President Volodymyr Zelensky signed the law on canceling the moratorium on tax audits.
This is stated in the draft law card No. 10016-d.
The law will enter into force on December 7, but earlier the parliament voted to bring back tax audits from December 1 (this date was then moved from November 1). At the same time, the moratorium on inspections of the private enterpreneurs of the first and second groups will remain in place until December 2024.
Scheduled documentary checks may apply to payers who for 2021:
- had twice as much receivables as payables;
- had a level of payment of income tax less than 50% by industry and VAT less than 50% by industry;
- whose annual income exceeds 10 million hryvnias, and the total amount of expenses is more than 75% of the amount of annual income.
Taxpayers who:
- produce (have produced) or sell (have sold) products subject to excise duty;
- are or have been engaged in gambling business;
- provide or have provided financial, payment services;
- are non-residents and conduct or conducted activities through separate units.
Inspections will not apply to enterprises in temporarily occupied territories and territories where hostilities are ongoing.
Why is this important?
Adoption of this draft law is one of the main requirements of the International Monetary Fund (IMF). The government of Ukraine expects $5.4 billion in tranches from the IMF in 2024. Before that, the Fund supplemented the Extended Fund Facility (EFF) for Ukraine with four beacons: the Budget Code, the "5-7-9%" lending program, the State Tax and Customs Service, and the GTS Operator.
- The Ukrainian authorities do not plan to raise taxes until the end of the war, except to return them to the pre-war level.