Time to pay taxes. All about paying ERUs this quarter
As you know, the Verkhovna Rada adopted a law aimed at supporting taxpayers for the period of quarantine. Some of the initiatives concern the payment of ERUs. Let us dwell on this in more detail.
Who is freed
The following are exempted from paying ERUs for themselves for the period from March 1 to March 31 and from April 1 to 30, 2020 (i.e. for two months):
- FLP, regardless of the chosen tax system and the type of activity. Moreover, it does not matter whether he has employees or not;
- self-employed persons who are not registered as FLP and carry out independent professional activities: scientific, literary, artistic, artistic, educational or teaching, as well as medical, legal practice, including advocacy, notarial activity or other similar activities;
- members of farms, if they do not belong to persons subject to insurance on other grounds (are not mercenaries or are not registered by FLP).
Do I need to notify
If they decide not to pay ERUs for this period, then no tax application should be filed - that’s not all. Since during the year they pay ERUs in the form of advance payments, and the final calculation is carried out before reporting for the year. Advance payment is made for the first quarter - until April 20, and for the second - until July 20. Accordingly, in April and July, instead of three, the payer will need to transfer funds for two months of each of the quarters. At the same time, the law allows for a voluntary decision on the payment of ERUs for the months of the "vacation". Please note that exemption applies only to paying for oneself, if the entrepreneur is an employer, then ERUs from the employees' salaries are paid in a general manner.
If paid
If ERUs for March have already been paid, then there is nothing to worry about, this payment will be taken into account for future payments. And in this case, no applications need to be submitted, just for the second quarter you should pay only for one month. If the payer has arrears, fines and penalties for ERUs, then such a payment will be used to pay them off.
If paid at the wrong time
Law No. 533 also stipulates that between March 1 and April 30, 2020, penalties for late payment (late payment) of ERUs or an incomplete amount are not applied, and no penalty is charged, and that accrued for this period is subject to write-off.
What about the report and with the experience
The insurance period is formed according to the information from the annual reports on the amounts of income from which ERUs were paid, which they will have to submit before February 9, 2021. If the entrepreneur (self-employed person) decides not to pay for March and April, then these lines will not need to be filled in the report either. But at the same time, these months will be taken into account in the insurance period and it will be considered that the contributions were paid in the amount of the minimum insurance premium. That is, when calculating the pension for these months, the income will be considered in the amount of the minimum wage (4723 UAH).
If ERUs were paid for 12 months and only 10 months were filled in the report, then ERUs for 2 months will be considered an overpayment and the FLP can take it into account for future payments or submit an application in the established form with a request to return the money to the current account. If these months are filled, then it will be considered that a voluntary decision was made to pay ERUs for these months. With this filling in the ERU report for the months of "credit holidays" will not be returned.
Natalia Shcherbak, tax consultant
