The Ministry of Finance of Ukraine has approved the procedure for forming and publishing a list of taxpayers with a high level of voluntary compliance with tax legislation - the "White Business Club," reports the press service of the Ministry.
"The list of taxpayers with a high level of compliance will include legal entities and individual entrepreneurs who are residents of 'Diia.City' and meet a number of requirements and criteria, considering the taxation system (particularly, requirements related to tax payments, salary levels, etc.)," the agency stated in its announcement on Tuesday.
According to the order on the formation and publication of the list on the ministry's website, among the main criteria for enterprises are the average level of corporate income tax payments in the respective industry over the last four quarters, the average level of value-added tax payments over the last 12 reporting (tax) periods, which equals or exceeds the average level of value-added tax payments in the industry, and the average salary indicator.
Additionally, the Ministry of Finance included the average level of tax payments to the consolidated budget, as well as the level of personal income tax payments from business activities for the reporting (tax) year (compared to the industry) among the criteria.
It is expected that inclusion in this list will motivate all taxpayers to comply with tax legislation, as these taxpayers will receive certain advantages in tax administration during the martial law period: a moratorium on documentary audits, except for certain types, and shortened timelines for desk and documentary audits for the purpose of budget reimbursement.
Moreover, for the "White Business Club," it is proposed to reduce the time frame for providing individual tax consultations and assign a compliance manager to the taxpayer, with whom the taxpayer can interact, including through remote communication means, such as video conferencing.
As emphasized by the ministry, the list of taxpayers will be published on the official website of the State Tax Service of Ukraine within 15 working days from the date of its approval.
The formation and approval of the taxpayer list will be carried out by the State Tax Service no later than the last working day of March, May, August, and November.
It is noted that if a taxpayer submits a notification refusing to disclose data, the State Tax Service may omit information about them from the list.
Furthermore, a taxpayer will be excluded from the specified list if the controlling authority identifies the presence of citizenship of the Russian Federation among the taxpayer or its participants, ultimate beneficial owners of the taxpayer residing in the Russian Federation, and decisions regarding the application of special economic sanctions.
"Such a list is expected to have a positive impact on the country's economy, as it encourages enterprises to engage in legal activities, reduces the shadow economy, and increases budget revenues," the Ministry of Finance stated.
As reported, on June 18, the Verkhovna Rada approved bill No. 11084 with 262 votes for the creation of a list of criteria under which an enterprise qualifies for the list of taxpayers with a high level of voluntary compliance with tax legislation - the "White Business Club."
The following day, the Rada also approved an amendment allowing for the economic reservation of 25% of employees from businesses that joined the Club.