On October 1, 2024, transitional provisions of the PC of Ukraine entered into force, which approved the status of taxpayers with a high level of voluntary compliance with tax legislation (as the people say - "white" taxpayers) and established the procedure for their interaction with tax authorities.
At the same time, the Procedure for the formation and publication of the List of "white" payers, which determines the specifics of acquiring such a status, entered into force only on November 1, 2024.
What criteria will be the filter for joining the White Business Club and what preferences honest taxpayers should expect, we will consider in more detail in this article.
For potential participants of the White Business Club, the legislator established a list of criteria, subject to compliance with which taxpayers will be included in the List of "white" taxpayers.
An exhaustive list of such requirements is established by clause 69.41 of the Code of Ukraine and detailed in the Procedure for the formation and publication of the List of taxpayers with a high level of voluntary compliance with tax legislation, approved by order of the Ministry of Finance dated 07.10.2024 No. 495.
The criteria can be conditionally divided into:
- general– apply to everyone without excluding taxpayers,
- individual- are established depending on the type of taxation system chosen.
Importantly! The taxpayer must be responsible simultaneously both general and individual criteria.
INDIVIDUAL CRITERIA
Compliance of potential participants with individual criteria is determined according to the following algorithm: information about the taxpayer is compared with pre-established average indicators for each of the individual criteria.
Average indicators are correlated with the taxation system chosen by taxpayers. Order No. 495 singles out the following average indicators:
- The average indicator of the level of payment of PnP
- The average rate of VAT payment
- Indicators of average wages
- The average indicator of the level of tax payment to the consolidated budget
- The average rate of personal income tax payment
A detailed algorithm for calculating average indicators is also provided for in Order No. 495.
At the same time, you do not need to make calculations yourself. The average indicators for each of the individual criteria are published on the website "Territory of a high level of tax trust" in the "Industry Analytics" section. To find the necessary indicators, it is necessary to select the relevant branch (KVED) and region.
Let's consider what average indicators will be taken into account during the inspection of each of the taxpayers.
Importantly! If there is no information about the taxpayer for at least one period for which such indicators are calculated, the taxpayer will not be able to join the Club due to non-compliance with the criteria.
WHAT IS THE PROCEDURE FOR INCLUSION OF TAX PAYERS TO THE WHITE BUSINESS CLUB?
Formation of the List of bona fide payers will be carried out automatically. The DPS will check potential participants for compliance with the criteria, taking into account the tax returns submitted by taxpayers and other information available to the DPS.
The list of "white" payers approved by the order of the DPS will be published on the official website of the DPS on the 15th working day from the date of its approval. As you know, the first list will not be approved later on 29.11.2024 and published accordingly - 19.12.2024.
The DPS will update the List of bona fide taxpayers quarterly - no later than the last working day of March, May, August and November.
In the event that a taxpayer included in the List of bona fide taxpayers does not meet the established criteria, such participant is excluded from the List on the same day.
WHAT ADVANTAGES CAN POTENTIAL CLUB MEMBERS EXPECT?
After being included in the List, conscientious taxpayers will be able to count on:
- moratorium on inspections
- documentary planned and unplanned (with certain exceptions);
- actual checks on the licensing of fuel storage activities exclusively for the needs of own consumption and/or industrial processing;
- shortened terms of camera and documentary checks- 5 and 10 working days (instead of the usual 30 and 40 working days).
Importantly! Such terms apply to applications for the return of the amount of the budgetary VAT refund submitted by the taxpayer during the period of inclusion in the List.
- shortened terms for obtaining individual tax consultations - provided exclusively by DPSwithin 15 (instead of the usual 25) calendar days.
- shortened deadlines for considering requests for existing tax information that may indicate tax risks, consultations on the elimination of such risks - 5 days.
- appointment of a compliance manager for the taxpayer, whose main duties will include:
- informing about the approaching deadlines for declaration and payment of tax obligations;
- consulting on probable tax risks and ways to eliminate them;
- informing about the existence of a tax debt, the consequences of its non-payment.
The detailed procedure for organizing the activities of the compliance manager with the taxpayer and the specifics of their interaction was approved by the order of the DPS No. 788 dated 10.31.2024.
As you can see, the procedure of formation and inclusion of taxpayers in the White Business Club is quite difficult, in particular in terms of the compliance of such taxpayers with mandatory general and individual criteria. Therefore, if you have any questions about the possibility of inclusion in the List of bona fide payers, contact our law firm for a thorough consultation.
