The simplified system of taxation or the so-called “single tax“, along with many of its features and disadvantages, is extremely beneficial for businesses. It will be recalled that the simplified taxation system can be used not only by individuals-enterprises, but also by limited liability companies (the latter can be in group 3 only).
The advantage of a simplified taxation system is a clear tax framework. In addition to paying the Single Social Contribution, you pay:
- up to 10% of the subsistence minimum (up to UAH 210.2) – 1 group;
- up to 20% of the minimum wage (up to UAH 944.6) – group 2;
- 3% of income and VAT or 5% of income – group 3.
However, what to do if you are in the general taxation system and want to change to a simplified one? Or for a number of reasons you want to move to another group of the simplified taxation system?
Please note that this can be done only until 16.12.2020, as such an application is submitted no later than 15 days before the new tax period. We talked about how this can be done earlier. If you do not want to investigate this issue in more detail, the law firm “Prikhodko and Partners“ will help you.
In addition, single taxpayers of group 3 do not need to forget and note the issue of filling out and submitting reports. Namely, you should pay attention to the following:
- By February 9, 2021, reports on the Single Social Contribution are submitted;
- Until January 20, 2021, the single social contribution for the 4th quarter of 2020 is paid;
- The tax return for 2020 shall be submitted by February 9, 2021;
- Until February 19, 2021, a single tax is paid for the 4th quarter of 2020;
- Until February 9, 2021, 1DF reporting for the 4th quarter of 2020 is submitted.
So, given the approach of a large number of weekends and the workload of accountants, you should start looking for a consultant on these issues today.
In addition, entrepreneurs in the simplified taxation system should be prepared to increase the amount of taxes that will have to be paid starting in 2021. This is due to the annual increase in the minimum wage and subsistence level. At the same time, the State Budget of Ukraine for 2021 has not yet been adopted, and therefore it is not yet possible to establish the actual amount of taxes.
In addition, some positive aspects can be cited through the recent signing of the Law of Ukraine №1072-IX by the President. Yes, the law provides specific tax incentives. In particular, a tax debt is written off if the amount of such debt of the payer for all taxes and fees does not exceed UAH 3,060. Also, payers of the single tax of group I are exempt from paying this tax for December 2020 and January – May 2021. In addition, until December 29, 2021, the repayment of the tax debt of taxpayers – individuals, including self-employed persons, was postponed, which does not exceed UAH 6,800.
If you have additional questions – contact the law firm “Prikhodko and Partners“, we will be happy to help you.