The Ukrainian parliament has passed at first reading a government's draft law No. 8521 on amendments to the Ukrainian Tax Code and some other Ukrainian laws (on the single tax system and registration of reports of small businessmen).
A total of 258 lawmakers supported the law on Thursday.
As reported, draft law No. 8521 proposes that individual businessmen paying the single tax are to be divided into three categories depending on the hiring of workers and their income.
The government proposes to peg the single tax to the level of the minimum wage and oblige the payers of the single tax to register as VAT payers if services are rendered to VAT payers.
The first category would include persons who do not have hired employees and whose income does not exceed 150 minimum wages (around UAH 150,000). The tax rate for the said companies is set within the 1-10% of the minimum wage (UAH 10-100).
The second category is persons who hire no more than ten employees and whose income does not exceed 1,000 minimum wages (around UAH 1 million). The tax rate is 2-20% of the minimum wage (UAH 20-200).
The tax rate for the third category is set at 3% of income if VAT is paid or 5% of income if VAT is not paid.
The president’s decree on the single tax system No. 727/98 of July 3, 1998 is to be in effect until amendments to the Tax Code that took effect from January 1, 2011 are made.
In addition, from April 1, 2011, Section Three of the Tax Code introduced a ban on considering the purchase of goods from single taxpayers as gross expenses and instead to tax them under the tax on profit.
