Tax Debts Written Off For The Pandemic

Please be informed that on 09.12.2020 the Law of Ukraine “On Amendments to the Tax Code of Ukraine and other laws of Ukraine on social support of taxpayers for the period of implementation of restrictive anti-epidemic measures introduced to prevent the spread of acute respiratory disease COVID-19 caused by coronavirus SARS-CoV-2 on the territory of Ukraine” No 1072-IX dd. 04.12.2020 (previously – Draft Law 4430) was officially published.

The law provides a number of tax incentives for citizens and small and medium-sized businesses for the period of possible quarantine:

– the tax debt shall be written off to the taxpayers if the total amount of the taxpayer’s debt on all taxes and charges does not exceed UAH 3060;

– group I single tax payers shall be exempt from this tax for December 2020 and January to May 2021;

– repayment of tax debt of individual taxpayers, including self-employed persons, in the total amount not exceeding UAH 6800 will be postponed until 29 December 2021;

– fines and penalties will be written off if the taxpayers have paid the tax debt on the principal payment themselves within 6 months of the Act coming into force;

– the threshold for the amount of tax debt to be collected is increased to UAH 3060;

– exemption from personal income tax and corporate income tax on income (material assistance, compensation) received in accordance with the Law of Ukraine “On social support of insured persons and economic entities for the period of establishment of restrictive anti-epidemic measures introduced to prevent the spread of acute respiratory disease COVID-19 caused by coronavirus SARS-CoV-2 in Ukraine”.

The supervisory authorities shall also be responsible for forming a register of recipients of a one-off compensation to business entities for expenses incurred in paying the unified state compulsory social insurance contribution for hired employees and for calculating the amount of such compensations to be paid to business entities – legal entities.