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Mobilized individual entrepreneurs are exempt from paying taxes for the duration of their service: how to use it

Цей матеріал також доступний українською

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Image: State Tax Service

Self-employed individuals who have been mobilized or signed a contract for military service are exempt from paying taxes and filing reports for the duration of their service.

Taxes that will not be paid:

personal income tax,
single tax
military duty,
Unified Social Contribution if the sole proprietorship does not have employees.

The State Tax Service informs that the exemption is applied automatically based on data from the Unified State Register of Conscripts, Persons Liable for Military Service and Reservists (dates of mobilization, contract conclusion, demobilization) from the first day of the month of mobilization or contract conclusion, but not earlier than February 24, 2022.

What a sole proprietor must do

if information on mobilization, contract or demobilization is already in the Register, no application is required;
if there is no information in the Register, you can submit an application and copies of supporting documents to the tax office yourself.

The State Tax Service has consistently initiated the resolution of tax issues of mobilized individual entrepreneurs and veterans and created working groups in its territorial offices. All hotlines continue to operate for the convenience of those seeking advice on the new rules.

How the tax exemption works

The State Tax Service will not charge advance payments of the single tax and military fee for the period of mobilization or the duration of the contract. If such amounts have already been accrued, they are subject to cancellation.

If a sole proprietor has been excluded from the register of single tax payers due to non-payment of tax liabilities during mobilization or contract service, it will be automatically restored.

Also, mobilized individuals - entrepreneurs/individuals engaged in independent professional activities/farmers, unless they are persons subject to insurance on other grounds, information on which is available in the Register, have the right not to charge, calculate and pay the Single Contribution for the entire period of their military service, including contractual military service.

In addition, for the period of mobilization of the single contribution payer or the validity of the contract concluded with such a person, the accrued amounts of penalties and fines are subject to cancellation (cancellation) for reporting periods up to and including the first day of the month following the month in which the supervisory authority received information on the mobilization of the single contribution payer.

If a sole proprietor has employees, he or she may authorize another person to pay salaries to employees. In this case, the authorized person accrues the unified social contribution, and the sole proprietor can pay it within 180 days after demobilization - without penalties.

The sole proprietor shall submit reports on the single social contribution within 150 days after demobilization, also without fines and penalties.

If there are violations before or during service (late payment or reporting), the sole proprietor is exempt from liability if he fulfills his duties within the established time limits after demobilization: