Law 3220: The Impact of Quarantine in Ukraine on Business and Ukrainian Taxation

On March 17, 2020, to support taxpayers, the Verkhovna Rada adopted draft law 3220, which amends the Tax Code of Ukraine. It also introduces adjustments to other laws that will help ease the impact of the quarantine on Ukrainian businesses.

We are publishing a list of changes to the Tax Code that have now been adopted and will be effective for specified periods, and we have created an infographic “Law 3220” in our Facebook group “Prostir Accounting Services”, where we briefly show how the quarantine affects the lives of accountants.

Now, from March 1 to April 30:

• penalties for violations of tax legislation are not applied
• land tax is not accrued and not paid
• non-residential real estate objects owned by individuals or legal entities are not taxed as real estate other than land plots

Also, from March 18 to April 30, 2020, a moratorium is imposed on documentary and actual inspections, and the deadline for submitting the annual declaration on property status and income has been extended to July 1, 2020.

In total, the draft law also amended 7 laws:

• “On the Collection and Accounting of a Single Contribution to Compulsory State Social Insurance”
• “On Compulsory State Pension Insurance”
• “On Compulsory State Social Insurance”
• “On Amendments to the Law of Ukraine “On the Use of Cash Registers in Trade, Public Catering and Services” and Other Laws of Ukraine Regarding the De-shadowing of Settlements in Trade and Services”
• “On Amendments to the Tax Code of Ukraine Regarding the De-shadowing of Settlements in Trade and Services”
• “On Consumer Loans”
• “On the National Bank of Ukraine”.