Temporary exemption from tax obligations for entrepreneurs
Entrepreneurs who have suffered from Russian shelling have the opportunity to receive a temporary exemption from tax obligations for a period of up to 6 months after the end of the war. This initiative is enshrined in the Ministry of Finance order No. 225 and applies to both legal entities and individuals.
Conditions and advantages of temporary exemption
The temporary exemption includes the postponement of tax payment deadlines and the submission of reports for the specified period. Entrepreneurs can take advantage of these benefits in case of:
- loss of assets;
- lack of access to the enterprise;
- loss of management.
The loss of assets may include the complete or partial destruction of factories, warehouses, equipment, or office supplies. Lack of access may be related to the enterprise being located in an occupied territory or a combat zone. Loss of management, in turn, is determined by the inability to access premises or the destruction of computer databases.
Tax authorities review entrepreneurs' requests within 20 days. Freezing the deadlines for tax payments and report submissions allows businesses to 'wait' until the moment they regain capacity or the state of martial law ends. Furthermore, entrepreneurs will be exempt from fines for the late registration of tax invoices and violations in the field of cash register operations (CRO).
Thus, the new rules provide entrepreneurs who have suffered as a result of the war with an opportunity to ease their financial burden and focus on restoring their businesses.
This initiative of the Ministry of Finance is part of broader state efforts to support the business sector in wartime conditions. Temporary exemption from tax obligations can be an important step towards economic recovery, as it allows entrepreneurs to maintain financial stability and adapt to new conditions. Accordingly, this can positively impact the restoration of jobs and the overall economic development of the country after the end of hostilities.