Klaus Kessler

Rechtsanwalt (Deutschland)
Phone: +49 89 928 780 702

Yuri Nikolaychuk

Rechtsanwalt (Ukraine), Dipl.-Jur., LL. M., Steuerberater
Associate Partner
Phone: +380 (44) 586 23 03

30 September 2022 is the deadline for submission of documents evidencing taxpayer’s inability to perform tax obligations in Ukraine due to the military aggression of the Russian Federation

On September 6, 2022, the order of the Ministry of Finance of Ukraine No. 225 of July 29, 2022 approving the procedure of confirmation by the taxpayers of inability to perform tax obligations due to the military aggression of the Russian Federation (hereinafter - the Procedure) became effective. According to the Procedure, the taxpayers which are prevented from performance of their tax obligations, including tax agent's obligations, shall submit respective notice with supporting documents to the tax authorities by September 30, 2022. Failure to submit such notice can lead to penalties.

For the taxpayers - legal entities, the Procedure provides a list of the reasons caused by the military aggression of the Russian Federation which can prevent a taxpayer from performance of tax obligations. Such reasons include, in particular: destruction of or loss of access to primary documents, computer and other equipment; impossibility of obtaining or using primary documents, computer and other equipment without risk to the life or health of taxpayer's officials; absences of officials who are authorized to submit reports and pay taxes and/or the impossibility of replacing such officials, provided that the taxpayer has nothing to declare; location of the taxpayer and/or production facilities on the territory temporarily occupied by the Russian military or where military actions took or are taking place; other force majeure circumstances supported by the documents.

The notice about the inability to perform tax obligations is submitted in free form and it shall contain taxpayer's details, the reasoning of taxpayer's failure to perform specific tax obligations for respective reporting periods, a list of supporting documents specifying the number of pages and details of each document. The notice together with supporting documents can be submitted to the tax office where the taxpayer's is registered or to other service center in electronic form via taxpayer's e-cabinet, in paper form or by registered mail.

The Procedure provides a list of supporting documents which the taxpayer shall add to the notice. Such supporting documents include, in particular, the following:

  • an act certifying the fact of fire;
  • information from the State Register of Property Rights to Immovable Property in case of destruction of immovable property;
  • a copy of a notice to police about criminal offense, an extract from the Unified Register of Prejudicial Investigations confirming the opening of criminal proceedings;
  • a statement from a bank account confirming the absence of funds as of the date of submission of the payment order for payment of taxes to the bank;
  • a copy of the order on suspension of taxpayer's operations and idle time for employees;
  • a document or notification from website of a postal operator, bank and/or treasury about the suspension of the postal facilities, bank operations, payment system or treasury department in the relevant territory;
  • copies or screenshots of the taxpayer's payment orders for the payment of declared taxes, tax debt submitted to the bank, which remained unfulfilled (shall be submitted together with the bank's notice of suspension of bank operations);
  • notifications, including screenshots from messengers, confirming the outage of electricity or the Internet services which prevented the taxpayer from submission of tax declarations in electronic form;
  • notification about damaged and destroyed immovable property submitted by means of the Unified State Web Portal of Electronic Services (Diia Portal).

Within 20 calendar days after submission of the notice and supporting documents by the taxpayer, the tax authority will decide on whether a taxpayer is able to perform its tax obligations. If the documents submitted by the taxpayer are insufficient, the tax authority will take a preliminary decision and request additional documents, which the taxpayer shall provide within 10 days after receiving the preliminary decision.

If the tax authority concludes that the taxpayer is unable to perform tax obligations, the taxpayer will be relieved from liability in accordance with Subparagraph 69.1 of Paragraph 69 of Subsection 10 of Chapter XX "Transitional Provisions" of the Tax Code of Ukraine. If the tax authority decides that the taxpayer is not prevented from performance of tax obligations in a timely manner, the taxpayer will not be relieved from the liability for the failure to perform tax obligations and such taxpayer may be imposed penalties.

If the taxpayer does not submit the notice and supporting documents by September 30, 2022, it is considered that such taxpayer is able to perform its tax obligations. If the taxpayer is not able to submit the notice together with supporting documents, the taxpayer shall submit the notice as soon as this is possible, but not later than within 60 calendar days from the first day of the month following the month in which the taxpayer becomes able to perform tax obligations.

If the taxpayer disagrees with the decision of the tax authority regarding the taxpayer's ability to perform tax obligations, the taxpayer may challenge such decision in the administrative or judicial proceedings.