Legal advice on changes to the TCU made by the Law № 466-IX (Bill № 1210)

Law №466-ХІ “On Amendments to the Tax Code of Ukraine on Improving Tax Administration, Elimination of Technical and Logical Inconsistencies in Tax Legislation” of January 16, 2020, signed by the President of Ukraine on May 22, 2020 and entered into force on May 23, 2020 (hereinafter – the Law), the Tax Code of Ukraine (hereinafter – the TCU).

What has changed for sole proprietors on the simplified taxation system:
Despite the fact that some changes were introduced by Law №540 of 02.04.2020, we additionally note some of them that should have happened with the adoption of this Law:

• The amount of income of single tax payers of groups 1-3.
  The maximum amount of income of single tax payers has been increased. Group 1 includes those single tax payers whose income does not exceed UAH 1,000,000. Up to 2 groups – with an income not exceeding UAH 5,000,000. Up to 3 groups – with an income of UAH 7,000,000
• The tax period for single tax payers of the 3rd group of VAT payers is a monthly tax (reporting period) (paragraph 294 of the TCU).
• Tax base for single tax payers of group 4, in accordance with paragraph 292-1.2 in the new wording, clarified the tax base of agricultural producers, determined as of January 1 of the base (reporting) year in accordance with the procedure established by the TCU for collection pay for the land.
• Single tax rates have been changed for single tax payers of group 3 who have chosen a 5% tax rate, in case of voluntary change of the tax rate they can apply for a rate change no later than 10 calendar days (previously 15 days) before the beginning of the calendar quarter.
• Limited benefit for single tax payers of groups 1-3 when providing land or real estate for rent from 01.07.2020. will have to pay land tax.
• It is possible to cancel the registration of a single tax payer in the presence of a tax debt exceeding UAH 1,020 (paragraph 8 of item 298.2.3 of the TCU).
• To switch to a simplified taxation system, you can apply by electronic means in electronic form in compliance with the laws of Ukraine “On electronic documents and electronic document management” and “On electronic trust services” (paragraph 3, paragraph 298.1.1 of the TCU ).