MPs Yaroslav Sukhy (Regions Party faction) and Kateryna Lukyanova (Our Ukraine-People's Self-Defense faction) have proposed to introduce different income tax rates for individuals aged over 30 years old.
A relevant bill No. 10112 on amendments to Article 167 of the Tax Code of Ukraine regarding the revision of the individual income tax rate was registered in the Verkhovna Rada, Ukraine’s parliament, on Feb. 23, 2012.
The bill proposes supplementing the first item of Article 167 of the Tax Code with a clause under which the individual income tax rate will be 17% for childless 30-year-old taxpayers regardless of the general sum of their income per fiscal month.
If a taxpayer has three or four children, the youngest of whom is three years old, the income tax rate will be 10% for them. The income tax rate will be 5% for taxpayers that have five or more children, the youngest of whom is three years old.
Exclusions will be made for disabled persons of the first, second, and third groups. The bill also suggests restricting the effect of the proposed amendments on taxpayers that are deprived of parental rights; for taxpayers that evade alimony; and for taxpayers that refuse to take up extra expenditures on children under Article 185 of the Family Code of Ukraine.
Today the individual income tax rate is 15%. Taxpayers whose income exceeds ten minimum wages as envisaged by the law as of Jan. 1 of the fiscal year have to pay individual income tax of 17%.
For some 50 years before the collapse of the former Soviet Union there was a system of extra taxation of bachelors, single and childless citizens.
