In recent publications, BDO in Ukraine's experts on Ukrainian and international taxation have commented on the main changes in the Tax Code, provided by the imposition of martial law in the country. The current issue is devoted to penalties and limitation periods.
In the previous issue we talked about the Review of news about taxes during martial law: ДІЯ.CITY
PENALTIES FOR THE PERIOD OF MARTIAL LAW
Due to changes in the Transitional Provisions of the Tax Code during martial law/state of emergency in Ukraine, the State Tax Service will not penalize taxpayers for late payment of taxes, late submission of tax returns (if the deadline for reporting fell from 24.02.2022 to the last day of the month of martial law termination), untimely registration of tax and excise invoices, late submission of electronic documents on the actual balances and volume of fuel, ethanol, etc.
In doing so, in order to avoid the penalties provided by the Tax Code of Ukraine (TCU) for the above tax violations, all tax obligations must be fulfilled within 6 months after the end of martial law in Ukraine. Initially, this period was 3 months, and with the entry into force of Law No. 2142, the legislator extended this period to 6 months.
We would like to add that the punitive tax moratorium defined in the Tax Code applies only to violations of taxes and fees provided for by the Tax Code of Ukraine — VAT, PIT, MT, income tax, land fees and other taxes and fees determined by the TCU.
Furthermore, no fine is accrued during martial law, and a fine accrued during martial law is subject to write-off.
We believe that the fact requires attention that in accordance with the amendments to the transitional provisions of the Tax Code, those taxpayers who are really unable to meet their tax obligations due to the war are exempt from financial responsibility. Therefore, we believe that those taxpayers who still have the opportunity to fulfill their tax obligations, should better fulfill them. If there is indeed no such opportunity, then to avoid disputes with the Tax Service, taxpayers, in our opinion, should apply to the Chamber of Commerce and Industry of Ukraine to obtain an individual certificate of evidence of force majeure, despite the fact that on February 28, 2022, the Chamber of Commerce and Industry of Ukraine posted on its official website a general certificate of evidence of force majeure, which shall confirm force majeure circumstances for all Ukrainian entities. However, it is difficult to predict how such confirmation will be accepted by the Tax Service.
Interesting on the topic: Taxation during martial law
THE LIMITATION PERIODS ARE NOT CANCELED, BUT DO NOT APPLY
Laws passed in connection with russia's aggression against Ukraine and the imposition of martial law in Ukraine do not contain special provisions on extending the limitation periods.
Moreover, the extension of the limitation periods, which was introduced during the quarantine period established by the Cabinet of Ministers of Ukraine to prevent the spread of coronavirus disease (COVID-19), is still in force. We recall that in accordance with the Resolution of the Cabinet of Ministers of Ukraine No. 229 dated February 23, 2022, the quarantine was extended (and, accordingly, the limitation period was extended) until May 31, 2022.
If you have additional questions, please consult tax experts of BDO in Ukraine.
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