PECULIARITIES OF APPLICATION OF THE SIMPLIFIED TAXATION SYSTEM IN UKRAINE IN WARTIME

Abstract

The article deals with the current aspects of the functioning of the simplified taxation system in general, as well as the temporary introduction of a single tax of the 3rd group at the rate of 2%. The simplified taxation system is a special tax regime, the main characteristics of which are to reduce the tax burden on businesses that meet certain criteria, in particular to support small businesses. According to the surveys of the European Business Association, only 17% of enterprises work in full, while every third does not work. Another third of entrepreneurs plan to resume their activities. Despite the difficult situation in the country, the economy must work, taxes and duties must be paid so that the country can provide everything necessary for the army and all vital structures of each state, for this purpose, enterprises must carry out their activities, entrepreneurs, employees must receive salaries, citizens must buy products and pay for services provided. In order to encourage business entities to resume their activities, the state authorities decided to improve the lists of those who fall under the criteria for the application of the simplified taxation system. On March 17, 2022, the Law of Ukraine "On Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine Regarding the Validity of Norms for the Period of Martial Law" was adopted. This law provides for the expansion of the criteria for the application of the simplified taxation system, in particular for the possibility of switching to the simplified taxation system for large business entities. In particular, according to the adopted law and taking into account the adjustments, the single tax payers of the first and second groups are exempted from paying the single tax. Also, the opportunities for transition to the status of a single tax payer of the third group have been expanded: the income limit of up to UAH 7 million has been abolished and there is no restriction on the number of employees. According to the Law No. 2120-ІХ dated 15.03.2022 and the laws that further supplement/amend it, the single tax rate for single tax payers of the third group is reduced to two percent of income. It is also allowed for the above-mentioned taxpayers not to comply with the obligation to accrue, pay and report value added tax on transactions where the place of supply of goods, works and services is in the customs territory of Ukraine.