On April 10, the Ukrainian Agri Council (UAC), with the support of the USAID Agriculture Growing Rural Opportunities Activity in Ukraine (AGRO), held a webinar on "Minimal tax liability" as part of the project "Supporting agricultural MSMEs affected by active hostilities or Russia’s temporary occupation".

The event was attended by 270 representatives of agricultural enterprises and communities. The speakers were: Serhiy Kubakh, Land Reform Team Lead, USAID Agriculture Growing Rural Opportunities Activity in Ukraine (AGRO); Tetiana Hrechana, Director of the Department of Legal Entities of the State Tax Service of Ukraine; Stanislav Beskydevych, Head of the Department for the Administration of Income Tax, Non-Profit Institutions and Organizations and Simplified Taxation System of the State Tax Service of Ukraine; Oleksandr Korchevnyi, acting Director of the Department of Taxation of Individuals of the State Tax Service of Ukraine; Olha Bohdanova, Tax Advisor to the Chairman of the Ukrainian Agri Council, Managing Partner of Crowe A&A Ukraine and Crowe Erfolg Ukraine.

The webinar was aimed at clarifying the main issues related to the minimal tax liability (MTL) for agricultural producers, in particular those affected by hostilities or occupation.

"Today's webinar is a part of our joint work with the UAC to support the affected agricultural sector of Ukraine. Taxation issues are among the most pressing and problematic in the current environment. More than half of the inquiries received by our consultation line for affected agricultural producers are related to tax issues. Therefore, today, our webinar aims to explain in detail the main issues that arise with the payment of the MTL," said Serhiy Kubakh, Land Reform Team Lead, USAID Agriculture Growing Rural Opportunities Activity in Ukraine (AGRO).

According to Olha Bohdanova, the UAC's advisor on tax issues, it is extremely important for farmers to be aware of all the current changes in the taxation of their activities, including the administration of the MTL, budget write-offs, etc. This has a direct impact on the financial situation of enterprises, especially in times of war and the current business environment.

"Thank you for organizing this event, we always work fruitfully with the UAC and USAID AGRO, which is reflected in the results, as complaints from taxpayers are decreasing. I would like to remind you that the MTL was introduced in 2022. The purpose of the bill was to bring land out of the illegal cultivation. This was the primary task. Judging by the figures we see today in taxation, it has been achieved. In 2022, 19.4 million hectares of agricultural land were taxed for legal entities of the MTL, which is a high figure. At the same time, 24,397 taxpayers registered a tax liability of more than UAH 2 billiard 432 thousand. If we compare the results of the 2022 and 2023 declarations, we see an increase in the area - according to preliminary estimates, the area increased to 24 million hectares, but this figure will be further refined. At the same time, in 2023, 38,500 taxpayers - owners or tenants of agricultural land - were registered by the MTL, of which 20,000 legal entities declared a positive liability of UAH 1 billiard 600 thousand. This shows that in 2023, more taxes were paid, and the Ministry of Finance compensated for this, which is positive. It is clear that taxpayers are coming out of the shadows," explained Tetiana Hrechana, Director of the Department of Legal Entities of the State Tax Service of Ukraine.

New clarifications of the State Tax Service and the Ministry of Finance of Ukraine on the administration of the MTL, in particular, the impact of writing off the integrated taxpayer card on overpayments by agricultural producers, were presented to the webinar participants by the experts.

Particular attention was paid to the reduction of MTL for 2022 or 2023 by the amount of the 4th group of single tax liability for the fourth quarter of 2022. These measures are aimed at easing the financial burden on agricultural enterprises and supporting their development.

Also discussed were the clarifying declarations on taxes taken into account in the MTL and the crediting of MTL for certain transactions, such as advance payments for land lease, salaries, farm operations, etc.

The participants of the event had the opportunity to ask questions and receive professional answers. In addition, some of the questions will be further processed by the UAC experts with the State Tax Service and clarified for agricultural producers. The webinar has become an important platform for sharing experience and the latest information in the field of tax regulation, contributing to the improvement of tax efficiency and financial stability in agriculture.

The video of the webinar is available here: https://www.facebook.com/share/v/GfMnBsSxUNy7AyYG/?mibextid=WC7FNe

We remind that the UAC, with the support of the USAID Agriculture Growing Rural Opportunities Activity in Ukraine (AGRO), is implementing a joint project to provide legal and other expert support to agricultural producers affected by hostilities or temporary occupation by the Russian Federation.

Thanks to the project, affected agricultural producers will receive individualized advice on land, agrarian, tax legislation, etc. For prompt legal support, please contact the hotline at +38 067 503 19 08. Also, join the creation of the Interactive map of the Ukrainian agricultural sector destructions at https://www.agrirecovery.com.ua.