in order to limit the transition to the generally established tax regime, income received in the form of non-cash funds by small businesses in the field of catering are subject to deduction from the total income until 2022;
- the turnover tax for the real estate type of activity is reduced from 25% to 13%;
- construction organizations are allowed to hire workers on non-fixed term with payment in cash (if the amount of cash does not exceed 10% of the total wage amount). Also, in this case, the construction organizations will retain the obligation to pay personal income tax and social tax for workers and submit monthly reports;
- businesses are allowed to purchase goods and services using corporate bank cards without concluding a contract. However, the purchased goods or services must be properly reflected on the invoices and receipts of the online cash registers.
In addition to the above measures, the Decree No.УП-6098 has also introduced additional obligations for the State Tax Service and the Customs Committee directed to prevent corruption in the country.
Originally published 20 November 2020.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
