Tax and accounting insights for Ukraine
14.06.24
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The list of white and fluffy businesses will be regularly reviewed

MP Nina Yuzhanina emphasizes that those in the "white business club" will be included in the List, which will be reviewed quarterly.

The list will be published on the website of the State Tax Service, but a taxpayer may apply for a waiver to have his or her data published.

So, what preferences will the "white business club" taxpayers receive?

"Selected taxpayers will be granted the status of a taxpayer with a high level of voluntary compliance with tax legislation and will be granted the following:

1. They will not start:

► documentary scheduled inspections, except for inspections of excisable goods, gambling and financial services;

► actual inspections on licensing of fuel storage activities exclusively for consumption and/or industrial processing;

► documentaryunscheduled inspections, except for inspections:

▪️ conducted solely at the request of the taxpayer;

▪️ carried out, in particular, in case of failure to provide explanations to the tax authority's request within 15 working days, failure to submit transfer pricing reports, termination of the payer, budgetary VAT refund, CFC;

▪️ of taxpayers in respect of whom tax information has been received on violation by the taxpayer of the deadlines for receipt of goods under import operations and/or foreign exchange earnings under export operations;

▪️ taxpayers operating in the field of excisable goods, gambling and financial services.

2. Reduce the timeframe for in-house (up to 5 business days) and documentary audits (up to 10 business days) to confirm VAT refunds.

3. Individual tax consultations will be provided within 15 calendar days.

4. The taxpayer will receive a personal compliance manager (assigned tax inspector).

5. Within 5 days, upon request, the taxpayer will receive information about tax risks in the taxpayer's activities, as well as advice on how to eliminate such risks.

6. Introduction of automatic reservation of employees liable for military service by "white" taxpayers in the amount of no more than 25 percent (in the form of recommendations of the Cabinet of Ministers).

These are the advantages of some taxpayers over others," the MP writes.

As a reminder, we wrote about the criteria for white business here.

N. Yuzhanina also adds the following theses.

"I decided to inform you about another provision in draft law No. 11084. Because the division of business into "white" and "not so white" is not over.

The division continues in the form of support for internally displaced persons (IDPs).

Thus, the total monthly/annual taxable income of a taxpayer will not include the cost of conditional rental housing in the amount of 2 minimum wages as of January 1 of the reporting year (in 2024 - UAH 14200) provided to IDPs for free use by an employer who is an executor/co-executor of state defense contracts, provided that such housing is located in Ukraine and was purchased, built or leased by the employer during martial law.

However, if an IDP works in another sector of the economy, such benefits are no longer available and such income is an additional benefit for IDPs and is subject to personal income tax and military duty.

And this is despite the fact that we hear everywhere about the government's statements about supporting the economy and business.

Let me remind you that, according to the Ministry of Social Policy, 4.9 million IDPs were registered at the end of 2023.

Therefore, we understand what socially sensitive norms are laid down in this law, in addition to how the business is divided," the MP said.

Nina Yuzhanina, MP

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