Photo from UNIAN
Ukraine's Cabinet of Ministers has proposed to establish a single 20% tax on wages by 2018, Ukrainian Prime Minister Arseniy Yatsenyuk said on Sunday during the "10 minutes with Prime Minister" TV show, according to the Government portal.
"As of today, there is an incredibly high tax burden on wages, which is the cause of the shadow salaries. The government's goal is to introduce a fair system of taxation of wages," he said.
"We propose to establish a single 20% tax on wages starting 2018. We offer to reduce a single social contribution from 41% to 20% during the transition period, as well as abolish the [current] payroll tax in the amount of 3.6%," Yatsenyuk said.
According to him, before the introduction of a single tax on wages, the tax rate on personal income will be set at 20%.
Read alsoUkraine to abolish VAT benefitsIn order to protect the most vulnerable social groups, the government offers to impose no tax on the minimum wage.
As UNIAN reported earlier, the Ministry of Finance proposes to imorove tax administration as part of the tax reform. Among other things, it was offered to combine a single social contribution and tax on personal income, being aware that the losses of the state budget from uncollected royalties will amount to at least UAH 23.3 billion, and the budget deficit of the Pension Fund will amount to at least UAH 70 billion.