As you know, due to the imposition of quarantine the state has made some reductions, including the payment of a unified social tax (hereinafter – UST). For what period are payers exempt from payment? Who can count on such a release? Ana what those who have paid the UST in advance supposed to do?
Exemption period
Let us remind, Law of Ukraine “On Amendments to the Tax Code of Ukraine and other laws of Ukraine on support of taxpayers for the period of implementation of measures to prevent the occurrence and spread of coronavirus disease (COVID-19)”No. 533-IX of March 17, 2020 (hereinafter – Law No. 533) provides for exemption from the accrual, calculation and payment of UST for the periods from March 1 to 31 and from April 1 to 30, 2020.
Who are exempt from UST
The following are temporarily exempted from UST accrual, calculation and payment:
- sole proprietors, including those who have opted for a simplified tax system;
- persons pursuing independent professional activities, such as scientific, literary, acting, artistic, educational or teaching, as well as medical, legal practice, including attorneys, notaries, or persons engaged in religious (missionary) activities, etc. activity and have profit from that activity;
- members of the farm enterprise, if they do not belong to persons who are subject to insurance on other grounds.
In doing so, such payers of single tax decide at their own discretion whether to exercise that right.
This period will be credited to the retirement period of such persons as the period for which the minimum insurance premium is paid. At the same time, they can voluntarily declare and pay a larger amount of UST for themselves.
Employers, including the abovementioned persons who have hired workers, are obliged to pay the UST for their employees' salaries. They are exempt only from penalties. Penalties for the following violations shall not be applied for the periods from March 1 to 31 and from April 1 to 30, 2020:
- late payment (late transfer) of UST;
- underpayment or late payment of the UST amount at the same time as the payment of the amounts to which the UST is charged (advance payments);
- untimely submission of UST statement to the tax authorities.
Also, during the periods from March 1 to 31 and from April 1 to 30, 2020, all UST payers will not be charged with a penalty, and penalties accrued for these periods will be automatically written off. Therefore, if during the specified period the employer submits UST statement untimely, fails to pay the amount of the UST in a timely manner, or reduces the amount of the UST in the payment of salary earnings, then no sanctions and penalties will be charged. However, the employer will still have to pay the appropriate amount of the UST. Unfortunately, the officials of enterprises and organizations are not exempt from the administrative responsibility of for such violations.
UST is paid for March and April: what to do
If the payer has already paid the contributions for March and April 2020 before the entry into force of Law No. 533, such amounts will be credited by the tax authorities (without any statements by the payers of a single tax) to the account of future payments (provided that such payer has no arrears, penalties and/or charges from this contribution), except in the case of self-determination by such payer of the base of calculation of the single tax for the reporting period in the report.
