Sole proprietors (hereinafter – SP), including those who have chosen a simplified system of taxation, with primary place of employment, are exempt from paying a single contribution to the mandatory state social insurance (hereinafter – single contribution) for the reporting month period for which the employer has paid an insurance contribution for such persons in the amount of not less than the minimum insurance. In which cases do sole proprietors of I – III groups, with primary place of employment, submit Annex 1 to the tax return of the single tax payer – sole proprietor?
Such persons may be payers of the single contribution provided that they independently determine accrual base for the months of the reporting period for which the employer paid the insurance contribution for such persons in the amount less than the minimum insurance contribution, but not more than the maximum accrual base established by Law of Ukraine “On collection and accounting of the single contribution to the obligatory state social insurance” No. 2464-VI of July 8, 2010 as amended (hereinafter – Law No. 2464). At the same time, the amount of the single contribution may not be less than the amount of the minimum insurance contribution.
SPs – payers of single tax of I-III groups submit as part of the tax return of the single taxpayer – sole proprietor, approved by Order of the Ministry of Finance of Ukraine No. 578 of June 19, 2015 (hereinafter – the return), Annex 1 “Information on the amount of accrued income of insured persons and the amount of the accrued single contribution” (hereinafter – Annex 1).
In chap. 9 of Annex 1 column 2 in the lines for each calendar month of the reporting period reflects the amount of accrued income of insured persons and column 4 calculates the amount of accrued single contribution. The total amount of the accrued single contribution for the reporting period is indicated in the line “Total” of column 4 of chap. 9 of Annex 1.
The value of the line “Total” of column 4 chap. 9 of Annex 1 is transferred to line 21 “The amount of the single contribution payable to extra-budgetary accounts, according to the reporting (tax) period” chap. VII of the return.
According to Note 8 to the return, Annex 1 is not submitted or filled in by sole proprietors – payers of the single tax of I-III groups, provided that they comply with the requirements specified in parts 4 and 6 of Art. 4 of Law No. 2464, which give the right to exemption of such persons from paying a single contribution. Such persons may submit Annex 1 only if they voluntarily participate in the system of compulsory state social insurance.
Given the above, sole proprietors of groups I-III with primary place of employment for whom the employer has paid a single contribution of at least the minimum insurance contribution for all calendar months of the reporting period, Annex 1 to the return is not completed or submitted.
If the employer has accrued and paid a single contribution in the reporting period in the amount less than the minimum insurance contribution (for example, in cases where the employee has operated less than a month in connection with the admission/dismissal in the middle of the month) or has not accrued and paid (for example, due to the employee’s stay for a full month on leave at their own expense), such sole proprietors are obliged to determine the basis of accrual for such months in the amount of not less than the minimum salary and reflect in column 2 of chap. 9 of Annex 1.
For the months for which the employer has paid a single contribution in the amount of not less than the minimum insurance contribution, column 2 of chap. 9 of Annex 1 in paper form is crossed out, in the electronic version – the fields remain unfilled.
