Zelenskyy: State to increase business aid after Russian attacks

The Ukrainian government has prepared additional support measures for enterprises that continue to operate under Russian strikes and are critical for the economy and livelihoods of the country. The decisions should help companies restore operations after destruction and reduce administrative pressure on affected businesses.

This was announced by President of Ukraine Volodymyr Zelenskyy on the evening of September 2 after a meeting with representatives of Ukrainian business.

According to the head of state, special attention at the meeting was given to companies that continue production and provision of essential services despite regular Russian attacks.

Zelenskyy noted that the government has already worked out the relevant decisions. The state intends to increase assistance to enterprises whose work is critically important for the country.

Tax service changes approach to affected enterprises

On the same day, the State Tax Service presented a separate set of measures for businesses that suffered losses as a result of Russian shelling. This primarily concerns a change in the approach to tax administration and audits.

In the STS systems, it is planned to create a separate list of enterprises that have documented damage caused by Russian aggression. Information is expected to be obtained, among others, from the State Emergency Service, military administrations, local authorities, law enforcement agencies, and state registries.

Due to this, enterprises should not be repeatedly required to provide certificates and documents that are already held by state bodies.

The consequences of Russian attacks are also planned to be taken into account when assessing tax risks. A decrease in turnover, profit, or tax burden after damage to an enterprise should not automatically become a reason for requesting documents or conducting an audit.

The STS emphasizes that tax authorities must first establish the reasons for the deterioration of financial indicators and verify whether it is related to the consequences of shelling, and only then assess the existence of tax risks.

Personal support promised for most affected companies

If an enterprise has suffered critical destruction, the tax service plans to assign a responsible specialist to it who will help resolve tax administration issues. Tax consultant offices should also be involved.

The main means of communication with such companies will be the electronic cabinet. The tax service also promises to take into account situations where an enterprise lost primary documentation as a result of Russian strikes.

The existence of a tax debt by itself should not lead to automatic loss of the status of an affected enterprise. At the same time, the procedures for debt collection provided by law will remain.

The status of an affected business also does not mean full exemption from tax control. However, if an audit is actually required, its scope should be limited to the specific identified risk.

Preferential loans already available for business recovery

Earlier, the government also expanded financial support for enterprises whose production facilities were damaged or destroyed as a result of Russian attacks.

Under the “Affordable Loans 5-7-9%” program, such companies have the opportunity to attract up to UAH 150 million for rehabilitation. In the first two years, the rate for them is 0.1% per annum.

Current decisions are to supplement the already existing financial programs with measures in the field of tax administration and other mechanisms that the government is developing jointly with business.

Zelenskyy has not yet named the final list of all new measures and the timing of their implementation.

Based on materials from: Volodymyr Zelenskyy, Cabinet of Ministers of Ukraine