A private entrepreneur obtained a tax certificate to apply for a subsidy

Publication date: April 18, 2024

Using one of the success stories as an example, Tetiana Pliasunova, a lawyer with the NGO Agency for Democratic Development of Donbas, explains how an individual entrepreneur can obtain a certificate of income for a period that does not coincide with the basic tax reporting period to apply for a subsidy.  

Kateryna Serhiivna from Zaporizhzhia oblast contacted the Agency for Democratic Development of Donbas with a question about applying for a subsidy. In particular, the woman asked to clarify where and what kind of certificate she should get and whether the document in which she declared her income for the year as an individual entrepreneur (IE) to the tax authorities was suitable for the social protection service.

“The woman explained that she registered as an entrepreneur a year ago. Later, she started to re-register her subsidy. The social protection service asked Kateryna for an income certificate for the last 6 months. And since she reports to the tax authorities once a year, the question arose where to get a six-month certificate,” says Tetiana Pliasunova.

Regulatory framework

According to clause 16.1.3. of Article 16 of the current Tax Code of Ukraine (TCU), a taxpayer must submit to the control authorities the procedure established by tax and customs legislation, declarations, reports and other documents related to calculating and paying taxes and fees.

Paragraph 33.3 of Article 33 of the TCU refers to the basic tax (reporting) period as the period for which the taxpayer is obliged to calculate taxes, submit tax declarations (reports, calculations) and pay taxes and fees to the budget, except for the cases provided for in this Code when the controlling authority is obliged to independently determine the amount of the taxpayer’s tax liability.

An entrepreneur’s reporting (tax) periods are one quarter and one year.

A tax authority may issue a certificate of income based on the information contained in the declaration or report of an individual entrepreneur.

The certificate is issued based on the taxpayer’s request to the tax authority for information on the income received by the entrepreneur in the tax period specified by the taxpayer.

According to paragraph 15 of the Instruction on the procedure of consideration of appeals and personal reception of citizens in the State Tax Service, approved by Order of the State Tax Administration of Ukraine dated 18.06.2008 No. 395, appeals are considered and resolved within no more than one month from the date of their receipt, including weekends, holidays and non-working days, and those that do not require additional study – immediately, but no later than fifteen calendar days from the date of their receipt.

After receiving this statement, Kateryna could apply for a certificate from the tax office, submit it to social services, and receive a subsidy.

The material was created with the support of the international charity platform GlobalGiving and the Charles Stewart Mott Foundation. The publication’s content is solely the responsibility of the Legal Development Network.

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