What tax incentives businesses can enjoy during martial law?

As of November 12, 2024, the following tax benefits for businesses under martial law are in effect in Ukraine:

1. Single social contribution (SSC):

• Exemption from paying the USC: Individual entrepreneurs, regardless of the chosen taxation system, may not accrue and pay the USC for themselves during the period of martial law and for 12 months after its termination. This exemption does not affect the entrepreneur's insurance record.

2. Reporting:

• Deferral of reporting: Taxpayers who were unable to submit tax returns in a timely manner due to military operations are exempt from liability for late submission. They are obliged to submit the reports within six months after the end of martial law.

3. Tax audits:

• Moratorium on tax audits: For the period of martial law, a moratorium on tax audits has been introduced, except for certain cases, such as in-house audits and audits at the request of the taxpayer.

4. VAT and excise tax:

• Reduction of rates: In order to stabilize fuel prices, the VAT rate on fuel was reduced from 20% to 7%, and the excise tax was abolished.

Please note that some of these benefits are temporary and may be amended or canceled over time.