“White Business Club”: Tax Trust Criteria and Benefits for Entrepreneurs

A company or an individual entrepreneur (sole proprietor) may receive certain tax administration benefits if the State Tax Service of Ukraine (STS) includes it in the List of Taxpayers with a High Level of Voluntary Compliance with Tax Legislation. This mechanism is known as the “White Business Club” and is presented by the STS through its “Territory of High Tax Trust” project. To check whether you may be included, identify your taxpayer category, review the general requirements and your tax and payroll figures, then check for a notice in the Electronic Cabinet.

Inclusion in the List limits the initiation of certain audits, allows you to receive an individual tax consultation faster, and provides for interaction with an assigned STS officer. At the same time, entrepreneurs must continue filing returns, paying taxes, and keeping records. The scope of benefits and exceptions is set out in subparagraph 69.41 of paragraph 69 of subsection 10 of Section XX of the Tax Code of Ukraine.

What inclusion in the Tax Trust List means

The mechanism was introduced by Law of Ukraine No. 3813-IX dated 18.06.2024. Check the practical requirements in subparagraph 69.41 of the Tax Code of Ukraine and the Procedure approved by Order No. 495 of the Ministry of Finance of Ukraine dated 07.10.2024. These provisions determine whom the STS includes, how it calculates the figures, and which tax administration rules it applies.

The rules apply in Ukraine during martial law and until 31 December of the year in which it is terminated or cancelled. Each taxpayer receives the applicable treatment for the period they are on the List, subject to the specific date on which audit restrictions begin.

These rules do not provide for membership fees or paying to obtain the status. The STS compiles the List using tax returns, records, and other sources obtained lawfully. A taxpayer who meets all the requirements and criteria for their category must be included.

Under subparagraph 69.41.6, inclusion in or exclusion from the List applies solely for the purposes of this mechanism. It is not universal proof that a business is beyond reproach, does not guarantee a bank loan, and does not automatically grant the right to secure mobilisation deferrals for employees liable for military service. In particular, subparagraph 69.41 does not establish automatic mobilisation deferrals for 25% of employees.

Check the general requirements: all must be met at the same time

First, the owner or accountant should check the requirements in subparagraph 69.41.1 of the Tax Code of Ukraine. High tax payment figures do not make up for failure to meet another mandatory requirement.

• Tax debt and other debts monitored by the STS: their total must not exceed 3,000 non-taxable minimum incomes of citizens, and no more than 30 days may have passed since the debt arose. For this calculation, one minimum is UAH 17, so the limit is 3,000 × 17 = UAH 51,000. Check both the amount and the age of any outstanding debt.
• Unified Contribution for Mandatory State Social Insurance (USC): there must be no arrears, unpaid fines, or late-payment interest. Procedure No. 495 also provides for checking the taxpayer’s separate subdivisions.
• Tax system criteria: the taxpayer must meet all the conditions for their category under subparagraph 69.41.2. These are listed in the table below.
• Penalties for returns and documents: penalties imposed during the last three consecutive calendar months for breaches of obligations to submit returns and/or documents or notices must not exceed one minimum wage set as of 1 January of the tax year. The penalties must have been paid, except those under appeal. This requirement also covers documents under Articles 39 and 39-2 and paragraph 46.2 of the Code.
• Settlements for exports and imports of goods: during the last 12 months, there must have been no tax notices-decisions concerning breaches of the deadlines for these settlements. This requirement applies specifically to foreign trade transactions involving goods.
• Value added tax (VAT) risk status: there must be no current decision finding that the taxpayer meets the risk criteria under the procedure set out in paragraph 201.16 of the Code.
• Termination of activity: no procedure to terminate a legal entity or an individual entrepreneur’s business activity may have begun.
• Bankruptcy: no bankruptcy or insolvency proceedings may have been opened against the taxpayer.
• Sanctions: there must be no decision to impose sanctions, under the procedure established by the Law of Ukraine “On Sanctions,” on the taxpayer, its founders, participants, or ultimate beneficial owners.
• Citizenship and place of residence or location: check the taxpayer, founders, participants, and ultimate beneficial owners against the specific restrictions in subparagraphs “з” and “и” of subparagraph 69.41.1. For the citizenship restriction, subparagraph “з” contains an exception for persons granted combatant status after 14 April 2014. This exception does not remove the separate check of place of residence or location under subparagraph “и”.
• Principal business activity: during the last 12 consecutive calendar months, no changes may have been made in the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organizations (USR) concerning the taxpayer’s principal economic activity.
• Legal entity’s beneficial ownership information: the USR must contain information about the ultimate beneficial owner, with no mark indicating that information about the owner and/or ownership structure may be inaccurate. The law also allows a mark stating that the ownership structure gives a substantiated reason for the absence of an ultimate beneficial owner.

To check registration and ownership requirements, compare the individuals’ tax identification numbers with the USR information and documents confirming an applicable exception, if one applies to your situation. Under Section III of Procedure No. 495, if the STS has no information on the valid tax identification number of even one founder, participant, or ultimate beneficial owner, the taxpayer is deemed not to meet the relevant requirements. Before the next List is compiled, check that this information is complete. The exact scope of the check is set out in subparagraphs “ж”, “з”, and “и” of subparagraph 69.41.1 of the Code and Section III of Procedure No. 495.

How to check debt and penalties without drawing the wrong conclusion

Illustrative example. A store has tax debt of UAH 20,000 that arose 35 days ago. The amount is below UAH 51,000, but the time requirement is not met. If the same debt has existed for 10 days, it falls within both limits for this criterion. At the same time, even a small amount of USC arrears would mean that a separate requirement is not met.

For penalties, the accountant should list the tax notices-decisions for the relevant three months and record the amount, whether each penalty was paid, and its appeal status. Under Procedure No. 495, the calculation covers the three consecutive calendar months before the month in which the List is approved. The Procedure includes appealed penalties in the total and waives the payment requirement while they are under appeal. So one reporting breach does not automatically mean the criterion is not met, but both the limit and payment status must be checked.

Find your category: criteria for six types of taxpayers

Subparagraphs 69.41.2.1–69.41.2.6 provide for six categories. Individual entrepreneurs (sole proprietors) in the first, second, and fourth single tax groups are not among them. Sole proprietors in the third group have an additional income requirement.

In the table, the payroll criterion means that the average monthly salary accrued and/or paid by the tax agent over the last 12 reporting months must equal or exceed the average salary in the relevant industry and region multiplied by 1.1. At the same time, it must be no less than one minimum wage set as of 1 January of the tax year. To check the calculation for specific months, Procedure No. 495 ties the minimum wage to the year for which the relevant return was filed.

The export exception applies only to the VAT payment rate for legal entities under the general tax system and legal entities paying the group 4 single tax. It applies if goods exported beyond the customs territory of Ukraine make up 25% or more of total supplies during the relevant 12 reporting periods. It does not waive other criteria and does not apply to sole proprietors under the general tax system.

Special rules apply to the payroll comparison. If, according to the USR, there is no other business entity in the relevant industry within the region, the national average salary for that industry is used with a 1.1 coefficient. If there is no other business entity within Ukraine, the industry salary threshold with the coefficient is replaced by two minimum wages set as of 1 January of the relevant tax year. These rules are set out in subparagraph 69.41.2 of the Code and Section II of Procedure No. 495.

What store owners should pay attention to

Illustrative example on income. A sole proprietor in group 3 declares exactly UAH 5,000,000 for the previous year. They do not meet the requirement to “exceed UAH 5 million.” Income of UAH 5,000,001 meets only this specific requirement; inclusion also requires the appropriate tax payment rate, payroll figure, and all general requirements.

Illustrative example on salary. Assume the published industry figure for the relevant region is UAH 18,000. The threshold with the coefficient is UAH 18,000 × 1.1 = UAH 19,800. The accountant must separately check the minimum salary threshold and the calculation for the relevant 12 months. For a legal entity in the relevant category, they must also check the average monthly number of employees. UAH 18,000 is an illustrative figure; use the actual figure from the STS analytics.

Under Procedure No. 495, the taxpayer’s payroll figure and the corresponding industry figure are calculated separately for each of the 12 reporting months. The accountant must check that the salary thresholds were met in each month, not just the average salary for the whole period. Employees who worked a full month are included according to the rules set out in the Procedure. Therefore, current headcount and salaries set today are not enough to check eligibility. The owner should ask the accountant to reconstruct the calculation for each reporting month and check employees’ start and end dates.

How to check your figures and prepare for the next List

The industry is determined by the principal activity at the class level of the Classification of Economic Activities (KVED) DK 009:2010. Average figures change when the List is compiled, so comparisons must use data for the same calculation period as the data used by the STS.

1. Check your principal KVED and tax system. Note your category from the table and the figures you need to check. This helps avoid spending time on criteria for another category.
2. Review the Electronic Cabinet. Check for notices of inclusion or exclusion and figures published by the STS that do not meet the average criteria. The Code expressly provides for these figures to be posted in the taxpayer’s cabinet.
3. Open the official STS resource. On the “Territory of High Tax Trust”, check the List and published average figures for your KVED class, category, and region, if the figure depends on the region.
4. Compare like-for-like periods. Ask your accountant to prepare a table showing your figure, the corresponding STS average, the data source, and the reason for any difference. For each debt, include the date it arose; for each penalty, include payment or appeal status.
5. Check that your returns are complete. Procedure No. 495 provides that missing returns needed for the calculation for even one period means the criteria are not met. For sole proprietors under the general tax system, arithmetic or methodological errors in calculating business personal income tax liabilities also matter.
6. Correct confirmed errors and keep records. It is practical to collect return acceptance receipts, payment records, amended returns, and current registration details. If your own calculation differs from the STS data, send a specific question with documents that explain the discrepancy.

Do not increase payments just to reach an unknown industry figure. Different criteria use different methods: some are calculated from tax returns, others from amounts actually paid. For example, under Procedure No. 495 the VAT payment rate is calculated using specific return figures, so an arbitrary additional payment alone does not prove that this criterion is met.

Which periods the STS uses for its calculations

For figures covering four quarters, paragraph 3 of Section I of Procedure No. 495 sets out these periods: in March, the previous year; in May, the first quarter of the current year and the second to fourth quarters of the previous year; in August, the first half of the current year and the third and fourth quarters of the previous year; in November, the first three quarters of the current year and the fourth quarter of the previous year.

VAT calculations use separate 12-month periods: in March, March of the previous year to February of the current year; in May, May of the previous year to April of the current year; in August, August of the previous year to July of the current year; in November, November of the previous year to October of the current year. The Code requires the use of returns whose filing deadline falls on or before the date the List is compiled.

Separate calculation rules apply to corporate income taxpayers with an annual reporting period, based on the previous reporting year. For sole proprietors under the general tax system, the personal income tax figure is taken from the latest annual return whose filing deadline falls on or before the calculation date, taking into account amendments filed by that date. The accountant should check these specifics before comparing figures with quarterly data.

When the List is updated and how entrepreneurs are notified

The STS compiles and approves the List no later than the last working day of March, May, August, and November. These deadlines are set by law, so use them when planning to check your figures.

• The STS publishes average criterion figures within five working days after approving the List.
• Notices of inclusion or exclusion are sent through the Electronic Cabinet. Procedure No. 495 provides for sending a notice within five working days after the List is approved.
• The List itself is published on the fifteenth working day after its approval.
• Once the next List is approved, the previous one ceases to be valid, so the owner must check their status again.

Newly established taxpayers may be included from the first day of the month following the tax quarter, but not earlier than one calendar year from the date they were registered with the supervisory authority. Both timing conditions must be met. Reaching the one-year mark alone does not mean automatic inclusion: the STS also checks the criteria and compiles the List under the prescribed procedure. The basis is subparagraph 69.41.2.7 of the Code.

There is a separate expedited exclusion rule: if the STS finds that a taxpayer does not meet the requirements in subparagraphs “ж”, “з”, or “и” of subparagraph 69.41.1, it removes the taxpayer within three working days of discovering the discrepancy. This deadline concerns sanctions and restrictions relating to the citizenship, place of residence, or location of persons covered by subparagraphs “ж”, “з”, and “и”. Failure to meet the separate requirement concerning beneficial owner information in the USR under subparagraph “ї” is not, by itself, grounds for this three-day exclusion. The rule should not be applied to every change in every figure.

How to opt out of publishing your data

To opt out of publication, a taxpayer submits to the STS, electronically, a notice in the form set out in Appendix 4 to Procedure No. 495. The notice must be signed by the taxpayer’s manager or authorized person in accordance with the legislation on electronic documents and electronic trust services. For the STS to withhold the information when publishing the List, the notice must be submitted within five working days after receiving the notice of inclusion.

If the data have already been published, the STS removes them from the public section within five working days after receiving the opt-out notice. Opting out of publication does not remove the taxpayer from the List. Therefore, a business’s absence from the public list does not, on its own, prove that it was not included. Check your status through the notice in the cabinet. The opt-out procedure is set out in Section VI of Procedure No. 495.

Which audits are restricted by inclusion in the List

Restrictions on starting audits apply from the day after the List is published. They do not apply to audits for which a copy of the order had already been sent and/or served on the taxpayer before the publication date. Before concluding whether an audit may proceed, the accountant or lawyer should compare the type of audit, its legal basis, and the dates on the documents.

Under subparagraph “а” of subparagraph 69.41.3 of the Code, the STS does not initiate:

• factual audits concerning licensing for the storage of fuel exclusively for own consumption and/or industrial processing;
• unscheduled documentary audits, except for expressly defined exceptions;
• scheduled documentary audits, except for audits of taxpayers that produce and/or sell excisable goods, organize and conduct gambling, or provide financial or payment services.

For a retail store, it is important to understand the scope of the first condition: it covers the specific issue of licensing fuel storage. Subparagraph 69.41 does not establish a general ban on factual audits concerning cash register use, cash transactions, or other matters.

Producing or selling excisable goods, gambling, and financial and payment services are also listed among the exceptions to the restrictions on unscheduled documentary audits. These exceptions limit audit benefits. The listed activities do not independently prevent inclusion in the List. For example, a store owner selling excisable goods should assess eligibility criteria separately from the extent of the available audit restrictions.

Which unscheduled documentary audits may still take place

The Code preserves audits conducted solely at the taxpayer’s request; audits based on tax information about breaches of deadlines for the arrival of imported goods and/or export proceeds; and audits in the special business sectors listed above. In addition, subparagraph 69.41.3 expressly preserves the following grounds under paragraph 78.1 of Article 78 of the Code:

• 78.1.1 — only in the specified part: information about tax violations concerning income of non-residents sourced in Ukraine and transfer pricing control, subject to the conditions in this provision concerning the tax authority’s request and the taxpayer’s response.
• 78.1.2 — only concerning transfer pricing: failure to submit the relevant required report. Transfer pricing involves tax control over the terms of controlled transactions defined by the Code.
• 78.1.3: an amended calculation for a period that has already been audited.
• 78.1.5: an objection or complaint about audit results based on new circumstances that cannot be objectively considered without an audit; the audit covers the matters under appeal.
• 78.1.7: the start of a legal entity’s reorganization, except for conversion; termination of a legal entity or a sole proprietor’s business activity; closure of a permanent establishment or separate subdivision of a legal entity; opening of bankruptcy proceedings; or submission of an application to be removed from the tax register.
• 78.1.8: a claim for a VAT budget refund on the grounds provided for by the Code and/or a negative VAT amount exceeding UAH 100,000; the audit concerns the lawfulness of the relevant declaration.
• 78.1.9: complaints concerning tax or excise invoices when explanations and documents have not been provided within the 15 working days set out in this provision after receiving the request.
• 78.1.12: a repeat audit ordered by a higher-level authority because of shortcomings in a previous audit, subject to the provision’s conditions concerning disciplinary proceedings or notifying officials that they are suspected of an offence.
• 78.1.14, 78.1.15, 78.1.16: checking compliance of controlled transactions, reporting, and transfer pricing documentation, including after receipt of a controlled transactions report.
• 78.1.19: failure to provide information for a cross-check within the 10 working days set out in the provision after receiving the request; the audit covers the matters in that request.
• 78.1.21: information or documents received from foreign government authorities after a previous audit that indicate violations concerning matters already audited.
• 78.1.22: information about a non-resident operating through a permanent establishment in Ukraine without registering for tax purposes.

After receiving an audit order, check the subparagraph it cites, the scope of the audit, and the documents supporting the relevant grounds. Also consider paragraph 78.2 of the Code: the STS is prohibited from conducting an unscheduled documentary audit under subparagraph 78.1.1 or 78.1.8 if its issues were already covered by the taxpayer’s previous audits. A notice of inclusion in the List alone is not enough to conclude that a particular audit cannot proceed.

How to use the shorter deadlines for VAT refund audits

For a taxpayer on the List, the desk audit under paragraph 200.10 of the Code lasts five working days, and the documentary audit under paragraph 200.11 lasts ten working days. These special deadlines apply to applications for a VAT budget refund submitted while the taxpayer is on the List. The basis is subparagraph “б” of subparagraph 69.41.3.

Before submitting an application, the accountant should check the status notice, eligibility for a refund, and documents supporting the amount claimed. After submission, keep the receipts and track the audit and approval of the amount. A shorter audit period does not mean the money will arrive within five or ten working days: separate rules in Article 200 of the Code govern approval and transfer of funds.

How to get an individual tax consultation within 15 days

An individual tax consultation (ITC) for a taxpayer on the List is provided exclusively by the central office of the STS within 15 calendar days following the day it receives the request. This deadline cannot be extended. If a territorial office receives the request, it must forward it to the central office by the next working day. These are the special rules in subparagraph “в” of subparagraph 69.41.3.

To meet the requirements in paragraph 52.1 of the Code, provide the taxpayer’s details, tax address, contact information if available, tax identifier, factual circumstances, and the practical need for a consultation. The request must be dated and properly signed. For a legal entity, provide its code from the Unified State Register of Enterprises and Organizations of Ukraine; for an individual, provide their taxpayer registration number or the passport details permitted by law.

In practice, it is useful to describe one specific transaction: who sells the goods, how the buyer pays, when the goods are transferred, and what tax question has arisen. Ask a question whose answer will help determine the accounting treatment or tax obligation. Keep a copy of the request, proof that it was received, and the STS response. An ITC is individual and may be used by the taxpayer to whom it was issued.

How to work with a compliance manager

A compliance manager is an officer of a territorial STS office assigned to a taxpayer to provide advice on meeting tax obligations. They act as an employee of the tax authority and do not serve as the entrepreneur’s independent tax adviser. Interaction may take place orally, remotely, or by video conference.

Under Section VII of Procedure No. 495, the territorial office appoints a compliance manager within five working days after the List is approved. Notice of the appointment is sent to the Electronic Cabinet no later than the next working day after the appointment.

A separate right allows a taxpayer, on request, to receive within five days information held by the STS that may indicate risks in their business activity, as well as advice on addressing those risks. This is the wording of subparagraph “ґ” of subparagraph 69.41.3; it does not specify working days.

For practical purposes, prepare a request with specific questions: what risks does the STS identify in your activity, which periods do they concern, and what steps does it recommend to address them? After receiving a response, the accountant can prepare a list of documents and returns to check, with owners and deadlines. If you need an official individual explanation of how a provision applies, submit a separate request for an ITC.

Official documents and services for checking

• Law of Ukraine No. 3813-IX dated 18.06.2024 “On Amendments to the Tax Code of Ukraine Regarding Specific Features of Tax Administration During Martial Law for Taxpayers with a High Level of Voluntary Compliance with Tax Legislation” — the law that introduced special tax administration rules for taxpayers with a high level of voluntary compliance with tax legislation.
• Tax Code of Ukraine No. 2755-VI dated 02.12.2010 — subparagraph 69.41 for inclusion requirements and benefits; Article 78 for grounds for unscheduled audits; Article 52 for submitting an ITC request; Article 200 for VAT refunds; paragraph 5 of subsection 1 of Section XX for using UAH 17 when calculating the non-taxable minimum income of citizens.
• Order No. 495 of the Ministry of Finance of Ukraine dated 07.10.2024 “On Approval of the Procedure for Compiling and Publishing the List of Taxpayers with a High Level of Voluntary Compliance with Tax Legislation” — calculation methods, periods, notices, and the procedure for opting out of data publication.
• The official STS “Territory of High Tax Trust” resource — the List, average figures, and information for checking eligibility.