Members of parliament introduce wartime tax breaks for businesses

THURSDAY, 3 MARCH 2022, 16:15

The Ukrainian Parliament has approved laws No. 7121-1 and No. 7125, which relax requirements for businesses regarding inspections and licences, as well as defining the specifics for reporting during the period of martial law.

This was reported by the head of the Ukrainian parliament's tax committee, Danilo Hetmantsev.

Businesses are being given the opportunity to submit reports and other documents 90 days after the termination or lifting of martial law. During martial law, there will be no checks on the timeliness and completeness of reports or documents of a reporting nature.

Taxpayers are also exempted from liability when they are unable to fulfil their duties, tax audits will not be started and audits that have been started will be stopped.

Transactions involving the voluntary transfer of funds and goods, including excisable goods, and provision of services to the armed forces and territorial defence units without prior or subsequent reimbursement of their value will not be considered to be sales transactions for taxation purposes.

In addition, Hetmantsev explained that the full amount of funds and property transferred to the armed forces and other units shall be included in expenses. The amount of compensation for the cost of fuel consumed when providing transport services for the needs of the armed forces and territorial defence units shall not be included in the taxable income of individuals who provide such services.

Furthermore, licences for the production of excisable products remain in force.