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Ukraine: Tax developments in response to COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 26 March 2020

Legislation on measures to provide relief to taxpayers in response to the coronavirus (COVID-19) pandemic was enacted in the Ukraine on 18 March 2020 . The tax measures in the legislation include:

Simplified tax audits

  • For the period from 18 March till 31 May 2020:
    • A moratorium on documentary and factual audits has been established, with the exception of audit of budgetary VAT refunds. Tax audits scheduled to begin during this period will be postponed.
    • Current tax audits will be suspended until 31 May 2020  For the period from 18 March till 18 May 2020:
    • A moratorium on documentary checks on the correctness of the single social tax calculation has been established.

Simplified fines and penalties accrual:

  • For the period from 1 March till 31 May 2020:
    • Penalties for violation of tax legislation shall not be applied except for violations regarding:
      • VAT, excise tax, rental payments; 
      • Production of ethanol and fuel; 
      • Alienation of property in the pledge
    • No penalties accrued for violation of tax legislation. Accrued but unpaid penalties for this period are subject to write off
  • For the period from 1 March till 30 April 2020.
    • Penalties do not apply for late filing and late payment of single social tax.
    • Single social tax payers are not charged a penalty. Already accrued penalties are subject to write-off.

Simplification of accrual and payment of taxes and fees

  • For the period from 1 March till 30 April 2020:
  • There is no charge for land (land tax and rent for state and communal property) used in business. 
  • No tax charges for non-residential real estate owned by persons and businesses.
  • Individual entrepreneurs, persons pursuing independent professional activity and members of the farm are exempt from the payment and payment of the single social tax for themselves.

Land and property taxes

  • Charges for April 2020 were cancelled
  • Deadline for payments for the March 2020 was delayed till 31 June 2020.

Corporate income tax

  • Taxpayers become exempt from the application of tax differences on the amount of money or value of goods, provided free of charge to public associations and / or charitable organizations and / or relevant public authorities and / or public health institutions and / or communal property (and other sites) which operate to prevent the spread of coronavirus disease in Ukraine (COVID-19).

VAT

  • Added a rule on exemption from VAT of operations on the supply in the customs territory of goods (including medicines, medical devices and / or medical equipment) necessary for the implementation of measures aimed at preventing the occurrence and spread, of coronavirus diseases (COVID-19), the list of which has been determined by the Cabinet of Ministers of Ukraine.

Excise tax

  • From 31 May 2020, the excise tax is charged at the rate of 0 UAH per 1 liter of 100% ethyl alcohol used for the production of disinfectants. During the same period, permission was granted for the shipment of alcohol to manufacturers of medicinal products and manufacturers of chemical and technical products for the production of disinfectants.