Photo from UNIAN

The Verkhovna Rada, Ukraine's parliament, has passed Bill No.4430 to introduce tax holidays for individual entrepreneurs of the first group, as well as write off their tax debts or defer the debt payments.

The bill was backed by 305 MPs (as a basis) and 302 (as a whole) with the required minimum of 226 votes, an UNIAN correspondent reported on December 4.

Ukrainian Prime Minister Denys Shmyhal says the draft law is part of President Volodymyr Zelensky's package of bills to help businesses if lockdown is toughened.

The document envisages tax holidays for 200,000 individual entrepreneurs of the first taxation group, since they are exempt from paying single taxes and single social security taxes from December 2020 to May 2021. In addition, tax debt is written off if it does not exceed UAH 3,060 (US$108) as of November 1, 2020.

Read alsoUkrainian businesses to get compensation during lockdown – Rada's decisionAlso, the bill postpones until December 29, 2021, the repayment of the tax debt by taxpayers (individuals), including self-employed persons, if it does not exceed UAH 6,800 (US$240).

Head of the Financial, Tax and Customs Policy Parliamentary Committee Danylo Getmantsev says the bill stipulates writing off penalties and fines if taxpayers independently pay off their tax debts on the principal payment within a six-month period after the draft law becomes effective.

Also, the deadlines for writing off a single social security tax paid by inactive self-employed individuals have been extended by three months.

Background

Earlier, President Zelensky submitted three bills to support businesses and workers, whose activities are subject to a ban if the curbs are stepped up nationwide.

Deputy Head of Ukraine's Presidential Office Yuliya Kovaliv said the new package of assistance to domestic businesses in case of reintroduction of strict quarantine in Ukraine involves the allocation of UAH 12 billion or UAH 15 billion (US$424 million – US$539 million) by the end of the year.

On December 4, 2020, the Verkhovna Rada passed a presidential bill on support for businesses for the period of quarantine restrictions through the payment of one-time financial assistance to employees and individual entrepreneurs.