The single tax payer's declaration will be updated

The Ministry of Finance has published a draft Order amending the Single Taxpayer's Declaration. It is planned to amend the following:

• Declarations of single tax payers - individual entrepreneurs,
• Declarations of a single tax payer of the third group (legal entity),
• Declarations of a single tax payer of the fourth group.

The declarations are proposed to be supplemented with a new annex "Calculation of the total minimum tax liability". The need to update the declaration is caused by the fact that the Tax Code of Ukraine was supplemented by Article 297-1.
The minimum tax liability must be calculated by single taxpayers who own or lease land plots that are classified as agricultural land. This obligation also applies to family farms, and the head of such a farm must compile it and report on the land plots owned by members of the farm.

Minimum tax liability

The minimum tax liability is the minimum amount of tax liability for the payment of taxes, duties, and fees controlled by the State Tax Service. It is associated with the production and sale of agricultural products of own production and/or with the ownership, lease or other terms of use of land plots classified as agricultural land.
The minimum tax liability will have to be calculated starting from January 1, 2022. In particular, the following information will need to be provided in the appendix "Calculation of the total minimum tax liability":

• the cadastral number of the land plot, the normative monetary value and the area of such a plot,
• the amount of the total minimum tax liability (in total and for each land plot),
• the total amount of taxes and fees paid,
• the difference between the amount of the total minimum tax liability and the amount of taxes and fees paid and land lease expenses.

The Order has not yet entered into force, so we are waiting. If the Order is approved in the first quarter of 2022, sole proprietors and legal entities of Group 3 will have to report on the new declaration form in the second quarter of 2022, and single taxpayers of Groups 2 and 4 in 2023.