New status, tax benefits and social guarantees: what is being prepared for employees in active combat zones
The Verkhovna Rada Committee on Social Policy and Veterans' Rights Protection at its regular meeting recommended that parliament include in the agenda and adopt as a basis two bills necessary for the implementation of the future law on the status of participants ensuring the livelihood of the population, the functioning of the state, and critical infrastructure in active combat zones.
This concerns bill No. 15341 on amendments to the Budget Code of Ukraine, which is intended to regulate the financial provision of the relevant social guarantees, as well as bill No. 15342 on amendments to the Tax Code of Ukraine aimed at implementing the provisions of the future law on the status of such persons and guarantees of their social protection.
The Committee noted that these legislative initiatives regulate financial and tax issues related to the introduction of a new status for persons who ensure the livelihood of the population, the functioning of the state, and critical infrastructure in active combat zones.
The relevant conclusions of the Committee will be sent to the profile committees of the Verkhovna Rada — on budget issues, as well as on finance, tax, and customs policy, which are the main committees for considering these bills.
As previously reported by "Judicial and Legal Newspaper", bill No. 15341 proposes amendments to Articles 87, 89, and 97 of the Budget Code of Ukraine, as well as to supplement the Code with a new Article 103-7.
The key innovation is the creation of a separate budgetary instrument for financing social protection guarantees for a new category of persons — participants ensuring the livelihood of the population, the functioning of the state, and critical infrastructure in active combat zones.
In addition, the bill contains separate amendments to extend until 2037 the effective date of the provisions of the Budget Code concerning the financing of child patronage services and the payment of assistance for the maintenance of a child in a foster family.
It was also reported that bill No. 15342 proposes amendments to the Tax Code of Ukraine. It concerns the introduction of tax support for employees who ensure livelihood in active combat zones. The bill provides for targeted exemption from taxation of income on the condition of confirmed actual work performed in hazardous conditions.
The document proposes tax guarantees for persons who will be granted the status of participant ensuring livelihood in active combat zones.
The key idea is the introduction of a tax guarantee that will allow certain payments to employees not to be included in taxable income if they:
- actually and personally work in active combat zones;
- perform socially necessary functions (medicine, energy, transport, public administration, utilities, and other services);
- have confirmed periods of such work.
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