Mobilized individual entrepreneurs are exempt from taxes - details from the State Tax Service.

Individual entrepreneurs who serve under contract or mobilization have been exempted from paying taxes and submitting reports during their service. The relevant changes to tax legislation have already come into effect. This was reported by the State Tax Service of Ukraine.

Which taxes do not need to be paid

Individual entrepreneurs defending Ukraine are exempt from paying:

• personal income tax;
• single tax;
• military levy;
• single social contribution (provided there are no hired employees).

Nuances of exemption from tax payment for individual entrepreneurs

The exemption is automatic. The State Tax Service will receive information about mobilization or contract signing from the Unified State Register of Conscripts, Military Servicemen, and Reservists. The benefit starts from the first day of the month in which the individual entrepreneur joined the military, but no earlier than February 24, 2022.

If the data of the individual entrepreneur is listed in 'Reserv+', they do not need to submit any applications. If the information is absent in 'Reserv+', the entrepreneur can independently submit an application and copies of documents to the tax authority.

How the exemption will work:

• advance payments of the single tax and military levy during the period of mobilization or the contract will not be charged; if they were previously charged, they will be canceled;
• if the individual entrepreneur was removed from the register of single tax payers due to non-payment of tax obligations during mobilization or service under contract, they will be reinstated automatically;
• fines imposed on the single contribution payer during mobilization or the period of the signed contract will be canceled;
• the salary for hired workers during the military service can be paid by the authorized representative of the individual entrepreneur: in this case, the single social contribution is charged by the person appointed by the military as a representative, and the individual entrepreneur can pay this amount within 180 days after demobilization;
• the report on the single social contribution must be submitted by the individual entrepreneur within 150 days after demobilization.

Let us remind you that strategically important enterprises can reserve their employees. To do this, they must provide a number of data, including about the manager.

We also reported that during the general mobilization, people with disabilities are not subject to military conscription. However, in some cases, even such citizens may be mobilized.

The changes in tax legislation that exempt individual entrepreneurs from paying taxes during service under contract or mobilization have become effective. Now, entrepreneurs can serve Ukraine without worrying about financial matters and tax reporting, as these obligations are temporarily lifted from them. This step will positively affect the motivation of freelancers and volunteers to participate in the defense of the country.