As you know, from January 1, 2021, changes were made to the procedure for determining the annual amount of income. Let's find out what business entities – legal persons cannot be payers of the single tax of the third group.
Who can be a single tax payer of the third group
In accordance with paragraph 3 item 291.4 Art. 291of the Tax Code of Ukraine (hereinafter – the Tax Code) the payers of the single tax of the third group include legal persons – business entities of any organizational and legal form, in which during the calendar year the amount of income does not exceed 1167 minimum wage established by law as at January 1 of the tax (reporting) year.
Who cannot be a single tax payer of the third group
Payers of the single tax of the third group may not be business entities (legal entities) that carry out (paragraph 291.5.1 item 291.5 Art. 291 of the Tax Code):
1) activities for the organization, conduct of gambling, lotteries (except for the distribution of lotteries), betting (bookmaker bet, betting bet);
2) foreign exchange;
3) production, export, import, sale of excisable goods (except for retail sale of fuels and lubricants in containers up to 20 liters and activities of individuals related to the retail sale of beer, cider, perry (without added alcohol) and table wines);
4) extraction, production, sale of precious metals and precious stones, including organogenic formation (except for production, supply, sale of jewelry and household products made of precious metals, precious stones, precious stones of organogenic formation and semi-precious stones);
5) extraction, sale of minerals, except for the sale of minerals of local significance;
6) activities in the field of financial intermediation, except for activities in the field of insurance, which are carried out by insurance agents defined by Law of Ukraine “On Insurance” No. 85/96-ВР of March 7, 1996, surveyors, emergency commissioners and adjusters. III TCU;
7) business management activities;
8) activities for the provision of postal services (except for courier activities), activities for the provision of fixed telephone services with the right of maintenance and operation of telecommunications networks and the provision of telecommunication channels (local, long-distance, international), activities with provision of fixed telephone services using wireless access to the telecommunications network with the right of maintenance and provision of telecommunication channels (local, long-distance, international), activities for the provision of mobile telephone services with the right of maintenance and operation of telecommunication networks and provision of telecommunication channels, activities for the provision of services for maintenance and operation of telecommunication networks, terrestrial television and radio broadcasting networks, wired radio broadcasting and telecommunication networks;
9) activities for the sale of art and antiques, activities for the organization of auctions of works of art, collectibles or antiques;
10) activities for the organization, conducting touring events.
Who also cannot be a single tax payer
Also, cannot be a single tax payer:
- insurance (reinsurance) brokers, banks, credit unions, pawnshops, leasing companies, trust companies, insurance companies, funded pension institutions, investment funds and companies, other financial institutions specified by law; registrars of securities (paragraph 291.5.4 item 291.5 Art. 291 of the Tax Code);
- business entities in the authorized capital of which the set of shares owned by legal entities that are not payers of the single tax is equal to or exceeds 25% (paragraph 291.5.5 item 291.5 Art. 291 of the Tax Code);
- representative offices, branches, offices and other separate subdivisions of a legal entity that is not a single tax payer (paragraph 291.5.6 item 291.5 Art. 291 of the Tax Code);
- non-resident legal entities (paragraph 291.5.7 item 291.5 Art. 291 of the Tax Code);
- taxpayers who on the day of filing an application for registration as a single tax payer have a tax debt, except for bad tax debt that arose due to force majeure (paragraph 291.5.8 item 291.5 Art. 291 of the Tax Code).
It should be recalled that changes to item 291.4 Art. 291 of the Tax Code were introduced by Law of Ukraine “On Amendments to the Tax Code of Ukraine and other laws of Ukraine to liberalize the use of payment transaction recorders by single tax payers and abolish the mechanism of compensation to buyers (consumers) for complaints of violation of the established settlement transactions” No. 1017-ІХ of December 1, 2020.
