On September 3, 2014 the State Fiscal Service provided a Clarification6 regarding the exemption of business entities from the obligation to submit tax reporting due to their mobilization. Thus, registration of entrepreneurial activities of individuals mobilized by conscription shall not be terminated for the special period.
According to the amendments to improve the mobilization process7 temporarily mobilized entrepreneurs and self-employed persons shall be exempt from the obligation to accrue and pay tax and to submit reporting on personal income tax, single tax or single social contribution for themselves for the whole period of their military service.
Mobilized entrepreneurs or self-employed persons using the labor of employees who continue to be employed during the entrepreneur’s mobilization are obliged to authorize another person to pay salary or other income to the employees. In this case an authorized person shall be obliged to accrue and withhold personal income tax and single social contribution on such payments for the term of the relevant entre- preneur’s military service.
The obligation to pay personal income tax and single social contribution to the state budget for employees shall be met by demobilized entrepreneurs or self-employed persons within 180 calendar days upon the first demobilization day without any penalties or financial sanctions imposed on them.
To apply such taxation specifics a demobilized entrepreneur or a self-employed person within 10 days fol- lowing their demobilization, or as soon as the relevant treatment (rehabilitation) is completed, shall submit the following documents to the tax authority (the State Fiscal Service) at the place of its tax registration:
- an application in free form;
- a copy of his/her military service card or a copy of another document issued by the relevant state au- a copy of his/her military service card or a copy of another authority, with information on his/her conscription by mobilization.