Tax incentives for businesses have been extended until the end of quarantine.
The Verkhovna Rada adopted draft law No. 3329-d “On Amendments to the Tax Code of Ukraine and other laws of Ukraine regarding additional support for taxpayers for the period of implementation of measures aimed at preventing the emergence and spread of coronavirus disease (COVID-19)”, which provides for exemption from taxation salaries of some doctors and FLP. The bill was supported by 333 people’s deputies.
The law exempted individual entrepreneurs (FOP, FOP) from paying the Unified Social Contribution (ESC) for another month until May 31, 2020. Entrepreneurs receive tax benefits, simplified administrative procedures, a moratorium on inspections and the non-application of fines and penalties for violation of tax laws and laws on ERUs until the end of quarantine.
Penalties for non-payment on consumer loans will not apply to doctors who are fighting the coronavirus.
The law provides for the following changes:
- until June 30, 300% of additional payments to doctors are exempt from personal income tax;
- partial unemployment assistance was exempted from personal income tax and military dues;
- the opportunity to receive partial unemployment benefits for FLP is provided;
- extended terms of benefits for manufacturers of disinfectants;
- terms for consideration and filing of taxpayers’ complaints, provision of individual tax advice and taxpayers’ responses to tax requests have been suspended;
- Exemption from fines and penalties for overdue consumer loans has been continued.
Peculiarities of the law
In addition, the law reduced the requirements for the minimum size of the authorized capital of banks from UAH 500 million to UAH 200 million. Also, the term of the law “On simplifying the procedures for the reorganization and capitalization of banks” was extended until 2024.
