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The Ministry of Finance has determined how the list of white businesses will be formed

The Ministry of Finance issued Order No. 495 dated October 07, 2024 approving the Procedure for the formation and publication of the list of taxpayers with a high level of voluntary compliance with tax legislation.

This Procedure was developed pursuant to the Law of 18.06.2024 No. 3813-IX in order to introduce peculiarities of tax administration during martial law for taxpayers with a high level of voluntary compliance with tax legislation. It defines the procedure for calculating the criteria for including taxpayers in the list of taxpayers with a high level of voluntary compliance with tax legislation, which includes

algorithms for calculating the average indicators of the criteria for inclusion of taxpayers in the List of taxpayers, on the basis of which this list is formed;
algorithms for calculating indicators of requirements and criteria for inclusion of taxpayers in the List of Taxpayers;
the procedure for the formation and approval of the List of Taxpayers;
the procedure for publishing the List of Taxpayers by the State Tax Service on its official website;
the procedure for notifying a taxpayer of its inclusion/exclusion to/from the List of Taxpayers;
the procedure for submission by a taxpayer of a notice of refusal to disclose taxpayer data;
the procedure for removing information about the taxpayer in case the taxpayer submits a notice of refusal to disclose the taxpayer's data after the publication of the List of Taxpayers.

Thelist of taxpayerswill be formed on the basis of tax returns submitted by thetaxpayer to the supervisory authority within the time limits established by the Tax Code, tax information from the STS information and communication systems and other sources obtained in the manner and manner prescribed by the Code. The STS will ensure that the List of Taxpayers is compiled and approved no later than the last business day of March, May, August and November.

The list of taxpayers with a high level of compliance will include legal entities and individual entrepreneurs, residents of Diia.City, who meet a number of requirements and criteria based on the taxation system (in particular, requirements for the level of tax payment, level of payroll, etc.)

Thus, taxpayers with a high level of voluntary compliance with tax legislation will include legal entities and individual entrepreneurs who simultaneously meet all of the following requirements

1) the tax debt and/or arrears of other payments, the collection of which is the responsibility of the controlling authorities, does not exceed 3000 tax-free minimum incomes and no more than 30 days have passed since their occurrence;

2) absence of arrears (arrears, fines, penalties) in the payment of the USC;

3) compliance with the criteria specified in subpara. 69.41.2 of Subsection 10 of Section XX "Transitional Provisions" of the Code, depending on the chosen taxation system;

4) absence of facts of violation by the taxpayer of tax obligations to submit reports and/or documents (notifications), including those provided for in Articles 39 and 39-2 of Section I of the TCU, paragraph 46.2 of the TCU;

5) absence of tax notices-decisions on violation of the deadlines for settlements for export and/or import of goods within the last consecutive 12 months;

6) absence of a decision on the taxpayer's compliance with the VAT payer risk criteria, adopted in accordance with the procedure and on the grounds determined by the CMU in accordance with paragraph 201.16 of the TCU;

7) absence of an initiated procedure for the termination of a legal entity or business activity of an individual entrepreneur;

8) no bankruptcy (insolvency) proceedings have been initiated against the taxpayer;

To determine whether the taxpayer meets this requirement

9) absence of a decision on the application of special economic and other restrictive measures (sanctions) to the taxpayer and/or its founders (participants), ultimate beneficial owners in accordance with the procedure established by the Law "On Sanctions";

10) the taxpayer and/or its founders (participants), ultimate beneficial owners do not have the citizenship of a state that carries out armed aggression against Ukraine (except for citizens of such a state who were granted the status of a combatant after April 14, 2014);

11) absence of persons among the founders (participants), ultimate beneficial owners of the taxpayer whose place of residence (location) is a state that carries out armed aggression against Ukraine.

12) no changes in the main type of economic activity entered in the Unified State Register for the taxpayer during the last 12 consecutive calendar months.

The Ministry of Finance notes that the inclusion in this list will encourage all taxpayers to comply with the tax legislation, as such taxpayers will receive certain advantages in tax administration during martial law:

moratorium on documentary audits, except for certain types of audits
reduction of the timeframe for desk and documentary audits for the purpose of budgetary reimbursement;
reduction of the timeframe for providing individual tax consultations;
the taxpayer is assigned a compliance manager with whom the taxpayer will be able to interact, in particular, using remote communication means, including videoconferencing.

Order # 495 will come into force on the date of its official publication. As of the date of this publication, the document has not been officially published.