On 28 May 2020, the Ukrainian Parliament has published Law No. 591-IX “On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Additional Support to Taxpayers for the Period of Measures to Prevent the Occurrence and Spread of Coronavirus Disease (COVID-19)”. The Ukrainian Parliament has adopted the Law on 13 May 2020.
The Law amends the Tax Code of Ukraine. The changes are mainly related to the extension of benefits provided in connection with COVID-19 quarantine. The main changes are as following:
Changes in personal income tax
- Individuals are exempt from the simplified tax until 30 June 2020; and
- for the period from 2 April 2020 to the total monthly (annual) taxable income of the payer does not include income in the form of partial unemployment benefits for the period of quarantine established by the Cabinet, which is paid (provided) by the employer. Such assistance is applicable for partial unemployment as from tax military training.
Changes in penalties and fines
The moratorium on the application of penalties for violations of tax legislation, which were committed during the period from1 March to 30 June 2020, does not apply to sanctions for violations of accrual, declaration, and payment of value-added tax, excise tax, and rent.
Moratorium on inspections
The moratorium on tax audits for the quarantine period has been extended.
Changes in VAT and excise taxation
Excise tax is levied at the rate of 0 hryvnias per 1 liter of 100% alcohol from ethyl alcohol used for the production of disinfectants.
Entry into force
The Law entered into force on 29 May 2020.
