Tax bill passed by Rada to help implement memorandum with IMF, receive about 8 bln UAH for Ukrainian budgets - Finance Ministry
MOSCOW. July 3 (Interfax) - The Verkhovna Rada's endorsement of a bill reinstating tax legislation as it was prior to the crisis will ensure that Ukraine meets its obligations under the Extended Fund Facility (EFF) program with the International Monetary Fund (IMF) and will help boost the tax revenue in 2023, the Ukrainian Finance Ministry said.
"The adoption of the bill will contribute to an increase in revenue to the national and local budgets in 2023 for about 8 billion UAH," Ukrainian media quoted the Finance Ministry as saying in a statement.
In particular, the bill provides abolishing the possibility for sole proprietors and legal entities to be single tax payers of Group III at a single tax rate of 2% of their income as of August 1, it said.
"At the same time, a taxpayer will have the right to apply for a waiver of the 2% single tax rate and to indicate the system of taxation he wants to switch to. Without filing such an application he will be automatically transferred to the system he was using before he chose the simplified system," the ministry said.
The bill reinstates the obligations to pay a single tax for sole proprietors of Groups I and II, except for those whose tax address is located in the territories beyond Kiev's control, it said.
Scheduled document inspections are resumed only for taxpayers who are producing and selling excisable products, gambling business and those who provide financial and payment services, the statement said.
Unscheduled document checks of taxpayers will be conducted based on an exclusive list defined by the law, it said.
The bill resumes the imposition of fines for violating tax laws; the correctness of charging, calculating and payment of the unified social tax, it said.
"The imposition of fines for violations of the procedure for the use of [cash register/cash register software] RRO/PRRO, except penalties for violations committed in the territories not controlled by Kiev, will also be resumed on October 1, 2023," the ministry said.
A lower fine, 25% and 50% of the value of goods instead of 100% and 150%, respectively, for the failure to use the cash register/cash register software, failure to issue a payment document or the issuance of the settlement document for an incomplete amount of the purchase, will be imposed on sole proprietors who pay the single tax. This relaxation of the regulations will remain in effect until the end of martial law, but no longer than August 1, 2025.
If a taxpayer pays within 30 days the amounts of taxes and fees accrued based on the results of document checks, no fines will be imposed, and no penalties will be charged, the ministry said.