Finance Ministry proposes retaining simplified taxation system for individuals only
Ukraine's Ministry of Finance has proposed retaining the simplified taxation system for individual entrepreneurs only.
Co-founder of NGO national civic platform New Country (Nova Krayina) Valeriy Pekar wrote on his Facebook page that the issue was discussed at a meeting of the National Reforms Council.
He said that if Group I is retained and converted into Group A (retaining the annual turnover ceiling), the innovation will be the merger of Groups II and III into Group B with a ceiling turnover of UAH 2 million and a tax rate of 20% of the difference between revenues and expenditures. At the same time, it will be permitted to not keep records and write off 80% of revenue for costs, or keep records of expenditures and to pay less.
Pekar also said that Group IV, including farmers, will be transformed into Group B, which will also receive a ceiling turnover of UAH 2 million, which means 15% of the largest farms will not be able to work under the simplified system.
During a meeting of the National Reforms Council, Finance Minister Natalie Jaresko saidthat the new system, in her view, levels the fairness of taxation for hired employees and self-employed persons.