In connection with the full-scale invasion of the troops of the Russian Federation, a significant number of Ukrainian citizens were mobilized into the Armed Forces of Ukraine, including many entrepreneurs (individual entrepreneurs, FOP). Some of the military personnel continued to engage in their entrepreneurial activities, including those employees who can work remotely when they have free time from military service.

The issue of the possibility of servicemen of the Armed Forces to carry out entrepreneurial activities in parallel with service is regulated by legislation.

According to Part 3 of Article 39 "On Military Duty and Military Service", citizens of Ukraine who are called up for fixed-term military service, military service by conscription during mobilization or for a special period, or accepted for military service under a contract during a crisis situation , which threatens national security, are not required to cease their activities as individual entrepreneurs (FOP). However, in the event that they do not carry out entrepreneurial activities during the period of mobilization, they are not subject to taxation and payment of taxes and fees that normally exist for FOP.

Therefore, this law does not contain a ban on military personnel performing their work duties, including the remote work regime. Moreover, there is a separate norm that applies to mobilized FOPs and does not prohibit them from engaging in entrepreneurial activities.

However, it should be taken into account that the anti-corruption legislation of Ukraine, in particular the Law "On Prevention of Corruption", restricts some categories of officials, including military personnel of the Armed Forces, in the issue of joint employment and the prohibition of holding other paid positions. There are certain exceptions, for example, for conscripts, cadets of military educational institutions, etc.

Who exactly are considered military officials of the Armed Forces of Ukraine?

According to Part 12 of Article 6 of the Law of Ukraine "On Military Duty and Military Service", military officials are military personnel who hold full-time positions related to organizational-administrative or administrative-economic duties, or who have special powers to perform such duties in accordance with the law.

It should be noted that the distinction between organizational and managerial and administrative and economic responsibilities is carried out as follows, according to the explanations of the National Agency for the Prevention of Corruption (NACP):

Administrative and economic functions (duties) include the duties of managing or disposing of state or communal property, including establishing the procedure for its storage, processing, implementation and control over these operations. Heads of planning and economic, supply, financial departments and services, heads of warehouses, stores, workshops, studios, their deputies, as well as heads of enterprise departments, departmental auditors and controllers, etc., can have these powers.

Organizational and administrative functions (duties) include responsibilities for the management of the industry, the labor team, the work area, the production activities of individual employees at enterprises, institutions or organizations, regardless of the form of ownership. Such functions are performed, for example, by heads of ministries, other central bodies of executive power, state and communal enterprises, institutions, organizations, structural units, their deputies, as well as persons who manage individual areas of work.

Therefore, if a serviceman holds a military position that includes administrative-economic or organizational-administrative duties (for example, a company commander or deputy company commander), then his entrepreneurial activity will violate the law and may lead to administrative liability, including a fine and confiscation of received income.

Unfortunately, the current legislation does not contain an exhaustive list of military posts that allow you to engage in entrepreneurial activities, which can lead to the absence of clear criteria and contribute to the selective application of the offense.

If you need to analyze your particular case or have a specific situation, it is better to contact a military lawyer.

Regarding the payment of taxes by natural persons-entrepreneurs mobilized to the Armed Forces of Ukraine, in accordance with Part 3 of Art. 39 of the Law "On Military Obligation and Military Service", the state registration of the business activity of an individual entrepreneur during the time of conscription does not stop.

In accordance with clause 9-2. of the final and transitional provisions of 3V "On collection and accounting of a single contribution to mandatory state social insurance", during the special period defined by the Law of Ukraine "On mobilization training and mobilization", payers of the single contribution. defined by Article 4 3a of the Law of Ukraine "On Collection and Accounting of a Single Contribution to Mandatory State Social Insurance", pr.

called up for military service during mobilization or involved in the performance of responsibilities for mobilization in positions provided for by wartime states, for the entire period of their military service are released from the performance of their duties, defined by paragraph 2 of Article 6 of the Law of the Country "On Collection and accounting for a single contribution to mandatory state social insurance" if they are not employers.

The basis for such exemption is the statement of a natural person - an entrepreneur and a copy of a military ticket or a copy of another document issued by a relevant state body, indicating the data on the conscription of such a person for military service during mobilization, for a special period, which are submitted to the tax authority by a natural person - an entrepreneur within 10 days after demobilization.

If a demobilized natural person - an entrepreneur is undergoing treatment (rehabilitation) in connection with the performance of duties during mobilization, an application and a copy of a military ID card or a copy of another document issued by the relevant state body shall be submitted within 10 days after the end of treatment (rehabilitation) .

According to Clause 25 of Subsection 10 of Chapter XX of the Tax Code of Ukraine, self-employed persons (individuals - entrepreneurs, persons engaged in independent professional activity), who had or did not have employees, called up for military service during mobilization or involved in the performance of mobilization duties in positions provided for by the states during wartime, during the special period defined by the Law of Ukraine "On Mobilization Training and Mobilization", for the entire period of their military service, are exempted from the obligation to calculate, pay and submit tax returns on personal income tax in accordance with Section IV of this Code, and are also exempted from the obligation to calculate, pay and submit tax reporting on the single tax in accordance with Chapter I, Section XIV of this Code.

The basis for such exemption is the application of a self-employed person and a copy of a military ticket or a copy of another document issued by a relevant state body, indicating data on the conscription of such a person for military service during mobilization, for a special period, which are submitted to the revenue and tax authority for at the place of tax registration of a self-employed person within 10 days after his demobilization.

If a demobilized self-employed person is undergoing treatment (rehabilitation) in connection with 3 performance of duties during mobilization, for a special period, an application and a copy of a military ticket or a copy of another document. issued by the relevant state body, are submitted within 10 days after the end of her treatment (rehabilitation).

Therefore, in the event that the taxpayer does not have the opportunity to fulfill his tax obligation in a timely manner, he is released from responsibility 3 by the mandatory fulfillment of such obligations after the termination or cancellation of martial law in Ukraine.

Thus, the majority of mobilized natural persons-entrepreneurs are not prohibited from carrying out activities, and preferential conditions have been created for carrying out such activities.