Attention !!!!!
Now the unified social contribution - UAH 1430 is paid by ALL sole proprietors and individual entrepreneurs !!!
(except for pensioners and the disabled, read below)
There is only one way out:
Close the entrepreneur (termination of business activity, liquidation) >>>>>>>>>
The Supreme Court has come to the defense of entrepreneurs!!!
Read more here>>>>>>>>>>>>>>
How one word can coolly change the lives of thousands of entrepreneurs.
December 06, 2016 everyone's favorite Verkhovna Rada put a present under the Christmas trees of thousands of entrepreneurs.
And now in detail and in substance:
Until January 1, 2017 p. 2 of part 1 of Article 7 of the Law "On the collection and accounting of a single social contribution to the national state social insurance" (which determines the tax base of entrepreneurs on the general system of taxation) was spelled out as follows:
"2) for taxpayers specified in paragraphs 4 (except for individuals - entrepreneurs who have elected the simplified taxation system) and 5 of part one of Article 4 of this Law - on the amount of income (profit) received from their activities subject to personal income tax. In this case, the amount of a single contribution may not be less than the amount of the minimum insurance contribution for the month in which the income (profit) was received.
If such payer does not receive income (profit) in the reporting year or a separate month of the reporting year, such payer has the right to independently determine the assessment base, but not more than the maximum amount of the single contribution assessment base established by this Law. At the same time, the amount of the single contribution may not be less than the amount of the minimum insurance contribution;
The main phrases in this paragraph are highlighted in color and they mean: you receive income - you pay, you do not receive - you do not pay; independently - I want to pay, I do not want to pay single contribution.
On December 06, 2016, Law No. 5130 amends the law on single contribution and now this article is set out quite differently:
"2) for taxpayers specified in paragraphs 4 (except for individuals - entrepreneurs who have elected the simplified taxation system) and 5 of part one of Article 4 of this Law - on the amount of income (profit) received from their activities subject to personal income tax. In this case, the amount of a single contribution may not be less than the amount of the minimum insurance contribution for a month.
If such payer does not receive income (profit) in the reporting year or a separate month of the reporting year, such payer shall determine the assessment base, but not more than the maximum amount of the single contribution assessment base established by this Law. At the same time, the amount of the single contribution may not be less than the amount of the minimum insurance contribution;
Now the obligation to pay does not depend on whether there is income or not.
ITAK, from January 1, 2017 absolutely all entrepreneurs will have to pay the minimum single contribution.
Single contribution must be paid by all entrepreneurs SPD FL-P, except for those listed below, regardless of whether the activity was conducted or not, should be paid during vacation and during illness. To stop paying single contribution can be only in 1 case: termination of entrepreneurial activity.
I recommend to officially close the entrepreneur and stop entrepreneurial activity.
How to do this is described here >>>>
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old age pensioners
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Disabled persons who receive a pension or social assistance in accordance with the law.
While the situation with disabled people is more or less clear, there are a lot of trashy issues with old-age pensioners. The tax authorities and the Pension Fund believe that only pensioners who retired after reaching the age of 60 and 55 (for women), respectively, are exempt.
Court practice is also not always unambiguous.
In its decision of April 15, 2014 (case No. 21-59а14), the Supreme Court stated that only those individual entrepreneurs who have chosen the simplified taxation system and are old-age pensioners are exempt from paying the single contribution for themselves. By this decision, the SCU denied pensioners who retired on the basis of length of service the right to equate themselves with old-age pensioners.
But there are other categories of pensioners.
I believe that, given the established practice of the Supreme Court of Ukraine and the Higher Administrative Court of Ukraine for 2014 and 2015, we can conclude that the following sole proprietors-retired by age do not pay the unified social contribution:
-Those who retired on general grounds: at the age of 60 for men and with at least 25 years of work experience and at the age of 55 for women and with at least 20 years of work experience;
those who transferred to the old-age pension under Articles 13 and 14 of the Pension Law;
-Chornobyl pensioners. Thus, in the Ruling of the HACU as of 03/24/2015 (case No. K/800/36362/13) the court stated
a) the Pension Fund's references to the fact that the provisions of part 4 of Article 4 of the Law of Ukraine "On Collection and Accounting of the Single Contribution for Obligatory State Social Insurance" cannot be applied to a Chornobyl pensioner because he has not reached the age of 60 are groundless, since the said provision does not link the exemption from the single contribution to the person's reaching a certain age, but provides for the exemption from the contribution for all old-age pensioners.
b) that since part 4 of Article 4 of the Law of Ukraine "On Collection and Accounting of the Single Contribution for Obligatory State Social Insurance" does not contain any reservations regarding its non-application to persons who have been granted an old-age pension under the Law of Ukraine "On the Status and Social Protection of Citizens Affected by the Chernobyl Disaster", the courts correctly concluded that the plaintiff should not pay the single contribution for himself from January 2011.
Sole proprietors, retirees and recipients of survivor's pensions pay the unified social contribution on a general basis.
But the question arises: "And if a pensioner who retired for any reason before reaching retirement age has reached the retirement age of 60/55, does he or she have the right not to pay the unified social contribution as a sole proprietor on the spruce tax?" The Fiscal Service and the Pension Fund will tell you: Absolutely! YOU ARE OBLIGED TO PAY.
And they will not be confused by the absurdity of the situation that those who retired at the age of 60/55 will have this right, while those who retired earlier after reaching the age of 60/55 will not have such benefits.
However, there is a HACU ruling that if such a pensioner has reached the age of 60/55, he or she does not pay the unified social contribution.
On 04.12.2019, the Supreme Court issued a decision that may exempt thousands of so-called "sleeping" entrepreneurs from the obligation to pay huge amounts of unified social security tax for the periods when they did not receive income but were registered as sole proprietors.
(Resolution of 04.12.2019 No. 440/2149/19 of the Supreme Court. >>>>)
Key legal conclusions of this decision:
1) A person who is registered as an entrepreneur but does not carry out entrepreneurial activity is obliged to pay the minimum unified social contribution only if such person is not an employee.
2. In addition, the court noted that the tax (fiscal) service had the right to charge additional USC, having accepted the relevant demand for its payment, only on the basis of:
- an audit report;
- reports submitted by taxpayers to the tax authorities;
- accounting and other documents confirming the amount of payments (income) on which the USC is charged.
Please note that this is also a very important conclusion, since the vast majority of claims for the payment of the USC are formed without any inspections, without examining reports and any explanations from the entrepreneur. Thus, the claims sent to entrepreneurs without an audit can also be successfully challenged in court.
The decision is very useful for entrepreneurs, but given my many years of experience in disputes with tax and fiscal services, I can only say that it will not be easy to defend their rights. In most cases, entrepreneurs will have to go to court to cancel huge amounts of additional unified social security tax, penalties and fines. It will take a long time before tax officials, tired of losing in courts, change their practice and leave "sleeping" sole proprietors alone.
Please note that the deadlines for appealing a claim for payment of a debt (arrears) on the payment of the single social contribution must be appealed within 10! 10 calendar days from the date of receipt of such a claim, and in case of appealing such a claim to a higher tax authority, within 10 calendar days from the date of receipt of a response from the higher tax authority.