Payment of a Single Social Contribution during Martial Law

On March 17, 2022, the Law of Ukraine “On Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine Concerning the Effect of Norms for the Period of Martial Law” No. 2120-IX of March 15, 2021 entered into force, amending the Law of Ukraine “On the Collection and Accounting of a Single Contribution to the Obligatory State Social Insurance”.

The Law provides for the following changes in the calculation and payment of the single social contribution:

1) Individual entrepreneurs, including those who have chosen a simplified system of taxation, as well as persons engaged in independent professional activities (scientific, literary, artistic, educational or teaching, as well as medical, legal practice, including law, notary activities) have the right not to accrue, calculate or pay a single contribution for themselves.

This benefit is valid from March 1, 2022 until the termination or abolition of martial law in Ukraine, as well as for 12 months after the termination or abolition of such martial law.

In this case, such persons do not fill in the calculation of the single contribution in the tax return for the period in which the single contribution was not accrued, calculated and paid.

2) Individual entrepreneurs of the 2nd and 3rd groups, as well as legal entities belonging to the 3rd group of single tax payers, have the right not to pay a single contribution for employees called up for military service in the Armed Forces of Ukraine.

This benefit is valid during the mobilization period defined by the Decree of the President of Ukraine of February 24, 2022 No. 69/2022 “On General Mobilization”, which is 90 days from the date of entry into force of the Decree, i.e. from February 24, 2022 to May 25, 2022.

The amounts of the single contribution, accrued and not paid by employers, shall be paid from the state budget.

3) For the period of martial law, as well as during three months after its termination or abolition, the following penalties will not be applied:

• non-payment or late payment of the single contribution;
• non-submission, late submission of reports on the accrual of the single contribution;
• evasion of registration or late submission of an application for registration by single contribution payers;
• improper maintenance of accounting documentation, on the basis of which the single contribution is accrued;
• other violations provided by part 11 of Art. 25 of the Law of Ukraine “On the Collection and Accounting of a Single Contribution to the Obligatory State Social Insurance”.

4) A moratorium has been established on conducting documentary checks on the correctness of accrual, calculation and payment of the single contribution for the period of martial law, as well as for three months after its termination or abolition.