The President of Ukraine signed the so-called anti-virus laws "On amendments to the certain legislative acts of Ukraine aimed at preventing the emergence and spread of coronavirus disease (COVID-19)" of 17.03.2020, № 530-IX, and "On amendments to the Tax Code of Ukraine and other laws of Ukraine on the support of taxpayers for the period of implementation of measures aimed at preventing the emergence and spread of coronavirus disease (COVID-19)" of 17.03.2020, № 533-IX.
There are a lot of changes. Let's consider the most important.
Private entrepreneurs (FOP) and USC
Entrepreneurs (including taxpayers who use simplified tax system), self-employed and farm members are exempted from paying the unified social contribution (hereinafter referred to as "USC") for March and April 2020. However, these months will be counted toward the accumulated period of work.
Payment transaction registrars (PPOs)
By the new laws were changed the key dates for the introduction of payment transaction registrars (hereinafter referred to as PPOs) for 2, 3 and 4 groups of private entrepreneurs (hereinafter referred to as FOP).
Accordingly, the presentation of the free software PPO "pRROsto" was postponed.
Thus, now the key dates the following:
August 1st, 2020
It will be able to use software PPO instead of classic ones.
January 1st, 2021
The list of businesses for which the use of PPOs is mandatory is being expanded, and the cashback mechanism is being introduced.
April 1st, 2021
FOPs who are a single taxpayers on groups 2–4 have to use PPOs (including software as an alternative to classic ones).
Vacation leaves
The bad news (for an employee) – they do not have separate paid quarantine leave.
The good news (for the employer) – the employee can have unpaid leave for the duration of the entire quarantine. This leave is not included into 15 unpaid non-quarantine leave calendar days. The employee will be entitled to 15 days of non-quarantine leave.
Sick leaves payment
Temporary disability aid is provided for the duration of special health care facilities, as well as for self-isolation under medical supervision in connection with coronavirus-related activities.
Regardless of the accumulated period of work, the aid will be 50% of the average salary.
Land tax, Real Estate tax
There were exempted from paying the land tax, the real estate tax for two months (March - April 2020). This also applies to rents for public and communal land.
The exemption for land is use in economic activity. Real estate tax exemption applies to non-residential real estate.
Tax penalties abolished
For tax violations committed from March 1 to May 31, 2020 the fines (penalties) will not be imposed.
However, there are exceptions:
- violation of accrual, declaration and payment of value added tax, excise duty and rent;
- violation of the rules of accounting, production and circulation of fuel or ethanol in excise warehouses.
The penalty is not accrued during the specified period. If the penalty is already charged, it is better not to pay, because it will be written off.
The penalties for non-payment of the USC and non-submitting the financial statements in the period from March 1 to 31 and from April 01 to, 2020 have been canceled.
Moratorium on inspections
It concerns documentary and factual inspections. The moratorium runs from March 18 to May 31, 2020.
Please note that the moratorium does not apply to the verification of VAT refund claims.
Launched inspections are paused. If the inspections are not launched but were planned, they are postponed. The schedule of inspections should be restored by March 30.
The statute of limitations for the period of this moratorium is suspended.
A moratorium on inspections of USC has also been established.
As for the other planned control measures, all of them are prohibited for the quarantine period.
Income declaration
The deadline for submitting a "civilian" declaration for private individuals have been extended by July 1st , 2020 (the previous deadline – May 1st ).
Payment for a such declaration should be made by October 1st ,2020 (the previous deadline -August 1st ).
The anti-corruption declaration for 2019 should be submitted not before April 1st , but before June 1st .
The quarantine is force majeure
The quarantine imposed by the Cabinet of Ministers of Ukraine is recognized as a force majeure.
It should be noted that there is no automatic release from civil liability. In addition to the Chamber of Commerce document, it is important to establish the effect of quarantine on a specific commitment.
In addition to these changes, many more important but more special ones were introduced (in the area of tender purchases, customs clearance of specific goods, features of provision of housing and communal services and their payment, etc.).
The Cabinet of Ministers of Ukraine, in connection with the quarantine, has banned all domestic passenger transportation.
From March 18 to April 3 are prohibited the following:
- regular and irregular carriage of passengers by motor transport in the suburban, long-distance interregional and interregional communications throughout the territory of our country;
- transportation of more than 10 passengers at the same time in trams, trolley buses and road transport, in buses that perform regular passenger transportation on city routes;
- transportation of passengers by subway in Kyiv, Kharkiv and Dnipro.
From March 18, 2020, until a separate decision has been taken, it is prohibited to carry passengers by rail in all types of domestic connections (suburban, urban, regional and long distance).
However, "Ukrzaliznytsya" JSC may perform separate passenger transits within the internal railway connection, the decisions on which should be made in each individual case in agreement with the Ministry of Infrastructure and the Ministry of Health, or the international railway connection with the consent of the Ministry of Infrastructure, the Ministry of Foreign Affairs and the State Border Guard Service.
Also, since March 17, all mass (cultural, entertainment, sports, social, religious, advertising and other) events involving more than 10 people are prohibited in Ukraine. Only measures necessary to ensure the work of public authorities and local self-government are allowed.
Starting from March 17, food outlets (restaurants, cafes), shopping and entertainment centers, other entertainment outlets, fitness centers and cultural establishments must suspend their work. It is allowed to provide catering services with the use of door-to-door delivery of the order providing with the personal protective equipment of the personnel who do this delivery.
Food, fuels, hygiene products, medicines and medical products trade is allowed. Banking and insurance activities are permitted too.
The Ministry of Health has been ordered to suspend temporarily planned hospitalization and planned operations, except for urgent. In addition, the Ministry of Health has to prepare and re-profile medical institutions as much as possible for the taking and treatment of infected patients in serious conditions.
Authorities, businesses and organizations are advised to provide shifts for employees and, if technically possible, work online.
