TAX ALERT 22.05.2025 | Digest of Key Tax News

Draft law on tax amendments aimed at stabilizing the financial position of electricity distribution system operators in combat-affected territories made public

On May 1, 2025, the Verkhovna Rada of Ukraine received Draft Law No. 13231 dated April 30, 2025, on Amendments to Section XX “Transitional Provisions” of the Tax Code of Ukraine regarding the stabilization of the financial position of distribution system operators engaged in the distribution of electricity in territories where hostilities took place.

The draft law proposes to write off the accrued amounts of tax penalties and fines for large taxpayers that qualify as distribution system operators, provided that 50 percent or more of their shares (interests) are owned by the state and that they were engaged in electricity distribution in areas affected by hostilities as of December 31, 2023, or in territories temporarily occupied by the russian federation as of the same date.

Draft law on compensation of costs for taxes to employers hiring combatants

On May 1, 2025, the Verkhovna Rada of Ukraine registered Draft Law No. 13180-1 on Amendments to Certain Laws of Ukraine Concerning the Support of Employment for Combatants.

In particular, the draft law proposes that employers who, during the reporting quarter, fulfilled the mandatory employment quota for hiring combatants shall be entitled to receive compensation for such employment.

Such compensation shall be paid in the amount of the actual expenses incurred by the employer for the payment of personal income tax, military levy, and the single social contribution for combatants who were continuously employed by the said employer throughout the entire reporting quarter.

The draft law also defines the employment quota for hiring combatants, which depends on the number of employees at the enterprise.

Clarification by the State Tax Service of Ukraine regarding reporting under the export support regime

By letter No. 11933/7/99-00-21-03-02-07 dated May 2, 2025, the State Tax Service of Ukraine clarified certain aspects of tax reporting concerning the export of specific categories of goods conducted under the export support regime.

In particular, the tax authority updated Section IV “Reflection of Export Operations of RES Goods in Tax Reporting” of its earlier letter No. 31717/7/99-00-21-03-02-07 dated November 15, 2024.

Updated form for notification of employee hiring is available online

The form for the Notification of Employment of a Worker (Domestic Worker) or Execution of a Gig Contract, which constitutes Annex 1 to Resolution No. 413 of the Cabinet of Ministers of Ukraine dated June 17, 2015, was amended to include a new Column 9 titled “Citizenship”.

These changes were introduced by Resolution No. 184 of the Cabinet of Ministers of Ukraine dated February 21, 2025, with the aim of accounting for employed foreign nationals and stateless persons. As of May, the updated notification form has already been implemented in the relevant electronic systems.