A bone for small business
The Cabinet of Ministers last week submitted to the parliament amendments to the Tax Code regulating working on a flat-rate tax. If passed, the new rules for flat-rate taxpayers will take effect on July 1, according to KyivWeekly.
The income ceiling for the payers of the flat-rate tax was raised as physical persons that do not pay regular wages to employees, trade on commodities markets or render private services and have a turnover of UAH 144,000 annually (150 minimum wages) will pay UAH 9.60 – 96 in taxes (1 – 10% of the minimum wage) not taking into account a fixed social payment.
The flat-rate tax set by local councils will remain the same. The aforementioned category of entrepreneurs will be granted the right to file in financial statements once a year, while those in other categories will have to pay this tax on a quarterly basis.
Entrepreneurs with a turnover of UAH 960,000 (1,000 minimum wages and up to 10 employees) will be imposed a fixed tax of UAH 19.20–192 (2–20% of the minimum wage), while those companies with a turnover of UAH 1.92 mn a year (2,000 minimum wages and employing up to 10 workers) will have to pay 3% of their turnover including VAT and 5% not including VAT.
Among other things, the legislation will open a window of opportunity for large companies to minimize corporate taxes, KW wrote in an article.