Measures to support business entities

Extracts for legal literacy News

On March 9, 2022, the Decree of the Head of the Donetsk People’s Republic No. 57 “On measures to support business entities” came into force.

Clause 1 of this Decree, for all business entities, regardless of the organizational and legal form, establishes a benefit for the application of legislation on a single contribution for obligatory state social insurance (hereinafter a single contribution). The amount of the single contribution is 0 percent of the amount of:

– accrued salaries;

– wages by types of payments, including basic and additional wages;

– incentive and compensation payments, including in-kind, which are determined in accordance with the legislation on wages;

– temporary disability benefits;

– benefits for pregnancy and for giving birth;

– other remuneration accrued in favour of individuals within the framework of labour relations and (or) civil law contracts, the subject of which is the performance of work, the provision of services, including for the performance of work under work contracts, assignments and commissions.

At the same time, the Pension Fund of the Donetsk People’s Republic was instructed, when assigning (recalculating) pensions, to take into account wages and count the length of service for the period of work of insured persons with business entities, regardless of the payment of the single contribution.

This benefit applies to the amounts of liabilities that are subject to accrual for March 2022.

It should be noted that according to the Decree, a number of relevant departments were instructed to make appropriate payments and calculation, regardless of the payment of a single contribution.

In addition, according to paragraph 6 of the Decree, until 30.06.2022, a ban for state supervision and control bodies is established, including revenue and duties authorities, customs authorities, to appoint and conduct inspections (including those initiated), control and verification activities, as well as inspections of compliance by licensees with license conditions, with the exception of:

– inspections during the liquidation (reorganization) of a taxpayer;

– measures aimed at identifying property that has signs of ownerless;

– unscheduled inspections carried out at the initiative of a business entity;

– inspections, the basis for which is the infliction of harm to the life and health of citizens, the occurrence of natural and man-made emergencies;

– inspections of pricing;

– inspections carried out on behalf of the Head of the Donetsk People’s Republic.

Also, paragraph 7 of the Decree establishes a deadline for:

payment of taxes and fees (except for excise tax),

– deferred (instalment) payments,

– penalty (financial sanctions),

payable in February-March 2022, no later than April 30, 2022.