Tax Bill Update: Abolition of Single Tax and Tax Benefits Delayed

“Keep the news:

• – abolition of the “single tax 2%”
• – abolition of tax benefits for groups 1 and 2
• – resumption of documentary checks
• – refund of penalties for violation of the use of cash registers

All this will not happen from July 1,” he wrote.

As the deputy noted, the new date of the event is unknown, “but definitely not July 1.”

tax bill

In January, the Cabinet of Ministers submitted to the Verkhovna Rada a draft law that proposes to abolish tax breaks introduced after the start of the war.

The bill was submitted as part of Ukraine’s obligations to the International Monetary Fund.

The Rada adopted this bill on May 29 in the first reading.

According to the draft, on July 1, 2023, the following norms are canceled:

• the opportunity for individuals – entrepreneurs and legal entities to be payers of a single tax of the III group using a single tax rate of 2% of the amount of income;
• the possibility for individuals – entrepreneurs of single tax payers of groups I and II not to pay a single tax;
• stop conducting documentary checks;
• stopping the flow of deadlines (terms for submitting tax reports, terms for conducting inspections, terms for obtaining tax information by regulatory authorities, terms for conducting an administrative appeal procedure, etc.) determined by tax legislation and other legislation, control over compliance with which is entrusted to regulatory authorities;
• non-application of penalties violation of tax legislation;
• non-application of penalties violation of the correctness of accrual, calculation and payment of a single contribution for obligatory state social insurance;
• non-application of penalties violation of the procedure for using registrars of settlement operations / software registrars of settlement operations.