Entrepreneurs who lost their business due to the war are offered tax cancellation – what is known about the new initiative
A petition was registered on the Cabinet of Ministers' website calling for full or maximum tax exemption for entrepreneurs who lost property due to Russian aggression. The author of the appeal emphasizes that businesses that were destroyed, damaged, or looted have not received compensation for years, yet tax obligations to the state remain.
The author of the petition states the current situation is unfair
The petition notes that the problem concerns entrepreneurs who lost property, goods, equipment, production or warehouse premises as a result of hostilities, temporary occupation, shelling, destruction, or looting by Russian military and other persons during the occupation.
The author stresses that such exemption should apply until the entrepreneur receives fair compensation for the damages or the state actually restores the lost property.
The document emphasizes that this problem is not limited to certain regions but concerns all entrepreneurs in Ukraine whose property was located in areas of hostilities or temporary occupation.
A personal example of an entrepreneur from Izium
The author of petition No. 41/010428-26ep reports that he personally suffered in the city of Izium, Kharkiv region, which was under Russian occupation and a zone of active hostilities.
According to him, the property and goods through which he conducted entrepreneurial activity and supported his family were lost due to Russian aggression. A criminal case is ongoing regarding these facts, but he has not yet received compensation for the lost property, effective assistance to restore the business, or other proper support.
Additionally, the author notes that since 2023 he has not even received payments as an internally displaced person.
In his opinion, a person who worked for years, paid taxes, supported a family, and contributed to the country’s economy, after losing everything due to Russian aggression, is effectively left alone with their problems.
What changes are proposed
The petition asks the Cabinet of Ministers of Ukraine to develop and submit to the Verkhovna Rada a bill on full or maximum exemption from taxes, fees, and mandatory payments for individual entrepreneurs and legal entities whose property was destroyed, damaged, or looted due to hostilities or temporary occupation.
It is also proposed that such exemption should apply from the moment the entrepreneur loses property or ceases activity due to Russian aggression until full and fair compensation is paid.
Separately, the author requests the write-off of tax debt, penalties, fines, and other financial sanctions that arose after the loss of property or the ability to conduct business due to hostilities or occupation.
Other initiatives included in the petition
Among other proposals are the suspension of forced collection of tax debt, arrest of accounts and property, as well as the application of other restrictions on affected entrepreneurs.
It is also proposed to establish that the right to relevant benefits can be confirmed by information about criminal proceedings, inspection reports, photo and video materials, documents from state authorities, local governments, military administrations, or other proper evidence.
The author asks not to limit the application of such benefits to specific regions but to extend them to all entrepreneurs whose property was located in areas of hostilities or temporary occupation.
Furthermore, in case of exemption of individual entrepreneurs from paying the single social contribution, it is proposed to ensure that this period is counted towards insurance experience at the state’s expense so that such a benefit does not lead to loss of pension and other social rights.
The final proposal is the development and approval of a separate state program for compensation and restoration of entrepreneurs' activities who lost their business due to Russian aggression.
The petition states that while the state has not been able to compensate affected entrepreneurs for lost property, it should at least stop demanding tax payments and applying financial sanctions until the damages are reimbursed.
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