Due to the outbreak of COVID-19, the Ukrainian Parliament adopted Law No 3220 dated 16 March 2020 "On amendments to the Tax Code and other legislation to support taxpayers during the measures preventing spread of COVID-19" ("the Law"). The Law has yet to be signed by the President and will become effective from the day following its official publication.
Some of the supportive measures provide for:
- No penalties or late payment interest will apply for violations of the Tax Code during the period 1 March to 31 May 2020 with some exclusions (e.g. violations related to VAT, excise tax and royalties will still apply).
- Documentary tax audits are prohibited until 31 May 2020 save for unscheduled tax audits related to VAT refund claims.
- Land tax or land rent payments are not withheld for March and April 2020 if the land is used for the business activity of the taxpayers. Taxpayers should therefore amend their tax returns accordingly.
- Private entrepreneurs need not pay unified social contributions for March and April 2020.
- There should be no penalties or late payment interest for certain violations related to unified social contributions in March and April 2020.
- The documentary audits of unified social contributions are prohibited until 18 May 2020.
- The use of cash registers required by Law No 128-IX dated 20 September 2019 has been postponed by, on average, three months.
- Social insurance in the amount of 50% of average salary will be provided by the state to persons who have to be isolated in hospitals or at home.
The Law contains other provisions supporting individuals.
We will inform you as soon as the Law comes into force.
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.