Is it necessary to submit a notification to the State Tax Service about hiring a company director – details
The Labor and Employment Inspection of the Dnipro City Council explained whether employers are required to submit a notification to the State Tax Service about hiring a company director.
What the legislation provides
The most common question among employers concerns the necessity of sending a notification to the State Tax Service about the appointment of a director. It is noted that due to established practice, HR specialists and accountants often continue to submit such notifications, fearing possible fines.
At the same time, the procedure for notifying tax authorities about the hiring of employees is defined by the Cabinet of Ministers of Ukraine Resolution No. 413 dated 17.06.2015. This document provides an exception: a notification about hiring a member of the executive body of a business company or the director of an enterprise, institution, or organization is not submitted to the State Tax Service.
How information is received by the tax authorities
The tax service automatically receives information about the company director from the Unified State Register of Legal Entities, Individual Entrepreneurs, and Public Formations.
After the state registration of changes regarding the director, the relevant data is electronically transmitted to state authorities. This information is considered the official notification of the appointment of a person to the position of director. Thus, a simplified procedure for informing the tax service has been introduced for directors.
If the director is a founder
If the director is simultaneously a founder or the sole participant of the company, the procedure remains unchanged. Information about their appointment is still transmitted to the State Tax Service through the Unified State Register.
What obligations remain for the employer
Despite the absence of the need to submit a notification to the tax service, the employer is obliged to properly formalize personnel decisions, in particular:
- the decision of the founders or owner on the appointment of the director;
- an order on assuming the position;
- making changes to the Unified State Register;
- concluding an employment contract or agreement, if provided by legislation or founding documents.
The key point is the timely entry of data into the Unified State Register, since tax authorities receive information about the director precisely from this register.
Therefore, it is not necessary to submit a notification to the State Tax Service about hiring a director. Information about the director is automatically received by the tax service through the Unified State Register, and the employer must ensure proper documentation and registration of the relevant changes.
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