Features of Taxation of Income Received from Performing an Independent Professional Activity in the War Period

Abstract

The article analyzes the changes in income taxation of self-employed persons due to the introduction of martial law. A comparison of the transformation in taxation of two types of self-employed persons, namely: individual entrepreneurs (who are on a simplified taxation system) and persons who conduct independent professional activities. The purpose of this article is to consider and analyze the features of taxation of income from independent professional activities during the wartime period. It has been established that the legislation provides for changes in the norms regarding terms, tax control, liability (penal sanctions), exemption from taxation, reduction of tax rates, etc. for various categories of taxpayers. It was found that there is no uniform approach to the taxation of incomes of such categories of taxpayers as natural persons-entrepreneurs and persons engaged in independent professional activity, which indicates a violation of the principles of equality, social justice, legality and a unified approach to the establishment of taxes and fees, contributes to the imbalance in the implementation of economic tax principles, formation of burdensome tax burden. The legislator did not create favorable conditions for taxing the income of persons engaged in independent professional activity. At the same time, the Tax Code of Ukraine stipulates that mobilized persons who carry out independent professional activities, who had or did not have hired workers, were called up for military service during mobilization or were involved in the performance of responsibilities for mobilization in positions provided for by wartime states, for the entire period of their military service are exempted from the obligation to calculate, pay and submit tax reports on personal income tax and military levy. Under such conditions, such persons, on behalf of their employees and for the duration of their military service under conscription during mobilization, authorize another person to pay wages and/or other income to employees, then the obligation to calculate and withhold personal income tax and military collection from such payments for the period of military service. But we must not forget that this norm existed even before the full-scale invasion. It was concluded that the legal regime of martial law and its legal consequences made adjustments to the legal regulation of taxation of income from independent professional activity. However, there is currently a discriminatory regulation of income taxation of persons engaged in independent professional activity. This indicates the need for the legislator to create favorable conditions for taxation of income from independent professional activity.