Individual Entrepreneurs in Military Service: From Which Taxes and Reporting They Are Exempted
Individual entrepreneurs and self-employed citizens who are serving in the military due to mobilization or under contract can take advantage of tax benefits. The right to exemption from certain tax obligations remains even if they have hired employees or receive income from entrepreneurial activities.
Who can use the benefit
Tax relief is provided for individual entrepreneurs and persons engaged in independent professional activities if they have been mobilized or signed a contract to serve in the military.
At the same time, a mandatory condition is having the status of an individual entrepreneur or self-employed person before the moment of conscription or contract signing.
From which obligations they are exempted
For the entire period of military service, but not earlier than February 24, 2022, such persons are exempt from the obligation to:
- pay personal income tax, single tax, military levy, and single social contribution for themselves;
- accrue the mentioned payments;
- submit tax reports regarding these taxes and fees.
The Tax Service emphasizes that these benefits apply regardless of whether the entrepreneur has hired employees or continues to receive income during military service.
For what period the exemption is granted
The preferential regime starts from the first day of the month in which the person was mobilized or signed the contract and lasts until the last day of the month in which demobilization occurred.
What documents need to be submitted
To apply for the benefit, it is necessary to contact the tax authority at the place of tax registration and submit a copy of the military ID or another document confirming mobilization.
If information about military service is absent in the tax authorities, instead of the military ID, a copy of the military service contract can be provided.
The State Tax Service also reported that to support entrepreneurs serving in the military, special temporary working groups operate in territorial units and separate hotlines are available for consultations.
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