The Ministry of Finance and the IMF are developing a transition to the Polish model of small business taxation for Ukraine

The Ministry of Finance and the IMF are developing a transition to the Polish model of small business taxation for Ukraine

Ukraine is considering the possibility of introducing the Polish model of taxation of individual entrepreneurs.

About this told head of the committee of the Verkhovna Rada of Ukraine on finance, tax and customs policy of the Verkhovna Rada, Danylo Hetmantsev, in an interview with Novina.Live.

“We often hear from businesses and experts proposals to introduce taxation, as in Europe. After studying the examples of several countries, we took the Polish model, which is the closest to us, as a model. Now we are considering the possibility of its implementation in Ukraine,” Hetmantsev noted.

He clarified that the Ministry of Finance is working on this issue.

“Now, the Ministry of Finance of Ukraine, together with the International Monetary Fund, is considering a taxation model that would be civilized, simple, transparent, understandable and would provide an opportunity to support small businesses, and not turn a blind eye to how large enterprises play with taxes,” Hetmantsev said.

According to him, the Polish model of taxation of FOPs, firstly, provides for a higher limit for operations – 2 million euros, while in Ukraine the limit is 7.8 million hryvnias.

In addition, different types of activities are subject to different tax rates. For example, trade is taxed at 3%. Production is taxed low. And service taxes range from 12% to 20%.

“First of all, we are talking about the fairness of taxation. Our task is to distinguish small business from medium and large. This is now the main problem of the single tax and the small business taxation system,” Hetmantsev noted.

“In no case can it be done so that a large and super-large business is artificially transformed into a “small” one through schemes,” he added.

According to Hetmantsev, the problem is that the single tax system in Ukraine has turned from a small business support tool into a tax evasion system for large and medium-sized businesses.

“For example, I recommend visiting the “Stolichnyi” market. The assortment is gorgeous. Huge pavilions. The computers through which goods are sold are state-of-the-art and probably very expensive. And how many of them issue a check? None! Because it is most likely contraband. It is a big and medium-sized businesses. This is not a small business,” explained the head of the tax committee.

“This is the problem of taxation with a single tax – the impossibility of distinguishing large and medium-sized businesses from small ones, when a large business mimics a small one,” he emphasized.

We remind you:

Non-profit organizations of the third group pay 3% or 5% of income (single tax) and UAH 1,430 (22% of the monthly minimum wage) in the form of a single social contribution every quarter.

18% of personal income tax, 1.5% of income for military service is withheld from the salary of employees every month, and the employer must also pay 22% of the accrued salary to the budget of the Social Security Administration.

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