An individual entrepreneur on the general taxation system did not conduct business during the reporting period due to family circumstances. How should they report for this period if they did not receive any income – read below.
Declaration of property status and income of an individual entrepreneur
According to item 177.5 of the Tax Code of Ukraine (hereinafter – the Tax Code), individual entrepreneurs submit to the regulatory authority a tax declaration on property status and income (hereinafter – the tax declaration) at the location of their tax address based on the results of the calendar year within the deadlines established by the Tax Code for the annual reporting tax period, which also indicates advance payments of personal income tax.
Individual entrepreneurs submit an annual tax return within the period specified in item 49.18.4 of the Tax Code, i.e. by May 1 of the year following the reporting year, except for cases provided for in Section IV of the Tax Code.
Paragraph 1 of item 49.2 of the Tax Code establishes that a taxpayer is obliged to submit tax returns for each reporting period established by the Tax Code in which taxable items arise, or in the event of the presence of indicators subject to declaration, in accordance with the requirements of the Tax Code for each separate tax of which they are a payer. The first paragraph applies to all taxpayers, including payers who are on a simplified system of taxation, accounting and reporting.
In accordance with item 177.11 of the Tax Code, individual entrepreneurs in their tax declaration, along with income from entrepreneurial activity, must indicate other income from sources originating in Ukraine and foreign income, as well as information on the amounts of the single contribution to mandatory state social insurance calculated on income from entrepreneurial activity in the amounts determined in accordance with the law.
Thus, if during the reporting period an individual entrepreneur on general taxation system did not conduct any activities and did not receive income from entrepreneurial activity, but has other income from sources originating in Ukraine and foreign income, then they submit a tax return and Appendix F2 to it, in which they cross out all the columns.
If during the reporting period an individual entrepreneur did not conduct any activities under the general taxation system, did not receive income from entrepreneurial activity and does not have other income from sources originating in Ukraine or foreign income, then they are not obliged to submit a tax return and Appendix F2 to it.
