14:52 09.12.2014

Cabinet initiates tax compromise with next general declaration of income

2 min read
Cabinet initiates tax compromise with next general declaration of income

The Ukrainian government will propose that the Ukrainian parliament will pass the law on tax compromise foreseeing the submission of a zero tax declaration, with the next general declaration of income, Ukrainian Prime Minister Arseniy Yatseniuk has said.

"We all fill in declarations and all pay taxes," he said, opening a cabinet meeting in Kyiv on Tuesday, presenting the government's program.

The premier added that the government also initiates additional responsibility for the payment of back door salaries and cash turnover in the shadows, which will allow fighting corruption effectively.

Yatseniuk said that the present unfair tax system forces businessmen to pay back door salaries, in particular, in Kyiv 40% of salaries in the private sector are lower than the subsistence level of UAH 1,218 per month.

"Our goal is to reduce the single social fee from 41% gradually to 15%," the premier said, first mentioning the phasing of this reduction. He said that the first phase is being disused with international financial partners of Ukraine.

"We’re sure that in two year this will give the real increase in budget revenues and incomes of citizens," he said.

He added that in small and medium-sized businesses it is planned to halve the single tax and give two years without checks.

Yatseniuk stated that it is planned to cut the number of taxes from 22 to nine thanks to the liquidation of some of them and thanks to the merger of the taxes.

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