The lawyer talked about the penalty for the FOP for tax delay

Small business Photo: Informator

Late payment of tax obligations is one of the most frequent mistakes of businessmen on the simplified taxation system. Lawyer Bohdan Yankiv analyzes in detail what monetary consequences are expected for the FOP of various groups for non-compliance with the deadlines for paying taxes, military service and the ESR.

Penalties for FOP of the first and second groups

“Entrepreneurs-individuals who operate on the first or second group of the simplified system face rather harsh sanctions for late payments,” Bohdan Yankiv notes.

• Single tax. When the advance payment did not reach the budget on time, the control body applies a fine of 50% of the single tax rate chosen by the entrepreneur. This rule applies in accordance with Article 122.1 of the Tax Code of Ukraine. For example, if you work for the second group with a rate of 1,600 hryvnias per month, the fine will be 800 hryvnias. In addition, from the first day of delay, the calculation of the penalty begins in accordance with the norms of Article 129.1.1 of the Code of Civil Procedure. An important detail: if you did not provide an official statement about the inability to fulfill tax obligations on time, the tax office automatically considers that you have the ability to pay payments on time. Accordingly, from August 2022, such businessmen will be subject to full penalties.
• Military collection. A separate fine of 50% of the rate of the military levy is provided for late remittance of the military levy. For the FOP of the second group with a rate of 800 hryvnias, this means an additional 400 hryvnias fine.

Sanctions for entrepreneurs of the third group A slightly different scheme of fines is in effect for FOP on the third group of the simplified system, which depends on the duration of the delay. In accordance with Article 124.1 of the Code of Criminal Procedure, the amount of the fine is determined as follows:

• In the event of a delay of up to 30 calendar days inclusive, the fine is 5% of the amount of the tax debt that was repaid
• If there is a delay of more than 30 calendar days, the fine increases to 10% of the repaid amount

An interesting difference for the third group: interest on the amount of the debt does not begin to accrue immediately, but only after the end of the 90-day period from the deadline for payment. This is stipulated by clause 129.1.3 of the Tax Code.

Military collection for the third group The military levy penalty system for the third group is similar to a single tax:

• Up to 30 days overdue — 5% of the debt amount
• More than 30 days of delay — 10% of the debt

However, there are additional sanctions in case of willful evasion:

• The first violation is a fine of 25% of the unpaid amount
• Repeated violation after 90 days — the fine increases to 50% of the debt

These explanations are confirmed by the State Tax Service in category 126.07 of the Public Information Resource.

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