An Individual Entrepreneur Acquires Pensioner or Disability Status: Is Notification to the Tax Office Required?
Individual entrepreneurs who have acquired the status of an old-age pensioner or a person with a disability often wonder whether they need to notify the controlling authority separately. The Main Department of the State Tax Service in the Kyiv region has provided clarification on this matter.
Current legislation does not impose a specific obligation to notify the controlling authority about acquiring the status of a pensioner or a person with a disability.
However, such status is significant for fulfilling certain tax obligations, particularly concerning the payment of the single contribution to compulsory state social insurance.
When is an individual entrepreneur exempt from paying the single social contribution for themselves?
According to part four of article 4 of the Law of Ukraine dated 8 July 2010 No. 2464-VI "On the collection and accounting of the single contribution to the compulsory state social insurance," individual entrepreneurs, including single tax payers, are exempt from paying the single contribution for themselves if they:
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receive an old-age pension;
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have reached the age established by article 26 of the Law of Ukraine dated 9 July 2003 No. 1058-IV "On compulsory state pension insurance" and receive a pension or social assistance according to the law;
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are persons with disabilities and receive a pension or social assistance.
Such individuals may choose to be single contribution payers exclusively on a voluntary basis.
Is it necessary to submit an application to apply the benefit?
If information regarding the appointment of a pension or the establishment of a disability is duly received by state registers, a separate appeal to the tax authority for exemption from paying the single contribution for oneself is generally not required.
Nevertheless, it is advisable for the entrepreneur to verify that the relevant information is reflected in the Electronic Cabinet and, if necessary, contact the controlling authority to clarify the data.
What should the entrepreneur pay attention to?
The exemption applies solely to the payment of the single contribution for the entrepreneur themselves.
If the entrepreneur employs hired workers, they remain an employer and are obligated to calculate, withhold, and pay the single contribution for such employees in the usual manner.
Furthermore, the status of a pensioner or a person with a disability does not exempt the individual entrepreneur from fulfilling other obligations stipulated by tax legislation, particularly regarding the payment of the single tax, military levy, and the submission of reports in cases defined by law.
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